Was this a bank loan, or did he write a check from his Home Equity line of Credit (HELOC.) Big difference here. If a HELOC then you just write a check to yourself for a loan, you do not have to list any reason for the loan.
Even if it was a bank loan: who cares what you need money for? Maybe you wanted to finance a transgender operation and were reluctant to inform bank about it? Maybe you wanted to give it to charity and remain anonymous?
As long as it is covered by a collateral, how is it a crime?
>> you do not have to list any reason for the loan <<
You may be correct.
But on the other hand, when you arrange a wire transfer for a large sum — even when the funds are completely your own, not borrowed — your bank is supposed to ask you the purpose of your remittance.
(Been there, done that — several times.)
So maybe when you don’t provide truthful info to your bank about the purpose of your W/T, you might be committing some kinda crime.
(Really dunno, but sorta seems plausible. Or do you have contratry info?)
I’m not sure that matters, either. Does it even matter what he did with the money as long as the loan is repaid? How can anyone prosecute a fraud case if nobody can demonstrate any financial harm?