Trucking executive sentenced to 30 months in $3.6 million check-kiting scheme

By Clarissa Hawes, Land Line staff writer | Friday, September 06, 2013

The chief financial officer of an Ohio-based trucking company has been sentenced to 30 months in prison for his role in a $3.6 million check-kiting scheme.

Mark Michael, 55, of Clearfield, PA., former CFO of Dart Trucking of Columbiana, Ohio, not to be confused with Dart Transit Co. of Eagan, Minn., was sentenced to 30 months in prison. In June, he and another executive at the company, Timothy Kephart, 54, of Morrisdale, Pa., were found guilty on 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

Kephart, former chief executive officer for Dart Trucking, as well as a third executive, Lee W. Stoneburner, 44, of Canfield, Ohio, former president of the trucking company, are still awaiting sentencing. Stoneburner pleaded guilty to conspiring to commit bank fraud.

According to court documents, the trucking company executives 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 from October 2007 to February 2010.

“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.

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