New York Feds Charge Closing/Settlement Agent With Pocketing Escrow Funds

Newsday reports:

• "A mortgage escrow official surrendered to the FBI [last Wednesday] to face charges that he pocketed funds intended to pay off home loans, officials said Wednesday. Steven Leff, 44, a principal of National Settlement Agency, a firm that has offices in Melville and Manhattan, acts as a settlement agent handling real estate closings for a number of banks. He was released on a $1 million bond late Wednesday after appearing in federal court in Brooklyn, according to federal prosecutors."

For more, see Exec faces mortgage scam charges.

Go here for other posts on Steven Leff.

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha

Defunct Ohio Escrow & Title Closing Agency Owner Charged With Stealing $400K

The Newark Advocate reports:

• "A Granville woman faces 12 felonies after being accused of issuing “bad checks” from her company’s escrow account after loan closings. Donna Lemmon Perkins, 43, of Granville, was indicted Friday on multiple counts of theft, money laundering, and engaging in a pattern of corrupt activity. She is accused of stealing almost $400,000 from six area victims in 2005 and 2006. Lemmon Perkins was the owner of the now-defunct Lemmon & Associates Title Services. Upon closing the business in February 2006, it was discovered that money was missing from the title agency escrow account, Licking County Assistant Prosecutor Dan Huston said."

For more, see Granville woman indicted for theft, money laundering (no longer available online).

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha

California Mortgage Company Owner Gets 10 Years In Prison; Used Firm As Front For Identity Theft Scheme

In Southern California, the North County Times reports:

• "A Vista man who authorities say ran an identity-theft ring on behalf of a white supremacist prison gang pleaded guilty Wednesday in Orange County Superior Court to 24 counts of theft and forgery. Authorities say he may be just one of nearly 100 people involved in a larger criminal operation. Michael Alexander Hartsell, 50, owner of Vista-based First Choice Mortgage, faced 96 years in prison if convicted of all 187 counts against him ... [and] was sentenced to 10 years."

Reportedly, three of Hartsell's co-defendants have also entered plea agreements. William Andrew Padworski, 47, (2 years 8 months) of Oceanside, Patricia Ann Mcintosh, 42, (yet to be sentenced) of Vista, and Natasha Chiara DiLorenzo, 31, (2 years) of Oceanside, have received prison sentences. A fourth co-defendant, Laurrisa Laurrainne Ballow, 39, was a fugitive until her June 2 arrest on unrelated charges, and is currently in custody pending arraignment. For more, see Vista man gets 10 years in ID theft plea deal.

40 Of 67 Mortgages Totaling $67 Million Linked To One S. California Agent Now In Default

In western Riverside County, California, an investigative report by The Californian reports:

• "A group of more than 60 upscale tract houses purchased last year with 100 percent financing is falling one by one into foreclosure, leaving lawns brown, neighbors peeved, and a handful of renters answering late-night knocks at the door. The owners ---- individual investors who are nowhere to be found ---- began to default on their mortgages in May, triggering three-month countdowns to auction. At least five defaults have been recorded this month, bringing the total to 40 of the 67 local houses linked to Elias Ochoa, a real estate agent who ran the Corona branch of a mortgage brokerage until June. Neighbors said several of the other houses have been empty and unkempt for months, leading them to conclude that those, too, will soon default and eventually be seized by lenders. Several of the remaining houses are owned by investors who have already defaulted on other mortgages."

Reportedly, from early 2006 until June 2007, Ochoa was running the Corona branch office of Solco Financial Services, at which time he suddenly closed down the branch and just as suddenly cancelled his listings for 24 of the houses which he had been trying to sell. He reportedly started this month as an agent with a Temecula-based real estate brokerage that specializes in selling bank-owned properties, including several in the same neighborhoods where he once operated.

To date, there have been no criminal charges brought, nor have there been any civil lawsuits filed, against Ochoa or any possible straw buyers that may have been part of his investment group.

Ochoa's investor group, along with the group linked to Hendrix Montecastro, a Murrieta broker whose license was revoked by state regulators last month and faces additional problems in connection with an alleged $100 million mortgage fraud, are the largest two known to have resulted in mass foreclosures in Riverside County. In addition, several smaller groups also appear to have contributed to a local real estate bubble by buying up houses and leaving them empty, according to local agents and appraisers.

For more, see Real estate group guts neighborhoods.

Nebraska State Agency Issues Foreclosure Rescue Advisory

Southwest Nebraska News reports:

• "Nebraska Department of Banking and Finance Director John Munn issued a consumer advisory today urging Nebraskans facing the possibility of foreclosure on a home mortgage to be cautious when working with foreclosure rescue consultants and companies. Recent inquiries to the Department regarding foreclosure have prompted Department officials to warn Nebraskans of the potential risks associated with foreclosure rescue services."

For more, see Nebraska Department of Banking & Finance Issues Consumer Advisory on Foreclosure Rescue Services.

Postscript

One of the big foreclsoure rescue cases in recent years was litigated in Nebraska, going up to the Nebraska Supreme Court, which ruled in favor of about a dozen victimized homeowners against operator Mid-America Financial Investment Corp., which reportedly operated in the Omaha area. See Foreclosure Rescue Operator Ordered To Return Homes To A Dozen Victims.

