Cheque Fraud in GT City

Ex City Manager Tom Schwab and perhaps members in the finance department should be under investigation for Cheque Fraud if nothing else.

Kiting of funds, is illegal. However, most folk who use the float between the time a check is written and when it is cashed to fund a transaction hope and plan on there being funds intime for the transaction to complete. However, in the Case of Ex City Manager Schwab he stated he used CRA Funds to pay for City General Fund Expenditures and had NO INTENTION OF PAYING the CRA back.

This is a form of EMBEZZLEMENT called Paper Hanging. The paper hanger deposits a cheque one time that s/he knows is bad or fictitious into his/her account. When the bank considers the funds available (usually on the next business day), but before the bank is informed the cheque is bad, the paper hanger then withdraws the funds in cash. The offender knows the cheque will bounce, and the resulting account will be in debt, but the offender will abandon the account and take the cash.

Ex City Manager Schwab just had the added advantage of having a CRA and Fiance Department and apparently Attorney John Harpers blind eye and deaf ear to help cover his trail.

Current City Manager Betsy Adams needs to get a new City Attorney, and she needs to sent the entire financial history to the highest authority to investigate the extent of the fraud and abuse. This is the only way to begin to restore the credibility of the Government of Grand Terrace.