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VideoPodcast: Stock Loan Fraud
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During Fraud Awareness Week, Weaver's Conversations on Fraud series explores stock loan fraud schemes and how public companies can protect themselves.
November 19, 2024
Managing Director, Forensics and Litigation Services
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Fraud Awareness Week: Conversations on Fraud
Nat Francis and Andrew Williams from Weaver’s Forensics and Litigation team discuss stock loan fraud and how public companies can become more aware of this particular type of fraud scheme in this episode of Weaver: Beyond the Numbers.
Key Points:
- In stock loan fraud, holders of restricted shares in a corporation are misled into believing that they can use those shares as collateral for a loan, and they’re approached by someone who they believe is a legitimate lender, who in fact is not a legitimate lender.
- This scheme affects publicly listed companies. It’s usually a small publicly listed company whose executives, sometimes foreign executives that don’t have experience with U.S. capital markets, are granted stock as part of their compensation package.
- To avoid this type of scheme, it’s important to conduct in-depth due diligence on potential deal partners, potential lenders and even escrow companies.
Within this episode, Andrew interviewed Nat about a client’s recent stock loan fraud incident where Nat and his team worked to determine who was behind the scheme. Listen to hear more information about this case, the outcome of the investigation and how companies can avoid this type of fraud.
Subscribe and listen to future episodes of Weaver: Beyond the Numbers, on Apple Podcasts or Spotify.
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