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Mug Shot Monday — 51 Months in Jail for Invoice Swapping by Texas Borrower

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July 28,2014

By Bob Coleman
Editor, Coleman Report

invoiceimageWhen short of cash, Bobby Gene Loggins’ meat products company would “sell” product to a customer, who in turn would “sell” the same product back to him at a markup – a practice known as invoice swapping.

The problem is these were sham paper transactions. No product was ever exchanged. But there were doctored purchase orders, bills of lading and fake invoices.

And, Bobby Gene included the invoices in his accounts receivable.

Which inflated his borrowing base certifications to his lenders for a line of credit collateralized by accounts receivable and inventory.

When the scheme finally imploded and Bobby Gene closed his doors after 70 years in business, Bank of Tyler, Heritage Land Bank and Farm Credit Bank of Texas were out $2.5 million.

The company was started by his Dad in 1940.

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