Loan Officer Accused Of $2 Million In Bad Loans

by Mike Bevel, CollectionIndustry.com

It?s possible Mohammed Rizvi, a loan officer at HSBC Bank in Valley Stream, NY, thought he was being super-duper helpful. “Doing a solid” as it were. That would be a charitable way of looking at why he would knowingly process more than $2 million in bad loans.

Rizvi was arrested Monday for his ?random acts of kindness? ? so clearly, there are some out there not in the charitable mood.

Rizvi?s first mistake might be making loans to his brother, who defaulted on both to the tune of near about $100,000. This tipped off HSBC to some financial shenanigans, and they began investigating other loans approved by Rizvi.

In the course of the investigation, HSBC discovered that on more than 20 occasions, Rizvi had managed to obtain similar loans totaling more than $2 million ? and resulting in immediate defaults losses to HSBC of over $1.5 million.

When the bank attempted to collect, it turned out that the businesses applying for these loans sort of didn?t exactly exist. Except on paper. Which doesn?t count. So: Rizvi?s arrested; and while it isn?t covered in the North Country Gazette?s article, it?s reasonable to expect that things aren?t going to go so well for the brother, either.

In defending himself against the allegations ? including charges of second degree larceny, first degree scheme to defraud, and first degree falsifying business records ? Rizvi tried to claim that his loan-approval practices were ?the way [Pakistanis] do business.? And while there?s been no immediate response from the Pakistani business community, it would no doubt be safe to conclude to swindling is swindling regardless of nationality, and that it?s universally frowned upon.