Man arrested by Clear Lake police for check kiting scheme

CLEAR LAKE – A North Iowa man was arrested and charged with felony first degree theft this week by Clear Lake police.

On August 1, 2014, the Clear Lake Police Dept took a theft report from Clear Lake Bank and Trust. The theft was in reference to Clear Lake Bank and Trust account holder Dirk Firman DBA as Transvideo Teleproductions. Along with the theft report, the bank reported the account holder, Firman was obviously using a technique called “Check Floating” or “Check Kiting”. This technique involves writing checks in between accounts at multiple banks. The technique takes advantage of check processing time and fools the banks into thinking the funds in between banks are sufficient. According to Clear Lake Bank and Trust and bank records between the month of July 2014 thousands of dollars were moved back and forth between two bank accounts held by Dirk Firman, and his wife Janise. Currently Firman is overdawn on his Clear Lake Bank and trust account for $15,666.36. Bank employees made several attempts to contact Firman about the money. Firman’s attorney contacted the Bank and said Firman acknowledges he owes the money, but was unable to pay it in the time allowed.

A ten day notice was served upon Firman and his wife Janise on 9-25-2014. Shortly after receiving the notice. The overdrawn amount was not paid. On Oct. 28, 2014, Dirk Firman was charged with first Degree theft, a class C felony. A warrant was issued for his arrest.

On November 4, 2014, Firman turned himself into the Cerro Gordo County Jail where he was held under $10,000 cash bond. He was later released, pending a court date.