Feds charge Wisconsin real estate investor with bank fraud, seize $35 million – The complaint alleges that Onofrio “devised and executed a scheme and artifice to defraud federally-insured financial institutions, by means of materially false and fraudulent pretenses, representations, and promises, and omissions of material fact.” The actions in question took place between 2020 and Aug. 5, 2022, according to the complaint.
AUSTIN REAL ESTATE SCAMMER SENTENCED TO 40 YEARS IN PRISON – He promised to use their principal to buy and sell real property and distressed business equipment, and even claimed their money was fully protected or guaranteed.
Real estate investor indicted in $1.1M alleged fraud scheme
defendant used a number of apparently legitimate companies, sophisticated methods, and lies to defraud potential real estate investors, many from outside the United States. He then declared a fraudulent bankruptcy in an effort to avoid re-paying his victims
DC real estate firms to pay $10M for housing discrimination – A trio of real estate companies will pay $10 million for illegally discriminating against renters using government housing vouchers in the nation’s capital.
Real estate agent and husband sentenced in ID theft – stole the personal information of numerous people primarily through Caprice Foster’s work as a real estate agent and timeshare salesperson.
Michigan developer sentenced to prison for tax evasion – In addition to delivering the prison sentence, U.S. District Judge Jane Beckering ordered Chappelle to pay $1.2 million in restitution and serve three years of supervised release. He was also fined $150,000
Mortgage Loan Officer and Real Estate Agents Charged in Mortgage Fraud Scheme in Central Valley utilized false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans. In total, the defendants caused lenders to issue at least 30 loans based on false information with a total principal loan balance exceeding $10 million.
Husband and Wife Real Estate Team Sentenced for Wire Fraud the defendants created at least nineteen phony residential sales contracts and submitted them to multiple advance commission companies throughout the country to fraudulently obtain money.
Las Vegas Real Estate Professional Pleads Guilty to Tax Evasion – from approximately 2009 through 2019 – he began depositing his wife’s entire paycheck and other earnings into a corporate bank account held by Turn Two, and used that account to pay most of his family’s personal living expenses.
According to the indictment, DeFrees allegedly used two business entities to illegally obtain, under false pretenses, Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans from the Small Business Administration (SBA) between April 02, 2020, and April 04, 2022.
The SEC claims that Acharya and Silicon Sage have defrauded about 250 people, primarily from the South Asian community, out of at least $119 million, according to documents on file with the U.S. District Court in San Francisco.
Serious mortgage delinquencies are up 55% over pre-pandemic levels. But what this means for the housing market isn’t what you might think – What’s more, the national delinquency rate — which factors in even someone who is delinquent by a single month — fell in April to 2.80%, marking a new record low for the second consecutive month
FDLE makes second arrest in real estate scam – charges of scheme to defraud grand theft, money laundering and more. https://www.mynews13.com/fl/orlando/news/2022/05/17/second-person-charged-in-real-estate-scam-spanning-6-florida-counties
A Santa Clarita resident who invested in real estate and sold “coupon bonds” that promised regular interest payments on top of principal repayment has agreed to plead guilty to a federal criminal charge for defrauding investors out of more than $1.7 million
Kossoff, a fixture of the New York real estate market, began transferring funds from his clients’ accounts in December 2017, using the money to support another family business and personal expenses, prosecutors said. That included spending an average of $16,000 monthly on personal credit card bills and $19,000 a month to rent a Manhattan luxury apartment.
Former Hyannis Port real estate attorney and wife plead guilty to mortgage fraud and tax charges – the defendants defrauded six mortgage lenders and 14 homeowners for whom the Plunkett Law Firm handled the closings for new mortgage loans to refinance residential properties. The defendants informed the mortgage lenders that pre-existing mortgages were paid off from the new loan proceeds when, in fact, the Plunketts intentionally failed to pay off the prior liens and instead converted more than $900,000 in payoff funds for their own purposes.
Real estate fraud epidemic: How multiple people were scammed into paying for the same NY home – Green Dot money cards – Wire fraud in the real estate and rental sector continues to be one of the most prevalent cybercrimes in the U.S. According to FBI data, there has been a 17% increase in these types of frauds from the previous year, with losses of over $200 million.
Police: Miami Beach real estate scammer arrested making over $30,000 dollars with fake apartment listings – Rivera identified himself to the victims as the realtor/prospective landlord and showed the victims the apartment, had them sign a contract to lease agreement, and collected a total of $10,350 from the victims, according to investigators.
Indiana Man Pleads Guilty in Real Estate Rental Fraud Case – real estate fraud scheme that persuaded investors to buy rental properties, then lied to them about the properties’ condition and whether they were even being rented.
used this reputation from approximately 2015 through 2018 to convince his co-workers to “invest” in his real estate holdings.ADVERTISING – In exchange, he promised them significant returns on their investments. Officials say Gibbons claimed to invest in properties, including businesses and condominiums, and that investors could realize 50% to 100% returns on their investments in as little as four to six months. He falsified several documents to help show that he had ownership of said properties.
Man arrested for Tampa Bay real estate fraud falsified defense evidence, FDLE says – placed advertisements on Craigslist offering homes for sale or rent from April 2012 to June 2014. However, while he collected the down payments or deposits on multiple homes in Pasco, Pinellas, and Hillsborough counties, he did not own the homes, according to FDLE, nor did he have the right to offer them up for rent or sale.
2021 and earlier postings
A Massachusetts real estate agent has pleaded guilty to falsely marketing properties that were not for sale and pocketing nearly $2 million in deposit checks from potential buyers.
Raleigh Real Estate Developer Sentenced to Decade in Prison for Real Estate Ponzi Scheme and Firearm Possession Charges
Viktor Gjonaj Charged with Wire Fraudhttps://www.stl.news/viktor-gjonaj-charged-with-wire-fraud/433872/amp/
Georgia Man Sentenced To 13 Years For Fraud, Money Laundering https://patch.com/georgia/marietta/georgia-man-sentenced-13-years-fraud-money-laundering
North Carolina man sentenced to 10 years in prison for real estate scheme, firearm charges https://www.thecoastlandtimes.com/2021/11/30/north-carolina-man-sentenced-to-10-years-in-prison-for-real-estate-scheme-firearm-charges/
Woman Receives Life for Role in Killing of Real Estate Agent – A former probation officer has been sentenced to life in prison for her role in the kidnapping and killing of a Minneapolis real estate agent.
Louisville man pleads guilty to tax evasion involving real estate purchases… structured loan payments on this property to conceal his ownership of it from the Internal Revenue Service and to evade payment of substantial payroll tax liabilities
Ex-Las Vegas real estate executive arrested on child porn charges – A former Las Vegas real estate executive has been arrested on suspicion of possessing and distributing child pornography, according to police and court records.
SEC charges South Floridians in alleged $9M real estate scam – A Coral Springs man was charged in an alleged multifamily investment sham enterprise that siphoned and misused $2.4 million, with nearly half diverted into his personal account.
DA’s Real Estate Fraud Unit arrests Mira Loma man charged in fraudulent grant deed case – RIVERSIDE – A Mira Loma man has been charged with five felony counts of recording fraudulent grant deeds in a case investigated by the DA’s Bureau of Investigation Real Estate Fraud Unit.
HERE ARE OTHER STORIES
PE Firm Founder Pleads Guilty to $58 Million Manhattan Real Estate Fraud Eric Malley, the founder and former CEO of private equity investment firm MG Capital Management, has pleaded guilty to securities fraud for running a real estate investment scam that tricked 335 investors into forking over an estimated $58 million.
Cases against Oak Harbor real estate agent resolved – An Oak Harbor real estate agent who had been held in jail without bail is now free after the cases against him were resolved last week.
Brooklyn Lawyer Pleads Guilty to Defrauding Real Estate Investors Earlier today, in federal court in Brooklyn, Shimon Rosenfeld, an attorney licensed to practice in New York, pleaded guilty to defrauding investors of at least $6 million by falsely claiming he was using the money to invest in real estate opportunities. The proceeding was held before United States District Judge Kiyo A. Matsumoto.
Berthoud Real Estate Agent Bret Lamperes Charged With Money Laundering
Illinois real estate developer faces fraud charges for “helping” buyers qualify for mortgage loans
Feds say real estate exec duped investors out of $19M spent on Michigan lottery
Bookkeeper gets 2 years in federal prison after stealing $300K, putting local company out of business
Federal grand jury indicts Cleveland real estate developer on wire fraud charges
California real estate developer pleads guilty in money-laundering case
Real estate lawyer pleads guilty to stealing $350,000 from clients, Suffolk DA says
Former Clovis pastor gets over 7 years in prison for $2M real estate development fraud scheme
Real estate attorney stole $285K from clients, prosecutors say…He took money from his clients for “various real estate transactions” and never did the work he was expected to do, according to a statement from the prosecutor’s office.
2 Hawaii real estate companies fined for failing to disclose lead paint… The rule requires sellers and lessors of pre-1978 homes to provide prospective homebuyers and tenants with a federal brochure about lead-based paint, any information known about lead-based paint in the home, and a warning statement about the potential dangers of lead-based paint.
North Hollywood man pleads guilty in $17 million real estate fraud scheme…accused and and various co-defendants tricked homeowners into signing fraudulent deeds on their properties, then used the bogus deeds to extort money, charge illegal fees to delay foreclosure and eviction actions, and steal some homes outright.
Florida woman sentenced for Las Vegas real estate scam … the person told buyers that the titles to properties “were free and clear of any and all liens and other security interests.”
The former vice chairman of the Hawaii state Real Estate Commission has been sentenced to six months in jail and 10 years of court supervision-for embezzling more than $200,000 from clients on the Big Island, the Hawaii Tribune-Herald reported Monday.
Two more real estate investors, nine total, sentenced to prison for bid-rigging conspiracy the two were each sentenced Thursday to serve four months in prison, with Vaughan receiving a fine of $20,000. Both defendants were ordered to pay restitution by U.S. District Judge Louis Guirola Jr.
