LAS VEGAS (KLAS) — Consumers are being warned of scam that targets people shopping for privately funding loans, usually for real estate transactions.
The perpetrators allegedly contact consumers who have inquired online about securing a loan, using the name Val Taylor/Val Taylor Investments (this person is also a victim). The perpetrators then tell the consumer they can arrange the loan, but the borrower must first purchase a “Loan Payment Protection Insurance” policy that will pay the loan to avoid default, in the event the borrower is unable to make payments.
The scammers even provide a California certificate of insurance which appears legitimate, according to the Nevada Division of Insurance. While there have been no reported cases of this fraud in Nevada, there have been three cases in other states including California.
You can report this fraud to the Nevada Division of Insurance.