July 6, 2015
By Bob Coleman
Editor, Mug Shot Monday
Last week, I reported on the 27 count indictments against the former CEO and CFO of Oregon-based Bank of Oswego.
For cooking the books. For hiding delinquent loans.
One of the means of the execution of the fraud was to refer delinquent borrowers to a real estate developer turned hard money lender, who also obtained his financing also from the bank.
The feds also allege a former business development loan rainmaking Vice President of the bank participated in the hard money lending venture.
The hard money lender would bring the bank’s loans current.
But, he also wasn’t being paid by the borrowers .
The hard money lender wrote Vice President, Geoff Walsh.
“I am making the monthly payments to you guys for my credit lines that these loans are on, but none of these guys are making payments to me to offset that expense.
“In short, I am drowning, and it is picking up speed. This has reached an emergency point for me. everything I have been working towards is slowly going down the [expletive omitted] because of these loans.
“They have to go away, and they have to go now. You need to either sell the package, that the property back for an immediate sale, get these guys some financing, or squeeze them to pay me off. Every day that goes on, I slowly sink more and more.”
Walsh promised to make him whole.
Walsh was fired by the bank in 2012 when the bank discovered his role with the hard money lender. In 2014, Walsh was indicted on 31 counts of fraud for his role in the hard money lending scheme.