This BLOG post will be updated on an ongoing basis to update you on who’s paying for their behavior. My guess is probably not enough people and not enough pain…
Public hanging or medieval stockades anyone?
(Does it seem like alot of little fish are caught, but not the big fish? Or the Big Fish got away with a smaller settlement than they should have?)
Note: The multi-Billion-$ settlements are starting to get there (like $7 Billion Citigroup and potential $13+ Billion Bank of America lawsuit still in progress) – but are they settlements for Countrywide and Washington Mutual crimes after US Government forced their acquisitions on Bank of America and J.P. Morgan?
Here’s an article outlining winners and losers from the mortgage meltdown – just to name a few: http://www.8newsnow.com/story/16049641/foreclosure-crisis-the-winners-and-losers
Is anyone aware of the website to report Residential Mortgage-Backed Securities (RMBS) violations? http://www.stopfraud.gov/rmbs.html
Yes, 49/50 states settled the lawsuit against largest US banks (see AG settlement ), but $26 Billion against a $1 Trillion mortgage fiasco and nobody of significance is in jail? Where are the derivative traders who failed in their Due Diligence responsibility? Or designers of CDOs who failed to disclose the real risks?
Update 3-10-2016: Big Banks Paid $110 Billion in Mortgage-Related Fines. Where Did the Money Go?
For up-to-date FBI actions to catch mortgage fraud is https://www.fbi.gov/about-us/investigate/white_collar/mortgage-fraud
PRISON RELEASE NOTICE 8-31-2016: The Only Person Jailed for the Foreclosure Crisis Will Soon Go Free. Over 4 years and ordered to pay $65,000 in restitution.
CUMULATIVE LIST OF CRIMES & STORIES
Kendall County Real Estate Professional Charged with Operating $23 Million Ponzi Scheme
The accused used the promise of outsized returns to receive $23 million from at least 25 investors from 2009 to 2015 Instead of investing the money, …she spent approximately $19.6 million to pay earlier investors via Ponzi-type payments, while misappropriating more than $3.3 million for her personal benefit, including expensive jewelry and vacations in Jamaica, Mexico and Guatemala, the indictment states.
Real estate broker convicted for mortgage fraud scheme. Broker engaged in a conspiracy to conceal from mortgage lenders sales incentives that he provided to the buyers. These undisclosed incentives included making the buyers’ down payments and paying kickbacks after closing.
Fort Worth con man sentenced to 13 years for bilking investors out of $1.2 million.
CEO in Real Estate Ponzi Scheme Fined $120 Million by SEC.
9-22-2018: Real estate guru who defrauded investors to bankroll slasher flick and fleet of Ferraris found guilty. Koerber, who at one time held $7,000 real estate seminars, was found guilty on 15 counts of fraud, including wire fraud, fraud, and money laundering.
9-7-2018: East Bay real estate agent sentenced to 6 years for multimillion-dollar property scheme.
8-10-2018: Real Estate Investor Pleads Guilty to Bid Rigging at Online Auctions.
7-19-2018: Former O.C. real estate investor sentenced to prison for $12 million Ponzi scheme. U.S. District Judge David O. Carter on Tuesday ordered Esparza, who now lives in Georgia, to serve 78 months in prison and to pay $12.6 million in restitution. Esparza, over a seven-year period essentially ran a Ponzi scheme, using funds from new investors to pay off prior investments.
7-13-2018: DOJ: Gwinnett real estate agent defrauded clients out of $22M.
7-5-2018: Ex-Township Leader to Pay Restitution for Real Estate Fraud . Court records show Jolan Jackson of Grandville invested $241,000 in 2011 with Spencer’s Mackinac Realty Group to buy, renovate and sell homes. Authorities say Spencer used as much as $40,000 on non-business-related items including personal expenses.
Real Estate Attorney Sentenced for Role in Sweeping Mortgage Fraud Conspiracy. He was found guilty of conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties and was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730.
Punta Gorda real estate broker pleads guilty to wire fraud.
California man sentenced for $24 million real estate scheme. Scumbag is ordered to spend more than 12 ½ years in federal prison and was ordered to pay back some $20 million to victims.
Las Vegas Man Gets Probation for Fake Real Estate Filings
HUD Civil Money Penalties, Withdrawals
of FHA Approval, Suspensions, Probations, and Reprimands of mortgage lenders.
Bastrop County official found liable for real estate fraud, violations. Jury hands down $1 million judgment against Donna Thomson
Hey, last year’s story but still applies. Real estate title scams steal homebuyers’ money and dash ownership dreams. Title companies are also being targeted by the scam- with imposters posing as the financial institutions involved in ongoing transactions.Bottom line: when you’re ready to close on a house deal, never release your final payment until you’ve read the escrow packet provided by your title company- and only follow their instructions. And if you get an email about any changes, call your title company directly, using the original phone number from your escrow packet, to make sure you’re not dealing with a title company impostor.
Lockport family sues over undisclosed lead in their house. U.S. Magistrate Judge Jeremiah J. McCarthy sentenced (real estate agent) Walck on Jan. 9 to time served, a $1,000 fine and ordered her to pay restitution of $53,326.
Real Estate Developer Gets 7 Years for Investment Scheme . A real estate developer from Florida has been sentenced to over 7 years in prison at a federal court hearing in Connecticut. Victim investors lost $28 million, while lenders lost approximately $37 million.
4-9-2018: FBI nets four hackers for stealing customer information from mortgage company. The fraudsters resided in San Diego—but carried out their crimes from across the Mexican border in Tijuana. They also used the personal information for extensive credit fraud, setting up bogus lines of credit and retail credit card accounts to which they charged thousands of dollars for goods and services. to more than 25,000 people at a loss totaling approximately $2.5 million… now serving more than five years in federal prison.
He had no idea his home-buying strategy was illegal, Coast real estate investor says. “Who’s getting this house today?” was a common refrain among buyers. Sometimes, attendees would accept $100, $200 or $300 for not bidding on a house someone wanted.
3-28-2018: Real estate fraudsters to repay $30 million to investors. California-based real estate fraud scheme that raised more than $66 million from approximately 300 investors, many of them retail investors.
3-22-2018: Real Estate Investor Sentenced to 30 Months in Prison for Rigging Bids at Northern California Public Foreclosure Auctions and was ordered to pay a criminal fine of $1,397,061.59.
3-13-2018: He extorted $15K by making physical threats. Now, he’s bound for prison. He faces a maximum penalty of 20 years in prison and a $250,000 fine.
3-1-2018: Jury finds real estate agent guilty of money laundering.
2-23-2018: Ex-Foley & Lardner Partner (i.e., attorney) Gets 3 Years For Insider Trading and forfeit roughly $453,000 in illicit proceeds
2-17-2018: A man who posed as an attorney and illegally acted as a foreclosure agent has been sentenced to 12 years in state prison.
2-16-2018: Real estate investors plead guilty to rigging public foreclosure auctions. Sentencing is set for May 16. The Boykins each face a maximum 10 years in prison and a $1 million fine. And the penalty may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
Adviser charged with defrauding investors out of $1 million in 26-year-old real estate fraud. Riquier solicited money from clients and others, a majority of whom are elderly, to purchase property in Rowley, Mass., which investors were told would then be sold for a profit. The complaint states the investments instead were used to purchase property already owned by Mr. Riquier. To date, “that property has not been sold, has not been improved, and has not provided any returns on the money invested,” according to the complaint.
Mesa real estate agent heads to prison for short sale that netted his parents a profit. Facing 3-12 years in prison for defrauding two banks in a home sale at the end of the real estate crash.
A former south Arkansas real estate agent and her daughter have pleaded guilty to federal crimes involving a fake will for a survivor of an oil rig explosion who later died in a car crash..
Clayton (Missouri) real estate developer, 2 others plead guilty in bank fraud scheme. Sentencing estimated in April – no restitution mentioned.
Real estate company owner faces prison time in fraud cause. Plea agreement states scumbag to spend 7.5 years in prison and pay $2 million in restitution to the victims.
1-10-2018: Local real estate agent fined over lead paint charge . Served time and fined over $50,000.
1-6-2018: New Jersey Real Estate Broker Pleads Guilty to Role in Foreign Bribery Scheme Involving $800 Million International Real Estate Deal.
Real estate investor sentenced for rigging bids on foreclosed properties. 16 months in jail, $1,000 fine, and 36 moths probation.
12-21-2017: Former Real Estate Investor Sentenced to 17 Years in Prison for Multiple Fraud Schemes….17 years in prison for orchestrating multiple fraud schemes resulting in more than $30 million in losses….had previously pleaded guilty to bank fraud, money laundering, and aggravated identity theft. The Court also ordered scumbag to pay the various victims $33,558,407.76 in restitution.
12-20-2017: Georgia Real Estate Investor Sentenced to 16 Months in Prison for Bid Rigging and Bank Fraud at Public Foreclosure Auctions….and serve three years supervised release, and pay $81,979.86 in restitution to victims.
12-1-2017: Two Real Estate Investors Sentenced For Rigging Bids at Northern California Public Foreclosure Auctions. Both less than 2 years in prison and total of $100,000 in fines.
11-23-2017: Developer sentenced to 10 years in prison on wire fraud and money laundering charges stemming from a plot to defraud investors of more than $2.1 million by building an R.V. park for the state’s emerging workforce of oil company employees. This developer is NOT going to have a Happy Thanksgiving!
11-15-2017: Real estate agent sentenced to prison over mortgage fraud scheme. US District Judge Morrison England Jr. sentenced Arthur Menefee to three years in prison and ordered him to pay more than $5 million in restitution. Resulting from loans for the purchase of properties obtained by unqualified buyers with the help of Menefee, who was a licensed real estate agent. He helped those buyers to prepare loan applications that included false information. He also created fictitious companies to generate false employment and income data for the borrowers to support their loan applications.
