South Carolina Manufactured Home Dealer Facing Fraud Allegations
Glenn Vaught, owner of Conway, South Carolina manufacured home dealer G&E Home Center has been named in two lawsuits by mortgage lenders in the past five months containing allegations that, in ten deals, he took over $1.5 million in loan proceeds for non-existent homes, according to an article in The Sun News' online presence, MyrtleBeachOnline.com. Two mortgage brokers have also been named in the suits as participants in the alleged fraud. No home buyers or appraisers were named in either suit.
One of the brokers, Nancy Peterson, claims to have been duped by Vaught in the transactions she was involved in and, reportedly, is cooperating with the mortgage lender in one case (although she remains as a named defendant). She reportedly did confess, however, to being "a little too trusting and a little too lazy" in the application process by obtaining prospective buyers' loan application documentation from Vaught rather than getting the paperwork directly from the home buyer/borrowers thmselves.
The other broker, Mike Fortenberry, was unlicensed to originate these loans, now lives in Tennessee, and did not return telephone calls and e-mail messages.
Vaught is facing at least three other lawsuits brought by his home buyer customers, in addition to the two by the lenders.
Falsified borrowers' income statements, altered bank balances, phantom downpayments, and altered appraisals were involved in the fraud, according to court documents. The appraisers whose property valuations were allegedly altered are reportedly cooperating with the mortgage lender in one suit.
(There is no indication in the article as to the existence of any law enforcement investigations into the allegations made in the civil suits.) For the entire story, see
Conway home seller accused of loan fraud
(Horry's manufactured house problems continue to mount)
.
The following points were reported in the article:
One of the brokers, Nancy Peterson, claims to have been duped by Vaught in the transactions she was involved in and, reportedly, is cooperating with the mortgage lender in one case (although she remains as a named defendant). She reportedly did confess, however, to being "a little too trusting and a little too lazy" in the application process by obtaining prospective buyers' loan application documentation from Vaught rather than getting the paperwork directly from the home buyer/borrowers thmselves.
The other broker, Mike Fortenberry, was unlicensed to originate these loans, now lives in Tennessee, and did not return telephone calls and e-mail messages.
Vaught is facing at least three other lawsuits brought by his home buyer customers, in addition to the two by the lenders.
Falsified borrowers' income statements, altered bank balances, phantom downpayments, and altered appraisals were involved in the fraud, according to court documents. The appraisers whose property valuations were allegedly altered are reportedly cooperating with the mortgage lender in one suit.
(There is no indication in the article as to the existence of any law enforcement investigations into the allegations made in the civil suits.) For the entire story, see
Conway home seller accused of loan fraud
(Horry's manufactured house problems continue to mount)
.
posted by Home Equity Theft Reporter at 12:01 AM
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