Opinion ID: 3058598
Heading Depth: 3
Heading Rank: 3

Heading: Cashflow Financing

Text: Based upon information gleaned from the CBRS database, the IRS also started investigating Cashflow Financing, Inc. (“Cashflow”), another check cashing institution. In March 2007, Cashflow was searched and Miguel Obispo, its owner, was detained and interviewed. In the end, Obispo agreed to cooperate with the government in an undercover capacity. Based on that cooperation, the IRS installed cameras and microphones in Cashflow, and Obispo was personally 16 equipped with a recording device.10 According to Obispo’s testimony, Cashflow had two types of corporate clients – regular and irregular. The regular clients cashed $5,000 to $7,000 checks every two weeks. The irregular clients cashed checks from $30,000 to $200,000 every week. The irregular clients included: DNC Construction; Fast; Spirit; SAN Construction; WF Construction; Baba Construction; and Four-by-Four Construction. Not surprisingly, these so-called construction clients were not actually engaged in construction work, but were shell companies that could be used as subcontractors for the purposes of cashing checks. Over time, 90% of Cashflow’s business was derived from these irregular companies. The only hindrance to Obispo’s growing business was limitations imposed by his bank. The bank established an $180,000 ceiling on Cashflow’s weekly check deposits. This ceiling forced Obispo to seek alternative sources of funds, and he found willing partners in Caro and La Bamba.