Alright, let me paint a picture for you regarding an SBA loan default situation. It’s a bit like finding out that the original seller of a business that you bought through an SBA-guaranteed loan may have pulled a fast one on you. This could be quite the predicament if you’re the one holding the bag for that debt. We, at Lawscape, have seen this scenario play out all too often.

The Devil in the Details: The Rood Case

Take for example Todd E. Rood, once a proud business owner of the Rood Machine & Engineering outfit and a bit of a creative bookkeeper it seems. Around 2015 and 2016, Rood got a bit creative with his accounting and “beautified” his business reality. We’re talking inflating incomes, lowering liabilities – the works. The kicker? This bloke boosted the business income by around $583,827— not exactly small change, eh?

Check out the details of Rood’s Plea Agreement [here](www.sba-attorneys.com/wp-content/uploads/2018/07/sba-loan-default-fraud-by-the-original-seller-of-the-small-business.mp4/).

Well, it got a tad worse. As it turns out, his company was sold for $2.05 million based on these glazed-over documents. The buyers even secured a $1.74 million loan from the Small Business Administration (SBA)—all on the back of Rood’s fraudulent financial figures.

The Sorrowful Sellers

Oh and, get this, Rood also convinced the buyers to sell their home swiftly, all so they could snag his business quicker under the misconception that Rood was battling terminal colon cancer. This unfortunate rush sale ended in a $40,000 loss for the buyers.

Rood was brought to justice, mind you. He had to cough up $262,000 in restitution for the buyers’ closing costs and an obligatory cash injection into the business. Rood also got a free four-year vacation in a federal jail, with no parole tab. He was ordered by the federal court to pay restitution of $1,347,608 and a money judgement of $1,207,979 to the government, since that was his “profit” from the sale.

How Can Lawscape Assist?

If you find yourself in deep waters with an SBA loan default involving an SBA Unconditional Guarantee or a debt to the Treasury/Bureau of Fiscal Service, don’t hesitate to reach out to us at Lawscape. You can call us for an initial FREE consultation with an experienced SBA or Treasury workout attorney at 1-212-460-5004.

We’re equipped to dissect your SBA loan, Treasury/BFS debt or Private Collection Agency problem and present you with a variety of potentially helpful solutions. Remember, those who seek shall find. In this case, what you might find is a way out of this business kerfuffle.

Tapping into Lawscape’s Record

It might put your mind at ease to know that we’ve successfully dealt with millions of dollars in SBA debts via methods like Offer in Compromise and Negotiated Repayment Agreements, without the need for our clients to file for bankruptcy or face losing their home.

We’ve also defended against Treasury debts via AWG hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise offers and Negotiated Repayment Agreements.

Bottom line? We can represent federal debtors nationwide before the SBA, the SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service thanks to the Agency Practice Act that authorizes us to do so. Take comfort in the fact that we’re fluent in both proper and corporate English. We know our way around the system— the human way, not the AI way.

And not to brag, but here’s a [list](https://app.contentsamurai.com/cc/168531) of our other accomplishments, if you’re curious.