11-5-2017: Man Gets 34 Years in California for stealing about $3 million in a real estate fraud scheme. Nothing said about any restitution?
11-3-2017: Real Estate Investor Sentenced to 12 Months in Prison for Rigging Bids at Northern California Public Foreclosure Auctions. 12 months in prison, plus to serve three years of supervised release, and ordered to pay $149,733 in restitution.
10-19=2017: San Diego Business Owner, Arizona Attorney Sentenced in Massive Real Estate Scam. …they fraudulently convinced lenders to make enormous loans against four multimillion-dollar mansions then used forged documents created by one scumbag to make it appear that the loans had been paid off. They got prison time but where’s the restitution of the tens of millions of dollars??? Another link to same story….
10-18-2017: Rip-Off Alert: Crook scams victims out of millions through real estate Ponzi scheme. Vegas scumbag is to serve 35 years in prison and ordered to pay $67 million in restitution.
10-8-2017: Hazleton (PA) Real Estate Scammer Ignacio Beato Sentenced to Prison. Real estate agent sentenced for selling homes he didn’t own. Real estate agent sentenced for selling homes he didn’t own.
10-7-2017: Falmouth Mortgage Company President Pleads Guilty to Defrauding Ginnie Mae. The president and founder of a Falmouth mortgage company pleaded guilty yesterday in federal court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of approximately $2.5 million.
Real estate investor gets prison sentence in land fraud scheme
9-9-2017: Phoenix couple sentenced to prison in real estate fraud case – 2 ½-year prison terms and ordered them to forfeit 26 fraudulently purchases properties.
8-26-2017: Real estate guru helped set up system to bring outside investors into alleged fraud, witness testifies.
8-25-2017: U.S. District Judge Sheryl H. Lipman also ordered Boyd to pay total restitution in the amount of $383,375.43 and to serve a 3-year term of supervised release following his release from prison. .
A Florida man has been sentenced to 6 to 15 years in prison for his role in a real estate scam based out of Las Vegas (who knowingly and falsely represented that the titles to the properties were free and clear of any and all liens and other security interests) and was also ordered to pay full restitution of $757,420..
8-15-2017: Tucson loan officer-mortgage broker gets prison for fraud.
8-13-2017: Identity theft scheme leader gets 10-year prison sentence. Scumbag mortgage fraud scheme that stole nearly $1 million from various lenders.
7-21-2017: Former California Real Estate Agent Pleads Guilty In Fraud Case and faces up to 30 years in prison and $500,000 fine…but what about restitution?
7-1-2017: Jury Convicts Real-Estate Company Bookkeeper of Embezzling .
6-21-2017: Eventually – jail time? Barclays charged with fraud in Qatar case
6-20-2017: State Supreme Court judge loses over $1M in real estate email scam. Well, somebody’s going to be sentenced by THIS judge…maybe!
6-4-2017: Three Northern California Real Estate Investors Convicted of Rigging Bids at Public Foreclosure Auctions. No sentences or restitution ordered at this time?
5-27-2017: Quad Cities (Illinois – go figure, another crook from Illinois) Real Estate Developer Pleads Guilty to Investment Wire Fraud Scheme – sentencing to follow but ponzu scheme again and this turd faces a lot of jail time, but not sure about restitution.
5-10-2017: Massachusetts Real Estate Mogul Gets Prison for Fraud Scheme – will serve 4+ years in prison and is ordered to pay $9.5 million in restitution.
5-6-2017: Albany, Georgia man sentenced to prison. He filed false deeds on multiple Albany County properties that were either in bankruptcy or foreclosure proceedings. He then rented out or sold those properties, without permission from their rightful owners.
5-1-2017: Rip-Off Alert: Scammers target real estate flipping opportunities – Criminal purchased properties and then resell them within a few months for a greatly increased profit…How?… Because of false information supplied by the appraiser accomplice. Appraiser would inflate the values of the properties so that they would look more appealing to the banks to approve the loans.
4-27-2014: Former Hazleton, PA real estate agent accused of bilking thousands through bogus property sales and will face up to 10 years in prison and pay $250K in restitution.
4-26-2017: California woman convicted of real estate fraud and may face 6+ years in prison. Even after a 4 year foreclosure process, she claimed the home was still hers and made the new owners go to court over it.
4-25-2017: Fraudulent real estate deals totaling $1 million land New York lawyer in jail for 11 to 22 years.
4-22-2017: Disbarred lawyer sentenced to up to 22 years for masterminding real estate schemes. A jury found him guilty of preying on financially strapped Brooklyn homeowners by promising to help save their properties from foreclosure.
4-14-2017: Alabama Real Estate Investor Sentenced for Bid Rigging and Fraud at Public Foreclosure Auctions and only faces 12 months in prison and to pay $340K+ in restitution.
4-5-2017: Lenders That Failed To Meet Requirements for Annual Recertification of HUD/FHA Approval and I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions, Probations, Reprimands, and Administrative Payments. Note: Did LGE Credit Union lose it’s HUD/FHA loan ability for 1 year?
4-1-2017: South Florida man collected more than $380,000 in rental income from vacant houses didn’t own over about a two-year period. Also, a former Deputy was involved. But even though 1 years in prison, no mention of restitution.
3-31-2017: Attonmey guilty of fraud – sold the properties to straw buyers created with stolen identities of Puerto Rico residents. Using the stolen identities and other bogus documents, the defendants applied for and received loans.
3-30-2017: Former real estate agent sentenced to 10 years in prison. No report of restitution.
3-18-2017: How long do you wait until justice is served? The case against Lamphere dates back more than decade when the defendant defrauded two men out of more than a combined $1.3 million in a real estate scheme involving property in Oroville – California.
3-9-2017: Former New Jersey lawyer sentenced to 4 years in prison for his role in a $40+ million mortgage scheme based on fraudulent applications. But only pays back $13 of the $40 million – what?
2-24-2017: Real estate lawyer (scumbag) pleads guilty in $15M North York condo scam and is sentenced to 3.5 years probation? Nothing about restitution? Oh, that’s not fair…
2-18-2017: California man sentenced to year in jail, 5 year probation, and to pay $100,00 in restitution in foreclosure fraud case.
2-9-2017: Cobb County, Georgia con man gets prison time and ordered to pay $500,00 in restitution for Kentucky apartment management scam. Maybe he can learn a “new” way of lifting weights behind bars.
2-7-2017: Louisville man (who had also committed the same fraud in Tennessee) sentenced (less than 2 years) for real estate embezzlement and fraud, then ordered to pay $520K in restitution to property owners.
1-26-2017: City Island (in New York) Man Sentenced in Real Estate Scam. Will serve jail time and pay restitution.
1-13-2017: Former real estate agent sentenced to jail for embezzlement. Scumbag wrote > $160,000 in checks to vendors an cashed them into her account. I think there should have been better checks and balances and the employer trusted the employee a little too much.
12-24-2016: St. Louis County man gets probation and must pay more restitution than $50,000 real estate fraud for asking for premium and picketing it.
12-24-2016: Real estate business owner sentenced to 3 years probation and to pay <$100,000 restitution for $5 million mail and mortgage fraud. No, it’s not Donald Trump. Sorry to disappoint the liberals.
12-24-2016: US Justice Department reaches $7.2B settlement with Deutsche Bank over the bank’s role in the pre-crisis sale of mortgage securities. On a separate note, the Justice Department sued Barclays over $30B in pre-crisis residential mortgage backed securities) while deceiving investors about the characteristics/quality of the loans.
12-6-2016: California man (and other accomplices) pleads guilty to real-estate fraud and will serve some jail time and pay some restitution.
11-17-2016: 59 individuals have agreed to plead or have pleaded guilty to foreclosure bid rigging at public foreclosure auctions.
11-11-2016: Real estate fraud ‘mastermind’ sentenced to 24 years in jail and ordered to pay about $1 million in restuitution.
11-10-2016: California investor gets 6 years in prison for real estate fraud.
11-3-2016: Two realtors busted over fraud on short sales of relatives homes.
10-12-2016: Real estate agent who scammed a family and four banks out of about $750,000 was sentenced Tuesday to more than six months in jail.
9-30-2016: Fraud squad: Sacramento County DA unit prosecutes real estate crimes—slowly. One scumbag was prosecuted and sentenced for up to 30 years in state prison for fraudulently scamming people out of their homes while in mortgage trouble…nice guy huh?
8-31-2016: Real estate agent reportedly lets in jewel thieves during open house; $150,000 in loot stolen.
8-30-2016: Real estate broker’s license suspended… Real estate agent pleaded guilty to felony theft and forgery and was sentenced to 8 1/2 years of probation.
8-26-2016: Former Brisbane real estate agent jailed over $1.6m fraud of clients’ money.
6-21-2016: Who’s not going to jail over the mid 2000’s mortgage meltdown financial crisis? Angelo Mozilo – any question now that the US Justice Department doesn’t want to go after turnips if they don’t have money?
5-30-2016: Arizona real estate attorney commits mortgage lien fraud and steals over $33 million doing it….in California. The attorney filed bogus lien releases so new bogus mortgages were generated to take their places. Not sure about prison time, but restitution is definitely happening.
5-26-2016: Indiana scam artist ripped off financially strapped people promising they won’t lose their homes – then took their money. He will face 6+ years in prison and forced restitution.
5-17-2016: Baltimore Real Estate Agent Pleads Guilty In $736,000 Mortgage Fraud Scheme Involving Baltimore City Properties and faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud and for wire fraud.
5-11-2016: Massechussetts Cambridge real estate developer gets 2 years behind bars for insider trading on bank stock.
5-11-2016: Woman gets 4 years in prison and ordered to pay full restitution of $450,000 she scammed from friends…Hey, with friends like these, who needs a realtor?
4-20-2016: Goldman Sachs to pay $5 billion in U.S. Justice Dept mortgage bond pact which includes funds for homeowners (to reduce their) mortgages that exceed the value of their property (as Fannie Mae and Feddie Mac have now proposed on over 33,000 underwater mortgages).
