Illegally benefiting from float, for example by depositing and drawing checks between accounts at two or more banks.
A scheme to defraud financial institutions by falsely inflating the balances in two or more accounts.
Also known as ballooning, an unethical and fraudulent act in which dual contracts are made, one at the true purchase price and the second at a higher price, with the hope of duping the lender into granting a higher loan.
Generally, it's the action of drawing checks on one account while depositing checks in another account and depending on the float to avoid overdrafts. A common form of embezzlement.
Depositing and drawing checks between accounts at two or more financial institutions and thereby taking advantage of the float: that is, the time it takes the institution of deposit to collect from the paying institution. This is an illegal activity.
Used in of banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank. Also refers to illegally increasing the face value of a check by changing the numbers on the check. In the context of securities, refers to the manipulation and inflation of stock prices.
Writing checks against a bank account with insufficient funds to cover them, hoping that the bank will receive deposits before the checks arrive for clearance.
Drawing a bank check on insufficient funds to take advantage of the lag time (time interval) required for collection. Certainly not ethical, and under some circumstances very illegal
1. The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage. 2. A fraudulent act involving the alteration or issuance of a check or draft with insufficient funds.
The practice of depositing and drawing checks on two or more bank accounts thus taking advantage of the float, which is the time it takes the bank of deposit to collect from the paying bank. Another type is to commit fraud by altering the figures on a check.