Man Convicted in Check Kiting Sceme

arkansasbusiness.com | 3/8/10 | $7 million | suspect:  Alexander Martinez 

The former chief financial officer of Affiliated Foods Southwest Inc. of Little Rock was indicted by a federal grand jury on three counts related to the check-kiting scheme that defrauded U.S. Bank.

 The indictment of Alexander "Lex" Martinez was not a surprise, as federal prosecutors had named him as a co-conspirator last month when Affiliated's former CEO, John R. Mills, waived indictment and pleaded guilty to a single count of check-kiting.

At that time, prosecutors said Mills and Martinez orchestrated a scheme from September 2008 to February 2009 to kite checks from two of the grocery wholesaler's subsidiaries - Convenience Store Supply Inc. and Supermarket Investors Inc. - and deposit them in Affiliated's account at U.S. Bank.

The total value of the kited checks was about $11.5 million, although the actual loss to U.S. Bank is expected to be less than $7 million.

In addition to conspiracy to commit bank fraud and check-kiting, Martinez is also charged with aiding and abetting a false statement to a financial institution by providing phony financial statements to U.S. Bank.

Affiliated Foods was one of the state's largest private companies with annual revenue in excess of $700 million until it filed for bankruptcy last May.

Comments

[JEANNETTEGoodman]

If you are willing to buy real estate, you would have to get the personal loans. Moreover, my mother always uses a short term loan, which is really useful.