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Maxheader

(4,366 posts)
Sun Oct 28, 2018, 04:28 PM Oct 2018

Man allegedly misled bank, used $200K loan on marijuana shop

This discussion thread was locked as off-topic by DonViejo (a host of the Latest Breaking News forum).

Source: HeraldNetg

EVERETT — When a man applied for a Small Business Administration loan, the bank didn’t realize he reportedly was going to use the money for his marijuana business.

Now, he’s being charged with first-degree theft in Snohomish County Superior Court.

In 2014, the 40-year-old man allegedly told an Everett bank he would use the $206,900 loan for HVAC equipment. He said it would be installed in a Lyman-based storage facility that would service contractors working in water damage remediation, according to charging papers filed in court Monday.

He reportedly told everyone else, including the city of Lyman and the Washington State Liquor and Cannabis Board, that he would use the same building solely for marijuana production.

The defendant had good reason to want the SBA loan. Compared with other financing options, the loan offers lower down payments and longer repayment terms.

One problem: the SBA doesn’t allow loans to borrowers who make, sell or distribute products “in connection with illegal activity.” From the federal agency’s perspective, that includes marijuana.

Inspectors visited the site two years after the loan was approved. They found the defendant wasn’t providing services to water remediation contractors. He was running a business producing marijuana, with the necessary permits and licenses.

The bank informed the SBA that it would not have approved the loan if it knew the truth.

The defendant has no other criminal history. An arraignment is scheduled in November.

Read more: https://www.heraldnet.com/news/man-allegedly-misled-bank-used-200k-loan-on-marijuana-shop/






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10 replies = new reply since forum marked as read
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magicarpet

(13,935 posts)
1. Sessions will just love going after this dude and making an example of him.
Sun Oct 28, 2018, 04:40 PM
Oct 2018

mahatmakanejeeves

(56,887 posts)
2. This is going to guarantee a default. NT
Sun Oct 28, 2018, 04:44 PM
Oct 2018

Sunlei

(22,651 posts)
3. only 200k loan? even 1 year in MJ grow he should have paid the 200k back early.
Sun Oct 28, 2018, 04:45 PM
Oct 2018

seems kind of weird to me a bank would even 'visit' a 'small business' as states force MJ businesses to work only with cash. Or that a bank would even care as long as the loan was being paid back.

TeamPooka

(24,155 posts)
7. yup. he should have paid it off fast
Sun Oct 28, 2018, 06:24 PM
Oct 2018

Gore1FL

(21,030 posts)
4. 'Cause I got high. Because I got high. Because I got high. nt
Sun Oct 28, 2018, 05:24 PM
Oct 2018

ManiacJoe

(10,136 posts)
5. Many banks do not want anything to do with the MJ businesses
Sun Oct 28, 2018, 06:11 PM
Oct 2018

due to the confusion created between the state and fed laws regarding MJ.

Theft seems like a wrong charge, which may lead to a not-guilty verdict.

 

elmac

(4,642 posts)
6. If his name was donald tRump
Sun Oct 28, 2018, 06:14 PM
Oct 2018

he would be congratulated for his genius business sense.

dembotoz

(16,737 posts)
8. With Canada shops having shortages would seem a good loan
Sun Oct 28, 2018, 06:28 PM
Oct 2018

Better sense than a huge overpriced casino in Atlantic City anyway

 

bitterross

(4,066 posts)
9. Manafort or Cohen or both were charged for lying to a bank too. Not sure it was theft though.
Sun Oct 28, 2018, 06:30 PM
Oct 2018

It is a crime to lie on a loan application.

Seems like it would be a fraud case, but I'm not a lawyer so I don't know.

DonViejo

(60,536 posts)
10. Locking....
Sun Oct 28, 2018, 06:54 PM
Oct 2018

The consensus of Forum Hosts feel this is not important news of national interest, it's local news. Forum Hosts encourage you to post the article in the General Discussions Forum, the Cannabis Group, or the Washington Group.

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