Saturday, August 02, 2014

"Tactics veering toward outright fraud": couldn't the Times use same language looking at EB-5?

A front-page New York Times article July 20, In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates, included this paragraph:
In some cases, though, the tactics veer toward outright fraud. The Times’s scrutiny of loan documents, including some produced in litigation, found that some used-car dealers submitted loan applications to lenders that contained incorrect income and employment information. As was the case in the subprime mortgage boom, it is unclear whether borrowers provided incorrect information to qualify for loans or whether the dealers falsified loan applications. Whatever the cause, the result is the same: Borrowers with scant income qualified for loans.
(Emphasis added)

OK. That's an unusually aggressive conclusion for a news report, but one clearly steeped in reporting.

What about EB-5?

But here's another one: Couldn't scrutiny of documents made public promoting the EB-5 investment into "Atlantic Yards," as I've suggested, "veer toward outright fraud"?

At the very least, the dishonest promotion of the $1.235 billion "Atlantic Yards II" as equivalent to the full $5 billion "Atlantic Yards" should, on its face, prompt investigation.

But other angles deserve scrutiny, as well, as I've written.

And nobody has yet written about them. Shouldn't the very tough Fortune magazine article on EB-5 generate some interest in digging further into the program and its various manifestations?

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