A private-money lender lost a deal when the borrower submitted fake Arizona Department of Transportation documents claiming an inspection of a vehicle that was never built. The speaker uses the fraud case to teach warning signs in the Land Shark Mastermind program.
Today in the Deal Room. Property that we collateralized, and it turns out that collateral does not exist. And now they're trying to convince us that we— they told us that in the beginning and that somehow we are— somehow we colluded with them on getting fraudulent documentation from the state of Arizona. And so we did not collude with them on doing that. They did that all by themselves. And that does not mean that we jeopardize the contractual agreement that we had with them on the collateral. Right. And so the— I just got an email. Catherine, if you can see that PowerPoint you made into a PDF, PDF. Can you create that as a PowerPoint? Because I need to— yeah, I already sent it to you. Got it. It said something about it was in Canada. I don't know if I'll be able to do it. But anyway, you know, there's procedures to, to, to deals. And so that's what we want to teach people in this, in this Land Shark Mastermind, is, is the procedures to deals, right? So we did a private money loan, gave somebody some money. They said that they had collateral. They proved to us On paper they had collateral. They even said it in an email that they had collateral. And then now they're saying, oh, well, we use the money to make the collateral. The money you gave us, we're using that to make the collateral. And so we're like, well, that— how is that possible? We have a form signed by the Arizona Department of Transportation saying they inspected the vehicle that you built. So how did they do that, sign a piece of paper legally, if there's no building and there's no vehicle? Committed fraud. Oh, goodness.
