Warehouse bank

A warehouse bank account is a bank account at a regular commercial bank in which all clients’ funds are commingled or pooled, for the purpose of concealing the client's ownership of the funds. [1] [2]

Financial Crime

Fraud can happen when a commercial bank loans indefinitely to a smaller mortgage lending company without enough fail-safes in place, as was the case when Trust One Mortgage owner and operator Brady Bunte committed financial crimes with a scheme he devised. As Trey Garrison of Housingwire.com writes, "From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank. The fraudulent funding request caused National City Bank to incur a loss of $12,744,678.16."

See also

References
  1. Scheme Involved Nevada Corporations, Bogus Insurance And Consulting Expenses, “Warehouse Bank,” And Offshore Credit Cards
  2. Federal Court in Seattle Permanently Shuts Down “Warehouse Bank” Tax Defier Operation with $28 Million in Deposits over Four Years


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