Mt. Prospect 'lender' not really there, officials say

A Mount Prospect address is being used by what the Better Business Bureau calls a "fake lender" who has duped people across the country out of thousands of dollars.

The only silver lining regarding the local address is it probably means local consumers were spared, said Steve Bernas, president and CEO of the Better Business Bureau of Chicago and Northern Illinois.

Companies that use fake addresses don't want their targets to drive to the location only to find it's not there, so anyone within driving distance likely was not targeted, he said.

The bureau said Fairway Lending Group claims to be operating at 1699 Wall St., which is an occupied office building.

The bureau said the company does not do business there, and Mount Prospect police confirmed that the company is not at that address. There is no evidence it ever was there, Mount Prospect police officer Dirk Ollech said.

All complaints about Fairway to the Mount Prospect police have come from far outside the area, Ollech said.

Bernas said hundreds of complaints are coming to the business bureau from Arizona, New York, Ohio, Indiana, Maryland, Oklahoma, South Carolina, Wisconsin, Texas, Massachusetts, Colorado, Missouri and Pennsylvania.

Fairway could not be reached for comment Friday at phone and e-mail addresses it uses. Authorities said they don't know where it actually operates from.

The business bureau has received about 400 inquiries about Fairway in the past month, with 75 of them coming in the past six days, Bernas said.

Twenty of the complaints on file come from consumers who lost anywhere from $900 to more than $5,000 each in what's known as "collateral payments."

It's part of a fake lending scam that is rather popular among con artists, appearing on the bureau's list of the top 10 cons, he said.

Usually people who fall for fake lenders have bad credit, finding it almost impossible to secure a legitimate bank loan, Bernas said.

The company promises a loan if the person sends money as collateral via Western Union, usually to a location outside the country. In the Fairway case, the money was wired to Canada, he said.

Bernas said advance fee loans of the kind purportedly being offered are illegal in the U.S. and Canada.

In this case, the person wires the money, but the company asks for a little more until the person realizes something is up and asks for a refund, which never comes.

"We tell consumers to be critical," Bernas said. "Never pay in advance for a loan or funnel money out of the country."

Consumers who have been victimized by Fairway Lending Group should file complaints with the Internet Crime Complaint Center, or IC3, at www.ic3.gov, and with Phonebusters at www.phonebusters.com.

Top 10 scams

The Better Business Bureau tracks its most prevalent cons.

Check scams: Victims receive a check in the mail for winning a sweepstakes.

Advance fee lenders: The applicant is asked to pay advance fees to receive a loan.

Online employment offers: Offers that look for shipping fees frequently turn out to be fraudulent listings.

Lottery/sweepstake letters: Individuals are told that they have won and instructed to send money for processing.

Overpayment scams: A buyer will send a check to the online seller for more than the agreed price. The seller issues a refund, only to find the first check is a bad one.

Mortgage foreclosure rescue scams: Scammers offer residents of a home a plan to save the house for a fee.

Marketing and investment scams: Individuals are told they can make money working from home, simply by purchasing a special kit.

Inheritance scam: E-mails from someone who will claim to be related, then request bank information.

Phishing scams: E-mails asking for account numbers and personal information.

Nigerian scam: E-mails sent from someone claiming to be a foreign country official seeking a safe place funds can be deposited.