Bank Reports Multi-Million Dollar Loan Fraud

Posted: Nov 11, 2013 2:38 PM by The Associated Press

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ST. LOUIS (AP) - A Creve Couer-based financial company says it has been defrauded of millions of dollars by a commercial loan customer.

The St. Louis Post-Dispatch reports that Pulaski Financial Corp. was victimized by an unidentified customer who claimed to be in the equipment-leasing business. That customer created false documentation to buy non-existent assets that were the subject of fictitious leases.

The company says the customer has an outstanding loan balance of $7 million, minus $631,000 in collateral possessed by the bank.

Pulaski discovered the purported fraud after reporting its financial results for the fiscal year that ended on Sept. 30. A company statement says it is "aggressively pursuing collection of the loans."

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