- 7 -7
his account, Irvington Federal would be left holding a number of
dishonored checks.4 Petitioner showed Mr. Ottey a spreadsheet that
detailed petitioner's check-kiting activity and told him that
Commercial & Farmers checks worth approximately $163,000 were going
to bounce.
Several days later, petitioner and Mrs. Taylor executed two
confessed judgment promissory notes totaling $170,000 (one in the
name of M&E, Inc., and one in petitioners' names, each dated July
21, 1988) to repay Irvington Federal for the bounced checks. To
secure the repayment of these notes, petitioners executed mortgages
against their home and two business properties. No evidence was
presented as to petitioners' equity in the properties upon which
the mortgages were given.
Although Mr. Ottey considered the $170,000 to be partial
restitution for the losses incurred by Irvington Federal as a
result of petitioner's check-kiting scheme, petitioners' payments
pursuant to the notes were structured by Mr. Ottey as payments
pursuant to a line of credit. The line of credit statement
4 These checks were drawn on petitioner's Commercial &
Farmers account and deposited into his Irvington Federal account
in order to create a positive balance which petitioner used in
turn to draw checks on his Irvington Federal account. Because
Commercial & Farmers froze petitioner's account, Irvington
Federal could not present the Commercial & Farmers checks, which
were deposited into petitioner's Irvington Federal account, for
payment. Thus, Irvington Federal was left holding worthless
Commercial & Farmers checks which Irvington Federal had already
cleared for payment.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011