Banking: Verrill Dana Helps Bank Respond to Check Kiting Scheme

Every year, it gets harder to run a bank and stay in compliance with ever changing banking rules. This complex job gets even harder when banks are confronted with the unexpected and must respond rapidly, but in compliance with the law. But when these crises happen, Verrill Dana is ready to help.

In 2011, one local bank learned that a business customer with both loans and deposit accounts had been engaging in a growing check kiting scheme, and the bank sought our advice as part of their response. Verrill Dana quickly pulled together a team experienced in corporate lending, bankruptcy, and bank security laws, and advised the bank regarding necessary notices to law enforcement and necessary steps to secure the funds and the collateral. Months later, Verrill Dana advised the bank on privacy laws and criminal investigation rules when law enforcement officials issued subpoenas as part of their investigation into the kiting scheme. With the right advice, the Bank was able to maximize their retention of assets, and remain compliant with the law.