4-20-2016: Real Estate Developer Bank Fraud. Illinois real estate developer commits $4 million fraud and to serve prison time and to pay gradual restitution.
4-15-2016: Attorney sentenced to 3 years in prison and ordered to pay back almost $2 million stolen from an HOA escrow account. I bet THAT wasn’t part of the HOAs CCRs!
4-10-2016: Former real estate associate convicted of mortgage fraud and senteced to almost 5 years in federal prison. I need more details, but apparently he diverted sales incentives he would receive, to these other buyers as private loans for the down payments to get Wells Fargo mortgage to close on condos so he got the commissions on properties that eventually foreclosed (for some reason whether directly or indirectly related to these transactions?). Not sure if they were actual Buyers that couldn’t afford to make the payments and exactly how Wells Fargo was hurt by the direct actions of this real estate sales associate (who apparently was a licensed agent?).
Former Indy Realtor convicted in real estate scam by taking advantage of people in foreclosure or late payment situations. I wonder what this slime-bag’s punishment will be?
3-31-2016: California creep sentenced to year in jail and ordered to pay restitution for “elder” real estate fraud. Maybe this guy could be taken to the nearest Piccadilly for lunch and seniors could force him to listen to all complaints and eat their leftovers for 6 months.
3-22-2016: Two real estate brokers (California & Louisina) get prison time and are ordered to >$5 million in restitution for scheme involving fraudulent dismissal of mortgages on underwater properties over $1 million in the San Diego area.
3-21-2016: CFPB Wins $173M Illegal Debt Relief Scheme Case. 132.8 million is ordered as restitution and the remaining $40 million comes via civil penalty.
3-10-2016: Edgewood real estate agent sentenced on embezzlement charges. Restitution of about $400,000 and 5 years in jail…not exactly penalty that Jim Croce had (20 long years in jail)…
3-3-2016: Real estate agent to admit fraud in helping Trustee ‘ghost employee’. Plea deals and reduced restitution? (Something about blood out of a turnip…)
3-2-2016: Chicago real estate developer convicted of fraud – sentencing and any erstitution is to be decided later in March 2016.
3-1-2016: Fuzzy Math? $169 million stolen – $9 million restitution – 14 years in prison… call it even!Former California real estate tycoon gets prison and ordered to pay restitution.
2-25-2016: Chicago Real Estate Developer Convicted on Federal Fraud Charges for Swindling Banks and the City out of Millions of Dollars in Loans. No sentencing yet and no word on any restitution.
2-24-2016: California woman found guilty in real estate fraud case that cost $662,000 in losses. he faces up to 10 years in prison and unknown if there’s any restitution.
1-29-2016: This story of a real estate fraud hasn’t yet resulted in jail for anyone, but it’s worth a shout out to warn closing atttorney’s to get proper verification from people receiving closing funds.
12-16-2015: Nashville closing attorneycharged with $2 million mortgage escrow wire-fraud scheme – facing up to 20 years in prison and paying up to $250,000 fine.
12-9-2015: Indianapolis real-estate developer pleads guilty to fraud to $340,000 in restitution and 2-8 years in jail.
11-11-2015: Well, we don’t know if this Massechussetts closing attorney will pay restitution or go to jail, but he did commit mortgage fraud regarding short sales transactions.
11-3-2015: Dunstable real-estate attorney guilty of fraud involving short sales and could face 30 years in prison and pay some form of restitution – jury still out on that one…
10-31-2015: Former real estate president sentenced to 5 years in prison, ordered to pay full restitution and should be assigned to the worst VA Hospital in the country for his deplorale behavior as a US military Veteran
10-13-2015: Four real estate brokers agree to pay estitution totaling more than $50 million and will serve 3-15 year prison sentences.
10-2-2015: Two georgia creeps run Ponzi scheme but will get prison time (years) and have to pay restitution
9-24-2015: <ahref=”http: www.mpamag.com=”” news=”” 20-years-for-20-million-real-estate-fraud-25014.aspx”=””>20 years for $20 million real estate fraud?</ahref=”http:>
9-23-2015: Aloha criminals – 2 of 3 scamsters get jail time and some planned restitution.
9-21-2015: Newman man gets 4 years in prison for real estate scam and was ordered to pay “full” restitution.
9-18-2015: Federal appeals court affirms Regina Prettorius’ convictions in real estate scam – Guess who’s staying in prison for 23 years?
9-7-2015: No sentencing yet, but this is how some carry out fraud – to buy property under different names of trusts.
9-7-2015: Prosecutors said Million tricked an 86-year-old woman, Kathryn Rowe, into selling her property, but then funneled more than $30,000 in rent collected from that property while never closing the deal will get community service and not pay restitution?
9-3-2015: 3 real estate giants plead guilty to $36M affordable housing scheme – Prison sentencing and restitution in question at this time.
8-4-2015: Ex-real estate agent Depue guilty in $24 million mortgage fraud faces over 20 years in prison.
7-28-2015: Former Portland real estate developer pleads guilty to bank fraud and should serve jail time and pay some of the $7 million bank rip off in restitution.
7-27-2015: California man sentenced to over 5 years and ordered to pay more than $1 million in restitution
7-24-2015: …This one is just worth mentioning for the fun of it….
York real estate broker serving 4 years in federal prison for drug smuggling.
7-16-2015: Chicago area receives light jail sentence and must pay restitution for mortgage fraud scheme.
7-9-2015: Miami real estate developers sentenced to various prison times and ordered to pay about $21 million of the $27.8 million in restitution for their roles in a mortgage fraud scheme involving straw buyers.
7-7-2015: Phoenix man gets 6 years in prison in real estate scam
7-3-2015: California real estate developer sentenced to 14 years in prison after letting investors put millions of dollars into bogus development projects
Read more: http://www.dailymail.co.uk/news/article-3148001/Citizen-Year-bilked-hundreds-life-savings-bogus-real-estate-projects-sentenced-14-years-prison.html#ixzz3er46m9Io
Follow us: @MailOnline on Twitter | DailyMail on Facebook
6-29-2015: Former real estate dealer pleads guilty to massive fraud scheme
5-20-2015: Former real-estate title agent sentenced to >6 years in federal prison and must pay $2 million in restitution in mortgage scam involving several loans totaling almost $4 million.
5-7-2015: Former California brokerage CEO pleads guilty in $4 million real estate scam and faces up to 70 years in prison.
4-26-2015: Father, son real estate investors get prison time and ordered to pay >$250,000 in restitution for scheme targeting seniors.
4-23-2015: Walnut Creek man sentenced to prison for real estate fraud scheme – 4 years in prison and almost $22 million in restitution.
4-16-2015: Disbarred lawyer admits to $1.5 million real-estate proceeds swindle…sentencing in Brooklyn is scheduled for Aug. 5
4-15-2015: Illinois man is sentenced for 4 years and is to pay $1.7 million in real estate fraud scheme over 20 people.
3-22-2015: San Francisco Bay Area Woman Sentenced to Prison (no, not death) and pay restitution for Real Estate Loan Fraud Scheme
3-15-2015: St. Louis-area man sentenced to > 5 years prison and no discussion of restitution for real-estate mortgage fraud.
3-5-2015: Phoenix real-estate guru gets 4-year prison sentence for money laundering and tax evasion.
2-22-2015: Former real estate lawyer convicted of fraud and is to serve 6 years in prison and pay about $2.3 million in restitution.
2-16-2015: An Iowa attorney and a real estate agent convicted of $400K bank fraud involving selling short sales below marklet and then reselling to investors for a uick profit.
2-13-2015: Real estate attorney gets 70 months in prison for using escrow $ for investments in her own portfolio and is to pay over $2.3 million in restitution.
2-4-2015: Las Vegas woman is guilty of real estate fraud to partially pay off restitution on another charge. She agreed to pay $1,350,000 in restitution in this case but, will she perform another fraud to help pay off this one? Hey, at least she was trying to pay her debts to society…but with someone else’s money!
1-30-2015: Man sentenced to anywhere from 21 to 63 years in prison for a $3 million real estate Ponzi scheme for a tract of farmland in North Carolina…no word on any restitution amount.
1-28-2015: Vegas gambler craps out and goes to prison – Man gets 6 to 20 years for Reno real estate investment and mortgage fraud and is to pay about $240,000 in restitution.
1-23-2015: U.S. fines Wells Fargo and JP Morgan almost $36 million (chump change – and borrowers and taxpayers were the chumps and got no change) over illegal kickbacks to loan officers from Genuine Title (no longer in business) for crappy loans.
1-22-2015: Texas real estate investor sentenced to 3 years in prison and to pay >$430,000 in restitution.
1-22-2015: Former New Jersey owner of a real estate title agency admitted yesterday to carrying out a mortgage fraud scheme involving over $3.5 million. Sentencing (up to 20 years & $250,000 fine is possible) but no word yet on restitution.
1-21-2015: Fort Lauderdale real estate broker sentenced to >3 years in prison & pay about $4 million on a $5M real estate investment fraud and charged with lying on his citizen application.
1-19-2015: Real estate title agent admits to $3.7 million mortgage fraud, faces up to 20 years in prison, but no word on restitution.
1-12-1015: A former New York real estate agent gets 2-7 years in prison and ordered to pay >$550,000 in restitution for $1 million fraud that setup fake mortgage companies to receive 2nd or 3rd refinance mortgage payments into fraudsters accounts.
12-26-2014: Well, this is a reverse of my normal post, but still about a crook all the same. A Federal Appeals Court ordered the release of a jailed real estate mogul. Creditors are after him and his wife’s assets for about a quarter Billion $.
