Total Portfolio Par
$125.00M
12,500 active auto contracts
Drawn Warehouse Debt
$92.00M
Line A ($52.0M) + Line B ($40.0M)
Double-Pledged Par Collateral
$35.63M
3,562 VINs pledged to >1 lender
True Borrowing Base Deficit
-$38.10M
Fraudulent borrowing base draw
Delinquency Rate (Actual vs Rep)
14.8% (Rep: 3.2%)
+11.6% hidden uncollectible paper
Forensic Audit Controls
LIVE AUDIT
Double-Pledged Tranche Par
$35.63M
Simulates contracts pledged simultaneously to Senior Warehouse Line A & Line B.
Actual Delinquency (>60 DPD)
14.8%
Lender reported 3.2% to warehouse trustees via falsified monthly compliance certs.
Senior Facility A Advance Rate
80%
Mezzanine Facility B Advance Rate
75%
CRIMINAL FRAUD THRESHOLD: BREACHED
When unencumbered collateral is deficient by >$10M while actively submitting signed Borrowing Base Certificates to FDIC-insured institutions, 18 U.S.C. § 1344 specific intent attaches.
Warehouse Collateral Stream & Cross-Pledge Verification
Sample Auto Loan Tape Tranches (10 Contract Batches)
Showing 10 tranches
| Batch / VIN Prefix | Collateral Par | Pledged Facility A | Pledged Facility B | Delinquency Status | Audit Verification |
|---|
Statutory Criminal Exposure vs Civil Insolvency
DOJ CRIMINAL DIVISION MATRIX
18 U.S.C. § 1344 • Bank Fraud
CLASS B FELONY • 30 YRS
Executing a scheme or artifice to defraud an insured financial institution or obtain warehouse credit by false representations.
Evidence Recorded: False borrowing base certs submitted on 1st & 15th of each month; omitted prior security interest granted to Mezzanine Line B.
18 U.S.C. § 1343 • Wire Fraud
20 YRS STATUTORY
Interstate transmission of wire instructions to sweep liquidity drawdowns from custodial clearing accounts based on fabricated loan tapes.
Evidence Recorded: Fedwire transfers routed between Dallas originating custodial accounts and NY trustee institutions.
18 U.S.C. § 152 • Bankruptcy Fraud & Asset Concealment
5 YRS STATUTORY
Fraudulently concealing property of the bankruptcy estate or making false oaths/accounts in Chapter 11 pre-petition filings.
Evidence Recorded: Schedule D secured creditor disclosures omitted secondary security interests on 3,562 auto loan contracts.
Bankruptcy Chapter 11 Priority Recovery Waterfall
ESTIMATED RECOVERIES
When the court determines collateral is encumbered by competing perfected UCC-1 filings, double-pledged assets are frozen and subject to litigation hold, slashing senior recovery rates.
Total Secured Creditor Loss:
-$36.53M (39.7% Haircut)
Unsecured trade creditors and equity holders are wiped out with 0.0% recovery.