Articles by deBanked Staff
Alternative Financing Group’s Owner Indicted
September 6, 2016
Investors who thought their money was being used to fund small business loans didn’t get what they wanted, according to the SunHerald. Thomas “Lenny” Lepre, whose company Alternative Financing Group offers business loans and merchant cash advances was indicted on five counts of wire fraud on August 23rd for spending money on himself that was supposed to be used to make loans.
According to the indictment filed in the Southern District of Mississippi, Lepre “made materially false and fraudulent representations and solicited significant sums of money from investors and clients purportedly for funding of commercial services to borrowing clients, and for investments, and converted his investors and client borrowers’ monies to his own use and possession, using the funds inconsistently with the representations he had made to the investors and clients.”
The prosecution seeks a criminal forfeiture of more than $500,000. His arraignment is set for September 22nd.
Lepre is presumed innocent until proven guilty. The case number is 1:16-cr-00061-HSO-JCG.
Upcoming Industry Conference Schedule
September 2, 2016It’s not too late to sign up for this year’s remaining industry conferences. deBanked will be at all three of the following events:
Marketplace Lending and Investing Conference
Who should go?: Investors, lenders, platforms, etc.
When is it?: September 27 – 28
Where is it?: New York City
How do I sign up? Register here
Bonus: Use promo code DB to get $250 off the ticket price
Commercial Loan Broker Conference
Who should go?: Business loan brokers, MCA brokers, equipment finance companies, lenders, MCA funders, investors, etc.
When is it?: October 4 – 6
Where is it?: Las Vegas
How do I sign up?: Register here
Lend360
Who should go?: Consumer Lenders, Business loan brokers, MCA brokers, MCA funders, investors, etc.
When is it?: October 5 – 7
Where is it?: Chicago
How do I sign up?: Register here
Bonus: Use promo code deBanked15 for 15% off the registration price
LendIt Europe
Who should go?: Everyone
When is it?: October 10 – 11
Where is it?: London
How do I sign up?: Register here
Bonus: Use promo code deBankedVIP for 15% off the registration price
Money2020
Who should go?: Everyone
When is it?: October 23 – 26
Where is it?: Las Vegas
How do I sign up?: Register here
Alt Finance Companies Secure Place on Inc. 5000
August 29, 2016If the story of alternative finance has been major growth, Inc. has quantified the latest statistics through its Inc. 5000 2016 list. Here’s a handful that you might recognize:
| Rank | Company | Growth Rate (3 years) |
| 155 | Capital Advance Solutions | 2328% |
| 176 | Channel Partners Capital | 2074% |
| 183 | Kabbage | 2027% |
| 335 | Lighter Capital | 1144% |
| 346 | Quick Bridge Funding | 1114% |
| 368 | Swift Capital | 1047% |
| 705 | Credibly | 558% |
| 763 | Square | 523% |
| 912 | Reliant Funding | 439% |
| 1259 | Blue Bridge Financial | 307% |
| 1260 | loandepot | 307% |
| 1392 | InterMerchant Services | 276% |
| 1576 | Fora Financial | 240% |
| 1726 | National Funding | 215% |
| 1928 | Tax Guard | 193% |
| 2096 | Bankers Healthcare Group | 177% |
| 2227 | Bizfi | 164% |
| 3113 | Envision Capital Group | 109% |
| 3569 | Cashbloom | 88% |
| 4217 | CAN Capital | 65% |
| 4691 | Capify | 50% |
Want to Buy a Car Online? No Problem, Says Chase
August 26, 2016Chase is chasing cars.
The banking giant launched an end-to-end digital car buying service called Chase Auto Direct, an online platform where users can not only buy new and used cars but also get financing for them through their smartphones.
The service is currently available to existing Chase customers in 30 states and about 14,000 auto dealerships in the U.S. This service lets customers connect with a dealership in the Chase network that has inventory.
“Customers today are shopping for everything online, including cars,” said Bruce Jackson, head of retail lending for Chase Auto Finance. “By pairing financing with the online car shopping experience, we can provide more opportunities for Chase dealers, and make it easier for customers to get in the driver’s seat.”
Watch John Oliver’s special on the auto lending industry here.
Marketplace Lenders Win Over Wall Street Lobbyist
August 25, 2016
The line between marketplace lending and Wall Street just got thinner with the head of a major Wall Street bank trade group switching camps.
Nat Hoopes, VP of public policy and government relations at the Financial Services Forum will head the Marketplace Lending Association.
Formed in April this year, the Marketplace Lending Association was formed by Prosper Loans, Funding Circle and Lending Club to “promote a more transparent, efficient, and customer-friendly financial system by supporting the responsible growth of marketplace lending.”
A requirement to join the association is to be matching 75% of loans, by dollar, with commitments for funding from investors before the loans are issued. The group therefore probably seeks permanent acceptance of the ability for investors to buy loans or securities backed by loans in online marketplaces.
Hoopes has held a couple of stints in Washington as legislative director to Republican senator Scott Brown and as VP of government relations for the ‘Fix The Debt’ campaign. His appointment comes at a time when marketplace lenders have been trying to gain some clout in Washington as regulatory scrutiny tightens.
Chinese Regulators to Cap P2P Investments
August 24, 2016Thanks to the Ezubao ponzi scheme that opened up a can of worms and sent a slew of Chinese P2P lenders packing, the government is considering placing caps on the P2P lending sector to protect investors.
As part of the crackdown on Chinese P2P lenders, the central bank began collecting data on the process of assessing risk and deploying capital for loans made online after authorities arrested executives from two other Shanghai-based wealth management firms in May.
As per the new proposed cap, an individual investor can only provide loans upto RMB200,000 (US $30,000) on one lending platform, and cannot lend more than RMB1 million (US $150,000) in total.
Chinese media reported that over 515 P2P platforms have shut down in the first half of the year, with fraud being a pervasive reason. Despite problems, China continues to have the largest p2p lending sector in the world.
loanDepot Raises $150 million, Plans to Hold More Loans on Balance Sheet
August 17, 2016California-based marketplace lender loandepot secured $150 million in term-debt financing to make investments in technology and product and hold loans on balance sheet.
For Q2, the company funded $10 billion in personal loans, home loans and home equity loans. Total funding for the first half of 2016 was up 16 percent compared to last year, the company claimed.
loanDepot was launched in 2010, by entrepreneur Anthony Hseih who has led companies like LendingTree, Homeloancenter.com and pioneered online consumer lending with Loansdirect, acquired by E*Trade Finance in 2001. Despite strong growth (Originating more than $50 billion worth of loans since 2010), the company postponed its November 2015 IPO because of “adverse market conditions.” For reference: Square went public six days later on November 19.
In March of this year, the company partnered with subprime lender Avant for a mutual borrower program.
John Oliver Takes On Auto Lending
August 16, 2016HBO’s John Oliver has been making the rounds in finance, this time drawing attention to sub-prime auto lending. You can watch the full clip below:
Previously, Oliver took on the debt buying industry, where he actually bought $15 million worth of aged debt for $60,000 and forgave it.
