The advance fee scheme is a method whereby an individual will receive a sum of money in advance for services that the individual promises to furnish in the future. In reality, the individual who receives the advance fee has neither the intention nor the ability to furnish the promised service. In the case studies presented, the advance fee perpetrators purported to have the ability to furnish a source of financing to the individual or business entity who was not able to secure conventional sources of financing due to economic conditions. Exploiting the businessman's eagerness to expand or initiate his enterprise, the unscrupulous loan broker will promise sources of financing in exchange for the placement by the victim of about 1 percent of the amount of the desired loan in escrow to cover commissions, fees, and other loan costs. For an additional fee, the borrower is then referred to 'shell' corporations for the actual loan, which is never forthcoming, nor is the fee returned, because each corporation blames the other for alleged improprieties. The borrower, in order to maintain his dignity and reputation, decides to forget the entire event. One scheme operated through a conspirator network of associated corporations, the other was confined to Pennsylvania and neighboring States. A series of 18 precautions are listed to assure borrower protection in consummating a loan. Recommendations for legislators and law enforcement authorities to curbing loan fraud are also presented. Appendixes include examples of correspondence to borrowers from the fraudulent corporations investigated and lists of borrowers defrauded. Footnotes are included.