i ask this because i dont have a job but my friend has a buisness and will fill out the paper work if needed.if they fax him for proof of employment.i filled out a online application and when i talk to the people on the phone are they gonna know the info i filled out isnt true.i cant get a pay stub but i can probably dummy up a w2 form.
2006-12-14 08:12:38 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
What you are suggesting is a crime for both you and your friend. If you are applying for a Federal backed loan, then it's a Federal felony.
DUMB.
2006-12-14 08:21:17 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's bank fraud. If it's a federally chartered bank, S&L or credit union that's a federal offense -- and a felony to boot. For both you and your idiot business owner friend. Dummying up a W-2 could add federal tax fraud to the mix.
Yes, there is a possibility that your subterfuge could be discovered. A percentage of all loans ARE audited. Some are audited internally by the bank, and others are audited externally both by the bank's auditor and the banking regulators. It's entirely possible that you could be required to provide a month or two worth of pay stubs.
On the upside, white collar federal crimminals usually go to the federal prison camps. If you were prosecuted in state courts -- very likely in NY for this type of crime as the state penalties are much harsher -- you could wind up doing hard time in a maximum security facility.
It's your call...
2006-12-14 08:59:37 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
We had to supply proof of employment, last year's tax forms and our last paystub for each of us. And this was at a credit union I'd been a member of for 30 years and had paid off multiple loans to over the years.
Sounds like you're thinking about fraud if you have your friend lie for you. Not a good idea. Go ahead, dummy up some W2s and really get the federal government on your case. Perhaps they'll send you to prison and the loan will be a moot point.
2006-12-14 08:31:19 · answer #3 · answered by parsonsel 6 · 0⤊ 0⤋
If you expect to do a standard loan, you'll need full documentation-- 2 recent paycheck stubs, 2 years of W2's, and bank statements for 2 months.
If you've got good credit, you'd be better off doing a no-documentation loan or no income verification loan. The rate will be just slightly higher (.25-.50%) but you dont have to lie or commit Fraud. (which is what you're doing.)
2006-12-14 09:19:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Sounds like fraud to me! Very bad.
The only way to make it "real" and to be in less of a problem with the government is to pay taxes on the W2 that your friend is making.
Remember if you "made" money legally or illegally you still owe taxes! Plus your friend will owe taxes to the federal government for "tax" evasion! A person can't hide behind a corporate cover for stuff like that.
Your going to jail if the loan defaults and the government finds out!
2006-12-14 08:39:28 · answer #5 · answered by compgeekdotcom 2 · 0⤊ 0⤋
The lender will require copies of your pay stubs. Short of that, they will want to see copies of your bank statements showing your cash flow (withdrawals and deposits).
"Dummying" up a W-2 is considered fraud, which would be a felony.
2006-12-14 08:16:10 · answer #6 · answered by jseah114 6 · 0⤊ 0⤋
Sounds to me like you are willing to commit fraud to get a loan. You better rethink what you are doing. You could wind up in more trouble than you want.
2006-12-14 08:24:59 · answer #7 · answered by deep5223 4 · 0⤊ 0⤋
You are talking about committing fraud.
If your "friend" falsely provides proof of emplyment for you, he's committing fraud, too.
2006-12-14 09:06:59 · answer #8 · answered by goicuon 4 · 0⤊ 0⤋