12-9-2014: The show-me-state produces a two time loser – a Kansas City man who went to jail for a mortgage scam, coordinated the same same while in jail through his son, and now is returning to be judged again for another similar crime. Source: http://kansasfirstnews.com/2014/12/02/man-arrested-again-in-fraudulent-real-estate-scam/
12-6-2014: Colorado flipping scam resulted in man being sentenced to 20 years in prison and paying $12 million in restitution to investors. Source: http://www.news4jax.com/news/lies-led-to-millions-lost-in-real-estate-scam/30074134
12-5-2014: To more Florida men were sentenced to 20 years in prison for accomplices in a straw buyer mortgage fraud scheme. Restitution will be decided in February. Source: http://www.tampabay.com/news/politics/stateroundup/two-tampa-bay-men-sentenced-to-20-years-in-nc-real-estate-fraud-case/2209042
11-16-2014: Ex developer from Arizona gets 10 year prison sentence (and may sell 90 acres as a pittance toward restitution) for ripping off $50 million from investors in a real estate fraud scheme. Source: http://www.yumasun.com/news/ex-developer-holcom-gets-prison-time-in-fraud-case/article_db8d3e16-6d17-11e4-af61-5b8dbf25a4fe.html
11-11-2014: California real estate developer gets 10 years in prison for swindling people out of $50 Million for fraudulent real estate development scheme but no word on any restitution.
10-29-2014: Judge sentences 8 real estate “professionals” to prison and to pay $10 million in restitution for mortgage fraud involving “straw buyers”.
10-23-2014: California man was sentenced to 7 years in prison (and no reported restitution) for committing $16 Million in real estate fraud thru false stolen identities of “straw buyers”…legitimate funds were channeled from unaware lenders to fake sellers and fake lenders to pay off fake loans? Who was the fake attorney who perpetrated these crimes?
10-15-2014: Ohio real estate investor scams many out of $1 million by creating fraudulent property deeds using forged signatures and is to serve 4 years of prison time…News on restitution coming soon.
10-7-2014: The CFPB fined Flagstar Bancorp $37.5 million ($10 million in and $27.5 million in refunds to 6,500 consumers) regarding allegations they blocked home owners from getting help to refinance their mortgages when they were facing foreclosure.
10-4-2014: Real New Jersey Housewife and real husband will serve real time for real mortgage fraud crimes – really!
10-3-2014: Utah and Georgia creeps get sentenced to prison and ordered to pay about $6.5 million in restitution over Ponzi scheme involving fake investments and mortgages.
10-1-2014: California couple are guilty of defrauding banks by recruiting straw buyers for mortgage fraud scheme with a mortgage broker and will serve prison time, but I am not sure if any restitution will be involved once the former mortgage broker is sentenced.
9-26-2014: Las Vegas dude who used family and friends as “straw buyers” to skim mortgage money gets >4 years in prison, has to pay $1.3M of the $2.6M stolen in restitution, and court says “he ain’t nuts”!
9-16-2014: Utah real estate fraud perpetrated by an Atlanta scumbag result in >6 years prison sentence and $8 million in restitution
9-15-2014: Former real estate attorney embezzled >$900,000 and will serve 16 years in prison and pay the $900,000 back in restitution
8-24-2014: Goldman to Buy $3.15 Billion of Debt to End FHFA Claims http://www.bloomberg.com/news/2014-08-22/goldman-to-buy-mortgage-debt-for-3-15-billion-to-end-fhfa-probe.html
8-20-2014: Missouri woman gets >6 years in prison and has to pay $2.5 million in restitution for wire fraud on unsuspecting investors of supposedly foreclosed properties. Source: http://www.bizjournals.com/stlouis/news/2014/08/19/st-charles-woman-gets-prison-in-real-estate-scheme.html
8-15-2014: The CFPB ordered Amerisave, it’s affiliate Novo Appraisal Management, and its owner to pay $19.3 million ($14.8 to harmed consumers and $4.5 as penalty) for a bait-and-switch mortgage lending scheme that stated one rate but the consumer got another rate with hefty fees and other charges. Source: ABC, August 15-21, 2014, 11A.
8-9-2014: Ok, Big Fish – Big Net – Big Deal? Any big wheels lose their job or shot for their behavior causing any of this mess? … So who’s gonna pay up to the potential $17 Billion Justice Department – Bank of America settlement (supposedly more than half goes to the government and remainder for consumer relief by educing mortgage balances of struggling homeowners) – the bank’s customers and stockholders…not the bank itself. And let’s not forget the additional $6 Billion potential settlement with the FHFA. WSJ, 8-7-14, A1.
8-9-2014 Update: Rebecca Mairone was fined $1 million (under CountryWide’s quantity v. quality “Husle” program where loans were quickly moved through the loan process before adequate review could be made) and is appealing the fine. WSJ, 7-31-14, C1.
Previous post: (3-20-2014: Former Countrywide and Bank of America executive Rebecca Mairone was involved with a loan processing program (called the Hustle – to expedite loans to sell to Fannie Mae an Freddie Mac knowing they satisfy criteria that was going to be changed and only had a limited window of time to sell them to the GSEs) at Countrywide and is now subject to being charged up to $1.6 Million in fines/penalties. Bank of America may be charged another $2.1 million in penalties for profiting from such a program after their purchase of Countrywide assets and who didn’t halt the program at acquisition. WSJ, 3-14-2014,C2)
8-1-2014: Ex New York cop goes to prison for >5 years for real estate development fraud and sentenced to pay >$4.5 million. Source: http://www.westport-news.com/news/crime/article/Ex-NYPD-officer-sentenced-to-58-months-in-prison-5662972.php
7-26-2014: The conviction of former Las Vegas real estate agent who committed $10 million mortgage fraud was upheld by US 9th Circuit Court of appeals. Source: http://lasvegassun.com/news/2014/jul/22/las-vegas-real-estate-agents-conviction-upheld/
7-26-2014: Texas Turd fraudulently gets someone to pose for mother to get loan on mom’s house…did I mention he is a disbarred attorney? Creep! Source: http://www.mysanantonio.com/news/crime/article/St-Charles-lawyer-pleads-guilty-to-federal-fraud-5646734.php
7-4-2014: Throw the “Book of Mormon” at this guy! Utah man sentenced to 15 years and has to pay >$2 million in restitution for real estate related fraud. Source: http://www.deseretnews.com/article/865606207/Utah-County-man-going-to-prison-for-real-estate-fraud.html?pg=all
7-25-2014: Awww – sucks for you! 9th U.S. Circuit Court of Appeals agreed with conviction of former Las Vegas real estate agent for a $10 million mortgage fraud scheme. She was ordered to almost 6 years in jail and to pay about $4 million in restitution. Source: http://lasvegassun.com/news/2014/jul/22/las-vegas-real-estate-agents-conviction-upheld/
7-3-2014: Show me ‘da money! Some slimeball in the “Show Me” state of Missouri scammed people out of their money pretending to finance their loans and get almost 3 years in prison and has to pay back > $335,000. Source: http://www.stltoday.com/news/local/crime-and-courts/st-louis-county-felon-sentenced-again-for-fraud/article_b1c87824-02cd-5d8a-b4ac-e343201af7bd.html
6-25-2014: What a deal – Steal $20 million and ….California – former real estate agent gets 20 years (may only serve8 for time already served??) and has to pay $6.4 million in restitution for ponzi real estate scheme. http://www.pressdemocrat.com/article/20140623/articles/140629823
6-20-2014: Yankee appraiser gets jail time falsifying appraisal values – Hey, I thought people from up North never make mistakes from the way they badger those of us here in the South! http://wivb.com/2014/06/19/real-estate-appraiser-admits-inflating-property-values/
6-17-2014: PRISON TIME IN FORECLOSURE RESCUE SCHEME
The owner of foreclosure rescue businesses, US Mortgage Bailout, USMortgageBailout.com, and iLoanAudit, was sentenced in U.S. District Court to 60 months incarceration and 3 years supervised release and ordered to pay restitution in the amount of $1.4 million following guilty pleas to mail fraud, wire fraud, money laundering, and bankruptcy fraud. The owner ran a multiyear scheme to collect money from thousands of distressed borrowers by promising to provide loan modifications. The companies’ Web sites claimed to be “an experienced legal team made up of attorneys and paralegals to handle all of the negotiations with your current lender,” which had “helped thousands of homeowners avoid foreclosure” and boasted a 97 percent success rate, when no foreclosure rescue assistance was provided. This investigation was conducted by HUD OIG. (South Bend, IN)
SOVEREIGN CITIZEN INCARCERATED FOR FORECLOSURE RESCUE SCHEME
A member of the sovereign citizen movement was sentenced in U.S. District Court to 30 months incarceration and 5 years probation after pleading guilty to passing fictitious obligations to homeowners in a debt elimination scheme that left homeowners in foreclosure. From February 2009 through June 2012, the sovereign citizen and her father, who was found guilty of 13 felony counts, preyed on struggling homeowners by defrauding them of thousands of dollars and promising to access a “secret” stash of Federal money for use in eliminating their debt, while instructing them to stop payments on their mortgages and other debt. In exchange for eliminating their debt, the homeowners were required to join their sovereign citizen program. This investigation was conducted by HUD OIG and the Internal Revenue Service-Criminal Investigation (IRS-CI). (Hartford, CT)
FORMER MORTGAGE COMPANY MANAGER SENTENCED TO PRISON
A former assistant manager of a mortgage origination company called Madison Funding was sentenced in U.S. District Court to 16 months incarceration for conspiracy, false statements to HUD to obtain FHA insurance, and aiding and abetting. Between October 2006 and at least June 2008, the assistant manager submitted loan applications, which contained false information about the borrowers and were often supported by falsified, forged, and altered documents. Each funded loan generated thousands of dollars in commissions to Madison Funding and its employees. Eight of the properties involved in this scheme were FHA-insured mortgages totaling approximately $1.1 million, with losses to FHA totaling more than $111,000. This investigation was conducted by HUD OIG, the Federal Deposit Insurance Corporation OIG, and the Federal Housing Finance Agency (FHFA) OIG. (Allentown, PA)
CONSTRUCTION COMPANY OWNERS SENTENCED IN FLIPPING SCHEME
The owners of two construction companies pled guilty in U.S. District Court to charges of conspiracy and wire fraud and were sentenced to 18 months incarceration and 3 years supervised release and ordered to pay restitution in the amount of more than $1.2 million, with $566,684 payable to HUD. Between March 2008 and February 2010, the owners recruited straw buyers to purchase properties at inflated prices and submitted fraudulent bank statements, IRS Forms W-2, pay stubs, and tax returns to lenders in support of loan applications for more than $837,000 in mortgage loans. This investigation was conducted by HUD OIG, the Federal Bureau of Investigation (FBI), FHFA OIG, and the U.S. Postal Inspection Service. (Trenton, NJ)
LOAN MODIFICATION COMPANY OWNER SENTENCED FOR HAMP FRAUD
The owner of a mortgage loan modification telemarking business was sentenced in U.S. District Court to 1 month incarceration and 3 years probation and ordered to pay restitution in the amount of $121,400 to victimized homeowners after pleading guilty to mail fraud and aiding and abetting. Between 2009 and 2011, the owner solicited distressed homeowners, claiming that his telemarketing business was affiliated with HUD and could provide assistance through the Home Affordable Modification Program (HAMP) for a fee.
