What can I expect - Bank internal investigation

[ohoh]

Just found this forum and wanted to see everyone's thoughts.......Long story short.
My wife had a business and checking account in California. On Monday, we found out the accounts were frozen because of "check kiting", which is not true (but that is another story). Anyways the bank will not going to listen to our side of the story and are still investigating for illegal activities. Here is when it gets interesting. Five years ago, I have a vey good friend that went back to his homecountry. Prior to leaving, he gave me his SS# and personal info and told me to use it if I need any additional money (I just filed BK then). Two years ago I got laid off and lost my six figure income. Things have been difficult. I recently open 6 credit catds in th past two years under my friends name. Fast forward......Two months ago, I deposit a convience check from my friend's CC into my wife business checking account. Today I called to see the available credit on the card and was told to bring ID and Passport and SS# to the bank. Here are a few questions I have.

1) It is obvious the bank has contacted the credit card company and put a red flag on the credit card account. I am not going to go and give them any ID....what will happen? The Credit Card account has never been late or abused. Is the CC company going to the police for investigation?

2) The checking accounts are in my wife's name. She is a model citizen, who did not sign any of the checks or deposit the convience check in the bank. Are the police going to go after her.

3) If I pay the checking account (if there is a negative balance which), will the investigation end? I still have not heard from anyone. Other than the checking accounts are closed.

4) How long will I have to wait should the police comes knocking.

5) What charges are we looking at? (6 Credit Cards, and two car loans) He will come and testify that he gave permission to me.

I have done something I am not proud of. I will stop immediately and put the cars for sale. There was no intention to not pay for the credit cards. They are current and always paid on time.

Thanks so much!!!!!!!!!

 

[CdwJava]

1) It is obvious the bank has contacted the credit card company and put a red flag on the credit card account. I am not going to go and give them any ID....what will happen? The Credit Card account has never been late or abused. Is the CC company going to the police for investigation?

It sounds like you might be in BIG trouble! You have described what is likely to be multiple felonies.

If I were in your shoes (though I would never fraudulently create six credit accounts) I would consult an attorney before speaking to any bank employee.

2) The checking accounts are in my wife's name. She is a model citizen, who did not sign any of the checks or deposit the convience check in the bank. Are the police going to go after her.

If she knew about the activities, and if there is any way to tie her to criminal activity, sure. If she was oblivious to what was going on and can convince the cops of that, she might be okay (i.e. she had no idea you were using falsified accounts and did not profit from these accounts).

3) If I pay the checking account (if there is a negative balance which), will the investigation end? I still have not heard from anyone. Other than the checking accounts are closed.

Maybe. If the bank is out money and all they want is there money, then it might end. However, paying it off is no guarantee that you will not get prosecuted. The police and the DA are not necessarily going to care that you paid it off after getting caught with your hand in the cookie jar.

4) How long will I have to wait should the police comes knocking.

They have three years to bring you to trial. Realistically they could be knocking at your door within days of any initial report.

5) What charges are we looking at? (6 Credit Cards, and two car loans) He will come and testify that he gave permission to me.

8 felonies ... I'm not going to bother looking up the specific sections, but suffice it to say that you cannot obtain credit in someone else's name. If HE set it up for your use, then maybe ... but, he didn't. Depending on the details, this can go a number of ways and they all equal felonies.

Consult local counsel immediately.


- Carl