The Milwaukee Journal Sentinel is reporting that University of Wisconsin Credit Union (Madison, WI) has taken a $13.1 million "loss contingency" charge due to an alleged fraud scheme involving fake U.S. Department of Agriculture guaranteed loans.
University of Wisconsin Credit Union disclosed it had invested in the nonexistent USDA loans through Milwaukee-based Pennant Management Inc.
News reports are alleging that Nikesh A. Patel, a prominent hotelier in Orlando, Florida and operator of First Farmers Financial LLC, sold $176 million in fake USDA-backed loans to various investors.
Read the story.
Read press release.
Credit Union or Bank or whatever.
ReplyDeleteHow in the world does this happen? Who was sleeping behind the wheel?