Greeley Dental Office Administrator Loses $4,000 in Alleged Scam
Overview: Ron Bergloff, an administrator at a dental office in Greeley, Colorado, was shocked when he discovered that a $4,000 fee had been withdrawn from his business account during what he thought was a legitimate application for financing.
Incident Details:
- Bergloff sought funding for a dental implant training course and received a call from a company claiming to have ties with Goldman Sachs.
- The company, later identified as Goldman Financial, led him to believe he was applying for a traditional business loan.
- After providing documentation, including a voided check, and deciding to decline the offer, Bergloff was surprised to find a $4,000 “underwriting fee” deducted from his account.
Company’s Response:
- Goldman Financial insisted that Bergloff had authorized the charge through a DocuSign agreement and claimed the fee was non-refundable.
- The company stated it is not affiliated with Goldman Sachs and that Bergloff’s funding was approved in the process.
Consumer Protection Issues:
- The Better Business Bureau (BBB) has flagged Goldman Financial, giving it an “F” rating due to numerous complaints about unauthorized withdrawals.
- Regulators in both Florida and California noted that Goldman Financial lacks the necessary licensing to operate as a financial services provider.
Merchant Cash Advances Explained:
- Unlike traditional loans, merchant cash advances (MCAs) involve providing upfront cash in exchange for a percentage of future revenues.
- These products are often not subject to the same regulations as traditional lending, leading to potential exploitation of consumers.
Advice for Business Owners:
- Experts recommend thorough research into any funding opportunity, never to rush into financial deals, and to be wary of sharing bank information with unfamiliar entities.
- Reading contracts and understanding the terms of financial products are crucial to avoid falling victim to scams.
Bergloff has taken steps to raise awareness about his experience, filing complaints and creating a website to inform others about potential fraud.
Key Takeaways:
- Always verify the legitimacy of funding companies.
- Understand the differences between traditional loans and alternative funding options, such as merchant cash advances.
- Be cautious of unsolicited financing offers and the documents you sign.
