You can’t create a business out of thin air and magically get that level of charging limit on a bunch of credit cards, or even one card.
Any business you can create quickly is going to be something like an LLC, which requires your SSN to set up. The company doesn’t exist until the state of incorporation and the IRS have that SSN.
So, good news, he’s not actually going to prison, because he’s not actually committing this fraud.
He’s just a
?
I feel like this guy simply isn’t wealthy enough to do this. You have to be able to borrow at least 20 million before they let you get away with this type of thing.
As the post said, yeah, it doesn’t work like this. If it did, Amex would go bankrupt in a month as a million scammers would all incorporate LLCs and get credit cards.
My understanding is that when you get a corporate credit card, both the corp and the individual have liability. The corp first, the individual second. This happened to a friend of mine, where he had a corp credit card, corp went bankrupt, friend was on the hook.
Reading this whole thread so far makes it apparent to me, and maybe alarming too, that it isn’t clear just how this dude’s scam works. 
ETA: I mean, is supposed to work. If he’s on his way to being prosecuted, then it doesn’t work at all.
Lenders like to have multiple people to collect from if the business proves unable to pay back the loan.
For this reason, banks almost always make the owners of the corporation and the cardholders guarantee any charges made on the credit card.
This means that:
- You personally owe the money even if the purchase was for business purposes, or even if the business no longer exists
I have never seen someone successfully get a credit card where only the corporation, but not the cardholder or owner of the corporation was liable.
IANAL, and I found this on the web. YMMV but probably won’t.
“Crime: So good they made it illegal”
Oh no! The watch isn’t waterproof. Rats! There goes a great plan. Keep trying, Lil’ Buddy. Fraud never sleeps. Keep at it!
That watch he’s wearing looks like a Patek Philippe Nautilus 5719/10G (Water-resistant to 120 meters) those cost about $500,000.
“Influencers”… Who cares, I’m vaccinated.
Of course this taste-impaired dope would choose the company’s gaudiest jewel-encrusted offering.
If I bought a watch that I wanted to flip for a half a mill I would buy a Philippe Dufour Simplicity.
I was thinking the same think, the only ones he’s truly defrauding are his followers who think he’s telling them the truth.
He says that he’ll teach his followers for free, but I suppose that’s a lie too.
And make sure to wear your LLC’s logo’d polo shirt while doing so.
PB LLC?
Do you think that anyone deserves to be raped?
What was his escape plan when the creditors would come knocking?
Just run to the edge of the flat earth and go down the stairs?
I had a “friend” back at the end of the 2000s that had a teeny tiny business. When the economy took a dump they used the corporate credit card to purchase supplies thinking the downturn wasn’t going to last forever.
The “freind” was wrong but he was able to stay afloat making the minimum payments on the 9% interest card.
Then the bank that issued the card decided they wanted 24% interest to make up for all the other bad loans they had been writing.
The friend called the bank and asked wtf? The bank said it’s the agreement that was signed. (they couldn’t produce that document) The corporation tried to negotiate an interest rate somewhere in the middle but nope the bank wanted the highest interest rate possible.
It was pointed out that there would be no choice but to default and the business had no assets and was pretty much judgement proof. They did not believe my freind.
The bank realized early on that the business had zero assets or receivables so they did the next best thing, they sued the card holders which were the owner and the bookkeeper who was a very well loved family member. The owner didn’t care about himself because they were going through horrible personal financial times but he felt bad the bookkeeper and lost considerable sleep over the stress it was causing.
The bank was never able to produce a signed agreement between the two named people in the lawsuit, they only had an agreement with the corporation.
They still thought they had a case so it went in front of a judge, the judge was not happy with the bank and lectured their lawyer about frivolous lawsuits, dismissed the case and they had to pay the lawyer’s fees.
But it took more money to clear up the bookkeepers credit report because the bank was reporting on his credit even though it wasn’t his line of credit.
The amount of stress it caused my “freind” was awful. And this was done without the intention of defrauding a bank, it happened out of greed from the bank and tough economic times.
All the bank had to do was negotiate with the corporation and the owner and they would have got their money but no, they wanted their money and then some.
Banks did learn some lessons about giving corporations credit, at least small mom and pop corporations, credit without a real person agreeing to be responsible for the debt just doesn’t happen unless you’re a huge multi million dollar corporation.
tl;dr don’t do it, it won’t end well.
