December 13, 2013
By Bob Coleman
Editor, Coleman Report
The number one reason? Saying you are doing one thing with the money, but doing something else quite different – the false statement to the bank fraud crime.
Write the Lebanon Democrat, “Evidence at trial showed Churn made numerous false statements to a Tennessee bank in order to induce additional draws on certain construction loans, the proceeds of which Churn transferred to a bank account under his control, as well as to conceal his scheme and to dissuade the bank from calling these loans. Churn submitted false invoices from a modular home manufacturer, falsely representing down payments had been made and that modular units had been ordered, and misrepresented the status of construction that had been done to date. The evidence also demonstrated that Churn failed to fulfill his promises to make interest payments on behalf of certain individuals who had applied for the construction loans at issue, causing these loans to be foreclosed.”
Today’s fraudster faces 210 years in prison and economic ruin.