Working with at least one co-conspirator, Mr. Davis issued checks to six fictitious companies, said Scott Resnick, an assistant United States Attorney.
Working with at least one co-conspirator, he issued checks to six fictitious companies, court records show.
Mr. Domecq is accused of approving payment of fake invoices from outside vendors, who then issued checks to shell companies controlled by him and others.
Caterpillar, for instance, has issued checks worth nearly $2.8 billion over the last three years.
Instead, the F.D.I.C. had to issue checks to account holders.
Candlewood would then issue checks to Mr. Burrick in the same amounts, investigators said.
Between now and then, it is expected to issue checks to some three thousand families.
Government offices that have eliminated issuing checks often offer direct deposit as well as prepaid cards.
This means borrowing from the Federal Reserve System, which can create more money, either by issuing checks or by printing cash.
Companies like the cards because they eliminate mailing costs and the expense of issuing checks, which have been priced at $1 to $2 a check.
Bank loan officers can't just issue checks out of thin air; like employees of any financial intermediary, they must buy assets with funds they have on hand.
