January 30, 2015
By Bob Coleman
Editor, Fraud Friday
Too bad some entrepreneurs didn’t get the memo about paying upfront fees for promises of small business loans, specifically to scam artists.
Corporate Funding Solutions offered to obtain credit lines and loans in exchange for a fee.
Michael Ramdat vouched for the legitimacy of the business with victims recruited by his partner.
In reality, the two never intended to provide any services for their clients. They simply pocketed $433,000 from the fraud.
Michael was sentenced to almost two years in prison for his role in the scheme.
His partner go 3 years last month.
Now this is an interesting side note.
The Special Inspector General for TARP usually involves heerself with fraud where the bank lost money due to banker or borrower fraud.
However, no TARP funds were lost in this fraud.
SIGTARP claims jurisdiction since, “monies obtained through the fraudulent scheme were funneled through banks that received TARP funding.”