Brooklyn Federal Judge Allows Alleged Race Based Predatory Lending Suit To Go Forward

(original post 8-24-07)
Law.com reports:

• "A series of federal lawsuits filed by eight black first-time homebuyers alleging that New York's United Homes targeted minorities as part of a conspiracy to sell over-valued, broken-down homes financed with predatory loans will go forward following a federal judge's rejection of the defendants' motions to dismiss."

• "As summarized by [Federal District Court Judge Raymond J.] Dearie, "Plaintiffs claim that defendants were part of a fraudulent property-flipping scheme. They allege that United Homes and its affiliated companies ... bought damaged properties at foreclosure auctions or estate sales[,] performed some cosmetic repairs and, shortly thereafter, sold the properties, often at double the purchase price." The buyers claimed that United Homes conspired with appraisers, mortgage lenders and lawyers "who facilitated the sales by preparing significantly overvalued appraisals and originating loans and mortgages that were correspondingly inflated." They claimed violations of the Fair Housing Act and other anti-discrimination laws, as well as a number of state-law violations."

Representing the plaintiff are the law firms Scarola Ellis LLP, of New York City, South Brooklyn Legal Services - Brooklyn, NY, and AARP Foundation Litigation, Washington, D.C.

For more, see Bias Claims Proceed Against Seller of 'Damaged' Homes.

For copy of lawsuit, see Barkley vs. United Homes, et al.

Go here and go here for other posts on alleged race bias in real estate transactions. race bias predatory lending

More On Maryland Man Who Paid Off Mortgage & Lost Home To Foreclosure Anyway

The Baltimore Sun reports:

• "Kwaku Atta Poku, the Columbia taxi owner who lost his family's townhouse to foreclosure despite making every mortgage payment, is moving to a new rental home, thanks to help from a community group using a new state program to help them recover. "With us moving to this place now, I feel a little bit better," Atta Poku, 55, said of the three-bedroom townhouse in East Columbia that Congregations Concerned for the Homeless has arranged for him to rent."

• "Atta Poku's lawyers, Gerald M. Richman of Ellicott City and Scott C. Borison of Frederick, are awaiting word on two court actions they filed after their attempt to have the Court of Special Appeals declare the foreclosure illegal failed in May. In June, they asked the Maryland Court of Appeals to rule whether it was right for the Court of Special Appeals to dismiss Atta Poku's case on what the lawyers said was a technicality. They've also asked the Howard County Circuit Court to award Atta Poku the proceeds from the sale of his home, plus punitive damages. No ruling has been made in either case."

For more, see Displaced by foreclosure, family finds rental home (State program, Howard nonprofit, customers come to aid).

Go here for prior posts on this story.

Abandoned Florida Homes In Foreclosure Haven For Rats, Snakes, Mosquitos

The South Florida Sun Sentinel reports on the problems facing code enforcement personnel throughout South Florida. Aesthetic nuisances like uncut lawns and dirty pools can lead to health hazards. Snakes and rodents love uncut lawns (Editor's Note: in the western parts of the counties, you may even find an occasional alligator in the tall grass). With the pools, the concerns are about mosquitoes and young children getting in them. Other concerns are rotting garbage dumped in the yard, problems of gang activity and prostitution in certain areas, homes getting broken into and getting vandalized or used for drug use. Mailboxes brimming with mail are reliable signals of vacant and abandoned homes. For more, see South Florida foreclosure trend leads to rise in unkempt homes (Foreclosure trend leads to increase in unkempt homes).

Florida Emerald Coast.com reports on a foreclosure problem affecting some residents of one neighborhood in Destin, Florida. The residents are complaining about an abandoned home in foreclosure with an unmaintained pool that is providing a comfortable haven for rats and mosquitos, and possibly snakes, as well. Reportedly, the owners moved out about a year ago, and the code enforcement people say they can't go on the premise without the owners consent. The mortgage lender has apparently yet to foreclose. For more, see Neighbors fed up with rats, snakes.

Teenage Kid Scams Homeowner Out Of $260

For anyone needing to be reminded that you should never do business with anyone showing up unsolicited at your front door, see Man warns of magazine scam (Potomac News).

Homeowner Caution Needed When Leasing Mineral Rights Underneath Your Home

For anyone interested in the kind of problems homeowners can run into when leasing the mineral rights to their property to a natural gas drilling company, see:

• Gas deals' fine print can be costly (Fort Worth Star-Telegram; 8-25-07),
• Leases trigger $10 million mortgages (The Intelligencer - phillyBurbs.com; 7-2-07),
• New York Attorney General Looks Into Tactics Used To Obtain Gas Leases (NY AG Press Release - 10-6-04),
• Residual Liabilites at the End of the Oil and Gas Lease: Who's to Pay? (You can run, but you can't hide) (World Services Group - 6-15-07).

The lesson here is (again), when some unknown person comes knocking on your front door unsolicited, and they want to buy or sell you something (home repair contractors, foreclosure rescue operators, mineral lease "landmen" wanting to lease the mineral rights underneath your home, teenage kids selling magazines, etc.), and if they just happen to have the necessary legal documents in their briefcase for you to immediately sign, just say no.

Go here for other posts on dealing with exploration companies over your mineral rights. MineralRightsAlpha

Never Buy At A Foreclosure Or Trustees' Sale (Unless You Know What You're Doing) - Part 2

In an earlier post, I referred to a media report describing the experience of a naive, young Ohio couple with absolutely no clue of what they were doing who went to a foreclosure sale and were the winning bidders on what they thought was going to be the home of their dreams (see New home turns into a Catch-22).

