Several of you have asked me to explain
the crime of check kiting. There are, as you might imagine, many
examples. Instead of defining it here, please find an excellent
article at bankersonline.com
which will illustrate the crime and it's consequences.
In the email below, former alderman Jim
Buffington explains to his constituents what happened in the
Antwinette Spratt case and what steps were taken.
This matter is still under investigation
by the Office of the Mississippi State Auditor.
_______________________________
--Forwarded Message Attachment--
Date: Sat, 27 Oct 2007 06:24:01 -0700
From: jim@jimbuffington.com
Subject: Check Kiting in Aberdeen Electric Department
To: jim@jimbuffington.com
You may have heard about the problem in the Aberdeen
Electric Department. Here are the facts:
Dale Pierce, our CPA, reported to the Board of
Aldermen on October 2nd that his routine audit of the
electric department revealed that Antoinette (I can't
spell her first name correctly) Spratt had kited
checks totaling over $67,000 during July, August and
September 2007, resulting in a net loss to the city of
about $3,300.
Dale indicated that her parents covered the
approximately $3,300 and Antoinette (sic)was
suspended until October 16th, with pay (to allow time
for all checks to clear, etc.) by the board.
Dale gave his final report to the board on October
16th and concluded by suggesting that Antoinette (sic)
be terminated. Either Brunson Odom or I entered a
motion to terminate and the other seconded it. The
three remaining board members voted against
termination. Cloyd Garth then entered a motion,
seconded by either Sykes or Cook, that Antoinette
(sic) be suspended for ten days without pay as
punishment. Brunson and I voted 'nay' to that motion.
Earlier this week, both Brunson and I contacted the
State Department of Audit and requested that they
investigate and/or audit the electric department.
I intend to pursue this matter to see that guilty
party(ties) are brought to justice.
If you have questions, feel free to contact me.
Jim Buffington
Alderman, Ward 5