October 9, 2015
By Bob Coleman
Editor, Fraud Friday
As I reported March 16th….
The method of the alleged fraud?
Raise your hand if you’ve read this before.
Photoshopped docs. Fake tax returns. Creative financial statements.
And add loans in family members names to the list.
Ray Mubarak had lines of credit to flip real estate with five Tennessee banks.
- Bank of America
- First State Bank
- Pinnacle National Bank
- People’s Bank of the South
However, Ray diverted the loan proceeds to make other loan payments, make cash withdrawals, pay off gambling debts, buy cars — the usual stuff.
Ray’s wife and his realtor have also been indicted.
But wait, there’s more. Remember how I have often written that character is the first C?
Seems that is an issue here too.
In 2012, Ray had been indicted for being a “ghost” employee of the Knox County office handling transfer of real estate titles.
Investigators believe fake payments of almost $400,000 were made to a company Mubarak owned.
Ray is out on bond until he reports to the Big House.