November 15th, 2007
How A Fraudulent Loan Takes Place
A fraudulent loan is when the borrower is a business entity that is controlled by a dishonest bank accomplice or officer. After taking the loan, this borrower either declares bankruptcy or disappears with the money. In most cases, the borrower is found out to be a non-existent entity. Naturally, the loan becomes a mere artifice to conceal the theft of a huge amount of capital from the bank. Any good banker would be willing to encourage a loan if he knew that the capital would be paid back with the entire interest in time. Therefore, fraudsters choose to remove capital from any bank by taking a fraudulent investment or loan.