Couple cases of farm loan fraud
I don`t know if it`s going to be a trend but a couple area gentlemen lied to financial institutions to obtain ag loans and the courts are cracking down. They must pay restitution and receive time in the federal pokey, one case over $1 million and other over $2 million.
I suppose it starts out as a small lie combined with the sin of foolish pride and snowballs out of control.
When I annually dealt with a banker, I made it a point to "downplay" my assets and throw open all liabilities, if the banker was going to have faith in me, I had enough respect to not conceal anything. I know on a financial statement the banker would go down the list of machinery and want to keep the value the same as what I paid and I would constantly remind him "If you sell me out, you won`t get near those prices at my auction".
These guys that got in trouble lied and had to lie more to cover up the original lie, it would`ve been so much easier in the long run to just be honest, if the banker sells you out, they sell you out, but at least you wouldn`t go to prison.
My Dad was the most honest person I`ve ever known, honest to a fault actually and I`m thankful that at least a small part of that rubbed off on me. I don`t want to at all come across as bragging, just telling it the way it is. A few months ago I got a tire at a repair shop and they never sent a bill, a guy that works at the shop said, "If you want a free tire, don`t say anything and I guarantee they won`t remember" well that isn`t the way I roll, I jacked them up to give me a bill and got them paid.
I bought a old truck auger from a guy $500 and he told me "my dad bought that auger 40 years ago and they never sent the bill and we never paid it, so now I used it all these years and sold it to you for $500" . That is disgusting! A decent business made a mistake and this guy essentially stole the auger.
But, a couple area guys lying about grain they had in storage and other assets to borrow money. Will we see more of this, is this what they talk about "when the tide goes out, we`ll see who`s been swimming naked"?
Re: Couple cases of farm loan fraud
I don't like cheaters. And I don't like credit either. And their interest rates rip off more than they need to. I don't like it very much. And why wouldn't it be better to take out a mortgage. It's much more convenient, and you don't overpay. But I will say that it's hard to figure out for yourself. You know yourself that there are loopholes for the banks, and it's hard to deal with it. Mortgage Broker Derby advised me on everything. And I started looking at things a little differently.