Washington AG Charges Two In Foreclosure Rescue Scam

The Washington State Office of the Attorney General Rob McKenna has filed criminal charges against a Bellingham, Washington mortgage broker and his wife in what investigators have called a foreclosure rescue scheme to get title to a local couple’s home, according to an article in The Bellingham Herald. The state has accused Peter and Julia Torkild of theft, forgery, money laundering and use of proceeds of criminal profiteering in connection with the scheme to acquire the victims' home.

Based on the information in the article, it appears that the impetus for the criminal charges in this case was a civil lawsuit, and an investigation conducted in connection therewith, that was brought by the victims against the Torkilds last May. For all the details, see Mortgage broker faces crime charges (Couple allegedly schemed to get Lummi Island home).

If any resident of the State of Washington thinks they may have been defrauded in a mortgage or other financial transaction, contact the Washington Department of Financial Institutions ("DFI"): (360) 902-8811; or go here for Online Complaint Filing with the Washington DFI.
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NYC Foreclosure Rescue Operator Target Of Federal Lawsuits

New York City foreclosure rescue operator Home Savers Consulting Corp. and Phil Simon have been the targets of two Federal lawsuits containing allegations of equity stripping involving the use of a "straw buyer" in connection with foreclosure rescue deals.

In one case, Johnson vs. Home Savers Consulting Corp., Phil Simon, et al., the allegations in the complaint state that:

• "After applying for what they believed was a refinance loan, plaintiffs discovered that Home Savers, through document trickery, misrepresentations, and outright fraud, had caused them to transfer ownership of their home to an “investor.” Unbeknownst to plaintiffs, the “investor” then mortgaged the property with Argent Mortgage Company for $425,000—a $182,000 increase over plaintiffs’ mortgage."

Neither Home Savers or Simon bothered to answer the allegations, and a default judgment was entered against them. According to the court docket, the victimized homeowners settled the lawsuit as it related to the mortgage lender involved in the transaction who was also named as a defendant in the case; and last week, the judge in the case entered an order against attorney Fred Way for actual and punitive damages of $10,000+ for his involvement in the transaction.

The victimized homeowners in this case were represented by South Brooklyn Legal Services, Brooklyn, NY; and White & Case LLP, New York City.

In another case, Phifer v. Home Savers Consulting Corp., the allegations in the complaint state:

• "After applying for what she believed to be a refinance loan, plaintiff discovered that Home Savers, through document trickery, misrepresentations, and outright fraud, had caused her to transfer ownership of her home to Wayne Griffith, the straw buyer, a person she had never met before. Unbeknownst to plaintiff, Home Savers then arranged for the straw buyer to mortgage plaintiff's home to Fremont Investment & Loan for $415,000--approximately a $170,000 increase over plaintiff's then existing mortgage on which she owed $245,000."

Neither Home Savers nor Simon have, as of yet, bothered to answer the allegations in this case, either. The litigation is currently ongoing and a motion for a default has yet to be filed against them.

The victimized homeowners in this case are represented by Oda C. Friedheim, Legal Aid Society, Queens of Kew Gardens, NY and Noah David Lang, of Seyfarth Shaw LLP, New York City.

Go here for other posts on foreclosure rescue operator, Home Savers Consulting.

Federal Judge Imposes $10K In Damages Against NY Attorney For Involvement With Foreclosure Rescue Operator

Last week, a Federal judge in Brooklyn, New York entered a judgment for damages in the amount of $10,720.75 against New York attorney Fred Douglas Way, III, Esq., (aka Fred Way) for his involvement in an equity stripping scheme involving New York foreclosure rescue operator Home Savers Consulting Corp. and Phil Simon.

The damages broke down as follows:

• $2,500 for money that he refused to return to the victimized homeowners of a foreclosure rescue scheme,
• $7,500 in punitive damages, and
• $720.75 for the cost of serving a subpoena on him.

