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Log In / Register | Jul 16, 2018

It is now matter of time that SBA responds

Franchisees were used as straw buyers. These loans were much bigger than commonly reported and involved Millions. From OIG report:

Former Utah Business Owner and Mortgage Loan Officer Sentenced

On September 13, 2012, a Utah business owner and former mortgage loan officer, was sentenced to 10 days incarceration, 6 months of home confinement, 30 months supervised release, 200 hours of community service, and restitution of $165,960.49, to be paid jointly with his co-defendant. The subject had previously pled guilty to one count of money laundering. The investigation revealed that both men recruited “straw borrowers” to obtain $335,000 in loans. The straw borrowers were promised compensation for allowing the men to use their personal information to fabricate application documents in order to induce the banks to approve the loans. They also enticed the straw borrowers to submit documents indicating that they owned thriving businesses when, in fact, the businesses only existed on paper. The men fraudulently obtained a total of four SBA loans and two regular bank loans. This case was initiated as a result of a referral from the SBA Utah District Office. This is a joint investigation with the IRS-CI.


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