Two executives of an Ohio-based trucking company have been found guilty of bank fraud charges in a $3.6 million check-kiting scheme.
Timothy Kephart, 54, of Morrisdale, Pa., and Mark Michael, 55, of Clearfield, Pa., executives for Dart Trucking of Columbiana, Ohio, not to be confused with Dart Transit Company of Eagan, Minn., are awaiting sentencing scheduled for Sept. 4. Both were found guilty on June 6 of one count of conspiracy to commit bank fraud and one count of bank fraud in the U.S. District Court for the Northern District in Cleveland, Ohio.
A third executive, Lee W. Stoneburner, 44, of Canfield, Ohio, former president of Dart Trucking, has already pleaded guilty to conspiring to commit bank fraud and is currently awaiting sentencing.
According to court documents, Kephart, former chief executive officer of Dart Trucking, and Michael, former chief financial officer, participated in an elaborate check-kiting scheme, setting up five accounts and “floating” worthless checks from one bank account to another at Huntington Bank in Columbiana, Ohio.
“The evidence at trial established that it was a complicated daily task to compute the amount of NSF (non-sufficient funds) checks, which had to be written, and to track what accounts had to be ‘covered’ and from which accounts a NSF check could be written to cover a particular account,” according to the U.S. Department of Justice in a statement about the case.