Now comes forward restauranteur Michael Acciardi, 47, of Saddle River, New Jersey who finds himself in a similar predicament. He's the guy (referred to in an earlier post) who bought the home next door to his at a foreclosure sale for $2.6 million before authorities found nearly two dozen dead cats and dogs, more than 100 live cats and mounds of feces inside (see Purchaser Of $2.6 Million Home At Foreclosure Sale Experiences Rude Surprise).

According to a story in The Bergen Record, Mr. Acciardi announced last Friday that he's now trying to back out of the deal. Reportedly, he said, "These are extenuating circumstances and I need to be relieved of this sale. [...] I'm not going to lay down on this. [...] I should have been told." He described the scene inside the home as an "atrocity" and said his attorney has filed to "unravel the sale."

I wish Mr. Acciardi luck in his attempt to get a judge to relieve him of the mess he got himself into. I suspect that Acciardi, an apparently successful businessman, will have great difficulty convincing a judge that he was a "poor, financially unsophisticated dupe" who was somehow "pressured" or "conned" into going to a foreclosure sale and buying a house for $2.6 million, thereby deserving some form of equitable relief from a court. On the other hand, given that Acciardi is a local resident who is apparently financially well-off, anything is possible in court if you have the right lawyer and get the right judge.

For the story, see Neighbor never saw 'disgusting' interior. See also:

• $2.6M Pig In A Poke (New York Post),
• Feces-soiled Mansion Sickens New Owner (Inside Edition) - reports that the home is so contaminated, it may have to be torn down - (no longer available online),
• Go here for other posts on this story.

Few Bidders At Foreclosure Sales

Business hasn't been too good for real estate investors who buy property at foreclosure auctions. The following summary are from stories around the country reflecting a dearth of good deals at these foreclosure auctions.

Alameda County, California - Of the 12 properties in foreclosure that went up for auction on one day, only one attracted any bidding interest. There were no bids on the remaining 11 properties, which meant they automatically became the property of the foreclosing mortgage lender. For the one property in which their was bidding interest, the holder of a second mortgage on the property was the successful bidder. Foreclosure auctions attract few bids (More homes go on the block, but low equity tempers bidder interest).

Orange County, Florida - More than a dozen potential investors showed up at the courthouse for the daily auction one day. All of them left empty-handed. Of the 12 properties up for auction Tuesday, a guy in shorts and sneakers and others representing the foreclosing mortgage lenders bought all 12 back without a single opposing bid. Gloomy times for profiteers of foreclosures (no longer available online).

Rock County, Wisconsin - In the entrance to the Rock County Courthouse [recently], the auctioneer stood with a list of 13 foreclosed homes - a big stack for one day. In front of a group of attorneys, potential buyers and the curious, he read the prices of properties. No one bid, and the homes all became the property of the foreclosing lender. County's civil process division stays busy even with assistance.

Blue Earth County, Minnesota - It’s a scene repeated regularly, and far more often, in the lobby of Mankato’s Law Enforcement Center: Deputy reads legal notice on a home mortgage foreclosure, bank representative makes a single bid (almost always without a challenging bidder) and someone’s dream of home ownership officially comes to an end. Statistics show mortgage squeeze in area (Attorney advises early response to deepening debt).

Palm Beach County, Florida - At a recent Palm Beach County foreclosure sale, the first thing that struck one attendee was how easy it was to find a seat. A year and a half ago, the room was brimming with eager investors. The second surprise was that no one among the 15 attendees was bidding. The banks took back every one of the 20 mortgage foreclosures on the block. In a conversation later with a regular foreclosure buyer, it was learned that investors are still stuck with property they bought months ago. Capital Sources (Beleaguered borrowers get help).

California - Reportedly, in California, 95% of all foreclosed homes sold at trustees' auctions (foreclosure sales) are being acquired by the foreclosing mortgage holder. For more, see (Editor's Note: disregard the potentially misleading title) Investors Buying More Homes at Auction in California (More current loans are coming into play at auctions of foreclosed homes).

Queens County, New York - At a July 13 foreclosure auction at the Queens County, N.Y., Supreme Court building, only four of the 18 properties auctioned that day attracted any bids from the public. The rest, observers said, ended up in the hands of their mortgage lender. Let the Home Auction Bidder Beware.

Metropolitan Phoenix - Reportedly, about 85 percent of the Valley homes foreclosed on in July went back to the lender. That means fewer investors bidding on foreclosure properties on the courthouse steps. It's deal time with 55,000 homes listed.

New Castle County, Delaware - Over the past year, banks have had to buy back more properties at foreclosure sales. Of the sixteen homes one bank attorney bid on in one recent auction, only one was sold to a third party -- and the bank let that one go because it was worth less than what was owed. Bargains can be found, but buyers beware (Sheriff's sales of foreclosed homes hold pitfalls for the novice).

Kern County, California - Regulars at public auctions have noticed a startling change of late in the bidding. Two years ago, 95 percent of homes were snagged by eager bidders, one auctioneer estimated recently. These days, about 90 percent go back to the bank. The second loans left from so-called 80/20 "piggyback" deals, which required no money down, typically get eaten. In one recent auction, for example, a house came up for auction, with $333,484 owed on the mortgage. The lender started bidding at $200,000. Still, no one nibbled, and the house went back to the bank. Foreclosure snapshot an eye-opener (Ninety percent of auctioned homes go back to the bank).

