The repercussions of fraudulent activity can be widespread


When you put your money in a bank, you probably trust it will be safe. You might keep some money in your accounts to earn some interest. And knowing that your money is insured may give you peace of mind.

Banks can also lend you money. Whether it is to purchase a home or start a business, you might need to borrow funds. But could your borrowed money result in serving time?

One man’s journey from borrower to inmate

Between the years 2005 and 2007, Jack Kachkar allegedly submitted fraudulent paperwork to Westernbank on behalf of his pharmaceutical company, Inyx. However, Inyx filed bankruptcy in 2003.

In addition to making fraudulent claims regarding collateral from mines in Canada in Mexico, Kachkar made false representations about repayment from lenders in:

  • Libya
  • Norway
  • The United Kingdom

Kachkar’s $142 million scheme caused the San Juan bank’s demise. It also cost roughly 1,500 Puerto Ricans their jobs. As decided by a federal court in February, Jack Kachkar’s fraudulent activities resulted in eight counts of wire fraud.

How can you protect yourself from fraud?

Unfortunately, Kachkar is not alone in his greed. However, there are things you can do to help protect yourself from financial fraud. You might wise to:

  • Research a person or entity asking for funds prior to giving them money
  • Report prerecorded sales pitches to the Federal Trade Commission (FTC)
  • Refuse to cash a check and wire the funds elsewhere
  • Avoid giving money upon unexpected requests from someone claiming to represent a charity or government office

You cannot control your bank’s lending decisions. But by approaching your personal finances with caution, you may be able to safeguard your accounts.