USA Capital

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. USA Capital was a lending service run by Tom Hantges, Joe Milanowski and Paul Hamilton. The company solicited money from investors which it used to make short-term, high interest loans to property developers. This type of loan is sometimes called a trust deed loan. Investors had fractional interests in the loans for which they received regular interest payments, typically in the range of 11-14%. The loans, although not risk-free, were collateralized with real estate and were considered a generally safe investment. Most loans were repaid in 12-18 months. On April 13, 2006 the company surprised over 6,000 investors when it declared bankruptcy. At the time of insolvency the company was managing $962,000,000 in investor assets, making it the biggest bankruptcy case in the history of Nevada.... Mehr