 The court concluded that evidence of prior bad actions was in fact admissible under exceptions of rule 404(b) of the Federal Rules of Evidence for limited purposes such as intent, knowledge or absence of mistake as long as it was relevant to a material issue.Since Clark presented a defense that he acted in good faith when depositing these checks, his knowledge and intent were considered an issue.Rule 404 (b) also permits the inclusion of past bad acts when the prior act is similar and not too remote in time from the current crime.