BCSB Bank loses $6.9 million in check scheme

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BCSB Bankcorp Inc. the holding company of Baltimore County Savings Bank, said it will report a $6.9 million after-tax lose or about $1.18 per share for the current quarter, which ended Friday. David Meadows, general counsel for BCSB, said the loss involves a check-kiting scheme perpetrated by a commercial customer.

The commercial customer went out of business last week, Meadows said. Check kiting typically involves one person who has control of at least two checking accounts at different banks, according to Dee Millard, of Carretaker, a Dallas software company that helps banks fight fraud.

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