Working within the Miami fraud prevention sector affords you the opportunity to gain access to exclusive locations and high status individuals. For instance, I have been to mansions, a world-famous music studio and secure government facilities to name a few. At times, you may work as a field inspector that audits on behalf of big banks, like Bank of America. The amount of work can be daunting sometimes with tight turnarounds, especially during the height of the financial crisis. Last month, I mentioned growth risks ruining your reputation and sustainability, well here is a textbook example with Dean Counce from Mortgage Horror’s blog.
As a field inspector, I found this case interesting because of how carried away Dean Counce became. I would do up to 6 inspections per day and each would take about 15 to 30 minutes to conduct on-site. Growth was pretty much inevitable, and I considered taking on subcontractors to fill orders that I was unable to take. I paused on that idea because I knew the implications for having people working for you can lead to severe consequences when you have to make quick decisions on hiring.
In 2007, a fellow field inspector went through with the idea to keep pace with growth by having people work for him, but he didn’t count the cost. Phenomenal growth came with a risk that has ruined the career of a fellow field inspector, Dean Counce, and possibly his workers. It should serve as an example about why you should avoid phenomenal growth risks before they could land you in jail and fined.
When Counce remained a small solo entrepreneur, he did all the work himself. However, when foreclosures took a sharp climb upward, he took on employees to fill-in. This soon too, became not enough, so his company began illegally fabricating reports submitted to Bank of America. Rather than taking orders that his company could fill and passing along any surplus to an independent network of trusted associates, he wanted his company to exclusively maintain the lucrative flow of orders.
Lenders such as Bank of America rely on these reports to be true in order to determine measures to take in regards to outstanding debt. Providing fake pictures and reports, instead of, going to locations creates a bad climate for the bank and its borrowers. He and his staff clearly knew this was punishable by law as it is made clear in contract agreements. However, he decided not to walk the straight line to success and grow steadily with care.
Now, he owes over 12 million in restitution and will complete 8 years behind bars. Before getting caught, he made almost 24 million from Bank of America. Employees estimate that 60 percent of the work done by end the of fraud was achieved by taking extra pictures of locations to later use for other orders and making up false reports.
If your small business is intentionally defrauding, you will eventually have to answer for it. Growing at a phenomenal rate is great, but you must consider how well you can shift to a new business structure to accommodate it. I mentioned in a previous article to take on a virtual worker and seek a mentor for assistance before taking innocent employees on a ride to unemployment and fraud. When small businesses grow too fast, they often times find out that it would have been more beneficial to stay small and nimble.
I recommend a pacing guide with goals annually, quarterly, and monthly. Set limits on the amount of work you can handle and turn-down work to others who you know can help effectively. You will build better relationships with the small business community and will keep stress down for yourself. Then you will find your small business less likely to get tangled-up in foolish greed. I am sure that when Dean Counce lost his two homes and other assets that he realized that it was pointless to not walk in integrity. Galatians 6:7, “You will harvest what you plant.”