Fraud Friday: Gas Station Flipping - Spidell

Fraud Friday: Gas Station Flipping


Two taxpayers were sentenced and ordered to pay $22 million in restitution for their fraudulent loan scam where they would “flip” gas stations by lining up a buyer for a station before they had even purchased that station. Along with several co-conspirators, they falsified just about all of the documents needed for the buyers to get the loans; the buyers were almost never in a position financially to be able to purchase a gas station. They had relatives act as sham co-signors on the loans, and an accountant who would prepare false tax returns to show nonexistent income. The bank providing the funds ultimately issued more than $38 million in loans as part of the scheme. (U.S. v. Ghuman (July 16, 2020) U.S. Court of Appeals, Seventh Circuit, Case Nos. 19-1734, 19-1745)

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