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