Tag Archives: financing fraud
A recent report released from The Financial Crimes Enforcement Network, a part of the US Department of Treasury, outlines the rising amount of suspicious activities in the Commercial Real Estate Industry. Between 2007 and 2010, the amount of Suspicious Activity Reports (SARs) regarding Commercial Real Estate financing fraud nearly tripled. The top 4 categories for these frauds were: false documents, misappropriation of funds, collusion-bank insider, and false statements. And, the top 5 locations of the reported subjects were: Georgia, Illinois, Florida, New York and California. In the last few years, commercial rents and occupancy rates have fallen and commercial loan defaults have risen. An estimated $1.4 trillion in Commercial Real Estate loans will reach the end of their terms by 2014. As financial institutions fear more loan defaults, they will be keeping a keen eye out for these kinds of suspicious activities.