In the State of Ohio if you write a personal or business check over $1,000 but below $2500 that you know is (a) not going to go through due to insufficient funds or (b) have written knowing that following receipt of goods or services you are going to cancel the check through your bank, you may be guilty of a fraud felony in the 5th degree. The recipient of the check may be able to recover up to 3 times the face value of the check, plus all court costs, attorney fees and bank fees. Oh, and then there are the criminal penalties.
A word of advice, don't tell your employees "just pay them, we will cancel the check later" and expect to get away with it.
......In case you didn't know......
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
WHOA! I should look into this for AZ....those are some tough penalties!
SK
Oh the things you have to deal with ... And here I am trying to break into the same niche! What am I thinking?
- James
Rich,
I can't believe anyone would think it's OK to do that. Takes all kinds.
Fran
No real story. I was just bored out of my mind with nothing to do and decided to read up on check fraud, just in case.
I am going to be bored again later. Maybe I can read up on selling bridges.