Man allegedly misled bank, used $200K loan on marijuana shop
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Source: HeraldNetg
EVERETT When a man applied for a Small Business Administration loan, the bank didnt realize he reportedly was going to use the money for his marijuana business.
Now, hes 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 doesnt allow loans to borrowers who make, sell or distribute products in connection with illegal activity. From the federal agencys perspective, that includes marijuana.
Inspectors visited the site two years after the loan was approved. They found the defendant wasnt 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/
Whoops!
magicarpet
(13,935 posts)mahatmakanejeeves
(56,887 posts)Sunlei
(22,651 posts)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)Gore1FL
(21,030 posts)ManiacJoe
(10,136 posts)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)he would be congratulated for his genius business sense.
dembotoz
(16,737 posts)Better sense than a huge overpriced casino in Atlantic City anyway
bitterross
(4,066 posts)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)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.