According to the record:

• "[W]ay [was served] with notices of court conferences, a request to enter default, and a subpoena duces tecum directing Way to produce documents and appear for deposition. The process server for the subpoena served Way at his office on November 14, 2005, after being forced to wait for forty minutes because of Way's refusal to accept service. Due to the evasion of service, the cost of service of the subpoena was $ 720.75. Way did not appear for the January 9, 2006 deposition noticed in the subpoena served upon him, nor did he produce any documents in response to the subpoena. Plaintiffs' counsel also spoke with an attorney named Domenik Napoletano on January 9 and 31, 2006, who inquired whether plaintiffs would consent to vacate the default against Way. Plaintiffs stated that they would not agree to vacate the default, and neither Napoletano nor Way moved to vacate the default, or made efforts to engage in settlement talks with plaintiffs or respond to the subpoena served upon Way. Despite the numerous notices given to Way and his clear knowledge of the action against him, Way has still failed to appear in this action. Way also has a documented history of failing to appear in other litigation against him and defying court orders."

In addition, the record reveals allegations of other cases in which attorney Fred Way may have been involved in foreclosure rescue schemes:

• "Plaintiffs also point to other litigation involving similar claims against Way. See Attie Decl. PP 27-31; Johnson-Hines v. Freeman, No. 05-cv-5173 (E.D.N.Y. November 4, 2005) (foreclosure rescue scheme in which Way allegedly acted as attorney for investor); Robinson Electrical v. Woods, Index No. 37841/05 (N.Y. Sup. Ct., Kings County) (alleging that Way steered plaintiff into a fraudulent home improvement scheme); Hinds v. Way, Index No. 48329/99 (N.Y. Sup. Ct., Kings County) (alleging that Way took and retained nearly $ 40,000 from the sale of two properties while acting as attorney for an estate)."

The victimized homeowners were represented by South Brooklyn Legal Services, Brooklyn, NY; and White & Case LLP, New York, NY.

To read the Federal Magistrate Judge's Report and Recommendation against attorney Fred Way in this case, including a recitation of the basic facts involving the foreclosure rescue operator and its conduct against the victimized homeowners, see Johnson vs. Home Savers Consulting Corp., Phil Simon, et al., Case # 04-cv-5427 , 2007 U.S. Dist. LEXIS 24288, E.D.N.Y, March 23, 2007.

To read the April 11. 2007 court order entering judgment against Way, see Amended Order - Johnson vs. Way et al.

To read the facts of the case, as alleged by the victimized homeowners, see Complaint - Johnson vs. Home Savers Consulting Corp., Phil Simon, et al.

Go here for other posts on foreclosure rescue operator, Home Savers Consulting.

Victim Of Massachusetts Foreclosure Rescue Operator Fights Back

The Boston Herald recently reported of the story of Diane Rayford, a very determined nurse, who had hundreds of thousands of dollars allegedly stolen from her by a local foreclosure rescue operator who targeted distressed homeowners facing foreclosure. The article reports that:

• "[I]t took the feisty Trinidad native two years of endless lobbying of every conceivable law enforcement agency, hundreds of phone calls and even treks to suburban police stations before authorities took action."

Her persistent efforts to get law enforcement authorities to take her seriously finally culminated last week when Massachusetts Attorney General Martha Coakley filed civil suits against 19 companies and individuals for allegedly tricking Rayford and several other Massachusetts residents into signing away their homes in a foreclosure rescue scheme.

For the rest of Diane Rayford's story, see Nurse overcomes odds in fight for home.

For the Massachusetts AG's Press Release announcing the foreclosure rescue operator lawsuits, see Attorney General Coakley Files Lawsuits Against Individuals and Businesses Involved In Foreclosure Rescue and Mortgage Fraud Ring.

For other posts on this story, see Massachusetts AG Going After Foreclosure Rescue Operators.

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Massachusetts Foreclosure Rescue Operator Allegedly Scams Cross-Section Of Boston Area Residents

The Boston Herald reports:

• "A Mattapan pastor, a Natick attorney and a Dorchester nurse were among those who lost their homes to a “foreclosure rescue scam” that targeted distressed homeowners, authorities said yesterday."

The defendants allegedly conspired to deceive homeowners into selling their homes, falsely promising that the homeowners would be able to avoid foreclosure and keep their property.

For more, see ‘Mortgage fraud’: AG sues 19, alleges foreclosure scams.
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Convicted Brooklyn Couple In More Hot Water; This Time For I.D. Theft In Real Estate Scam

Emerick Martin and his wife, Donna Martin of Brooklyn, New York were arrested again late last week; this time by local authorities on charges involving (1) an identity theft of a Queens man and (2) the use of the victim's identity to get $1.1 million in financing to buy a home in Dix Hills, Long Island, according to a Newsday article appearing online on am-NewYork.

