Account monitoring question/help!!! I have been closely monitoring account activity on a C-Store. The store is a registered MSB and in the past the 3rd party checks deposited into the store's account have been the typical payroll, government, personal checks that I normally see on this mom & pop type of business. No real concerns. Recently I have noticed that, in addition to the above checks, there have been a large number of Comcheks, Fleet One, T-System checks issued to one truck service business. The payee, amount and date are all hand written and some (when compared to the endorsement)appear to be written by the payee. Are any of you familar with how these checks are issued? Are they issued blank to truckers and completed when used? Why would he be cashing the checks and not depositing them? tax evasion?

I have not seen one of these personally in many, many years, but back then, these were used by independent, long-haul truckers. Their "jobs" were booked by a broker who also collected their fees. The trucker (or the check-casher) would call for an "authorization" so the trucker could get cash for food, fuel, etc., while "on the road." The broker provides some sort of accounting for the income.

Hope that helps.

Al

Thanks Al. That does help. I do see these checks in the deposits of my truck stops and some C-Stores but they are usually printed (not hand written) and payable to the business that is also depositing the check. I had not seen any that were payable to one business but being deposited by another business.

"I had not seen any that were payable to one business but being deposited by another business."

Huh? They are payable to a different business entity and being cashed at the C-Store?

Randy, that's what is so strange to me. Of course the payee (business) is not our customer and we know nothing about this business- I don't know if it's a corporation, sole proprietorship, etc. I think the risk that this individual is diverting funds from a business is a risk that I am not comfortable with- embezzlement, tax evasion.

OK - let me get this straight.

C-Store XYZ is cashing and then depositing checks made payable to ABC Company? Is ABC Company properly endorsing the checks over to C-Store XYZ?

I would stop this practice immediately. If an employee or other party has stolen these checks or does not have the right to negotiate them on behalf of ABC Company - these could all come back to the bank and you may be left holding the bag.

IMHO - Any bank that does not prohibit an MSB from cashing and then depositing checks made payable to business entities is taking huge risks. Diligent monitoring the types of checks being deposited by your MSBs is paramount to avoiding losses. I know one bank that is current holding their breath on approx $1 million of checks that were negotiated through an MSB customer.

I have a customer, "ABC Trucking", that frequently deposits Comcheks (for deposit only written on the back). All of the checks are made payable to ABC Trucking, are handwritten, and appear to be written by the payee. ABC Trucking tends to deposit several checks on the same day other checks clear their account making me suspicious of check kiting or fraudulent Comchecks. Should I be concerned?

Sounds like you already are concerned otherwise you would not be asking the question. Talking to the customer is the only answer besides deciding to close the account.

Com checks are available at truck stops and are blank forms filled out by truckers for a pre-determined amount. In your case, you would need to obtain an authorization code from Com-Check for the RDC item prior to granting credit on the item. Probably don't want to authorize RDC for this customer.