Other Institutions SAR Narrative Analysis
Of the 14,816 SARs produced for this analysis, only 146 were filed by money services businesses, casinos and card clubs, and securities and futures industries. Therefore, each individual narrative from these industries was evaluated for this analysis.
Money Services Businesses
The search resulted in 70 Suspicious Activity Report by Money Services Business (SAR-MSB) filings. Of those SAR-MSB filings, 50 listed convenience check(s), and 20 listed credit card check(s). No SAR-MSB narratives contained the term ?courtesy check(s).? The total reported value in these SARs was $865,019. Exhibit 4 illustrates the activity by year.5
The SAR-MSB narratives described the presentment of stolen convenience and credit card checks for cashing. The fraudulent activities include:
- Subjects presented stolen convenience and credit card checks in exchange for cash, alleging they had been paid for rendering services. The MSBs attempted to verify this by contacting the owners, who then advised that the checks were stolen. The MSBs contacted authorities. In two instances, the subjects were arrested.
- The subject presented a stolen credit card check, alleging that it was payment for the sale of a vehicle. Upon request for a copy of the bill of sale, the subject terminated the transaction.
Casinos and Card Clubs
A search of the financial database revealed only seven Suspicious Activity Report by Casinos and Card Clubs (SAR-C) filings with narratives containing ?convenience check(s),? ?credit card check(s)? or ?courtesy check(s).?
Securities and Futures Industries
There were 69 Suspicious Activity Report by Securities and Futures Industries (SAR-SF) filings identified. Of those SAR-SF filings, 33 listed convenience check(s), 33 listed credit card check(s), and 3 listed courtesy check(s). The total reported value in these SARs was $14,632,261. Exhibit 5 illustrates the activity by year.
Activities reported include:
- Subjects presented third party credit card checks to deposit in their brokerage accounts. The funds were credited to their accounts. The subjects purchased stock, and then sold the stock for financial gain. The checks were later returned for insufficient funds or were reported as stolen. The brokerage company sustained financial loss.
- Subject(s) presented third party checks for deposit into their brokerage accounts. The checks cleared and funds were credited to their account. The deposited funds were debited by checks written on the account, wire transfers, and credit card purchases. The checks were later returned for insufficient funds or reported as stolen. The brokerage company sustained financial loss.
- Accounts opened using stolen credit cards, convenience, or courtesy checks that were later returned for insufficient funds or reported as stolen.
5 For MSBs other than currency dealers or exchangers, the rule that requires the filing of SAR-MSBs applies to transactions occurring after December 31, 2001. However, no activity was reported in 2002.
Excerpted from SAR Activity Review Issue 12, page 10
First published on 10/01/2007