Washington State and Oregon - According to its Web site's statistics, 41 percent of the foreclosure auction sales tracked by USA-Foreclosure.com (a company that sells foreclosure information to investors) ended up in the hands of third parties. Meanwhile, in Oregon, 27 percent went to third-party purchasers. Foreclosure Auctions Up in Washington and Oregon.

Nevada Couple Abandons Home; Neighbors Care For Animals Left Behind

The Pahrump Valley Times reports:

• "Donna and Ty Blair never thought they'd end up taking care of a variety of fish, several goats and two pot-bellied pigs, one of them pregnant. But that's exactly what they found themselves doing when their neighbors, Nicole and Adam Ulrich, literally abandoned the Dyer Road property where they were living next door earlier this year."

For more, see Neighbors gone, animals left behind (Fish In Custody Quandry).

Go here for more on pets and foreclosures.

Massachusetts Man Facing Foreclosure Pulls Gun On Bank Employee, Say Cops

WCVB-TV Channel 5 in Boston reports:

• "A property owner in desperate financial straits held a gun to the head of banker who came to foreclose, police said. NewsCenter 5's Bianca de la Garza reported that Dean Colantuoni was charged with assault with intent to murder. Colantuoni was arrested after he allegedly pulled a gun on Phillip Freeham, a bank employee from East Boston Savings Bank who was attempting to foreclose Colantuoni's property, Stadium Fruit and Flowers, on Monday."

Go here to watch the Channel 5 TV report. To read the online report, see Man Accused Of Pulling Gun During Foreclosure Attempt (Bank Still Plans To Foreclose On Property). DeputyEvictionTheta

More On Buyers Backing Out Of Purchase Contracts In New Construction Condo Projects

Another story is being reported on contract purchasers of units in new construction condo projects - this time by The Wall Street Journal. It reports:

• "For the nation's real-estate lenders, the other shoe may be about to drop: condominiums. Already plagued by rising home-loan defaults and foreclosures among overstretched consumers, major markets across the country -- including parts of Florida, California and Washington, D.C. -- are seeing rising foreclosures and bankruptcies of entire condo projects. The problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market. Falling prices are forcing appraisals down, so banks aren't willing to lend the full amounts that people committed to in the sales contract. "Closings that are scheduled to take place are not taking place," says Marvin Moss, a North Miami Beach real-estate attorney. He is suing several developers to help clients get out of contracts."

For more, see Default Lines - Condo Troubles Further Squeeze Property Lenders (Full Force of Glut Is Felt As Buyers Back Out; 'More of the Iceberg') (if link expires, try here).

For other stories on new construction condo buyers backing out of purchase contracts, see:

• Spanish View Towers: Will people get their money back?
• Investor sues to bail out of four WCI condos,
• For a copy of one of the lawsuits, see Cherin Federal Lawsuit,
• Boom of condo crash loudest in Miami (The pain is acute here but unbearable in S. Florida) (Orlando Sentinel - 8-27-07).

Go here for other stories on real estate speculators looking to back out of purchase contracts.

Go here for other posts related to the Miami condo market problem. zebra

Vacant Foreclosed Homes A Headache For One California City

The Merced Sun-Star reports on calls for an emergency ordinance in Merced, California for dealing with the eyesores arising as a result of foreclosures and vacant houses that are causing health and public safety hazards for its neighborhoods:

• "[W]hen homeowners move out or abandon properties in foreclosure, the empty houses become magnets for a host of problems. With water turned off, grass turns yellow and becomes a fire hazard. Stagnant water in swimming pools becomes a breeding ground for mosquitoes. Worst of all, dark houses with no signs of life houses attract vandals, drug dealers, and other criminals ... .

Reportedly, Merced's current law only allows the city to go onto the property one time, clean it up, and place a lien on the home for its costs. Some type of emergency ordinance is being called for so the city can go in, clean up, and then maintain these homes on a regular basis and get reimbursed for its ongoing costs by placing liens on the property as the maintenance is done. For more, see City works to tackle foreclosure eyesores (Council looks at ways to maintain abandoned properties on an ongoing basis). neighborhood destruction from foreclosures kappa

More Abandoned Animals Found In Foreclosed Home

In North Central Arkansas, The Baxter Bulletin reports:

• "The Humane Society of North Central Arkansas rescued three dogs and a cat from a house at 701 E. Fourth St. Monday evening and Tuesday. Others may still be in hiding. The house had been foreclosed and the animals in the home had been abandoned, according to Robbie Lockeby, kennel manager. Lockeby estimated there were four or five other dogs and possibly five or six other cats hiding in the house. Traps were left to capture the animals."

For more, see Abandoned animals rescued.

Go here for more on pets and foreclosures.

Building Contractor Gets 15 Years Probation For Leaving Homebuyer, Sub High & Dry

In Colorado, The Greeley Tribune reports:

• "A former Windsor homebuilder who made Weld County's Most Wanted list in June 2006 was sentenced [August 10] for felony theft. Richard Browning was sentenced to 15 years of supervised probation, 500 hours of useful public service and will have to pay full restitution plus 12 percent interest. His probation will be transferred to California where he lives and is now working."

Reportedly, Browning stole nearly $28,000 from a property owner who hired Browning to build a home, and also accepted $175,000 from Bank of Choice that was to be paid to another contractor, but Browning pocketed the cash instead. For more, see Former Windsor home builder sentenced to 15 years probation in felony theft.

