Recent media reports indicate federal indictments led to the out-of-state arrests in Florida and Texas of a company founder and the former chief operating officer (COO). It’s alleged that the founder of a subprime auto lender and a top executive defrauded lenders of almost a billion dollars over a seven-year period.
The indictment accused the corporation’s founder of directing its executives to perjure themselves by making false statements and corrupting data. Learn more below.
The net was cast
When the federal agents cast their net, they made sure to arrest the company’s COO, who reportedly agreed to cooperate with the prosecution. The Manhattan prosecutor also alleges that fraud became an “integral component of [the company’s] business strategy.”
Fraud detected months ago
According to the indictment, agents first realized the duration and scope of the corporate fraud back in August. An administrative error was the first reason blamed for the disappeared collateral. The investigation expanded to the founder’s purported draining of the account of $6 million.
Everything is still allegation
When corporations run afoul of federal laws and executives and founders face charges, it’s important to remember that everything must still be proven. Corporate counsel will already have sprung into action behind the scenes by filing discovery requests and mounting a defense to refute these allegations.
Facing corporate fraud charges?
Companies have come back from this and worse. But much depends on acting with alacrity now. When much is riding on an account, you deserve the most thorough and comprehensive defense you can assemble.