Bradley uncovered which type of fraud?

• A. Daisy chain fraud
• B. Money transfer fraud
• C. Brokered loan fraud
• D. Letter of credit fraud

Answer: (C)

Brokered loan fraud happens when a loan broker orchestrates financing across one or more lenders by using deceptive documents or misrepresented borrower information. The broker may bring in straw buyers, inflate income, exaggerate collateral, or fabricate details to get lenders to fund a loan. The fraud is centered on the loan-brokering process itself, with the broker (often) profiting from fees or kickbacks tied to the number of funded loans. Bradley’s discovery fits this pattern because the scheme depended on the broker arranging multiple lender funding under false pretenses rather than simply moving funds or using forged documents for a single loan.

Daisy chain fraud would involve a linked series of entities or transactions used to conceal activity, money transfer fraud targets unauthorized wires, and letter of credit fraud hinges on forged or fraudulent documents to draw payment under a letter of credit. The situation Bradley uncovered aligns with the brokered loan approach.