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Case
'l:04-cr-0028'1
Document
43
Filed
03/21106
Paqe 33
of
49
Electronic
Database
(previously provided
to
thc
govcunent)).
Similarly, the
reserve
accoLrnt
al
ti.S.
Bank
of
Oregon,
rvhich
rvas
being
finded
at
a
rate
of
$25,000
perweek,
toialed
approxirnately
$710,000.00by the end
ofMay,
1997.
(Ex.8
io
Del
Memo.
U.S.
Bank
Letters;
Ex.
9
to
Del. Memo,
U.S.
Bank
Statemcnts).
Signifioantll
for
purposes
of
delermirring
actual loss,
the
rcscfvoir
ol
credil
cafd
authorizations
$'as
an
integral
part
ofthe
tloat
itsell
In
I997.thc
float
cifculatcd
bclween
threeseparate
banks:
Clolc
Taylor,
South
Shore.
and
U.S.
tsank.
lwo
ofPublic Action's
accounts
at
U.S. Bank wcre involved
in
the
float:(1)thc crcdit
cardpfoccssingaccourlt
used
by
Public
Actioi
lo
charge
credit
cards;
and
(2)
a
stanclard
checking
account.
When credit card
chalges
\!ere
processed
at
thc
cnd
of
each
delayperiod.the funds automatically
flowed
t'rom
the creditcard
processing
accounl
directly into Public
Action's
standard
chccking
account
al
U.S. Bank.These
legitin,ate
f'unds
fiom
the U.S. Bank
checking account
\\'cfc
thcn
transl-erred
to
SouthShore
Bank
and
ultimately
10
Cole
Ta)'lor.
in conjunction
n'ith
thc
same
circuit of kited
checks
used
to
maximize
thc
float.
Public
Action
also
maintained
a
second
cr'edil
cafd
processingaccount
at
Flcct
Bank.
ihe
Fleet Bank accountwas established
with
speoific
instructions
lbal allcredit
card charges
processed
inthat acoount were
to
be
automaticall)'
and
excllBively
deposited
into
South
Shofc'sCACCR checking
account.
(Ex.
1l
1o
Del
Menro. Fleet Mefchant
AccolnlApplication).
Therefore.
the credit card
salesprocessed
at
Fleet
Bank
feprcsented
additiolal
legitimate fundsthat also
flowed
dircctl)
into
South
Shore
Bank in
connecrion
\\ith
the float.
(Ex.
12
to Def.
tr4emo.
Diagram
oi
Check
Kite).
Thus.during
thcpcriod
ofthe
1997
chcck
kitc,
legitirnate lunds
frolr
credit
card
salcs
weredeposited into the
aflecled
accounts on
a
dailybasis. ln
fact,
fromMay I
through May
27,1997,
the organization
deposited
more than$1.5
million
in
crealit
oard
sales
into
thc
accounls
33
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