skip navigation

PUBLICATIONS

Register for Latest Research

Stay Informed
Register with NCJRS to receive NCJRS's biweekly e-newsletter JUSTINFO and additional periodic emails from NCJRS and the NCJRS federal sponsors that highlight the latest research published or sponsored by the Office of Justice Programs.

NCJRS Abstract

The document referenced below is part of the NCJRS Virtual Library collection. To conduct further searches of the collection, visit the Virtual Library. See the Obtain Documents page for direction on how to access resources online, via mail, through interlibrary loans, or in a local library.

 

NCJ Number: 65866 Find in a Library
Title: STAGES OF A 'RESPECTABLE' BUSINESSMAN, KITING, EXCHANGE BILLS AND CHECKS, ARSON
Journal: KRIMINALISTIK  Volume:31  Issue:6  Dated:(1977)  Pages:259-267
Author(s): A HOFFMANN; E ZEISKE
Corporate Author: Kriminalistik Verlag Gmbh
Germany (Unified)
Date Published: 1977
Page Count: 9
Sponsoring Agency: Kriminalistik Verlag Gmbh
6900 Heidelburg 1, Germany
Type: Report (Study/Research)
Format: Article
Language: German
Country: West Germany (Former)
Annotation: THE CASE OF A SO-CALLED 'RESPECTABLE' BUSINESSMAN WHO BROUGHT HIS COMPANY TO THE BRINK OF FINANCIAL RUIN BY SUCH ILLEGAL PRACTICES AS EXCHANGE BILL AND CHECK KITING AND ARSON ILLUSTRATES ECONOMIC CRIME'S RISKS.
Abstract: THE OWNER OF A LUMBER BUSINESS WHO CONTINUED TO LIVE BEYOND HIS MEANS DESPITE FINANCIAL REVERSES CONDUCTED HIS BUSINESS FOR YEARS ON TWO LEVELS: AUTHENTIC TRADE (ABOUT 2 MILLION MARKS) AND A FICTICIOUS BUSINESS FACADE MAINTAINED BY CHECK AND EXCHANGE BILL KITING GETTING MONEY OR CREDIT BY A FRAUDULENT CHECK). THE IRREGULARITIES IN HIS FINANCIAL DEALINGS BEGAN WHEN THE COMPANY WAS UNABLE TO MEET ITS OBLIGATIONS AND OVERDREW ITS BANK ACCOUNTS. WITH THE ASSISTANCE FIRST OF HIS BUSINESS PARTNER AND LATER OF 10 ACCOMPLICES, THE YOUNG, AMBITIOUS BUSINESSMAN WAS ABLE TO GIVE THE APPEARANCE (BY KITING EXCHANGE BILLS) THAT MONEY WAS CHANGING HANDS FOR GOODS SUPPLIED. THE EXTREMELY COMPETITIVE BANKING SITUATION WORKED IN HIS FAVOR, SO THAT HE WAS ABLE TO OBTAIN UNSECURED CREDIT BY PLAYING THE BANKS OFF AGAINST ONE ANOTHER AND BY PRAISING HIS 'UNIMPEACHABLE' CREDIT STANDING IN BOGUS TELEGRAMS. HE EXPANDED TO CHECK KITING WHEN THE FICTICIOUS VOLUME OF BUSINESS BECAME TOO LARGE TO MAKE THE EXCHANGE BILL CLAIMS PLAUSIBLE, USING A COMPANY BRANCH AND ITS BRANCH IN A NEIGHBORING TOWN AS HIS 'PARTNER.' THIS OPTION WAS EXHAUSTED WHEN THE BUSINESSMAN OVERDREW HIS VARIOUS BANK ACCOUNTS BY 3.3 MILLION MARKS WITH 20 KITED CHECKS. NEVERTHELESS, THE BANKRUPTCY OF HIS FIRM WAS AVERTED BY CLEVER LEGAL MANIPULATIONS, AND THE BUSINESSMAN REMAINED UNENCUMBERED BY GUILT FEELINGS OR REMORSE. LACKING FURTHER ACCESS TO BANK FUNDS ON A LARGE SCALE, THE BUSINESSMAN RESORTED TO ARSON, BOTH OF LUMBER SUPPLIES AND BUILDINGS, TO OBTAIN INSURANCE COMPENSATION. WHEN A CRIMINAL INVESTIGATION OF HIS ACTIVITIES WAS FINALLY MOUNTED, THE COMPANY'S FINANCES COLLAPSED, BUT BANKRUPTCY WAS ONCE AGAIN AVOIDED BY LEGAL MANIPULATIONS. ALTHOUGH HIS PARTNER IN EXCHANGE BILL FRAUD WENT BANKRUPT AND WAS PROSECUTED, THE BUSINESSMAN CONTINUED TO ENJOY FREEDOM AND TO CLAIM THE HEALTH OF HIS FIRM. --IN GERMAN. (KMD)
Index Term(s): Arson; Case studies; Check fraud; Financial institutions; Germany; Insurance fraud; White collar crime
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=65866

*A link to the full-text document is provided whenever possible. For documents not available online, a link to the publisher's website is provided. Tell us how you use the NCJRS Library and Abstracts Database - send us your feedback.