Go here for other stories of builders / contractors stiffing customers and subcontractors. contractors stiff subs customers alpha

Shoddy Construction Exacerbating Foreclosure Crisis?

BusinessWeek has a story that raises the issue of the extent to which foreclsoures are being driven by poor workmanship in new construction. One new homebuyer anecdote describes the first night spent in a brand new home. Reportedly, the homeowner had pulled the plug in the Jacuzzi tub upstairs, and 100 gallons of water came crashing through the ceiling downstairs because the plumbing drains were not connected. The dining room ceiling ended up collapsing. "That was a preview of coming attractions," said the homeowner. The homeowner ended up walking away from the home, which appraised at $408,000 the day it was bought. It ended up selling for $234,000 at a foreclosure auction.

For the rest of the problems enciuntered by the homeowner, see Foreclosure's Building Problem (Is shoddy home construction exacerbating the foreclosure crisis—or is it just an excuse for buyers to walk away?) (Story also available here on MSNBC.com).

Postscript

Whether poor constrution workmanship is driving foreclosures is debatable, but it is driving some disgruntled customers to set up web sites to share "new home horror stories" with others. See Angry Homeowners Take to the Web (As homebuilders struggle and houses get harder to sell, builder-bashing gripe sites are grabbing more attention and more traffic).

For some of the web sites, check out: Homeowners For Better Building, FightPulte.com, FightDivosta.com, FightDelWebb.com, CrapConstruction.com, KhovSucks.com (re: Hovnanian), LevittAndSonsHome.org, Defective-Homes.net, GeorgiaMoldHome.com, JustAnotherLemon.com (re: Pulte Homes).

Calls To Non-Profit Foreclosure Counseling Foundation Doubled In 2nd Quarter

According to a Homeownership Preservation Foundation press release:

• "Counselors for the Homeownership Preservation Foundation (HPF) fielded a record 30,078 calls from troubled homeowners in the second quarter of 2007 -- more than doubling the call volume of the first three months of 2007 and a more than six fold increase from the same quarter in 2006. A nonprofit organization dedicated to helping Americans avoid foreclosure, HPF operates a national 24/7 helpline -- 888-995-HOPE -- that offers homeowners personalized assistance to help manage mortgage payment concerns."

For more, see National Foreclosure Hotline Calls for Help Double.

NJ Woman Charged With Attempted Murder; Overwhelmed With Financial Trouble, Say Court Docs

The Courier Post reports:

• "A former [Lumberton, New Jersey] woman was charged [last week] with attempted murder for allegedly trying to poison her husband by putting antifreeze in his juice and cyanide in his food. Karen L. Tubertini, 46, who recently moved to Cherry Hill, was arrested Monday and charged with the attempted murder of Ronald Tubertini, 49, a retired Lumberton policeman. [... T]he wife admitted to a county detective she tried to poison her husband to "punish him" for her problems, according to a court document. She said she was distraught and overwhelmed by the stress of household financial troubles, managing the local family business -- Arylin Construction Co. -- and dealing with her three children. [...] Both the Lumberton home and a farm the couple owns in Monroe, Pa., are both in foreclosure proceedings, county authorities said."

For more, see Police: Woman gave poison to husband (no longer available online).

CNNMoney On Foreclosure Rescue

CNNMoney.com ran an online story today on foreclosure rescue scams, which among other things, summarizes some of the tactics used by those offering services to financially strapped homeowners, and recounts an experience of one Columbus, Ohio homeowner who did business with Foreclosure Assistance Solutions ("FAS") an upront fee foreclosure rescue operator. Coincidentally, FAS is one of the six foreclosure rescue operators that Ohio Attorney General Marc Dann has filed civil lawsuits against (See Ohio AG Conducts Foreclosure Rescue Sweep; Hauls Six Upfront Fee Operators Into Court).

Included in the article is an anectdote of a Brooklyn, New York homeowner who fell prey to an equity stripping scam.

For more on today's CNNMoney article, see Foreclosure fallout: Rescue scams (Scammers are taking advantage of mortgage holders at their most vulnerable: when they're about to lose their homes).

More On Central Ohio Alleged $25 Million Mortgage Fraud

Nine people have been accused in a $25 million mortgage fraud scheme in which the value of more than 500 real estate properties in central Ohio was exaggerated to mortgage lenders and to prospective buyers. The charges include wire fraud, bank fraud, money laundering and tax evasion. Those indicted are: Donald F. Green, 48, of Columbus, real-estate investor; Shawn A. Griffin, 37, of Cleveland, real-estate investor; Aryeh M. Schottenstein, 33, of Oak Park, Mich., real-estate investor; Jeffrey M. Lieberman, 56, of Bexley, real-estate investor; George T. “Terry” Jordan, 50, of Canal Winchester, real-estate agent; Dwayne L. Carter, 37, of Columbus, loan officer; Jonathan L. Boyd, 38, of Columbus, loan officer; Kenyatta Johnson, 37, of Michigan, loan officer; James Darneil Gaither, 37, appraiser.

For a copy of the indictment, see U.S. vs. Green, Schottenstein, et al.

See also, The Columbus Dispatch - 9 accused of home scams (Money laundering, bogus appraisals cited). For story update, see Two mortgage-fraud cases heard in federal court.

In a related story about two victims of this scam, see Mortgage scheme hits home (South Side pair may be homeless after foreclosure).

