NYC Feds Charge 26 In $200 Million Straw Buyer, Identity Theft Mortgage Scam

The Financial Times reports:

• "US officials charged 26 people with conspiracy and fraud, alleging in a criminal indictment unsealed on Tuesday that they used invented purchasers, stolen identities and inflated appraisals to fraudulently obtain subprime mortgages on more than $200m in property in and around New York City. Those who have been charged include real estate appraisers, a loan settlement agent, mortgage brokers and loan processors in addition to people who purchased the property. They allegedly conspired to lie to a series of lenders to obtain mortgages between 2004 and 2007."

Among those charged are three New York brokerage firms, Northside Capital, AGA Capital and its successor Lending Universe, and AGA Capital owner Galina Zhigun.

Among the victimized mortgage lenders include Countrywide Financial, New Century Financial, Washington Mutual and National City Corporation. For more, see:

U.S. atty indicts 26 for mortgage fraud in New York (Reuters).