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Informational Memorandum
Subject:Counterfeit Check
Date of Memorandum:03/12/2001
Expiration Date:
Office:OE
Signed By:Reyna, Michael
FCA Contact Person:Smith, Roland
Contact Phone:703-883-4160
List of Attachments:Copy of counterfeit check

INFORMATIONAL MEMORANDUM



March 12, 2001


To: The Chief Executive Officer
All Farm Credit System Institutions

From: Michael M. Reyna /s/
Chairman and Chief Executive Officer

Subject: Counterfeit Check


The Farm Credit Administration (FCA) was notified that unknown persons have recently used a counterfeit check in an unsuccessful attempt to draw upon the account of the Farm Credit Services of Mid-America, Agricultural Credit Association (Association) in Louisville, Kentucky. The check was presented for payment at two branches of a commercial bank in Kansas City, Missouri. The counterfeit check was discovered when a representative of the bank contacted the Association. The check used is not a close replica of the Association’s checks; however, it did include the correct account number and routing number, and contained a sequence number similar in sequence to the Association’s checks. It also bore a forged signature of an Association employee. Dissimilar characteristics of the counterfeit check are that the biostar in the upper left hand corner is distorted, the corners are round while the corners of the Association’s checks are square, and the safety legend is not consistent with the safety legend on the Association’s checks. A copy of the counterfeit check and a voided check from the Association are attached for comparison purposes. The appropriate authorities were notified of this fraudulent activity.

Any information you may have concerning this matter should be directed to Jane Virga, FCA Senior Attorney, Office of General Counsel, (703) 883-4071, and to:

Dianna R. Ragan
General Counsel
FCS of Mid-America
501 4th Avenue, Suite 700
Louisville, KY 40232-4390
Telephone: 502-566-3729
FAX: 502-566-3822

In addition, if a counterfeit check is drawn on your institution’s account or presented to your institution, you should make a criminal referral in accordance with FCA Regulations 12 CFR Part 617.
If you have any questions about this memorandum, please contact me at (703) 883-4005, or Roland E. Smith, Director, Office of Examination, at (703) 883-4160.

Attachment



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In addition, the following letter was sent to:

Farm Credit Administration 1501 Farm Credit Drive
McLean, Virginia 22102-5090
(703) 883-4000

March 12, 2001


The Honorable Alan Greenspan
Chairman, Board of Governors
Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551

Dear Chairman Greenspan:

We have been notified that unknown persons have recently used a counterfeit check in an unsuccessful attempt to draw upon the account of the Farm Credit Services of Mid-America, Agricultural Credit Association, in Louisville, Kentucky, an institution of the Farm Credit System (FCS). The check was presented for payment at two branches of a commercial bank in Kansas City, Missouri. The appropriate authorities were advised of this fraudulent activity.

Enclosed is a copy of the Informational Memorandum that was sent to all institutions of the FCS advising them of this matter, including addresses of those to notify should they have information about the fraudulent activity.

Should you have any questions, please contact me at (703) 883-4005 or Roland E. Smith, Director, Office of Examination at (703) 883-4160.

Sincerely,

/s/

Michael M. Reyna
Chairman and Chief Executive Officer

Enclosure


Example of counterfeit check check1.pdf

Example of valid check check2.pdf




Individual letters sent to:

The Honorable Donna A.Tanoue, Chairman
Federal Deposit Insurance Corporation
550 17th Street
Washington, DC 20429

The Honorable John D. Hawke, Jr.
Comptroller of the Currency
250 E Street, SW
Stop 9-1
Washington, DC 20219

The Honorable Dennis Dollar, Acting Chairman
National Credit Union Administration Directory
1775 Duke Street
Alexandria, VA 22314-3428

The Honorable Ellen S. Seidman, Director
Office of Thrift Supervision
1700 G Street, NW
Washington, DC 20552