January 25, 2013
Fraud Friday Cowboy Style
By Bob Coleman
We cover a number of loan fraud schemes where the borrower illegally converts a lender’s collateral, usually cars or receivables
A Mississippi farmer did it with cows.
The Farm Service Agency granted a father and son operation a $64,000 line of credit against their cattle.
Unfortunately, the son decided it would be more profitable to submit fake invoices and sell off the federal government’s collateral than to operate the business.
“The indictment says Mann submitted false invoices to make it appear he purchased cattle when he had not. It also says he sold cattle that were considered FSA collateral, but failed to report those sales.”