A check kiting scheme costs Upstate banks tens of thousands of dollars before federal agents caught up with the conspirators.
Brennan Catrell Goldsmith, age 29, of Greenville pled guilty Thursday in federal court in Greenville to bank fraud.
Evidence showed that Goldsmith and his co-conspirators would write checks drawn on bank accounts with insufficient funds and deposit the checks into other accounts. They would also insert empty deposit envelopes into ATM machines and key-in a false amount for deposit. The pattern of depositing insufficient funds (“NSF”) checks and false ATM deposits resulted in the books and records of the victim banks showing inflated balances–and it permitted those fake checks to be honored rather than returned unpaid.
Then the conspirators withdrew monies from the banks based on the inflated amounts.
The banks lost over $20,000.00 before this check kiting was discovered. The victimized banks included Banking & Trust Company, the Bank of Travelers Rest, and Regions Bank.
The maximum penalty Goldsmith can get is a $1 million fine and/or imprisonment for 30 years.