The owner then collected fees from an estimated 124 distressed homeowners but did not attempt to help the homeowners avoid foreclosure. This investigation was conducted by HUD OIG. (San Diego, CA)
REALTORS AND MORTGAGE LOAN OFFICER IMPRISONED FOR FRAUD
Two realtors and a mortgage loan officer were sentenced in U.S. District Court after earlier guilty pleas to conspiracy, wire fraud, and money laundering. The two realtors were sentenced to 48 months and 18 months, respectively, and 3 years supervised release. The mortgage loan officer was sentenced to 36 months incarceration and 3 years supervised release. From 2001 to August 2011, these ndividuals acquired more than 40 properties and then recruited buyers to purchase the properties at inflated prices. The three acted as the buyers’ real estate agents, prepared loan applications with false information for the borrowers, created false documents in support of those applications, and then processed those applications for mortgage loans through the loan officer. Many of those mortgages resulted in foreclosure, and losses to FHA are expected to reach $3.7 million. This investigation was conducted by HUD OIG, IRS-CI, the FBI, and the Special Inspector General for the Troubled Asset Relief Program. (Hartford, CT)
6-1-2014: Two Pennsylvania men (including one real estate agent) scheme to defraud bank and investors out of money to buy Jiffy Lube and other automotive businesses to serve 5 years in jail and pay $2.4 million in restitution for almost $20 million in theft. Source: http://www.eveningsun.com/crime/ci_25864747/real-estate-agent-who-conspired-hanover-man-sentenced
5-31-2014: Former Indian real estate agent found guilty of defrauding bank for falsified repairs – must serve jail time and pay $200,000 in fines. http://www.nwitimes.com/news/local/lake/gary/gary-woman-sentenced-in-housing-scheme/article_3361cc33-0934-5996-9433-59ce24842430.html
5-14-2014: You can’t teach an old Maryland real estate developer dog new tricks – and he only going to serve 2 yearshttp://www.mysanantonio.com/news/crime/article/Developer-sentenced-to-2-years-in-bribery-scheme-5474576.php.
5-1-2014: Washington hard money lender to get some hard-time and to pay restitution.
4-30-2014: Another California real estate broker gets 13+ years in prison for a fraudulent “rent-to-own” scheme.
4-29-2014: California real estate agent guilty of mortgage fraud and is awaiting sentencing and penalties or restitution.
4-13-2014: San Diego real estate agent & his wife (a loan officer) sentenced to >3 years in a >$10 million mortgage fraud scheme. Not sure about restitution….
4-10-2014: Forma “Bawston” aw-torney gets convicted of defr”aw”din’ lenders – gets jail time and rest”aw”tution. Source: http://www.bizjournals.com/boston/news/2014/04/09/former-boston-attorney-sentenced-in-mortgage-fraud.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+vertical_2+(Commercial+Banking+Industry+News)
3-28-2014: California real estate agent and his loan officer thug wife were just convicted and sentenced to about 3.5 years in prison for a mortgage fraud scheme that resulted in more than $10 million in bank losses and many foreclosures. A restitution hearing is to be held in May of this year. Source: http://www.westport-news.com/news/crime/article/San-Diego-real-estate-couple-gets-prison-for-fraud-5355894.php
3-26-2014: California scumbag real estate broker convicted of Ponzi scheme related to “rent-to-own” scam – be careful out there! Source: http://www.sacbee.com/2014/03/24/6265155/real-estate-broker-convicted-of.html
3-25-2014: Another California scumbag gets prison time in the Crisp & Cole mortgage fraud case reported in the 2-25-2014 post below. Source: http://www.bakersfieldnow.com/news/local/Defendant-in-Crisp-and-Cole-real-estate-fraud-case-gets-78-months-in-prison-252037621.html
3-24-2014: Former Florida real estate broker Greg Eagle is to pay $19 Million in restitution for $17 Million real estate bank loan fraud. See my 2-8-2014 post below about his jail term. Source: http://www.news-press.com/article/20140324/BUSINESS/303240015/Greg-Eagle-pay-19-4M-restitution?nclick_check=1
3-8-2014: Philadelphia real estate developer to serve 8 years in prison for defrauding 2 banks out of $13 million, of which he is also ordered to pay restitution (making license plates?)…Source: http://www.bizjournals.com/philadelphia/news/2014/03/07/developer-given-eight-years-in-prison.html?page=all
2-25-2014: California real estate creep gets 17+ years in prison and is supposed to pay $28 million in restitution. http://www.bakersfieldnow.com/news/local/Carl-Cole-sentenced-to-more-than-17-years-in-real-estate-fraud-case-246924941.html
2-26-2014: A real joisee “Tony Soprano” like wise guy type to pay restitution and serve jail time – “yuse guys never lurn, does ya’?” http://www.boston.com/news/local/massachusetts/2014/02/23/real-estate-consultant-sentenced-fraud-scheme/9vDT3m37vFH8hkC7UV1pMO/story.html
2-8-2014: Former Florida real estate broker scumbag report to prison to serve 6 year prison term (no restitution?) and blames Wells Fargo and others on failure to loan $38 million in New York lawsuit. Source: http://www.news-press.com/article/20140208/BUSINESS/302080017/Cape-Coral-real-estate-broker-Greg-Eagle-reports-prison?nclick_check=1
1-25-2014: New York attorney disbarred, to serve 3-10 years in prison, and ordered to pay >$4.3 Million in restitution to victims of fraudulent real estate transactions. Source: http://www.longisland.com/news/01-24-14/attorney-sentenced-for-stealing-more-than-43-million-from-clients.html
1-24-2014: Real estate broker didn’t commit mortgage fraud, but I found it disgusting enough to mention here – The North Carolina real estate broker lost their brokerage license by not disclosing his brokerage represented both the Buyers and Sellers in the same transaction (i.e., Dual Agency) and bought properties at discounted lower prices and resold them at higher prices. Source: http://www.thetimesnews.com/news/top-news/state-board-suspends-graham-real-estate-agent-s-license-1.266859
1-18-2014: Former North Carolina real estate developer gets 27 years in prison and to pay $12 Million in restitution for federal bank & wire fraud. Source: http://www.dailyjournal.net/view/story/33ac27d0b8644570bb6f0c0398388711/NC–Property-Investor-Sentenced/
1-18-2014: New Jersey wise guy (not Gov Christie but a settlement company owner) agrees to pay full $5+ million in restitution and spend 10 years in prison. Source” http://www.westport-news.com/news/crime/article/Man-sentenced-for-stealing-mortgage-loan-money-5134122.php
1-15-2014: Former Arizona politician to spend 6 months in jail and pay up to $150K in restitution for real estate fraud. Source: http://www.trivalleycentral.com/coolidge_examiner/news/curry-to-serve-jail-time-under-plea-deal/article_8d996450-7d6c-11e3-b5ce-0019bb2963f4.html
1-10-2014: Two South Carolina mortgage fraud real estate criminals getting sentenced to < 2 years jail time and supposed pay about $1 Million in restitution over the next 30 years. Source: http://www.mortgagedaily.com/Fraud/MctLemons011014.asp
Update 1-8-2014: Florida real estate broker was sentenced 6 years in prison & pay $600 for fraudulently borrowing $17 million from bank based on real estate owned by someone else. Source: http://www.news-press.com/article/20140103/CRIME/140103012/Cape-Coral-real-estate-broker-Greg-Eagle-sentenced-today?nclick_check=1
1-7-2014: A group of California criminals fraudulently generated about $20 Million of profit with straw buyers of $100 Million in mortgage loans – some get Federal custody but nobody was executed. Source: http://www.sandiego6.com/story/real-estate-agent-sentenced-for-fraud-scheme-20140103
12-26-2013: California Dreamin’ scheme wound up to be $21 Million real estate scam nightmare – sentencing to follow this spring 2014. Source: http://www.westport-news.com/news/crime/article/2-men-convicted-in-21M-real-estate-fraud-scheme-5091917.php
12-20-2013: Texas real estate agent convicted of money laundering for a drug cartel – can you say Source: “dishonest earnest money”?
12-9-2013: Former Chicago police officer commits mortgage fraud with lender to scam $650,000 from bank. It figures something like this would happen in such a crime free place as Chicago – land of Obama! Source: http://news.gnom.es/news/former-chicago-cop-pleads-guilty-in-mortgage-fraud-scheme
11-27-2013: Boston bean head attorney gets caught in mortgage fraud and faces 20 years in prison and up to $250,000 per each of the 13 cases. Source: http://citizensvoice.com/news/west-pittston-man-pleads-guilty-to-fraud-1.1592233
11-15-2013: Pardon me boys, is that the “Penn” itentiary mortgage fraud Choo-choo? No, Pennsylvania attorney convicted on mortgage fraud and faces 20 years in prison and alot $3 Million in fines. Source: http://jamaicaplain.patch.com/groups/politics-and-elections/p/lawyer-pleads-guilty-to-charges-stemming-from-real-estate-fraud-in-jp
11-15-2013: Pose as an attorney to scam people out of >$3 Million, pay full restitution, and go to prison for 10 years – priceless!
