The simultaneous contracts could be arranged to replicate any agreed interest rate while providing legal protection against default on one side and loansharking on the other.
Gold Club owner Kaplan and his associates are also accused of credit card fraud, money laundering, extortion, loansharking, obstruction of justice, bribing two Atlanta police officers and having illegal mob ties, including paying protection money to the Gambino crime family.
Lest it be accused of loansharking, Sanwa Bank points out that the venture is aimed at untapped middle-income, middle-risk consumers (apparently it is already getting calls from school teachers and tax inspectors) who cannot borrow money at banks but flinch at traditional consumer-finance rates.