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Reply #42: Yes.. Technically it is not in my possession but the state... [View All]

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jberryhill Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-30-11 12:03 AM
Response to Reply #41
42. Yes.. Technically it is not in my possession but the state...

This is a transactional account. You know when you finance a car or buy a house, a whole chunk of money changes hands and passes through short term holding accounts. Same thing with legal settlements. Most states have a designated program called IOLTA (interest on lawyer's trust accounts) whereby lawyers can establish dedicated accounts for holding money that belongs to clients, to keep it separate from the lawyer's business account. The interest on these accounts, collectively, is paid to the state and used for things like legal aid to the disadvantaged and other stuff.

To an ATM, it looks like a checking account, because the lawyer can write checks (eg disbursements to clients from settlements) on it.

They aren't insured per se, but they are "owned" by the state. If you have to hold, say, 500,00 for a week, what are you going to do? The balance on collective short term holdings can be a constant high level, but money is always moving in and out.

That said, THIS receipt does not even need to be from accessing a US bank. There are bad tax dodgers who do things like set up a bank account in Cayman, get an ATM card, direct all of their real or disguised foreign income to the Cayman account, and then then repatriate the money by living in the US on the ATM card.

They go to jail, btw.

The problem is that you can't bring in more than $10,000 in physical cash or notes without reporting it when you enter the US. So what some criminals do is figure that drubs and drabs through the ATM networks won't be noticed. (they are wrong about that, btw, which is why they go to jail).
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