For a story update (May 2, 2008), see Two More Plead Guilty In Mortgage Fraud Scheme:

• "Aryeh Schottenstein, age 34, of Columbus, pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering, and Shawn A. Griffin, age 38, also of Columbus, pleaded guilty to two counts of conspiracy to commit wire fraud and one count of money laundering. [...] Schottenstein and Griffin were indicted along with Donald F. Green, Jeffrey Lieberman and George "Terry" Jordan for a mortgage fraud scheme in central Ohio in 2003 and 2004. [...] Green pleaded guilty on April 11. Lieberman and Jordan pleaded guilty on April 24. All are free pending sentencing. ).

Ohio AG Indicts 2 In Scheme To Obtain Inflated Mortgages

In Central Ohio, The Columbus Dispatch reports:

• "Two Columbus-area men were indicted by a Franklin County grand jury today in connection with a mortgage-fraud case related to properties in Franklin and Ottawa counties. Larry Corna, 52, and Alan Csipke, 29, face multiple counts of theft, money laundering and engaging in a pattern of corrupt activity, Ohio Attorney General Marc Dann's office announced. Corna ... and Csipke ..., "conspired to obtain inflated mortgages on the properties in order to obtain monies from the loan proceeds under false pretenses," according to a statement from Dann's office."

For more, see Two indicted in mortgage-fraud case. See also, Ohio AG Press Release, Two Indicted For Mortgage Fraud In Franklin County.

San Diego Feds Get Plea In $30 Million Real Estate, Straw Buyer Scam

The San Diego Union-Tribune reports:

• "Rollo “Rick” Norton, the local financial planner at the center of a $30 million scheme that decimated the life's savings of dozens of his former clients, pleaded guilty [Wednesday] in federal court to one count of mail fraud. Norton's plea ... came in the midst of a nearly two-year FBI investigation into allegations that ... he stole millions from clients through sham real estate transactions at ... a Pacific Beach condominium complex. Also pleading guilty to mail fraud ... was Scott Greer, 31, of Ramona, a former employee of Norton's. The mail fraud counts were in connection with using the U.S. Postal Service to perpetuate the scheme. [...] At least nine lawsuits have been filed against Norton over the past two years by former clients and investors, many of whom were elderly. In recent depositions in some of those suits, Norton has admitted to a complex fraud scheme and implicated several employees of Chicago Title, one of the nation's largest title insurance companies."

Reportedly, part of the overall scheme involved Norton using his investors as straw purchasers of condos to obtain new loans without their knowledge in an apartment complex that he made into a condo-conversion project. For more, see Financial planner in scam gives guilty plea (Clients lost $30 million in condominium scheme).

For earlier articles on this case, see:

• Millions Are Missing (NFL players among 49 clients who say Ramona adviser bamboozled them),
• Fraud? Or Just Risk? (Clients of Ramona financial planner contend he bilked them of $35 million).

South Florida City's "No Pick-Ups After Dark" Ban Ruled Unconstitutional

In another example of a South Florida city engaging in unconstitutional conduct in connection with the real property rights of its residents, The Miami Herald reports:

• "The City Beautiful is going to have to make room for trucks ugly. In an opinion peppered with jabs at one of Miami-Dade County's most restrictive hamlets, the state Third District Court of Appeal ruled Wednesday that a Coral Gables ordinance prohibiting pickup trucks from parking in residential areas overnight is unconstitutional. [...] The suit was brought by Lowell Kuvin, who received a $50 ticket in 2003 for parking his Ford F-150 in front of his home overnight. The city ordinance allows residents to own trucks, but they must be kept in garages or outside the city between 7 p.m. and 7 a.m. Kuvin didn't have a garage."

Coral Gables Mayor Don Slesnick is reportedly considering an appeal. For more, see Coral Gables' overnight truck ban ruled illegal (Striking down one of Coral Gables' symbols of exclusivity, an appellate court told the city that it cannot ban all pickup trucks after dark).

For the Florida appeals court decision, see Kuvin vs. City of Coral Gables (case made available online courtesy of Florida's Third District Court of Appeal).

Postscript

Similar to the case also posted today involving the Hallandale Beach, Florida homeowner who was being screwed over by his municipality, Mr. Kuvin initially lost his case in the lower court, and was essentially forced to take his case to an appeals court, where he obtained the reversal he sought - the court declaring the city ordinance unconstitutional.

Egregious Conduct By South Florida City In Violation Of State Homestead Exemption Laws Threatens Loss Of Home

In South Florida, the Broward-Palm Beach New Times reports on the story of a city of Hallandale Beach homeowner whose failure to keep his home properly maintained resulted in the city imposing fines for code enforcement violations against him. While the imposition of fines may well have been justified, those familiar with the Florida homestead laws know that such fines do not constitute liens on the homestead of a Florida resident and, consequently, can't subject the home to foreclosure.

However, that didn't stop the City of Hallandale Beach, their City Attorney, and an apparently out of control mayor from going to court to foreclose the liens anyway. The case was heard by Broward County Judge Patti Englander Henning, who might be described, at best, as "out to lunch," and at worst, as bordering on the corrupt for her decision in this case. The judge ruled in the city's favor despite the homestead laws (Article X, section IV - Florida Constitution) to the contrary. It took the work of skilled legal counsel on behalf of the homeowner to get the lower court decision reversed on appeal, essentially reaffirming the painfully simple proposition that city liens for code enforcement violations do not attach to a property owner's homestead and, accordingly, cannot subject the home to foreclosure.