11-13-13: Old California fart may spend >20 years in prison for $28 Million real estate fraud scheme – but will there be restitution? Not unless they put him to work making prison stuff and selling at prison bazaars. Source: http://www.reviewjournal.com/news/man-pleads-guilty-5-million-arizona-real-estate-fraud-scheme
10-25-2013: Federal prosecutors are looking for $44 million restitution for convicted Detroit real estate fraudster. Source: Feds want $44.5M in restitution in Bravata case
10-23-2013: No jail or restitution yet (but in my backyard so I’ll watch this), but Penguin Properties LLC pleads guilty to auction bid rigging in Fulton County Georgia and charge with the same in DeKalb County. Source: http://www.cbsatlanta.com/story/23759031/ga-real-estate-company-guilty-in-bid-rigging
10-21-2013: Arizona real estate investor is ordered to pay back $160K in fines to those he ripped off with fraudulent real estate investment notes. Source: http://www.arizona.statenews.net/index.php/sid/217870294/scat/085cec8e58ce1f5a
10-18-2013: New Mexico turds get prison and are to pay restitution and fines for wire fraud involving straw buyers for mortgages. Source: http://www.newschannel10.com/story/23722960/albuquerque-men-sentenced-to-prison-for-wire-fraud
10-10-2013: Well, if you really don’t like your mother in law, just dupe her into a real estate scheme, cheat her out of >$600,00, and spend 1-3 years in prison thinking of your next crime against her. http://www.newsday.com/long-island/nassau/da-mortgage-broker-sentenced-in-real-estate-scam-in-which-he-tricked-mother-in-law-1.6229525
10-8-2013: Sentencing & Penalties TBD—No jail time – yet, but Dekalb County Georgia Real Estate Agent pleads guilty to bid rigging at real estate auctions. Source: http://www.wsbtv.com/news/news/local/dekalb-real-estate-agent-charged-bid-rigging/nbH28/
10-1-2013: Las Vegas mortgage fraud scumbag proves crime pays by stealing millions and just facing 20 years & $250K fine…she’ll be out in a few years on good behavior. Source: http://www.8newsnow.com/story/23552754/woman-convicted-in-mortgage-fraud-conspiracy
9-24-2013: Michigan real estate $40 Million investment fraudster gets 20 years in prison and no restitution? And how many of the “taken” clients were also greedy?http://www.gibsonsothebysrealty.com/blog/2013/09/23/real-estate-news-majority-of-americans-predict-further-price-increases/
9-23-2013: Two more North Carolina thugs get 5 years and $250K fines for real estate scheme. Source: http://www.news-journalonline.com/article/20130923/APN/1309230784
9-14-2013: One day in prison and $500,000 in restitution for mortgage fraud – What a deal? Source: http://www.myrtlebeachonline.com/2013/09/13/3707245/mortgage-fraud-plea-nets-former.html
9-11-2013: Former Oregon real estate broker/CPA gets prison and is to pay restitution for mortgage fraud and pleads “don’t jail me bro!” Source: http://www.mysanantonio.com/news/crime/article/Former-broker-sentenced-in-mortgage-fraud-scheme-4804080.php
9-10-2013: ok, you don’t need to go to the extent of committing suicide like Zachary Davidson did, but should first go on trial for real estate fraud and embezzlement, before you get hanged. Source: http://www.bizjournals.com/denver/morning_call/2013/09/owners-of-landmark-condos-win-partial.html
9-9-2013: No jail time or fines yet, but this investor scumbag is one of many in San Francisco area who took part in mail fraud and conspiracy to rig auction bidding to capture profits later…Source: http://investigations.nbcnews.com/_news/2013/09/05/20346066-home-foreclosure-fraud-investigation-nets-36th-guilty-plea-federal-officials-say
8-28-2013: Maryland real estate agent committed mortgage fraud and is to serve jail time and pay $6 Million in restitution. http://www.gazette.net/article/20130828/NEWS/130829053/1029/bowie-realtor-sentenced-in-mortgage-fraud-scheme&template=gazette
8-27-2013: Ok – this isn’t a real estate mortgage scam, but this creepy real estate agent stole appliances out of US Government owned foreclosures…public hanging or prison soup for you!? http://www.shelbystar.com/news/local/feds-former-county-real-estate-agent-stole-sold-home-appliances-1.193522
8-27-2013: So you think the South is full of losers? Think again – This Massachusetts Real Estate Broker spent money in the escrow account on themselves – oops – 5 years prison time, restitution, and apology letters…Can you spell “Sincerely, Your Real Estate Agent from Pound you in the Butt Prison”..http://www.thesomervillenews.com/archives/41638
7-31-2013: Missouri man gets 5 years and is to pay restitution for using straw buyers to obtain mortgage $. http://www.westport-news.com/news/crime/article/Man-gets-5-years-in-real-estate-fraud-scheme-4698283.php
7-30-2013: Two Tennessee dudes sentenced to jail and pay restitution for mortgage fraud by submitting false buyers of foreclosures. They’ll be wearing Tennessee Orange jumpsuits pretty soon – just in time for college football season! http://www.mysanantonio.com/news/crime/article/2-sentenced-for-scheme-involving-foreclosures-4693098.php
7-24-2013: Assorted mortgage and real estate crimes by people in California with various sentences and penalties…no be-headings though…http://www.modbee.com/2013/07/10/2802120/real-estate-fraud-head-hyre.html
7-23-2013: Former Pennsylvania real estate agent convicted of mortgage fraud sentenced to prison and to pay restitution. http://campbell.patch.com/groups/breaking-news/p/former-campbell-real-estate-agent-sentenced-to-15-years-in-prison
7-20-2013: California scumbag gets 15 years and ordered to pay restitution for $2 million Ponzi scheme. http://www.mercurynews.com/milpitas/ci_23686140/real-estate-agent-convicted-ponzi-scam
7-12-2013: Another former California real estate agent faces jail and restitution for Ponzi mortgage loan fraud. http://campbell.patch.com/groups/breaking-news/p/former-campbell-real-estate-agent-sentenced-to-15-years-in-prison
7-7-2013: Former California real estate agent sentenced to over 7 years and to pay full restitution – YES! http://echopark.patch.com/groups/politics-and-elections/p/real-estate-agent-who-targeted-elderly-residents-sentenced_045ca9f1
7-6-2013: The audacity of this Dover dope committing real estate fraud – only gets jail time and restitution. http://www.unionleader.com/article/20130704/NEWS03/130709667
6-30-2013: Arizona man to be sentenced to prison and fined in September 2013 for mortgage and wire fraud. http://www.sfgate.com/news/crime/article/Tucson-man-convicted-in-real-estate-fraud-scheme-4636183.php
6-27-2013: Former executive of Lender Processing Services (LPS) – DocX LLC, gets jail sentence for fraudulent robo signing. http://www.stopfraud.gov/iso/opa/stopfraud/2013/13-crm-711.html
6-23-2013: Tony Soprano and son get jail time and restitution for real estate fraud – “you’s guys are gunna pay” http://www.trentonian.com/article/20130621/NEWS01/130629922/father-and-son-real-estate-cheats-get-prison-time”
6-22-2013: Tennessee real estate broker faces 20 years in jail and $250,000 fine…looks like they’ll be in Tennessee volunteer road work orange jump suit soon. comes” the judge? Her husband and son are spending 3 year for related rent skimming. Source: http://www.utsandiego.com/news/2012/sep/24/woman-sentenced-illegal-real-estate-scheme/
9-25-2012: California fraudsters get varied sentences and are awaiting restitution decisions for defrauding investors out of $7-20 million. Source: http://www.paloaltoonline.com/news/show_story.php?id=26916
9-25-2012: Illinois man gets 11 years & ordered to pay >$7 million in restitution for $7 million fraud of investor regarding rehabs. Source: http://www.nwherald.com/2012/09/25/woodstock-man-gets-11-years-for-ponzi-real-estate-scheme/af5czd3/
9-18-2012: Louisiana man gets 2.5 year in prison & must pay another $789K restitution for $3+ million real estate scam on Texans – wahoo! Source: http://www.fox8live.com/story/19538445/louisiana-man-gets-prison-time-for-34m-real-estate-scam
9-13-12: Two Washington real estate investors perpetrate $13 million fraud using lax bank/mortgage standards. Source: http://www.seattlepi.com/local/article/Real-estate-brokers-face-prison-in-4-million-3860907.php#page-2
9-10-12: New Mexico man get 12 years and agrees to pay >$38 million regarding real estate fraud. Source: http://www.courthousenews.com/2012/09/06/49989.htm
9-3-2012: Minnesota real estate agent sentenced to 5 years in prison for involvement in $10 million mortgage fraud. Source: http://www.twincities.com/localnews/ci_21445470/savage-real-estate-agent-gets-5-years-fraudulent.
8-30-2012: San Diego real estate agent sentenced to 4 years in jail for mortgage fraud hiding drug trafficker’s ownership of property. Source: http://www.utsandiego.com/news/2012/aug/29/sd-agent-sentenced-four-years/
8-27-2012: Las Vegas Developer pleads guilty to scam, possible 20 years in jail & $250,000 fine. Source: http://www.lvrj.com/news/developer-pleads-guilty-in-1-8-million-real-estate-scheme-167379495.html
8-22-2012: Former West Virginia Real Estate Appraiser is sentenced to prison for mortgage fraud. And in a related story, others were sentenced for 60 years or more in prison….but still are kept alive. Source: http://www.wsaz.com/news/charlestonnews/headlines/Two_Utah_Men_Charged_by_Feds_in_Mortgage_Fraud_Scheme_Linked_to_Putnam_County_130322268.html
8-13-2012: California man goes to prison for 5 years due to real estate scam of some elderly folks – so where’s the financial restitution to victims? Prison only? He deserves more punishment. Jail is just too good for this moron. http://www.sfexaminer.com/local/crime/2012/08/convicted-scam-artist-nabs-prime-prison-real-estate
8-6-12: Like mother – like daughter? Both are going to jail for about 10 years for $16 million California mortgage scam. http://www.businessinsider.com/mother-and-daughters-will-go-to-jail-for-16-million-real-estate-scam-2012-8
7-21-2012: Former Pennsylvania real estate agent gets about 20 years in jail and was ordered to pay $2,470,666 in restitution for defrauding 36 homeowners out of $2,470,666.
