CREPIG

Commercial Real Estate Professional Investor Group

Upfront Fees for Loans Could be Sign of Fraud or Scam


I have written about scams in the REO bulk market and many others. I have worked with many phonies and learned the hard way. About a year ago a friend came to me with an absolutely great deal whereby we can get funded for deals directly via the Federal Reserve Bank.

After much due dilligence I decided to walk away as too many questions were not answered to my satisfaction. Many others that really needed funding did, however buy in to the program.

Most of the people were knowledgeable and smart people, but I tend to see that when a lot of money is at stake, many seem to through caution to the wind.

Anyway many got burnt. The good news is that the person responsible for the fraud was caught. The bad news is that my friend and his family were hurt badly and many others are still suffering from tremendous losses.

If someone wants money up front that should be a flag for you to do double the due dilligence you usually do.

See the story below.

Woman charged in $2M fraud case
Report: Valencia resident, 40, spent ill-gotten gains at high-class shops

By Jessica Selva
Signal Staff Writer
jselva@the-signal.com
661-259-1234 x518
Posted: Dec. 14, 2009 10:07 p.m.
POSTED Dec. 15, 2009 4:55 a.m.

A Valencia woman is in federal prison without bail after she allegedly scammed millions of dollars out of people to whom she promised loans, prosecutors said.

Pamela Terry, 40, allegedly posed as an employee of the Federal Reserve Bank and fraudulently promised 30-year business loans to about 15 customers at a fixed rate of 2.3 percent interest, according to a court affidavit.

She collected about $2 million in advance fees she called “minimum capital requirement,” the affidavit said, and she allegedly spent tens of thousands of dollars at stores like Gucci and Louis Vuitton.

Read More… http://online.wsj.com/article/BT-CO-20091215-709891.html

JW Najarian

CREPIG
CREDAA

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December 15, 2009 - Posted by | Uncategorized | , , , , , , , ,

4 Comments »

  1. Hi,

    A friend of mine lost a lot of money regarding upfront fees.

    Is there any way we get it back?

    Please advise.

    Maria
    0401 951 895

    Comment by Mary Maria Papaoulakis | February 15, 2010 | Reply

    • If your friend reported the loss to the FBI or FTC then they have probably alread told you that the possibility of payback is slim in many cases.

      Check with the authorities, but I would imagine it all had to do with the situation and whether or not the money was recovered.

      Comment by JW Najarian | February 16, 2010 | Reply

  2. Hi,

    I know someone who was also frauded by this lady, they gave 600,000! I am sure they will never see a dime! How much did your friend give to her? Just wondering if she was offering the same program to everyone or if she was taking whatever she could get.

    Thanks,

    Donna

    Comment by Donna | April 26, 2010 | Reply

    • I have many associates that have lost money. I don’t know all the amounts, but they were substantial. Many ask for a percentage of what you are asking to receive. There are many scams outh there and I am sure that they try and get you to give whatever you can and then ask for more when they sense you are desparate for the funds.

      Comment by JW Najarian | April 28, 2010 | Reply


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