How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TexCrimLawyer, J.D. Your Own Question
TexCrimLawyer, J.D.
TexCrimLawyer, J.D., Lawyer
Category: Criminal Law
Satisfied Customers: 4829
Experience:  Experienced in state and federal criminal litigation.
Type Your Criminal Law Question Here...
TexCrimLawyer, J.D. is online now
A new question is answered every 9 seconds

Pre-billing to inflate Borrowing Base with our lender,

This answer was rated:

My company controller managed the Borrowing Base with our lender, Greystone. The lending was based upon borrowing against our accounts receivables. We would be allowed to borrow 80% of the value of the product that we shipped to our customers. When the customer paid for the product, it would go into a lock box controlled by the lender, Greystone. They would use that money to pay down the credit line, etc. My controller started to pre-bill the customer shipments thus inflating the amount eligible to borrow. That additional money was used by her to divert money to my former partner, her brother, and another person in the company as well as herself. This activity was discovered by Greystone, my controller quit and I was left holding the bag. This caused Greystone to attack my company and destroy my business. I am already persuing civil avenues against her and my former partner. I have statements from some of the people involved and data clearly showing solid proof of the pre-billing activity as well as a spreadsheet of the pre-billing records so she could keep track of the shippments so she would not accidently bill a customer a second time when the product actually shipped. I worked my way out of the pre-billing mess and shipped all product she had pre-billed. Of course it drained cash from the company. What criminal charges do I have relating to pre-billing. This is obviously a white collar, financial crime and I have found the police lacking.

Hi, I'm a moderator for this topic. I've been working hard to find a professional to assist you right away, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you. Thank you!
Customer: replied 5 years ago.

I am very happy to wait while you look into this issue. It is of great concern to me and I am currently at a loss as to where to go. Please continue to research. Let me know if I can help you.

Thank you for your continued patience. We will continue the search for a professional for you.

I'm sorry to hear about your situation. I was formerly an Assistant United States Attorney, focusing on white collar crimes, so I have some experience in this area.

So I have this correct, your partner would pre-bill, which the customer would pay, then the payment would be used to pay down the line of credit, which freed up more credit. Your partner would then use that fraudulently freed up credit and divert it to herself and her husband. Is that correct? Do you know if Greystone is FDIC insured?

Customer: replied 5 years ago.

The process you have described is correct. The person that prebilled was my controller and the sister of my partner. The credit that was generated was used to inflate the controllers salary as well as pay her brother extra, unearned money.


Greystone Business Credit is in New York. Not certain if they were FDIC insured or not.

How much money was taken out of the line of credit, and how much was fraudulently pre-billed?
Customer: replied 5 years ago.

Hold on to your hat. A bit more than a million dollars was prebilled in total. This took place over a 4 month timeframe. The total is huge but at any given time it was much smaller and always rotating in and out of the Borrowing Base. It would be prebilled and then shipped a month or so later but the float was always inflated.


I have discovered about $28,000 was paid to her brother, about $16,000 to her and about $9,000 to another individual.

OK. I did a little research on Greystone, and they do not appear to be FDIC insured, which means there is no bank fraud.

The best criminal charge you have is wire fraud ( Basically, it is a federal crime to use the wires (i.e. wire transfers) to commit fraud. Here, your partner transfered money and had money transfered to fraudulently gain access to a line of credit that would have otherwise not been available. You need to contact the FBI. You can find your local field office here:

TexCrimLawyer, J.D., Lawyer
Category: Criminal Law
Satisfied Customers: 4829
Experience: Experienced in state and federal criminal litigation.
TexCrimLawyer, J.D. and other Criminal Law Specialists are ready to help you