[staten]

BofI is under investigation for money laundering. Any funder's in addition to BFS using them?

[MCAVeteran]

national funding, quickbridge,

[Karen37a]

(They have a problem that was centered on a quick-bridge advance for 130k and they are stating the obvious quickbridge is not bofi , and the credit risk belongs to quickbridge. They also have another probe on money laundering centered on traditional loans that were given on properties with people with out validation...patriot act. ( my interpretation of what I read)


Read more at:
http://thefly.com/landingPageNews.php?id=2526915

[Karen37a]

**another note. While reading data on Bofi and peoples opinions, some of the people who had the largest negative opinion on Bofi and marketplace lending had a huge Short position on it. Smh

( I only looked for it because I thought, why would people go crazy about one 135k advance , they must have something to gain or someone made an enemy)

I am staying out of the Gordon Gekko games.

[jake2276]

**another note. While reading data on Bofi and peoples opinions, some of the people who had the largest negative opinion on Bofi and marketplace lending had a huge Short position on it. Smh

( I only looked for it because I thought, why would people go crazy about one 135k advance , they must have something to gain or someone made an enemy)

I am staying out of the Gordon Gekko games.

This lawsuit essentially boils down to whether or not, the rent a bank model holds up for skirting usuary laws.

[staten]

No, the BofI ML investigation is related to loans made to people/entities without proper identification to comply with KYC and AML regs......the "rent a bank" impacting BFS, National and Quickbridge is actually ancillary. You are thinking about the Colorado case....which in itself is interesting because Cross River actually held 10% of the Marlette deal in an attempt to achieve "true lender" status.

[mcashark]

So let me get this straight Bank A goes thru Bank B to get around usury laws, Jury how do you feel about this....?

This is the exact reason why Windset Capital got out of this space.

[jake2276]

This lawsuit essentially boils down to whether or not, the rent a bank model holds up for skirting usuary laws.

In a lawsuit filed on March 24 in a New Jersey bankruptcy court, Daniel E. Straffi, in his capacity as Chapter 7 Trustee for and on behalf of the bankruptcy estate of Lam Cloud Management, alleged that a loan, dubbed the "QB Loan", was originated and funded by BofI Holding, and serviced by, and immediately assigned by BofI to, Quick Bridge. "In a blatant and transparent attempt to evade [California] state usury laws, QB engaged in a 'rent a charter scheme' by retaining BofI, a federally chartered bank, to originate the QB Loan. QB generated, serviced and assumed the risk of nonpayment of the QB Loan and was its true lender," the lawsuit alleges. In early afternoon trading, BofI Holding shares are down $2.01, or 7.2%, to $26.07

[Karen37a]

This is rehashing of old news .

2 separate things I see happening

1 . Someone discharging a QB advance and using usuary laws and the fact it is originally originated under B of i charter and using that as a defense

2. An investor slapped a derivative suit on the board because they issued collateralized loans to foreign nationals saying they lacked sufficient identification and failed to maintain an adequate customer identification program So they are "probing" them for money laundering and patriot act ( based on those loans not the qb advance )


I also said that someone who has a huge short position( meaning betting the negative on a stock ) is pushing the news forward, wonder why.

It could be as simple as Extremely Rich people do not lose money gracefully, who knows.