Accused Equity Skimmer Commits Suicide; Attorney's Law License Suspended
This story (originally covered by The Ledger - Lakeland, Florida beginning in March, 2005) is of a real estate operator who was engaged in an equity skimming operation in and around the city of Lakeland, in Central Florida's Polk County. The operator bought homes from home sellers whereby he promised to take over and continue to make the sellers' mortgage payments. He would then turn around and sell the same homes to new buyers, whereby he would collect downpayments from them and allow the new buyers to make monthly payments to him for the balance of the purchase price.
When authorities arrested him after a 15 month investigation on March 30, 2005, he was accused of collecting nearly $153,000 in excess of the mortgage payments and more than $86,000 in down payments and monthly rent but did not pay off debts on the homes that he promised the original sellers he would pay. The bogus deals reportedly involved 19 Polk County homes.
Less than two weeks after he was arrested, local authorities arrested an attorney for his role in the fraudulent transactions. The attorney acted as the title agent and closed loans on a few, but not all, of the real estate transactions involved.
About a year later, after having his bail revoked for contacting the victims of his alleged fraud and after a four hour standoff, the real estate operator fatally shot himself in front of Polk County Sheriff's deputies who were attempting to execute an arrest warrant to take him into custody. He was reportedly distraught about the prospect of going to prison for up to 30 years and facing an order to pay restitution (roughly estimated at between $700,000 to $800,000) to the scam victims on account of the charges he was facing.
After pleading guilty for his role in the transaction, the attorney was sentenced to five years probation. At the time of sentencing the attorney had already fully paid the amount of victim restitution attributed to his role (just under $115,000).
According to an e-mail reportedly sent by the attorney to The Ledger after his sentencing, there were apparently 40 or so victims that may never see any compensation for their losses in this scam.
The attorney was ultimately suspended by the Florida Supreme Court from practicing law in Florida for three years, according to the Florida Bar.
Sources:
Head of firm arrested, reported in The Mortgage Fraud Blog, The Prieston Group, based on an article appearing in The Ledger, (3-31-05)
Lakeland Lawyer Is Arrested In Inquiry, The Ledger (5-11-05)
Standoff With Deputies Ends With Suicide, The Ledger (5-2-06)
Officials: Death Won't Stop Case, The Ledger (5-3-06)
Lawyer Receives 5 Years' Probation, The Ledger (7-15-06)
Polk Attorney Reprimanded, The Ledger (1-12-07)
Lawyer Loses License for Real Estate Fraud, The Ledger (1-13-07)
.
When authorities arrested him after a 15 month investigation on March 30, 2005, he was accused of collecting nearly $153,000 in excess of the mortgage payments and more than $86,000 in down payments and monthly rent but did not pay off debts on the homes that he promised the original sellers he would pay. The bogus deals reportedly involved 19 Polk County homes.
Less than two weeks after he was arrested, local authorities arrested an attorney for his role in the fraudulent transactions. The attorney acted as the title agent and closed loans on a few, but not all, of the real estate transactions involved.
About a year later, after having his bail revoked for contacting the victims of his alleged fraud and after a four hour standoff, the real estate operator fatally shot himself in front of Polk County Sheriff's deputies who were attempting to execute an arrest warrant to take him into custody. He was reportedly distraught about the prospect of going to prison for up to 30 years and facing an order to pay restitution (roughly estimated at between $700,000 to $800,000) to the scam victims on account of the charges he was facing.
After pleading guilty for his role in the transaction, the attorney was sentenced to five years probation. At the time of sentencing the attorney had already fully paid the amount of victim restitution attributed to his role (just under $115,000).
According to an e-mail reportedly sent by the attorney to The Ledger after his sentencing, there were apparently 40 or so victims that may never see any compensation for their losses in this scam.
The attorney was ultimately suspended by the Florida Supreme Court from practicing law in Florida for three years, according to the Florida Bar.
Sources:
Head of firm arrested, reported in The Mortgage Fraud Blog, The Prieston Group, based on an article appearing in The Ledger, (3-31-05)
Lakeland Lawyer Is Arrested In Inquiry, The Ledger (5-11-05)
Standoff With Deputies Ends With Suicide, The Ledger (5-2-06)
Officials: Death Won't Stop Case, The Ledger (5-3-06)
Lawyer Receives 5 Years' Probation, The Ledger (7-15-06)
Polk Attorney Reprimanded, The Ledger (1-12-07)
Lawyer Loses License for Real Estate Fraud, The Ledger (1-13-07)
.
posted by Home Equity Theft Reporter at 8:39 AM
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