Government loan programs: taxpayers on hook for misuses
Canada Small Business Financing Act
Government guaranteed loan approved extremely quickly
Government guaranteed loans, abolish program
Government guaranteed loan program very attractive to fraud
Tax subsidy
Unfunded taxpayer liability
U.S. Small Business Administration
Very low lending loss risk
Why should we care? It's not our money.
Predatory franchise lending
Auditor General of Canada
Bank Act, Canada
Bank complaint process protects those who pay their salaries
Bank fraud
Bank pays franchisor with franchisee's funds
Bank refuses to provide mandatory documents
Bank violates federal privacy laws
Canada Small Business Financing program
Canadian Franchise Association, CFA
Complaint letter to franchisor's trade association
Conspiracy to commit fraud
Difference between appraised and market value equipment and leaseholds funds fraud
Financial Consumer Agency of Canada, FCAC
Franchising Opportunism
Fraudster banker
Government guaranteed loan disbursed before disclosure document seen
Government guaranteed loan disbursed before franchise agreement seen
Government guaranteed loan filled out by sales agent
Government guaranteed loan made without proper security
Government guaranteed loan misapplied
Industry Canada
Lending duty
Lending is subject to expert fraud because it is a credence good service
Loan pushing
Minister of Finance
Most lucrative form of commercial lending, franchising
Ombudsman for Banking Services and Investments, Canada
Office of the Prime Minister of Canada
Office of the Privacy Commissioner of Canada
Only opening new stores for the quick cash grab
Ontario Minister of Consumer and Business Services
Oudovikine
Predatory actions
Predatory franchise lending
Sold used equipment when franchisee thought it would be new
Sue lender for failing to do their lender's due diligence
Sue the appraiser
Sue the sales agent
U.S. subprime mortgage scandal
Unauthorized funds transfer by bank
Banks lend very hard
Asset appraisals inflated
Asset-based lending
Bank calls in debt
Bank CEO's pay
Bank fails to inform Privacy Commission of breach
Bank has a higher standing as creditor than fraud victims
Bank presents offer with material facts missing
Bank renegotiates loan with greater personal guarantees than allowed by law
Bank stock price seemingly impervious to scandal
Bank sues person they gave documents to
Banks
Banks allegedly mastermind fraud
Funding for advocacy groups if you toe the line
Lender's due diligence not done properly
Lending risk much lower
Non-bank lender
Only saw bank official once before loan granted
Predatory lending
Regulatory capture breeds its own incompetence
Sub-prime lending
Towers of gold, feet of clay
Lending professionals?
Bank allows franchisor to take money from franchisee's account over the lending agreement limit
Banks collude
Death-spiral financing
Documents changed without authorization
Enron-like scandals
Loans to be paid but no asset received
Private-equity financing buy-and-flip
Responsible for a loan they did not sign for
Securitization
Signed only last page of form but several copies
Structured finance deals
