As has been discussed at industry gatherings over the past two years, navigating the challenges of corporate fraud in the asset-backed market have proven particularly difficult, thanks in part to the industry's nature - it's the route less traveled by the mainstream. At last week's Asset Based Lending Symposium presented by Financial Research Associates, Daniel Alpert, managing director and co-founder of Westwood Capital examined the issues of why and how fraud can be committed in the receivables and asset-based lending industries, while discussing warning signs that may lead to such practices.

Most of the fraudulent behavior seen to date may lie in the challenges presented by the assets themselves, which are, in the structural and servicing sense, very unique. And servicers face a particularly heinous curve in an industry still void of guardrails, years after the National Century Financial Enterprises and Enron scandals.

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