Man convicted in boat-loan fraud

Posted on 24 August 2010
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A Michigan man faces up to 30 years in prison for helping run a boat-buying scheme that involved applying for hundreds of thousands of dollars in bank loans for boats that didn't exist.

William King, 46, was convicted Friday by a federal jury in Detroit on charges of bank fraud and bank fraud conspiracy, the Detroit Free Press reports.

According to court records, King's scheme involved falsifying employment and income information for loan applicants, who then applied for loans on boats that did not exist. At least three of the loans were for more than $200,000, but arrests were made before any loan proceeds were disbursed.

King will be sentenced in November.

Comments
5 Tuesday, 07 September 2010 15:06

ANOMYMOUS BOB......Michael Bryant didn't say it affected someone's creditworthiness, he said it makes it harder to PROVE their credit worthiness.  There is a difference there.  I"m sure Bryant realizes that fraud doesn't affect his credit, but he is right that it makes the bank more skeptical of doing boat loans and I know for a fact that FRAUD has been a major factor in some of the banks getting out of the business.


You understood what Bryant meant.


If you are going to call him out for that, why don't you call out Will Walker for mispelling sever.  Or point out to him that this may not involve indirect lending.  This could have been direct.  Or when it comes to indirect lending, the bank doesn't need to know all parties.  Successful indirect lending relationships only require the bank to trust the dealer/originator of the loan, not the buyer.   


Truth is, many dealers commit fraud to get loans bought, and the banks know this.  But there is a line and if the dealer crosses it, they will be warned or canned.


 


 


 


 

4 Friday, 03 September 2010 14:56

To Michael Bryant:


How does Mr. King's activities affect someone's creditworthiness? Unless you are the person doing the scamming, or you are the one being scammed, you don't have anything to worry about. A lending institution will not pull someone else's file to use in determining your creditworthiness. A scam might make them hesitant to lend to others seeking a boat, but it has no reflection whatsoever on your credit situation.


 

3 Wednesday, 25 August 2010 13:33
Obviously, in in-direct lending, there is a huge trust factor.  All parties involved need to know who they are dealing with!  The banks need to have a lot of faith in who is sending them business and shouldn't be afraid to severe unreliable ties.
2 Tuesday, 24 August 2010 16:56
Its because of people like Mr. King, who are constantly trying to find ways to defraud lending institutions, that good people who intend on paying for their obligations find it harder and harder to prove their credit worthiness.
1 Tuesday, 24 August 2010 14:56

Lord knows it's hard enough to get people bought with boats that do exist.

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