Conspiracies are Not Just Movie Plots, They are a Type of Business Fraud
Business fraud cases usually go beyond a general breach of contract situation; they involve a more intentional dishonesty on behalf of a business. Generally a business could provide intentional false statements or omission of facts which another may rely upon to make a decision to their harm. This can happen in a number of ways but will always be determined by one side intentionally being dishonest. Business fraud often happens in transactions revolving around real estate transactions, a purchase and sale of a business, and many times contract disputes.
The Rippling Effect of Business Fraud Conspiracy
An example of this type of fraud happened in 2011, when owner Lee Farkas of one of the largest privately held mortgage companies was convicted of spearheading a nearly $3 billion mortgage fraud scheme. An article from the Washington Post laid out the following facts of the case: Farkas was the owner and chairman of Taylor, Bean and Whitaker, a top 10 wholesale mortgage lending firm. It was determined that from 2002 to 2009 Farkas and his co-conspirators used Taylor, Bean, and Whitaker as a middleman between lenders and investors. The firm borrowed money from Colonial Bank to buy FHA home loans, then pooled the loans into securities and sold them to investors, and then used Fannie Mae to guarantee those securities. “When Taylor Bean began having cash flow problems, the government said, Farkas and co-conspirators covered the shortfalls with money from Colonial Bank. They misappropriated billions of dollars to cover Taylor Bean’s operating losses, authorities said. The case against Farkas is one of the largest to emerge from the crisis that brought the nation’s financial system to the brink of collapse.”
Contact a Kansas Business Fraud Defense Attorney | Morrison Law Firm
Business fraud isn’t just stories made up in the movies. If you find yourself targeted in an investigation, don’t wait to be indicted before you contact an attorney. Call our team of experienced defense attorneys at the Morrison Law Firm today. Prosecutors will have their teams of investigators looking for evidence from the moment they begin looking into your business. Arm yourself with a defense from the start. Call us today at 913-780-6666, or contact us online for a free consultation.
