Friday, May 07, 2021 9:48:21 PM
Boom, MI.
Not disclosing material negative information is playing with fire, subject to civil action and potentially criminal penalties. (There may be Sarbox implications as well.) Not revealing to the lender for the $11 million loan any negative information that would reach to the company’s capacity to repay that loan would be bank fraud under no uncertain terms.
I just can’t imagine that there would ever be a white enough gray area that LP and LG would really want to roll the dice.
Not disclosing material negative information is playing with fire, subject to civil action and potentially criminal penalties. (There may be Sarbox implications as well.) Not revealing to the lender for the $11 million loan any negative information that would reach to the company’s capacity to repay that loan would be bank fraud under no uncertain terms.
I just can’t imagine that there would ever be a white enough gray area that LP and LG would really want to roll the dice.
How about if she were to strike financial deals like say an $11M loan with full knowledge of materially negative information that could easily bankrupt the company
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