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SBA C-Suite Tips Wednesday — Learn from Small Business Loan Fraud

October 9, 2019

By Caity Witucki
Contributing Editor, C-Suite Tips Wednesday

SBA C-Suite Tips Wednesday — Learn from Small Business Loan Fraud

Last weekend at a National Alliance of Commercial Loan Brokers (NACLB) conference in Las Vegas, the Coleman Report’s very own, Bob Coleman addressed what loan brokers and lenders could learn from 2019 small business loan fraud cases.

In his keynote speech, Coleman used the top three high profile loan fraud cases of 2019 -Nik Patel, Kerri Agee, and Loren Park – to support his top 10 tips for brokers and lenders to maintain a credible reputation.

1. Never lie to the government or a lender.

2. Understand and apply basic SBA business eligibility rules.

3. Use Google Earth and social media to verify identities and addresses are true and correct.

4. Verify equity injections upfront

5. Utilize the system for award management (SAM) to check that applicant businesses are eligible for SBA funding.

6. Use the loan database on sba.gov to check lender activity.

7. Verify that the borrower’s documents have not been altered or falsified in any way.

8. Be cautious of suspicious lending institution activity – e.g. sudden rapid growth in the number or size of loans produced by an institution.

9. RECOMMENDED – Do not do client projections.

10. Be aware of email and telephone spoofing.

Read More About the Kerri Agee Fraud Case:

Fraud Friday – banc-serv Second Loan Case Study

“They Got Us” Swapping Business Owners — September 6, 2019

Fraud Friday – “Working Capital” Fits better than “Past Due Payroll Taxes” — August 30, 2019

“They Got Us” CEO of banc-serv Indicted for $10 Million Loan Fraud Scheme” — August 23, 2019

Banc-Serv’s Kerri Agee, 4 others Arrested for $10 Million SBA Loan Fraud — March 22, 2019

Kerri Agee out of banc-serv — April 13, 2018

Newtek Forecasts Zero Earnings from banc-serv — November 3, 2017

Banc-Serv Retains Brent Ciurlino, Appoints Karen McHugh EVP — October 19, 2017

Uh Oh, FBI Raids Banc-serv Campus, Locks Doors — October 13, 2017

Newtek Stock Down 10%, Says FBI Executed Search Warrant on Banc-serv — October 13, 2017

Read More About the Nik Patel Fraud Case:

Fraud Friday — UPDATE: What happened to Nik Patel?

Fraud Friday — Nik Patel’s Partner Gets 10 Years in Jail, 5/4/18

Fraud Friday — How Not to Get Ripped Off in a Patel-Like Fraud, 3/30/18

Fraud Friday — Nik Patel Conned Secondary Market out of Another $10 Million in January, AFTER Jailed! — Sentenced to 25 Years, 3/09/18

Fraud Friday — Nik Patel’s Business Partner, Timothy Fisher Sentencing Hearing Moved to March, Remains Free on Bail, 2/02/18

Fraud Friday — Nik Patel Claims Access to $35 Million in “Dirty” Money, Family Flees to Ecuador Day after his Arrest, Nik Planned to Buy Rare Diamonds, 1/26/18

Fraud Friday — Fraud Friday — Nik Patel Paid $40,000 for Private Jet Charter to Ecuador, Claimed he Received Political Asylum, 1/19/18

Fraud Friday — Whatever Happened to Nik Patel’s COO & Movie Partner?, 1/12/18

Special Fraud Friday Tuesday Edition — Nik Patel Arresting Fleeing US in Chartered Jet, 1/09/18

Fraud Friday — Nik Patel Pleads Guilty to $179 Million USDA B&I Loan Fraud, 12/16/17

Fraud Friday — Nik Patel Indicted on 5 Counts of Fraud, 12/11/15

Fraud Friday — Nik Patel’s Partner Sued for $4.5 Million from USDA B&I Loan Fraud, 10/23/15

Fraud Friday — Five Nik Patel hotel properties are being sold by auction.com in July, 5/15/15

Fraud Friday — First Farmers’ Nik Patel’s Assets Frozen, 10/10/14

Fraud Friday — Feds Claim $179 Million Usda-b&i Loan Fraud — Arrest First Farmer Financials’ Nik Patel, 10/3/14

Read More About the Loren Park Fraud Case:
Fraud Friday — SBA Loan Broker Jailed for 9 Years in $100 Million 7(a) Loan Fraud

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