Posts Tagged ‘Fraud Friday’
Fraud Friday — Six Months in Jail for “Extend and Pretend” Lending
June 12, 2016 By Bob Coleman Editor, Fraud Friday “This TARP bank officer engaged in an ‘extend-and pretend’ bank fraud scheme, extending what looked on the bank’s books as new loans for new purposes to new borrowers, when Harrison knew that the loan proceeds would be used to make other delinquent loans from other borrowers…
Read MoreFraud Friday — SIGTARP Sends its 100th Banking/Borrower Criminal to Prison
June 5, 2015 By Bob Coleman Editor, Fraud Friday “100 defendants have gone to jail for crime related to the government’s response to the financial crisis known as TARP—the defendants’ crimes were serious and so were SIGTARP’s efforts to stop them,” says Christy Romero, Special Inspector General for TARP (SIGTARP). “100 times, SIGTARP held defendants…
Read MoreFraud Friday — Pennant Management Closure Attributed to Nik Patel Fraud
May 29, 2015 By Bob Coleman Editor, Fraud Friday The Milwaukee Journal Sentinel reports more fallout from the Nik Patel, $180 million USDA B&I loan fraud. The investment company that purchased the loans from Nik Patel’s company, First Farmers Financial, and sold them primarily to Illinois municipalities as “safe” investments has padlocked its doors. The…
Read MoreFraud Friday — Borrower Overstates AR on Balance Sheet, Rips off Bank $800k
May 22, 2015 By Bob Coleman Editor, Fraud Friday ‘Steven Moorhouse lied to TARP recipient Old Second National Bank in order obtain more than $1 million in loans for his business, and for his criminal lie, Moorhouse will spend the next 21 months in federal prison,’ says Christy Romero, Special Inspector General for TARP (SIGTARP).…
Read MoreFraud Friday — Auction.com to Sell Nik Patel Hotel Properties
May 15, 2015 By Bob Coleman Editor, Fraud Friday Five Nik Patel hotel properties are being sold by auction.com in July. Nik was arrested last October on fraud charges involving $180 million of bogus USDA b&i loans — allegedly. The hotels are: · The DoubleTree by Hilton Orlando East, a 246-room full-service hotel located near…
Read MoreFraud Friday — Fraud Charges Against More Wilmington Trust Officers
May 8, 2015 By Bob Coleman Editor, Fraud Friday Add the former Chief Credit Officer and Controller to the list of Wilmington Trust bank officers criminally charged in the Delaware bank’s failure. The feds allege that Kevyn Rakowski, and William North omitted approximately $351 million of matured loans 90 days or more past due from…
Read MoreFraud Friday — Bank President, Commercial Loan Officer Indicted for Money Laundering
May 1, 2015 By Bob Coleman Editor, Fraud Friday The feds allege bankers at Plains State Bank in Plains, Kansas failed to report on the suspicious cash deposits of a small business, even as millions of dollars flowed through the couple’s account. In a 37-count indictment, the following defendants are charged: George Enns, 69, and…
Read MoreFraud Friday — Jade Capital Sponsored Borrower Gets 51 Months for Loan Fraud
April 24, 2015 By Bob Coleman Editor, Fraud Friday Randy Tran created R&K Real Estate Investment, Inc. to buy Potomac Wine & Spirits, a liquor store in Hagerstown, Maryland. Tran was the majority and controlling owner of R& K, and another individual owned a minority interest. In May 2006, Tran and the minority shareholder signed…
Read MoreFraud Friday — Nik Patel’s Former Home Sells at 27% Discount for $3.25 Million
April 17, 2015 By Bob Coleman Editor, Fraud Friday Accused of a $150 million fraud in fake USDA B&I loans, Nik Patel is voluntarily selling all of his assets through a receiver to help Pennant Management recoup some of the funds. After selling five hotels for $87 million, the mansion Nik bought in November 2013…
Read MoreFraud Friday — Business US Acquires Small Biz Capital’s SBLC License
April 10, 2015 By Bob Coleman Editor, Fraud Friday The Receiver of Small Business Capital, the non-bank lender seized by the SEC almost three years ago, has entered into an agreement to sell the license and assets to Business US. Stephanie Bitters is the Managing Director of the SBA loan program for Business US. Norris…
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