A Sydney man has been charged with fraud after stealing a cheque for more than $125,000 and buying a gold bullion, police say. He set up a bank account under a false name in April and deposited the stolen cheque before withdrawing the entire amount, police said. In one of the withdrawals the man allegedly obtained a bank cheque for $56,000 and purchased a gold bullion from a Castlereagh Street jeweller, in Sydney's CBD. After searching the man's home, police arrested the 26-year-old in a take-away food store in Darling Harbour on Friday. He has been refused bail to appear at Parramatta Local Court on Saturday. http://news.ninemsn.com.au/article.aspx?id=8268171
Allegedly created an account under a false name, somehow get his hands on a 'stolen check', which somehow cleared. Allegedly then withdraw the proceeds from the 'stolen check', presumably in cash. Allegedly then use this cash to buy a bank check to pay the jeweler/bullion dealer with. Bank checks are basically cleared funds and as far as most businesses are concerned, almost as good as cash. Except its traceable. My best estimate is that this is some type of attempt at hybrid check-clearing/insurance fraud, planning for someone along the line of transactions to 'wear' the loss. This guy doesn't sound too intelligent - deposit a large amount via check and then immediately withdraw the entire sum as soon as the check clears, presumably in cash? Any amateur money launderer would have known this transaction pattern would raise the bank system's flags left, right, front and center. AUSTRAC etc would be all over it like an obese adolescent assaulting a 6-tier wedding cake.
Because bank cheques can be cancelled, they are not as good as cash, which is why we wait for them to be cleared first before giving people metal. The jeweller was too trusting.
