Davenport woman sentenced for check kiting scheme

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A Davenport, Iowa woman was sentenced to serve time in prison for writing checks between her personal and business accounts to cover more than $400,000 she didn’t really have.

Prosecutors said 51-year-old Kelly Taylor opened an account at a local credit union for a business she and her husband owned August 28, 2012.  She immediately wrote $430,000 worth of checks on the account, even though there were not sufficient funds in the account to cover the checks.

Prosecutors said she deposited the checks into her personal account, then deposited $430,000 worth of checks from her personal account into her business account several days later.  As with the business account, she did not have sufficient funds to cover the checks.

“Taylor continued to write checks between the business account and her personal account in close succession in order to take advantage of the time required for the bank to process the checks,” said a statement from U.S. Attorney Nicholas Klinefeldt.  “By operating in this manner Taylor was able to make it appear as if there were sufficient
funds in her two accounts to cover large checks and debits despite the fact that the true balances in both accounts were grossly insufficient.”

The scheme continued until Taylor’s accounts were closed in January 2013.

She was sentenced September 12, 2013 to one year and one day in prison for bank fraud.  Taylor was also sentenced to five years of supervised release which will follow her prison term.



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