Getting loans.. (WAY off topic)

[Peter D. Hipson]

Open an account at bank A, with $100. Go to bank B, open an account, with
$100. Go to bank C, open an account with $100. 

Basically, (In the real world, it is a bit more complex, with a trust
building period)

write a check on A, for $75, deposite in B.
immediately before the first check clears,
write a check on B, for $175, deposit in C.
immediately before the first check clears,
write a check on C, for $275, deposit in A,
immediately before the first check clears,
write a check on A, for $375, deposite in B.
immediately before the first check clears,
write a check on B, for $475, deposit in C.
immediately before the first check clears,
write a check on C, for $575, deposit in A

since none of the checks have cleared, each account will have many
deposits, and no withdraws. Finally write a check on each account for about
95% of the balance and quick as  a bunny, cash the check.

Federal offense for check kiting, state offense for bad checks, probably a
fraud charge in there too. 


At 09:49 AM 5/28/99 -0700, you wrote:
>Borrowing money on borrowed money is not a federal offense man, but I
>may just be TOTALLY ignorant of most things...meaning that I don't know
>EVERYTHHING, hardly anything matter of fact...
>
>So, what's Check Kiting?
>
>Thanks!
>
>Todd....!!
>
>Peter D. Hipson wrote:
>> 
>> Careful, that's very close to check kiting... A federal offence, btw. <g>
>> 
>> At 12:37 PM 5/27/99 -0700, you wrote:
>> >
>> >> Will be goin out and gettin loans using this $3,000 as my collateral in
>> >> several banks in series, i.e. deposit the $3000 in one bank, get a loan
>> >> using it as collateral, take the loan money from the first bank, deposit
>> >> it into another bank, get a loan on that money etc....
>> >>
>> >> Then mak 2 or 3 payments on each 'loan' over a 6 week period using the
>> >> $3,000 'loan' money for payment money, then go back within about 6 weeks
>> >> or so and pay all of em off, then ask for a signature loan from each
>> >> bank for about the same amount...(signature meaning NO COLLATERAL!) and
>> >> do the same thing with that signature loan money... This will build
>> >> credit with the bank(s) as well as a relationship with em...
>> >
>> >Wow!   I'm looking into buying some land.  If the loan officers in
>> >Houston are this stupid, maybe I should get a loan there.
>> >
>> >
>> >
>> Thanks,
>>         Peter Hipson (founder, NEHOG)
>>         1995 White NA Hummer Wagon
>
>
>
>
Thanks, 
        Peter Hipson (founder, NEHOG)
        1995 White NA Hummer Wagon