Tag Archives: Fraud

The “F” Word

Even though it has five letters, for most lenders fraud is a four letter word.  Usually the course of action when fraud is found is not to go running to the nearest prosecutor or law enforcement agency to have the perpetrators charged, but rather to call a meeting with the principals involved and to work out a reasonable way for the lender to walk away from the transaction with no loss or as small a loss as possible.  The threat of litigation and possible prosecution is usually enough to ensure the cooperation of the offending parties.  Of course, lenders will press charges when a fraud is so egregious that there is no way a lender will get paid back, if it causes harm to other parties, or if a lender feels they may have a better chance of collecting more if the offending parties are prosecuted. Continue reading