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#166853 - 03/05/04 05:46 PM employee kiting
HubbaBubba Gold Star Joined: Sep 2002 Posts: 311	We suspect an employee of kiting with at least two other banks. First, I have never had to investigate this type of situation before and NEED ANY HELP/ADVICE. Second, does anyone have a type of "spreadsheet" or something that would make the tracking of deposits/checkwriting simpler other than sitting down and figuring out what money went where to cover what?? Thanks for any help!!!
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General Discussion

#166854 - 03/05/04 07:41 PM Re: employee kiting
Paragon Diamond Poster Joined: Dec 2003 Posts: 2,164	First, you should have a system generated kiting report and assuming that the employee in question shows up on that report, have a discussion with him/her about the situation. There is really no need to create a spread sheet as current activity will indicate whether or not uncollected funds are being used to fund other transactions. At this point, make sure that a hold is placed on the activity at your end and get the whole situation out in the open to see if it's just an unusual set of circumstances or an intentional uncollected funds kite.
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#166855 - 03/05/04 07:42 PM Re: employee kiting
deppfan Power Poster Joined: Dec 2000 Posts: 5,184 All over the map.	If it really is a kite, get out your SAR also. _________________________ On the road again.....I just can't wait to get on the road again.
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#166856 - 03/05/04 07:43 PM Re: employee kiting
Pale Rider 10K Club Joined: Aug 2002 Posts: 34,318 under the Lone Star	Our employee accounts are "free" to our employees. Employees are expected to handle their affairs without the appearance of a conflict. This employee needs to be confronted with the evidence and the account closed. I can't help you with the presentation of the evidence. My evidence would be T-accounts on a piece of paper, I am not high tech. _________________________ Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.
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#166857 - 03/05/04 07:53 PM Re: employee kiting
John Burnett 10K Club Joined: Oct 2000 Posts: 40,086 Cape Cod	Quote: If it really is a kite, get out your SAR also. Don't forget that with employee involvement, the SAR trigger drops to $0. _________________________ John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#166858 - 03/05/04 10:29 PM Re: employee kiting
Jokerman 10K Club Joined: Nov 2003 Posts: 12,846	Quote: First, you should have a system generated kiting report and assuming that the employee in question shows up on that report, have a discussion with him/her about the situation. You would agree that you still need to review that activity, though, wouldn't you? I haven't seen a system-generated kiting suspect report yet that doesn't have a majority of false positives.
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#166859 - 03/08/04 03:45 PM Re: employee kiting
LoisLane Diamond Poster Joined: Oct 2001 Posts: 1,570 Wisteria Lane..	When meeting with the suspected employee, some banks use this method: Make copies of the deposit tickets and the check(s) drawn against each deposit of uncollected funds. Display these copies on a desk or table and ask the employee to explain.... _________________________ And where is Superman when I need him?
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#166860 - 03/08/04 04:20 PM Re: employee kiting
MidwestCFE Platinum Poster Joined: Jan 2003 Posts: 525 wish it was the Smoky Mountain...	Most banks I know of, including ours, terminate the employee for kiting..It is an ethical issue as well as a bonding issue..So check with your bonding company regarding when employees commit a crime, especially a financial crime.. _________________________ My opinions...you get what you paid for..
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#166861 - 03/08/04 04:39 PM Re: employee kiting
Paragon Diamond Poster Joined: Dec 2003 Posts: 2,164	Quote: Quote: First, you should have a system generated kiting report and assuming that the employee in question shows up on that report, have a discussion with him/her about the situation. You would agree that you still need to review that activity, though, wouldn't you? I haven't seen a system-generated kiting suspect report yet that doesn't have a majority of false positives. Yes, current activity should be reviewed to establish sum sort of pattern to discuss and, as you noted, some kiting reports are better than others.
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