Starting a company with just $1,000 indicates that the start of the company was poorly capitalized. In addition to being poorly capitalized, Banco Panamericano Incorporation granted a large loan to Loop Cooperation after three years without any reason (Cross & Miller, 2015). Besides that, the Greenblatt family wholly operates Banco Panamericano Incorporation, and one of the co-founders of Loop Corporation, Leon Greenblatt, belongs to the Greenblatt family. This situation already suggests a potential conflict of interest, as the Greenblatts have strong representation in both Loop Corporation and Banco Panamericano Incorporation. When the stock market crashed, Loop Corporation intentionally failed to pay Wachovia the $1.89 million it owed. When the Loop Corporation had the opportunity to borrow further from the Bank, the money was not used to repay Wachovia, but was nevertheless used to compensate Nichols and Jahelka; members of the Loop society. This compensation was made without issuing any Form W-2. This evidence shows that the creation of Loop Corporation was set up not to make profits, to deceive and deceive entities such as Wachovia to extend credit lines for the owner