WATERBURY, Conn. - American Bank of Connecticut is expecting an after-tax reduction of second-quarter earnings by $1.1 million because of losses related to a check-kiting scheme and the writedown of a commercial real estate property.

In a formal complaint filed April 19 with the Federal Bureau of Investigation, the bank alleges that a commercial checking account customer engaged in a "fraudulent and unlawful" check-kiting scheme that cost the bank $822,000.

The board of directors also approved an expense of $1.1 million for the writedown of a small industrial park acquired in 1983 and held for investment. The writedown stems from a reappraisal of the park, which is located in an area of new construction, even though it is 93% occupied, bank officials said.

Both charges are nonrecurring and officials still expect the bank to post a second-quarter profit. American reported first-quarter net income of $1.5 million.

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