On June 3, Venable LLP’s Michael Bresnick and Control Risks Group Holdings Ltd.’s Brian Mich published “Private Lender Verification Lessons From Recent Fraud Cases” in Law360. The following is an excerpt:
Reports of alleged mismanagement by private credit borrowers and the consequential losses suffered by their respective lenders have increased significantly.
In May, bankruptcy administrators for the U.K. mortgage lender Market Financial Solutions alleged its owner misappropriated over $1 billion of borrowed funds, including transferring approximately $550 million into personal bank accounts and using some of these funds to purchase luxury properties and automobiles, including six Ferraris and three Rolls-Royces.
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