January 6, 2014
SBA’s Inspector General issues a monthly report recapping its efforts to catch SBA loan fraudsters – on the borrower and lender side.
The common theme is if a loan defaults within the first 18 months, borrowers, and the lender, will face close scrutiny of their actions.
Here is a recap of their reporting, along with the link if we covered the story.
The October 2013 report, released December 20th.
1) Alabama man indicted on 33 counts of fraud and 18 counts of false statements
Danny Ray Butler, 57, of Fosters was charged in a 51-count indictment that includes charges of making false statements connected to schemes to defraud financial institutions and the U.S. Small Business Administration of more than $3 million. Read More
2) California man indicted on $1.8 million loss to the SBA and various banks
A California man was indicted on a California man was indicted on three counts of making false statements to a bank and one count of making false statements to the government. The investigation revealed that he had previously obtained three loans from a bank and was in default on
those loans for approximately $700,000 when he applied for and obtained two SBA 7(a) loans and one SBA Section 504 loan. His SBA loans all defaulted early and resulted in losses to the banks and
the SBA totaling $1,839,360.
3) Government seeks $10 million in Forfeitures from four indicted in Illinois
Stop me if you’ve heard this one before.
A major gasoline station business acquisition SBA loan fraud involving fake documents, straw borrowers and a bank officer – in the midwest – has resulted in four bank fraud indictments. Read More
4) Alabama woman sentenced on money laundering charges
A woman submitted false income and employment information to obtain a $40,000 loan from a bank using her boyfriend’s 2004 Mercedes Benz as collateral. At the direction of her boyfriend, she wired $20,000 of the loan proceeds to pay a debt owed by her boyfriends’ company.
Part I of II….