September 28, 2018
By Bob Coleman
Editor, Fraud Friday
Fraud Friday — $8 Million Loan Fraud Nets Loan Officer a Yeti Bag
Living up to the quality that you’d expect from this well-known and respected company, the Yeti is one of the few soft coolers that can actually keep ice frozen for multiple days. It has a tapered shape that makes it easy to carry says a product review. Key features?
- Nearly indestructible
- 100%-percent leakproof zipper
- FDA-approved food-safe liner
That was the $100 payoff to Michael Shelley of Lone Star Agricultural Credit Association in return for writing fraudulent loans.
Michael disbursed loan proceeds from legitimate borrowers for fraudulent borrowers. He created a fictitious $485,000 loan, with all the requisite photoshopped documents, that was disbursed to an existing Lone Star customer.
He also offered below-market interest rate loans to his customers — one borrower received a $2.4 million 30-year fixed rate loan at 1.0%.
In total, there were 17 fraudulent loans involving nine fictitious persons totaling over $8 million.
Michael, 38, has pled guilty to the charges and awaits sentencing.