6-20-2012: show me the money…in the “show me” state! Missouri real estate agent to pay “partial” restitution and 18 month prison sentence for mortgage fraud. http://www.ky3.com/news/ky3-former-real-estate-agent-goes-to-federal-prison-for-arranging-sham-mortgage-20120619,0,926661.story
5-16-2012: California real estate agent guilty of mail and mortgage fraud. Source: http://www.centralvalleybusinesstimes.com/stories/001/?ID=21069
5-1-2012: Former Virginia Real Estate Realtor may go to jail for up to 20 years for a $7 million mortgage fraud scheme involving cash-out refinances. Source: http://www.leesburg2day.com/news/article_92b55646-92ff-11e1-9363-0019bb2963f4.html
4-28-2012: Alabama real estate investor pleads guilty to rigging real estate auction bidding and will serve 1 year jail sentence and may be fined. (My 1st question: Does this occur at other auctions? Secondly: How would you know?) Source: http://www.rttnews.com/1871166/an-alabama-real-estate-investor-plead-guilty-of-rigging-auctions.aspx?type=bn&utm_source=google&utm_campaign=sitemap
4-27-2012: Former Iowa real estate broker to serve almost 5 years and pay $320K+ in fines for mortgage & mail fraud. Source: http://www.kgan.com/shared/newsroom/top_stories/videos/kgan_vid_10916.shtml
4-23-2012: Former Florida real estate agent gets 3.5 years in prison for mortgage/mail fraud. Source: http://www.palmbeachpost.com/news/crime/ex-boca-real-estate-agent-sentenced-to-3-2320845.html
4-23-2012: Ex real estate agent in Pennsylvania gets almost 4 years for mortgage fraud. Source: http://www.post-gazette.com/stories/local/neighborhoods-north/ex-real-estate-agent-sentenced-to-nearly-four-years-for-fraud-632762/
4-6-2012: Connecticut real estate attorney gets 2+ years for real estate mortgage fraud. http://www.ctpost.com/news/article/Lawyer-gets-2-years-in-real-estate-scam-3461699.php
4-3-2012: Indiana man sentenced to prison and fined>$250K for defrauding mortgage lenders. Source: http://www.star-telegram.com/2011/07/06/3203853/fort-worth-real-estate-agent-faked.html
6-18-2011: A California real estate broker charged with mortgage fraud for inflated property values & inflated incomes of buyers, and other charges. Also, two people were charged with a fraud scheme involving a financial firm promoting foreclosure rescue/prevention services. Source: http://www.thereporter.com/news/ci_18298413
6-10-2011: I don’t know whether this former real estate agent will use the “one armed man” defense, but hey – what could it hurt? Source: http://www.heraldtribune.com/article/20110609/BREAKING/110609559/2055/NEWS?Title=Fugitive-real-estate-agent-arrested-on-fraud-charges-
6-10-2011: Anytime a Real Estate Agent breaks a bond of trust and tried to get away with a rime, all other honest agent cringe. Yes there are dishonest agents, but far more are honest and hard working. Source: http://blogs.sacbee.com/crime/archives/2011/06/couple-pleads-n-1.html
6-10-2011: Another Ponzi scheme for commercial properties in Florida – Is there also such a thing as “greedy” or “stupid” investors? Contributory negligence of due diligence? Source: http://www.housingwire.com/2011/06/08/former-tv-host-charged-in-florida-real-estate-ponzi-scheme
5-29-2011: Real estate agent (as President of an HOA), was accused in fraud scheme to sell 22 Condo units the HOA didn’t own or she didn’t have authorization to sell. Source: http://www.myfoxtampabay.com/dpp/news/local/pinellas/real_estate_fraud_arrest_clearwater052811
5-28-2011: Three (3) Utah men were indicted with conspiracy to commit mortgage fraud using “straw buyers” (i.e., using real people’s information to falsely stage mortgage lending, getting false appraisals, etc,.) to get lender to provide the loan funds for closings that aren’t real. Possible penalties are sentences, about $2 million in fines, and property. Source: http://www.sltrib.com/sltrib/money/51894227-79/meier-goff-false-prowell.html.csp
5-27-2011: Two former California realtor “sister” fraudsters had paid people $5K to use their personal and financial information as “straw buyers” and promised to buy the homes back. They only got less than 2 years jail time and $200K fines. (Note: Small fish in the sea, but fish nonetheless!)
http://rejournalonline.com/real-estate-scam-of-the-day-pennsylvania-appraiser-set-to-pay-up/853783/, a Pennsylvania appraiser was convicted of fraud and paid a $15K fine, but wasn’t sent to Federal prison like 5 others were. Like the article questioned – tough enough sentence?
4-30-2011: Co-founder of Omni National Bank (Jeffrey L. Levine) was fined $6.8 Million and sentenced to 5 years in Federal prison for involvement of inflating values of bank assets and mortgage fraud. (Atlanta Business Chronicle – 4-29 thru 5-5, page 13A).
4-22-2011: Mortgage Loan Processors (mostly in major US banks) are getting regulatory actions, fines and penalties for sloppy foreclosure processing. However, I haven’t heard the final count of the foreclosures that kicked people out of their homes while there were in loan modification processing. 5-10-20-100? Has there been any restitution for those folks? – http://www.mortgagenewsdaily.com/04132011_mortgage_servicing.asp
4-8-2011: Wives of WAMU accused of transferring assets to avoid access from legal claims…As of 3-15-2011, FDIC authorized suits to recover $3.5 B (wow, a far cry from the almost Trillion $ loss)! Source: WSJ, 3-18-2011, C1
3-15-2011: Credit Suisse Group settled a securities class action lawsuit (about misleading some investors about their mortgage exposure by failing to write down some mortgage related securities) and will pay $70 million. WSJ, 3-11-2011, C1 (Comment: I wonder what the attorney’s cut is out of the $70 million and how much the plaintiffs will actually receive? Probably not near the damage to investors?)
3-1-2011: WSJ 2-25-11, C3 – Former executive with Taylor, Bean, Whitaker pleaded guilty regarding a $1.9 Billion scheme may result in 30 years of prison on charges executive’s falsified sales of mortgage loans. (Hey, I didn’t see any form of victim restitution….)
WSJ 2-24-2011, A1: Possible settlement of $20 Billion and write downs of loans with large banks under Federal investigation over loan servicing issues like improperly foreclosing on borrowers and not providing sufficient help to restructure loans. If the settlement isn’t reached with the Obama Administration, different Federal agencies could pursue other penalties.
MDJ -2-12-2011, 6B = The Securities and Exchange Commission filed civil fraud charges against three former IndyMac Bank executives by disclosing false and misleading reports about the financial stability of IndyMac Bank to investors just before it failed. So far there’s only a $100K fine and $2K in restitution – a far cry from the millions of $ in stock that were sold without the alleged proper disclosure of the financial situation.
WSJ-10-16/17-2010=Angelo Mozilo (former Countrywide Financial Chief) has recently settled out of court by paying a $67.5 million fine stemming from insider trading of about $140 million in stock. It was also reported that he has been banned from servicing as officer or director of a public company (but I guess that doesn’t prevent him from working for a private ‘investment’ firm – does it?) Oh, and alot of the fine will be paid by current employer – Bank of America —Priceless!
Earlier in 2010 Goldman Sachs settled a $550 million suit stemming from misleading investors in the sale of mortgage backed securities.
Note: A 10-21-2010 WSJ Opinion column mentioned that $45 million of the $67 million fine will be paid by Bank of America insurers (via the Countrywide acquisition) and goes on to say the settlement won’t protect Mr. Mozilo from criminal charges. Furthermore, Bank of America agreed to pay $9 Billion over Countrywide’s lending practices.
10-7-2010: Wells Fargo agreed to pay $24 million and reduce the amount of mortgage loans by $400 million (by lowering balance, interest rate, extend term, or reduce monthly payment) after 8 states’ investigation of the marketing of risky mortgages by Wachovia and Golden West Financial Corp, both of which Wells Fargo acquired in 2006 and 2008, respectively. Some of the risky
I don’t think anything short of a hanging or public execution would have been good enough. To think, their “fast and easy” loans based solely on credit score were part of the problems tempting homebuyers to stretch their finances to get a crazy loan like this…even though the borrower is partially at fault, tempting a baby with candy will get the baby sick and you their money.
Federal Housing Finance Agency (FHFA) subpoenas 64 Mortgage Issuers
The FHFA oversees government backed mortgage companies and regulates 12 home loan banks that are major fund sources for hundreds of banks.
This inquiry centers on “private label” securities related to subprime, Alt-A, and other risky home loans. Apparently, Fannie and Freddie couldn’t buy them directly but bought $255 billion in slices of those with Triple A ratings – but were basically crap. Freddie has almost $30 billion of the $100 billion of subprime and Alt-A loans went bad. Fannie had $16 billion of $44 billion go bad.
The investigation will focus on whether these “bundles” of loans were sold under false pretences or mistakes, Fannie and Freddie could force the lenders to buy them back.
Maybe one possible tragedy is that Fannie and Freddie, being the major buyers of loans, were in a position to disclose such risk for all investors, yet never sent up warnings.
WSJ 6-25-2010: Morgan Stanley agreed to pay $102 million ($58 million to >1,000 MA homeowners
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.