Line of Credit Trap

The Sneaky Bait & Switch Scam

Eight individuals orchestrated a sophisticated scheme targeting vulnerable small businesses desperate for financial aid. The scam, a classic bait-and-switch, lured victims with promises of improved credit scores and access to substantial funding.

Operating through five registered websites and 14 seemingly legitimate financial company names, the scammers deceived businesses with initial wire transfers ranging from $4,000 to $100,000. Victims were instructed to repay these amounts in small installments, followed by a large balloon payment, with the false promise of receiving a million-dollar line of credit upon completion. Instead, the scammers reclaimed their initial transfers - plus millions more - defrauding small businesses out of millions over four years.

If an offer seems too good to be true, it likely is. Thorough due diligence is essential to avoid falling victim to such scams.