Reportedly, it wasn't until the Martins and another engaged in a failed attempt to get an additional $180,000 by mortgaging the victim's home in Rosedale, Queens without his knowledge that their scheme was uncovered. When the victim received documents relating to this fraudulent financing attempt in the mail, he got suspicious and reported the matter to local law enforcement authorities.

Mr. Martin was sentenced to five years probation in June 2005, in connection with Federal charges against him, his wife and others involving allegations of filing of false mortgage applications. Reportedly, he was arrested on the new charges while on his way to check in with his parole officer on the old charges.

Mrs. Martin pleaded guilty in 2006 to mail fraud in that same case and was currently awaiting sentencing in Federal Court when she was arrested on the new charges. Reportedly, the Martins also engaged in a failed attempt to finance $90,000 to buy a late model Mercedes-Benz S550.

For more, see Brooklyn couple arrested for identity theft (no longer available online).

Go here for other deed theft posts. deed theft zorro

For other stories involving the use of identity theft to buy real estate, or to sell or mortgage an I.D. theft victim's home from out from under him/her, see:

• Two arrested for housing fraud,
• Homebuyers Used As Pawns In Mortgage Fraud Scheme,
• Four Sentenced for Bank Fraud and Aggravated Identity Theft, Reports U.S. Attorney,
• Mortgage Fraudsters Targeting Homes With "For Sale" Signs,
• Apple Valley man charged with identity theft and forgery,
• Florida Feds Get Guilty Pleas On Two In "Operation Whose House",
• New Arrests Made In Deed Scam,
• Boston Cops, Feds Sting Alleged Home Thieves,
• Detroit Area Law Enforcement Targeting Deed Theft With Dedicated Units.

I.D. Thieves 'Stung' In Attempted Massachusetts Home Theft Scam

In another story, this time reported by Boston, Massachusetts television station WCVB-TV Channel 5 on their website, TheBostonChannel.com, involving the use of identity theft to engage in a real estate scam to steal the home of a potential victim, the U.S. Attorney's office said Andre J. Lamerique of Sharon, Massachusetts, Carmella F. Lessegue of Boston, and Judy Bonas of New York City, were charged with using stolen I.D.s to fraudulently obtain a mortgage loan on a bogus purchase of a home in Dorchester, Massachusetts. Prosecutors allege that Lamerique orchestrated the phony sale to obtain the proceeds of a $440,000 mortgage to finance the purchase.

According to the report, "Law enforcement agencies got a tip about the scheme and used an undercover Massachusetts State Trooper to act as the attorney who was supposed to close the deal."

All three were previously arrested and charged in Massachusetts state court back in January on state charges involving the same incident. For more, see Feds Prosecuting ID Theft Home Purchase Case (Trio Charged With Using Stolen IDs In Fake Home Sale). sting
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Weekend I.D. Theft Blotter

The following recent reports involve alleged identity theft stories involving:

• a pizza delivery driver (Pizza delivery man accused of identity theft),
• a manager of an antiques business, for running up over $1,000 in charges on an account belonging to his ex-girlfriend (Police make arrest in identity theft case),
• a hospital employee who, according to police, used a hospital computer to steal social security and credit card numbers from 20 hospital patients (Guilty Plea in Identity Theft Case),
• a former Social Security Administration employee charged with illegally disclosing personal information she took off a government computer that was then used to rack up $2.5 million in credit card charges (Social Security Administration Worker Charged In Identity Theft Scheme),
• Nurse charged with stealing patient info and identity theft.

In addition, Credit Cards GB reports that a study by Visa reveals, "[t]he most common place where 40% of identity theft is found is in restaurants." The problems are caused by fraudsters who hack into the restaurant computers, which contain all of the customer details and transactions. To read more, see "Where do you think identity theft is most commonly started?"

Also, KOAA-TV in Colorado reports that Pueblo, Colorado police say that "[e]very year people learn they've fallen victim to identity theft after they file their taxes and find out they owe money for work they've never done." One identity theft victim may have had his identity stolen while he was in prison, since he recently learned he owed nearly $20,000 in back taxes for income the IRS says was earned during a period of time in which he says he spent in a state penitentiary. For more, see Pueblo man falls victim to identity theft.