A year after the Florida appeals court decision, the City of Hallandale Beach started again with the harassment by going back into court, reopening the case (with Judge Englander Henning again presiding), and obtaining a $2.8 million judgment against the homeowner and his wife, reportedly without giving him notice of the court hearing. The homeowner and his counsel are now again drawn into battle with an ostensibly out of control municipal government.

For more, see Storming the Castle (Hallandale Beach and a Broward judge are trying to drive a man from his home).

For those who are "court case oriented," see Pelecanos v. City of Hallandale Beach (Fla. App. Ct. - 4th Dist. - 11-23-2005) for the Florida appeals court reversal of the lower court's decision in this case (case made available online courtesy of Florida's 4th District Court of Appeal).

Postscript

For those of you unfamiliar with Greater Fort Lauderdale and some of the notables who serve or have recently served as part of the Broward County judiciary, here are a couple:

1) Judge Larry Seidlin - He's the judge who humiliated himself by weeping on national television when presiding over a part of the late Anna Nicole Smith child custody proceeding several months ago - see If Anna Nicole Smith case is a circus, judge is ringmaster.

2) Judge Lawrence Korda - He's another judge who presided over a small part of the late Anna Nicole Smith matter several months ago. While he did nothing to embarass himself or the judiciary the way his colleague did, Judge Korda was subsequently caught by cops in a city park smoking marijuana out in the open - see Broward judge faces possible removal by state panel for smoking marijuana.

3) See, generally, Courts Answering ‘a Call for Help’ (South Florida Daily Business Review), which summarizes the recent alleged escapades of several Broward County judges (Judge Larry Seidlin - again, facing a criminal investigation for allegedly asking a lawyer for gifts and financially exploiting an elderly woman; Judge Lawrence Korda resigned after being caught smoking pot in a Hollywood park; Judge Robert Zack faces an investigation for allegedly taking a loan from an attorney; Judge Cheryl Aleman faces ethics charges from the state Judicial Qualifications Commission for acting discourteously to defense attorneys; others).

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4) See also the Miami Herald (8-19-07): Is Dr. Phil the answer for errant judges in Broward? (Broward's judges are a dysfunctional family in need of treatment, according to a group of high-powered lawyers).

5) Maybe not coincidentally, the presiding ringmaster over all these characters, Broward County Chief Judge Dale Ross, recently resigned his position as Chief Judge after all these events bacame public, although he remains a sitting judge.

Go here for other stories on questionable conduct by members of the judiciary. naughty judges

Minnesota Feds Indict Two Closing Agents For Allegedly Stealing $2 Million

The Star Tribune reports:

• "Two Minnesota executives of a real estate closing firm have been charged with stealing more than $2 million in home mortgage loans by routing $370 million in loans to the wrong bank account. A federal grand jury indictment handed down Thursday charged Molly L. Heise, 49, of Chaska, the owner of real estate closing firm Profile Title & Escrow Corp. of Bloomington and New Hope, and Christine A. Hein, 38, of Buffalo, the company's chief financial officer, with multiple counts of criminal wrongdoing, including wire fraud and money laundering. It was the latest in a small flood of real estate scams in Minnesota. In the past two months, 11 people have been charged with types of mortgage fraud and five have pleaded guilty, said the U.S. attorney's office in Minneapolis, which prosecuted the cases."

For more, see Two charged in $2 million scam (The women indicted Thursday were among 11 people in the past two months facing charges of mortgage fraud in Minnesota).

See also: Fraud probe nets pair (Title company execs indicted) (Pioneer Press)

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha

"Better Business Bureau" For Mortgages Now Online To Serve Consumers

RISMedia reports:

• "With an entire industry quaking, it was bound to happen. A Better Business Bureau-type organization has finally arrived to help the mortgage industry to regain its credibility and footing among consumers. It’s called the Better Mortgage Bureau. Its Web site, http://www.bettermortgagebureau.com went live this week, and it could not have come at a better time. [...] According to the new organization, the Better Mortgage Bureau is the “Good Housekeeping Seal of Approval” for the mortgage industry."

For more, see Mortgage Experts Launch ‘Better Mortgage Bureau,’ for Consumers Looking for Legitimate Home Loans.

Boston Battle Intensifies Between Tenants In Foreclosure Evictions & Deutsch Bank

BostonNow reports:

• "The rift is growing wider between tenants being evicted from two buildings in Dorchester and Roxbury and the bank they blame for the evictions. Residents met this week with Deutsche Bank officials and later expressed their outrage and frustration. "We're saying to them, 'It's really unjust for you to come into our communities and empty out buildings that will most likely stay empty and really harming people,'" said Cheryl Lawrence of tenant rights organization City Life-Vida Urbana. "Unfortunately they don't seem to get that - it was shameful.""

Deutsch Bank's position is that, as a trustee over a pool of mortgages whose sole responsibility in these matters is dictated by the trust agreenment that creates the mortgage pool, it has no say in the evictions; it claims that responsibility for the decision-making rests with the mortgage servicing companies. For more, see Deutsche Bank and tenants rift grows (Fight is over evictions after foreclosures).

