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officers of Colonial Bank concluded that petitioner had
engaged in a check-kiting scheme designed to defraud the
bank. Accordingly, on or about August 28, 1989, Colonial
Bank reported the check-kiting scheme to the Office of the
Comptroller of the Currency, the Federal Bureau of
Investigation, and the Office of the U.S. Attorney, using
a Criminal Referral Form (Long Form), prescribed by the
Office of the Comptroller of the Currency. The Criminal
Referral Form describes the scheme, as follows:
Mr. Bradshaw was depositing large items to his
personal account at Colonial National Bank (CNB)
drawn on his Motion, Inc. #013000871 account at
Tarrant Bank of Fort [sic] (TB). Items clearing
on his CNB account were in very similar large
amounts payable to a business in Canada, usually
dated a day or two before deposit at CNB. We
understand that a similar activity was occurring
at TB.
In addition to filing the Criminal Referral Form with
Federal authorities, Colonial Bank filed suit against
petitioner, Motion, Inc., and Tarrant Bank in a Texas court
seeking to recover the amount it had lost as a result of
petitioner's check-kiting scheme. Colonial Bank's petition
included a group of allegations entitled "CLAIM FOR
REIMBURSEMENT", under which the bank alleged that it had
relied upon the four checks drawn by Motion, Inc., in the
aggregate amount of $886,026, that had been deposited into
petitioner's account before it cleared for payment checks
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