Also, a Community Shred Day was held in Flint, Michigan yesterday. Dan Milliken, owner of iSHRED, an on-site document destruction company, supplied an industrial-sized document shredder, a monster machine inside a 35-foot semitrailer to promote document shredding as a way to combat identity theft. (Monster machine helps tear identity theft fears to shreds).

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Oklahoma Jury Convicts 6 In Cash Back Real Estate Scam

A jury in an Oklahoma Federal Court convicted six people in a cash back mortgage fraud scam involving artificially inflated home sale prices and submitted false loan applications, reports The Edmond Sun. Those convicted include Brandon L. Baum, of Joplin, Mo.; Joseph Conrad Therrien, of Oklahoma City; and Gayle L. Caldwell, Charles E. Caldwell Jr., Teresa M. Therrien, and Rusty Real Therrien, all from Edmond, Oklahoma.

It was alleged "that each of the defendants intended to personally profit by funneling substantial sums of money back to themselves and others from the excess sales proceeds under the guise of remodeling, repair costs or marketing service fees." For more, see 6 guilty in Oak Tree home fraud.
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Cash Back Scams Not Limited To Real Estate

KTEN Channel 10 in Oklahoma reports that David Dwain Redden, the former city manager of Roland was sentenced in an Oklahoma Federal Court to 27 months in prison and ordered to pay the city about $225,000 in restitution. Redden was accused of inflating purchase orders used to acquire supplies from a vendor and getting cash back from the business. For more, see Former city manager sentenced.
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A View Of The Mortgage Fraud Phenomenon

The Washington Post takes an interesting look at the mortgage fraud phenomenon in the recent article, Housing Boom Tied To Sham Mortgages (Lax Lending Aided Real Estate Fraud)
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Kansas City Real Estate Operator Under Investigation

The Kansas City Star reports, in two recent articles, their investigation of transactions involving indicted real estate wheeler dealer Ray Zwego; transactions The Star believes may cost dozens of sellers, buyers and tenants millions of dollars in losses from bad loans and foreclosures. According to The Star, the transactions involved:

• Used inflated appraisals to jack up prices on at least two dozen homes and obtain loans far exceeding the properties’ values,
• Used the credit ratings of "straw buyers" to get an estimated $18 million or more in mortgages through his . The straw buyers often were left "holding the bag" on unpaid loans when Zwego failed to make mortgage payments, and
• Compromised portions of the Heartland Multiple Listing Service (MLS).

He was indicted in January with former Jackson County Executive Katheryn Shields and her husband, Philip Cardarella, who are accused of inflating the value of their home in Kansas City to $1.2 million in an effort to defraud lenders. Zwego stood to net $414,000 in “management fees” in the sale, according to the indictment.

Reportedly, Zwego’s operation is only one of at least five metro Kansas City real estate operator groups that the local FBI is investigating. For more on The Star's investigation and Ray Zwego, see:

• Dealmaker cuts a path of financial anguish (no longer available online), and
• Zwego’s history of wheeling, dealing (The real estate, car and mattress salesman has a long rap sheet) (no longer available online).

Investor Alleges Fraud In Federal Lawsuit

Dunn, North Carolina's The Daily Record reports that a Virginia woman filed an amended lawsuit last month in a North Carolina Federal Court alleging that a group of 12 area citizens including an attorney, a builder, a paralegal and a loan officer engaged in a mortgage scam that cost her thousands of dollars. She accused the group of selling her homes for more than the properties' fair market value, buying homes in her name without her knowledge, and taking kickbacks.

Those being sued are: law firm Spence and Spence P.A., attorney Robert Spence, employee Sylvia Pickard, paralegal Patsy Narron, investors Mark Lowery and Spencer Jenkins, loan officer Annetha Dunn, builders Elizabeth and Eldon Standridge, builders Gregory and Elizabeth Johnson, Rodney Taylor, Carol Daniels, and Fremont Investment and Loan.

There are no criminal indictments to date in this case; the Attorney General's Office has reportedly been notified.

To read more, see Mortgage Scam Alleged In Federal Lawsuit.

