Bernard Flinn operated a business known as Harvey Investment Co., Inc./High Risk

Question

Bernard Flinn operated a business known as Harvey Investment Co., Inc./High Risk Loans. Flinn worked as a loan broker, matching those who came to him with lenders willing to loan them money given their credit history and the amount involved. From 1982 through 1985, Flinn found loans for five people. Indiana requires that persons engaged in the business of brokering loans obtain a license from the state. Flinn was prosecuted for brokering loans without having a license. He raised the defense that he did not know that a license was required and that, accordingly, he lacked the criminal intent to broker loans without having a license. Does Flinn have a good defense? [Flinn v. Indiana, 563 N.E.2d 536 (Ind.)

Explanation / Answer

No,Flinn absolutely doesn't have a good defence claiming that he didn't know that a license was required.Because when you are involved in a business like this one,you are supposed to gather all the information about all the pre-requisites of the business.Also at the time he incorporated his business he was supposed to know what he is doing and also he was supposed to know that he needs a license to run that kind of a business.The moment you creat any business related with financial services,the state in which you incorporate the business will require you a license prior to or after six month of opening it.

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