January 22, 2013
The SBA Inspector General January Rap Sheet
The “false statement” hit parade continues;
1) A Missouri man obtained a $150,000 SBA loan from a bank. The investigation disclosed that he signed documents stating he was the president of his business and that the loan proceeds would be used for “working capital,” when, in fact, he did not own, operate, or manage the business. The loan proceeds were instead used to benefit other individuals and business entities. The man is one of 18 individuals charged in a complex conspiracy to defraud the bank and the SBA.
2) On December 6, 2012, an Arizona man pled to a one-count Information charging conspiracy to commit bank fraud. The investigation revealed that the man falsely obtained two mortgage loans and an SBA loan by using his father’s identity. In order to get the loans approved, he falsely represented that his father owned various properties and businesses, had large amounts of cash on hand, and earned an annual salary of $110,000. Lastly, he submitted altered bank statements and false rental agreements in conjunction with the loan applications. The total loss relating to the SBA loan is over $2,402,099.
3) On December 13, 2012, the president of a California business was indicted on one count of bank fraud. The woman allegedly submitted a loan application that failed to disclose personal and corporate debts in order to obtain an SBA-guaranteed Recovery Act loan in the amount of $1,750,000.