“That never made any sense to me,” Leo said. “Those are checks going out to people they
Freddy held up a check. “This
Tony said, “But they’re being sent to complete strangers.”
“That’s what doesn’t make sense, kid,” Leo said. “You put security stuff on checks sent out to people who work for you or you do business with. And you got zilch on checks going out to who the hell knows.”
Annabelle added, “I picked that office complex because it houses regional offices for a number of Fortune 100 companies. Thousands of checks flow out of those places every day, and those accounts are loaded with money.”
Five hours later Freddy had assembled eighty checks. “These are pretty clean. No artificial watermarks, warning bands or detection boxes.” He carried the checks over to a small workshop he had set up in one room of the house. With the others’ help he placed Scotch tape over the signature line, front and back of each check, placed them in a large baking pan and poured nail polish remover over the paper. The acetone in the polish remover quickly dissolved everything on the checks that wasn’t written in base ink. After they’d taken the tape off the signature lines, all that was left were essentially eighty blank checks signed by the company’s CEO or CFO.
“Somebody ran a bad check on my account once,” Leo said.
“What’d you do?” Tony asked.
“Tracked the bastard down. He was an amateur, doing it more for kicks, but it still pissed me off. So I did a change of address on him, diverted all his bills, and the guy ended up being dunned by creditors for a couple of years. I mean, you got to leave this stuff to the professionals.” Leo shrugged. “Hell, I could’ve ripped him off big- time, assumed his ID, the whole nine yards.”
“So why didn’t you?” Tony asked.
“I’ve got a heart!” Leo growled.
Freddy said, “After we dry out the checks, I’ll redo the Federal Reserve routing numbers.”
“What’s that?” Tony asked.
“Are you sure you’re a con?” Leo asked in a bemused tone.
Tony exclaimed, “My tools are computers and the Internet, not nail polish. I’m a twenty-first-century con. I’m paperless.”
“Whoopee for you!” Leo shot back.
Annabelle held up one of the checks. “This is the Federal Reserve routing number,” she said, pointing to the first two digits in a string of numbers on the bottom of the check. “That tells the bank the check was deposited at the clearinghouse the check’s supposed to go to. The New York clearinghouse number is zero-two. San Fran’s is twelve. A New York-based company using checks issued by a New York bank usually has New York’s routing number on its checks, for example. Since we’ll be passing the checks here, Freddy will switch the routing numbers on all the checks to New York. That way it takes longer for the company to get the paper back and realize it’s a bad check.”
Annabelle added, “And more importantly, these are all big companies that keep their accounts payable books by zero cash management methods. So the odds are very good that even with a bad check in the mix they won’t turn up a relatively insignificant transaction until they get their end-of-the-month statements. Today’s the fifth; that means we have about a month before they discover anything wrong. By then we’re long gone.”
“But what if the bank teller looks at the check and sees that the routing number is wrong?” Tony asked.
“I guess you never saw that TV program, did you?” Leo asked. “The one where investigative reporters zip into a bank with a check that had written across it, ‘Don’t cash me, I’m a forged check, you effing moron.’ And the effing moron still cashed it.”
Annabelle added, “I’ve never heard of a clerk spotting the wrong routing number on a check. Unless you give the teller a reason to suspect you, they won’t spot it.”
After the checks had dried out, Freddy scanned them onto his laptop. Six hours later he stacked eighty checks on the table totaling $2.1 million.
Annabelle ran her finger down the perforated edge of one of the checks, a usual indicator that the check itself was legit, even if the amounts and payee on it weren’t. She glanced at the others. “Now comes the human side of the con. Passing the bad paper.”
“My favorite part,” Leo said eagerly as he finished a ham sandwich and washed it down with a large swallow of beer.
CHAPTER 10
THEY’D DECIDED THAT ANNAbelle and Leo would pass the first series of altered checks while Tony watched Leo to see how it was done for real. Annabelle, Leo and Tony each had a series of complete ID packs that Freddy had made for them. These packs either matched the individual payee on the check or contained credentials showing they worked for the company the check was made out to. Annabelle had instructed Leo and Tony to only carry one set of ID at a time. In case they were stopped, it would be difficult to talk their way out of a jam if they had eight aliases in their pockets.
A number of the checks were made out to individuals, none for over $10,000, since that would require IRS notification. Because of that limit, they would have to move far too many personal checks to reach the $2.1 million mark to be practicable. Thus, the rest of the payees on the checks were businesses that Annabelle had set up accounts for at various banks. Company checks could be made out for over $10,000 without triggering interest from the IRS. But the hitch was no bank will cash a company check. The full amount has to be deposited. For that reason, over a period of months Annabelle had been depositing funds into and out of these accounts, to establish a track record. She well knew that banks tended to get antsy when freshly minted accounts all of a sudden started to throw off lots of cash—that just screamed money laundering.
Over a two-day period Annabelle and Leo had grilled Tony on every conceivable obstacle he would face when passing the bad checks. They took turns playing the roles of tellers, managers, security guards and bank customers. Tony was a fast learner, and at the end of the two days they pronounced him ready to take his baby steps as a bad-check passer after he had watched Leo perform a few times for real.
The first ten passes went very smoothly. Annabelle was a redhead at one, a blonde at another and a brunet at
