FBI Investigate NY Attorney For Alleged $600,000+ Theft Of Home Sale Proceeds

(orig. post 12-11-06; revised 6-28-07)
A Queens, NY single mother, who successfully sold her home for $678,000, reportedly received over $600,000 in bad checks from the home buyer's attorney at the sale closing and now no longer owns the home and has no sale proceeds, according to this report at thejournalnews.com (The Journal News - Westchester, NY).

The alleged victim, who used her earnings from working two jobs (as a waitress & bokkeeper) to build up the equity in her home, was planning on starting a new life in Orlando, FL. Unfortunately, checks totaling over $300,000 paid to her directly, as well as a check for $286,000 paid to the mortgage company on her behalf to satisfy the outstanding mortgage on her Queens home bounced.

She now finds herself making monthly payments on her Orlando home as she struggles to continue paying the mortgage on the Queens home that she no longer owns.

The FBI and the United States Attorney's Office are investigating.

Reportedly, there is one other incident involving the disbursement of bad checks by this same attorney. A real estate agent involved in the other incident claimed that he received a $10,000 bad check, his client's $20,000 check was no good, and the title company involved in the real estate closing lost more than $100,000 through bad checks received from the same attorney.

Click here for the full story.

Elderly California Couple Allege $485,000 "Home Theft"

An elderly Tracy, California couple have allegedly been victimized by a "home equity theft" involving a "reverse mortgage" scam, according to this report in the Tracy Press.

Police have arrested and jailed the alleged scammer, who has been susbsequently released on $63,000 bail. The criminal charges involved are suspicion of:

1. forgery,
2. grand theft,
3. financial elder abuse, and
4. conspiracy.

Reportedly, the homeowners believed they were obtaining a reverse mortgage loan when, in fact, they were unwittingly signing over ownership of their home to the suspect. They found out that they were no longer the record owners of their home only after a neighbor made a comment to them about the couple "moving".

After recovering documents from the suspect's office pursuant to a search warrant, Tracy police believe that (1) there could be several more victims, (2) other individuals and businesses appear to have collaborated with the suspect, and (3) there may be more arrests made and charges filed.

The San Joaquin County District Attorney’s office has joined the investigation.

For the rest of the story, click here.

Go here for other posts on reverse mortgage problems.

Go here , go here , and go here for other posts on elder financial abuse. zeta zebra

Colorado AG Obtains $1.1 Million Judgment Against Foreclosure Rescue Operator

This 2003 case illustrates how far state Attorneys General can go in going after fraudulent foreclosure rescue operators. These operators have been put out of business and have agreed to pay over $1.1 million in restitution to approximately 80 homeowners.

According to the allegations in the original complaint filed by the Colorado Attorney General:

• the "rescue" operators, through their unlawful foreclosure "rescue" program, acquired title to over 100 homes from homeowners facing foreclosure under the guise of "rescuing" their homes from foreclosure,

• the estimated market value of the homes in the Denver metro area exceeded $15 million,

• the homeowners were misled into signing over title to their homes in exchange for defendants advancing money for back-payments to bring their mortgage payments current and unwittingly became renters in their own home,

• the homeowners then leased their homes back from defendants with an option to repurchase their houses at an inflated price,

• consumers believed these complicated transactions were second mortgage loans and not the sale of their homes,

• within months, numerous homeowners were evicted after entering the "rescue" program,

• consumers were targeted through door-to-door solicitations and direct mail flyers advertising their "rescue" program as “absolutely free” and with “no cost to you,”

• in-home sales presentations were made to homeowners through high-pressure sales tactics aimed at convincing the homeowners that defendants’ "rescue" program" would allow families to stay in their homes, rebuild their credit, and keep their monthly payments low,

• homeowners were required to transfer title to their homes by quit claim and warranty deeds to the defendants and enter into lease option agreements obligating the homeowners to monthly rental payments sometimes hundreds of dollars more than their original mortgage payment,

• any missed rent subjected the homeowners to eviction and loss of equity,

• defendants would arrive at the homes with numerous contracts, deeds, and other pre-printed documents, ready to transact business,

• once the homeowner signed as instructed defendants would take the papers and refuse to leave any copies,

• homeowners were not given the opportunity to confer with advisors or to rescind the loan transactions within three business days, nor to cancel their credit repair service contract within five days, both rights of cancellation afforded by Colorado law,

• neither of these rights was disclosed to the homeowners, as required by law. The homeowners were not given numerous other disclosures of their rights, such as their right to redeem the foreclosure, stay in their home 75 days after foreclosure, and the ability to sell their property even after foreclosure,

• promises of credit repair were unfulfilled and homeowners were unable to refinance their homes, as they no longer had title to their properties.

Of the 120 homeowners who participated in the "rescue" program, approximately 30 retained private attorneys to settle their claims against the foreclosure operators.

For ColoradoAttorney General's 8/07/2003 News Release, click here.

For ColoradoAttorney General's 12/22/2003 News Release, click here.

For ColoradoAttorney General's 12/19/2001 News Release, click here.

For text of the Colorado Attorney General's Original Filed Lawsuit, click here.

California Prosecutors Add 26 Charges Against Alleged House Swindling Trio

Three defendants, already facing numerous criminal charges involving a "foreclosure rescue" operation, will now be facing 26 additional charges, according to this report at modbee.com (The Modesto Bee).

Prior reference to this case in this blog was made in my November 21 post.

Links to prior articles on this case:

1. Novenber 21, 2006
2. November 17, 2006
3. July 4, 2005

FBI Report on Unlicensed Home Improvement Contractors

This report, found in the November, 2005 issue of the FBI Law Enforcement Bulletin (Volume 74, Number 11), discusses the problems posed by unlicensed home improvement contractors from the perspective of a law enforcement officer. The report, while directed to law enforcement professionals, gives the average consumer insight as to how he can deal with problems arising from hiring an unlicensed contractor.

The author of the report, retired FBI agent George Lyford, was serving as the director of investigations for the Nevada State Contractors Board in Henderson, Nevada when his report was issued.

Family Friend Pleads Guilty to "Equity" Scamming Disabled Philadelphia Family

According to a report by Channel 6 in Philadelphia (WPVI-TV), and reported here at 6abc.com, a family friend, who had volunteered to help a disabled Northeast Philadelphia family, has pled guilty to illegally obtaining a loan secured by the home of that family without their knowledge.

See related stories from the Philadelphia Daily News (no longer available online):

• Hard life, heartless acts and a home, safe (12-1-06),
• You showed your love & restored their trust (12-6-06).