Victims of $110 Million Inofin Subprime Lender Fraud Case Unknown
An SEC official involved in exposing alleged fraud by a subprime auto lender could not say if credit unions were victimized.
“We can’t say whether or not credit unions were impacted by the operation of Inofin,” said Kelcourse, who along with other officials conducted the SEC’s investigation of the company.
The SEC recently charged Massachusetts-based Inofin and three company executives with misleading investors about their lending activities and diverting millions of dollars in investor funds for their personal benefit.
The commission said the subprime auto lender illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia through the sale of unregistered notes.
Investors in the notes were told that Inofin would use the money for the sole purpose of funding subprime auto loans. Instead, most of the money raised was used to buy several used car dealerships and build real estate developments, the government charged.