Had a bus. offer that sounds too good to be true & i'm afraid that it might backfire on me. is this possible money laundering?

Asked over 1 year ago - Dallas, TX

my friend out of state wants to start a bus.(little caesars pizza franchise). With his stable job & credit, he can get 50k loan wch isnt enough. Needs 200k. He wants to borrow the 50k from one bank as personal loan & sign the money to me(gift), & i sign it back to him right away as an investor. then he takes the money i signed back to him to another bank & apply for 200k loan, using the 50k as a deposit. he says by doing this, he can get 200k loan. he says its illegal to borrow money from one bank so that he can use it to borrow more from another bank, thus he "gifts" me his 1st loan & i invest it back to him & he then takes tht money to another bank & applies for a 200k loan using the 50k plus his income from his job as deposit/ proof of income. would i get in any trouble for doing this?

Attorney answers (4)

  1. Carmine John Giardino

    Contributor Level 14

    5

    Lawyers agree

    Answered . Yes, you will get in trouble. Look up "check kiting" on wikipedia.

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  2. Macy Michelle Jaggers

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . Do not get involved in this scheme.

    Macy Jaggers's answer to a legal question on Avvo does not establish an attorney-client relationship. Ms. Jaggers... more
  3. Bart Charles Craytor

    Contributor Level 17

    3

    Lawyers agree

    Answered . Fraudulent information on a loan application can be a federal offense. If you cant get the money by filling out the application and getting approved for the loan, then anything (like that outlined in your question) is a scam and you can be arrested and charged with a felony.

    Answers provided on Avvo does not form an attorney-client relationship or indicate that the attorney represents or... more
  4. David Daniel White

    Pro

    Contributor Level 12

    2

    Lawyers agree

    Answered . Abort mission. Your instincts are correct.

    Law Office of David D. White, PLLC
    1205 Rio Grande St.
    Austin, TX 78701
    (512) 369-3737

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