Part 2 – Battling Surety Bond Fraud: Why Bond Verification Is So Important

Gain deeper insights into avoiding bond fraud with Part 2 of NASBP General Counsel Martha L. Perkins’ article. Published in the Winter 2015 issue of the Fidelity and Surety Law Committee newsletter (pages 9 and 28-30), this continuation builds on the essential guidance provided in Part 1, available at NASBP.org. The article underscores the critical steps all construction industry stakeholders should take to verify the legitimacy of a surety and confirm bond authorization. It also explores the legal authority of corporate and individual sureties to issue bonds and examines key case law involving fraudulent sureties and bonds, providing actionable advice for contractors, subcontractors, suppliers, and obligees.