To see the full details of the allegations as set forth in the Federal lawsuit, see Complaint - Higgins vs. Spence & Spence, P.A., et al.
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Massachusetts AG Going After Foreclosure Rescue Operators

Massachusetts Attorney General Martha Coakley has announced the filing of two companion civil lawsuits against a ring of 19 individuals and companies allegedly running a foreclosure rescue business who have allegedly deceived financially strapped homeowners into signing away their homes and stripped the equity out of the homes through:

• inflated mortgages,
• false fees for fictitious services,
• false certifications by closing attorneys,
• subsequent resales of the homes amongst themselves.

According to AG Coakley:

• "These defendants, many of whom were professionals, preyed on vulnerable homeowners facing foreclosure to deceive them out of their home and their life savings ... With the number of foreclosures increasing daily, this type of mortgage fraud is particularly troubling and we will take aggressive action to ensure that this predatory conduct does not continue in Massachusetts."

Named as defendants are: Leo Desire, Sr., Primary Mortgage Resource, Inc., mortgage broker, attorneys James Alberino, Robert Marks, and Valerie Hanserd, Universal Plus Realty & Financial Services Inc. and Home Pride Management, Leo Desire Jr., President and Treasurer of Home Pride Management, Robin Hayes, sole officer, owner and director of Universal Plus Realty & Financial Services Inc., Dr. Joel Charles (d/b/a Sourie Corp.). In addition, Louis R. Joseph, Pierre N. Joseph and his wife Daphne Mompoint, Robens Joseph, Paul A. Joseph, Jean N. Joseph, Advie Charles, Neville Francis and Marie Betey Mereus, all property buyers, were also named as defendants.

There is no indication whether the Massachusetts AG's office intends to bring criminal prosecution against these defendants. Depending on (1) what records are turned over and (2) what statements are made by the defendants during the discovery stage of the litigation, a subsequent criminal prosecution by the state is always an option. It is also unknown whether the office of Massachusetts U.S Attorney Michael J. Sullivan has its eye on this case.

For more, see Attorney General Coakley Files Lawsuits Against Individuals and Businesses Involved In Foreclosure Rescue and Mortgage Fraud Ring.

For a related post, see Massachusetts Attorney Involved In Equity Stripping / Rescue Operation Loses Beacon Hill Landmark In Foreclosure Sale.

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For other cases where U.S. Attorneys have brought criminal prosecutions against foreclosure rescue operators containing somewhat similar facts , see:

U.S. Attorney - Central District of California

• U.S. vs. Valenzuela - Plea Bargain Agreement; Stipulated Statement of Facts, pages 15 through 21, describing the foreclosure rescue deals, the subsequent mortgaging of the victims' homes using straw buyers, and the ultimate default on the newly obtained mortgages
• Two Arrested On Federal Fraud Charges In Foreclosure Scam (USDOJ Press Release 11-30-05)
• Three Defendants Added To Federal Indictment In Foreclosure Scam (USDOJ Press Release 7-20-06)
• Two Plead Guilty In Combined Foreclosure Rescue / "Straw Buyer" Mortgage Fraud Scam.

U.S. Attorney - Middle District of Florida

• Indictment - U.S. vs. Moumneh, et al., a prosecution involving a foreclosure rescue operation and bank fraud,
• Tampa Federal Jury Convicts Five Persons In Home Equity / Bank Fraud Scheme (USDOJ Press Release 3-29-07)

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Two Arrested For Purchasing Home With Stolen I.D.

Fanny Velasquez and her daughter Paola Garzon were both arrested by the San Bernadino County, California District Attorney’s Real Estate Fraud Unit and accused of purchasing a home and financing it with someone else's stolen identity, according to an article in the Victorville Daily Press. They were charged with identity theft, false impersonation and forgery.

