July 02, 2020

Windham pair indicted in $450,000 check fraud

WINDHAM — A Windham couple have been indicted on federal bank fraud charges for allegedly writing bogus checks totaling more than $450,000.

The indictment was handed up Thursday against Linda L. Libby, 49, and Stephen D. Libby, 47, owners of Libby Energy Inc. The two are accused of using bad checks deposited at three banks to cover payments to creditors over 2 1/2 years.

The indictment says the Libbys used a new account at Peoples Heritage Bank to write more than $450,000 in checks during two days in 1995. The bank covered the checks, but was unable to recoup the money from checks deposited in the account by the Libbys because there was not enough money in the accounts from which they were drawn.

The cycle of fraudulent deposits and fraudulent payments to creditors, known as check kiting, began as early as June 1993 and reached its height in the year leading up to November 1995, the indictment says.

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