Though its attributes are complex, the British Lending Program is, in the end, a simple fraud. Lured by Sigillito's air of confidence and authority, a high rate of return, and the apparent success of their friends and neighbors, investors were induced to give Sigillito their money by lies about the financial condition of the borrower, the riskiness of the investment, and the source of the funds that would be used to pay returns on their investment. Sigillito lulled lenders into thinking their investments were safe by representing returns that did not exist and by paying interest and principal to lenders when they demanded it, so long as he had the funds to cover such demands. In the end, the British Lending Program folded under its own weight, unable to sustain the fees and rates of return for lenders when such minimal profit-making activity had occurred during the period of the fraud.
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