Federal Trade Commission lawyers are scrutinizing BK Boreyko’s financial disclosures to Bank of America, questioning if he misled the lender to secure approval for a property sale. The FTC filed an objection to Boreyko’s request for an expedited decision on his motion to short sell a property, which the court granted, setting a January 15th decision date.

The FTC’s specific concern centers on whether Boreyko’s statements to Bank of America were truthful and complete. This scrutiny follows a September 2015 preliminary injunction in his case. After the injunction, Boreyko liquidated his stake in Arizona Production & Packaging for an undisclosed sum. He also sought court permission to sell his interest in AZPACK Properties, LLC, a related real estate holding company. Simultaneously, he made a $1,031,500 loan to Vemma, a company that continues to operate at a loss.

Regarding the property in question, the FTC revealed that Boreyko ceased making payments in September 2015. The earnest money check for the sale is dated November 17, and the purchase contract was signed on December 2 and 3. Boreyko’s legal counsel contacted the FTC on January 8, requesting a stipulation for the sale with a response deadline of January 11. The reasons for this timing, particularly contacting the FTC over a month after the contract was signed and demanding a swift response, remain unclear.

Despite the limited one-business-day review period, the FTC attempted to assess the transaction. However, as of January 11, significant concerns persisted regarding the accuracy and completeness of Boreyko’s representations to Bank of America. The FTC suspects Boreyko misrepresented his financial situation when claiming hardship to the bank.

Boreyko’s hardship letter to Bank of America, dated December 9, mentioned the August 2015 asset freeze and vaguely stated he was left without income. The FTC points out that the preliminary injunction order in September had already lifted the asset freeze. Furthermore, Boreyko proceeded to liquidate his substantial interest in Arizona Production & Packaging and loaned over $1 million to Vemma.

The regulator argues that despite having access to funds from these transactions, Boreyko continued to miss property payments. His claim of inability to pay, made to Bank of America, appears to be false according to the FTC.