Fraud Identification Training Sept-Oct 2022

CASE STUDY 5

8/21/X8

Loan #938 dated 8-21-X8 to D&D Trucking, by John Roy, in the amount of $121,242. Proceeds of this loan were distributed in the form of a cashier’s check #1396 dated 8-24-X8 for $120M to the borrower. The purpose of the loan was listed as “purchase vehicles” and collateral pledged were financing statements and lien entries on two- Freightliner trucks. These financing statements and lien entries do not appear to be filed of record. No loan application, borrowing resolution, credit report, financial statement, or income information on either the business or individual was in the file. Loan #945 dated 8-24-X8 to J. Albert Roy, in the amount of $166,792. Proceeds of this loan were distributed to the borrower in the form of a cashier’s check #1402 for $165M. A blank residential real estate application is in the file signed by J. Albert Roy. Purpose on the loan indicated the proceeds were to be used for “purchase real estate”. Mail sent to the address on the loan was returned undeliverable (no such number). No credit report, financial statement, income information, appraisal, or title work was in the file. Loan #962 in the amount of $172,357 was made on 9-8-X8 to Roy Albert. Proceeds of this loan were distributed in the form of a cashier’s check #8784 in the amount of $170M made payable to Roy Albert. The mortgage in file does not show being recorded. There was no loan application, financial information, appraisal, or credit report in file.

8/24/X8

9/8/X8

CASE B:

Name of Borrower

Loan No.

Loan Date

Gary Heskitt

778 982

9-15-X8 2-16-X9

Proceeds of #778 were reportedly used to purchase trenching equipment, which was pledged as collateral. The funds were disbursed in the form of a cashier’s check #15, dated 9-3-X8 made payable to Lake County Bank (LCB). No credit report was in the file when the loan was made. No financing statement was filed on the equipment. Loan #982 paid-off loan #778, with additional funds advanced. The additional funds were disbursed by cashier’s check #54 dated 2-17-X9 and issued to LCB. Two additional advances were made on loan #982. One, dated 3-2-X9, was issued to LCB, and the second, dated 3-29-X9 was in the form of a cashier’s

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