They purchased the home in December 2003 and apparently lived in it for over three years. Reportedly, in December 2004, the victim learned of the crime when she was turned down for financing when trying to buy her own place because her credit report showed she already owned a home. The arrest of the suspects went down this past Monday. For more, see Two arrested for housing fraud.
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Help Homeowners Dump Subprime Loans, Change FHA Guidelines, Urges NAR

As a way to help homeowners stuck with subprime mortgage loans on their homes, the National Association of Realtors is strongly urging HUD to change FHA rules and waive the requirement that a homeowner’s mortgage be “current” in order to refinance into an FHA loan product. The idea is to enable homeowners to unload the subprime mortgages encumbering their homes by refinancing them utilizing FHA insured mortgages. The goal is to help homeowners who are currently finding it difficult making their payments after subprime rate adjustments avoid losing their homes. For more, see NAR urges HUD to revamp FHA program.
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Mortgage Servicer Donates 200K To Foreclosure Prevention Counseling Group

The Homeownership Preservation Foundation recently announced that it had received a $200,000 from Ocwen Loan Servicing, LLC to help the foundation’s efforts in preventing foreclosure. HPF operates one of the nation’s largest national consumer hotlines for troubled borrowers; a 24 hour a day, 7 day a week hotline at 888-995-HOPE, and online at www.995hope.org. For more, see Ocwen Donates $200K to Foreclosure Prevention, reported by Housing Wire.
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Philadelphia Foreclosure Prevention Program Gets Heavy Support

A new program designed to help Philadelphia, Pennsylvania homeowners avoid foreclosure is being kicked off with the support of The Urban League of Philadelphia, together with The National Urban League and the Homeownership Preservation Foundation, according to a report at Housing Wire.

As part of the joint effort, the National Urban League will support the promotion of the Homeownership Preservation Foundation's 888-995-HOPE hotline, which is available 24/7 nationwide to homeowners concerned about facing foreclosure, either now or in the near future. Callers receive free, confidential advice from expert counselors from HUD-approved counseling agencies. Those who are in need of additional face-to-face counseling and education will be referred to the Urban League affiliate in their city. For more, see Philly Mayor Throws Support Behind City-wide Foreclosure Prevention Program.

Victim Of Foreclosure Rescue Operator Loses Home; Vows To Keep Fighting

The Orange County Register reports that the home of an Anaheim woman, victimized by a Southern California foreclosure rescue operator, was sold at a foreclosure sale to the lender holding the mortgage on the home; it was the only bidder for the home. She currently has a civil lawsuit pending whereby she alleges that:

• she and her family were victims of a forged deed transferring the property to a sham buyer,
• the original loan on the home was paid off by a new mortgage,
• she never received the excess cash that was issued in the new loan, and
• since she never authorized the new loan, the lender has no right to evict her or her family.

Attorneys involved in the case agree that the lender may not be able to recover the full amount of its loan, but could be entitled to reimbursement for paying off the homeowner's original loan. For more, see Anaheim family loses title to home (A woman claiming to be the victim of a mortgage scam said the lender repossessed the home last week. She vowed, however, to contest the change in ownership)

For a related story, see Let the borrower beware (Officials say a growing number of 'foreclosure rescue scams' are targeting property owners who fall behind on their loans, siphoning off their equity and causing them to lose their houses)

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The Subprime Mortgage Problem From Various Prospectives

A recent MSNBC article gives an interesting overview of the subprime mortgage lending problem. It reports the story of a New Jersey couple who is currently struggling to survive a negative amortization mortgage. It also reports of a Virginia couple who luckily dodged a bullet a couple of years ago when shopping for a home.

Also reported in the story are comments from the head of HUD's Inspector General's office, a state regulator, a couple of real estate appraisers, and Texas civil trial lawyer David Berg, who is reportedly gearing up to represent defrauded consumers who were duped into subprime mortgages.

For more, see Special Report: The Mortgage Mess.
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Kentucky Fights I.D. Theft With "Free Shred Day"

In an effort to combat identity theft, a "Free Shred Day" is being held in Frankfort, Kentucky today and again on April 27, allowing citizens to bring sensitive documents for shredding, reports The State Journal. For more, see The shredders are coming to fight identity theft.

For a related shredding article, see Internet age means erasing paper trails (Shredding event a good reminder that amidst identity theft and on line scams, wise people cover their tracks).

Go here for more on Community Shredding Days to fight identity theft.
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Matthew Cox Pleads Guilty To Multi State Mortgage Fraud

Former art student and aspiring fiction writer Matthew Cox, better known for his mortgage fraud exploits, pleaded guilty today in an Atlanta Federal Court to multiple counts of mortgage fraud and identity theft in Georgia, Florida and Tennessee—crimes that could land him in the pokey for up to 54 years, along with earning him obligations for a $2 million fine and millions in restitution, according to an online report by Daily Report, at dailyreportonline.com. In addition, the Feds have seized all of his assets in civil forfeiture actions, including a number of his own highly distinctive paintings. Sentencing is scheduled on August 22.

To read more, see Book closes on elaborate mortgage fraud scheme (Man who was on Secret Service’s Ten Most Wanted list pleads guilty after running scam in four states, including Georgia)

To read the grand jury charges, see Indictment - U.S. vs. Matthew Cox (2.27 MB - 63 pages).

For related stories, see:

• Man accused in multi-state mortgage fraud scheme pleads guilty
• Cox pleads guilty to mortgage fraud in Atlanta
  

Go here for other posts on Matthew Cox (including link to NBC Dateline one hour feature).
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Multi State Alleged Mortgage Fraudster Matthew Cox Expected To Plead Guilty Today

The St. Petersburg Times reports that alleged multi-state mortgage fraudster Matthew Cox is expected to plead guilty in an Atlanta Federal Court today in connection both with a 42 count indictment as well as recently filed charges involving alleged mortgage fraud scams in Tampa, Florida and Nashville, Tennessee. To read more, see Fraud leader had a lot of help (Matthew B. Cox had 22 co-conspirators in his mortgage schemes, new charges say).
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Indiana To Give Permanent Status To Homeowners Protection Unit

Indiana Attorney General Steve Carter is applauding Indiana lawmakers for passing a measure that would give permanent status to the Homeowner Protection Unit (HPU) created nearly two years ago as a test program administered by the attorney general’s office. The Unit investigates complaints and files disciplinary actions against licensed appraisers and licensed real estate agents & salespersons for alleged misconduct relating to real estate and mortgage fraud. Carter states:

• “By raising awareness of the Unit, we hope that more people will recognize that there is a place to turn to for help if they believe they have been the victim of, or suspect, questionable business practices by individuals or companies in these professions.”

To read more, see Attorney General’s Homeowner Protection Unit Nears Permanent Status with Latest Action by the Legislature (Attorney General Steve Carter says Consumers Benefit from the Unit’s Focus on Mortgage Fraud)

For a related article, see Attorney general team hits real estate fraud hard, reported at nwi.com.

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Indiana Authorities Scrutinize Land Contract, Rent-To-Own Schemes

Two recent articles by The Times of Northwest Indiana, reported at nwitimes.com, report on land contract and rent-to-own deals that are currently part of a larger probe into mortgage fraud statewide by the homeowner protection unit of Indiana Attorney General Steve Carter's office. Reported is the story of one home that was reportedly sold by its owners on a land contract to a company called TotalBiz 247, and then sold on a "rent-to-own" basis to a prospective buyer. Non-payment of existing mortgages by TotalBiz, which is owned and operated by real estate broker Kurtis Kintzel, is reportedly one reason why his business operation, which has been described as basically flipping schemes with a delayed closing is getting increased scrutiny by authorities. For more, see:

• Experts question TotalBiz deals, and
• Home sale scheme features hidden sellers

Go here for other posts on "rent to own" scams. rent to own lease purchase option scams zebra

Using Consumer Protection Laws To Pursue Illegal Real Estate Scams

On his Indiana Consumer Lawyer Blog, attorney Robert Duff comments on the real estate scams currently being investigated by the Indiana Attorney General's office and points out that Indiana consumers have a way to pursue compensation for unlawful business practices by licensed real estate appraisers and real estate agents through legal actions under the Indiana Deceptive Consumer Sales Act. He notes that actions under this statute must be brought within two years, and points out that one notable advantage of bringing legal action under this statute is that it provides for the payment of the consumers' attorney fees by the losing defendant.

This advantage, typical of state and Federal consumer protection laws throughout the U.S., is meant to encourage enforcement of these laws by individual consumers through their own private lawsuits, encourage attorneys to take on consumer protection cases on behalf of aggrieved consumers, and to make the culpable business engaging in the illegal conduct foot the consumer's legal bill.

For more, see Indiana Real Estate Appraisers and Agents Apparently Need More Oversight.
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