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra

Illinois Lawmakers Pass Protection For Tenants Renting Homes In Foreclosure

The Illinois legislature has passed a statute that provides some measure of protection for tenants in possession of a mortgaged home going through the foreclosure process. According to a synopsis of the bill, SB 258:

• "Provides that, in a case of foreclosure where the tenant is current on his or her rent, any order of possession must allow the tenant to retain possession of the property covered in his or her rental agreement (i) for 120 days following the notice of the hearing on the supplemental petition that has been properly served upon the tenant, or (ii) through the duration of his or her lease, whichever is shorter. Provides that the exception for continued possession by the tenant only applies if the tenant continues to pay his or her rent in full during the 120-day period." (see Bill Status of SB 258)

The bill, which passed both houses of the Illinois legislature in May, was signed by the Governor on August 17. The law becomes effective January 1, 2008 (see Bill Status of SB 258).

The statute itself can be found either at Public Act 95-0262, or at 735 ILCS 5/15‑1701.

More On Stockton Mortgage Fraud

KXTV-TV Channel 10 in Sacramento, California reports:

• "The FBI has questioned a number of real estate professionals linked to fraudulent transactions involving a Stockton man arrested last week. Investigators say Iftikhar Ahmad, 36, bought and sold more than 100 houses over the past decade. The FBI believes dozens of those transactions involved mortgage fraud."

• "In her report, FBI Special Agent Kathleen Nicolls said Deborah Timmins, 49, was an escrow officer involved in at least 13 of Ahmad's property sales. Nicolls said Ahmad paid Timmins $7,500 for her services outside of escrow, which she points out is not customary. Timmins admitted to the FBI that she was fired from Chicago Title for misconduct and later went to work for Commonwealth Land Title. Timmins' twin sister, Denise James, was an escrow assistant and her notary seal was used in five of Ahmad's real estate transactions. Two of those transactions involved identity theft."

Loan company employees and the appraisers are also on the FBI radar. In addition to the real estate professionals, the FBI has reportedly identified dozens of individuals it believes may be complicit in the mortgage fraud scheme, including Ahmad's three brothers and people who bought houses from Ahmad.

For more, see Real Estate Pros Probed in Mortgage Fraud.

For story updates, see

• Mortgage fraud probe widens (Jose Serrano, 44, of Stockton was indicted by a federal grand jury in Sacramento on mail fraud and money laundering charges for his part in the alleged scheme that illegally flipped more than 100 homes, spearheaded by 36-year-old Iftikhar Ahmad, also of Stockton.) (10-26-07)
• FBI details housing fraud case (Stockton man awaits a court hearing Thursday) (8-26-07).

Go here for other posts on this investigation.

Gangs Moving To Mortgage Fraud; Law Enforcement Concerned

National Public Radio reports:

• "The housing boom of recent years has turned mortgage fraud into a big business — so big that some of the nation's largest gangs are getting into the act. [...] And while street gangs only account for a portion of [it], the fact that they have moved to mortgage fraud as a money-spinning enterprise worries law enforcement officials. They say it is part of a larger trend: gangs searching for ways to launder drug-dealing and gun-selling dollars."

Reportedly, the price tag for a mortgage fraud case that involved some members of Chicago-area's Black Disciples gang a couple of years ago was $70 million. FBI information about real estate deals involving the Vice Lords [another Chicago-area gang] indicated that perhaps there was $80 million in fraudulent mortgage activity.

For more, see Gangs Find New Source of Revenue: Mortgage Fraud.

Central Ohio Feds Indict 9 In $25 Million Mortgage Fraud Involving 500+ Properties

(revised 8-31-07)
The Associated Press reports:

• "Nine people have been accused in a $25 million mortgage fraud scheme in which the value of more than 500 real estate properties in central Ohio was exaggerated to mortgage lenders and to prospective buyers, authorities said Wednesday. The nine recruited inexperienced potential buyers, counting on their relative ignorance with real estate to hide the scheme, according to the indictment by the federal grand jury. The defendants are accused of using fraudulent documents to misrepresent the buyers' credit to lending institutions and then obtaining mortgages secured by the inflated value of the properties."

• "The charges include wire fraud, bank fraud, money laundering and tax evasion. Those indicted are: Donald F. Green, 48, of Columbus, real-estate investor; Shawn A. Griffin, 37, of Cleveland, real-estate investor; Aryeh M. Schottenstein, 33, of Oak Park, Mich., real-estate investor; Jeffrey M. Lieberman, 56, of Bexley, real-estate investor; George T. “Terry” Jordan, 50, of Canal Winchester, real-estate agent; Dwayne L. Carter, 37, of Columbus, loan officer; Jonathan L. Boyd, 38, of Columbus, loan officer; Kenyatta Johnson, 37, of Michigan, loan officer; James Darneil Gaither, 37, appraiser."

Sources: Nine indicted in mortgage-fraud scheme (The Columbus Dispatch), 9 Indicted in Mortgage Fraud Scheme (Houston Chronicle).

For a more complete story, see 9 accused of home scams (Money laundering, bogus appraisals cited) (The Columbus Dispatch). For story update, see Two mortgage-fraud cases heard in federal court.

For a copy of the indictment, see U.S. vs. Green, Schottenstein, et al.

Central Florida Husband & Wife Fraudsters Head To Federal Pen For $6+ Million Swindle

WFTV Channel 9 in Orlando, Florida reports that John Barrington (14.5 years) and his wife, Deanna Barrington (2.5 years) were sentenced in an Orlando Federal Court for swindling more than $6 million from home buyers. The fraud charges included several real estate developments in Central Florida where they took money from people and their homes were never built. For more, see Central Florida Couple Headed To Prison After Taking Customers For Millions.

Go here to watch the on air news report.

Tennessee Escrow Agent Awarded 15 Month Stay In Federal Pen

In Tennessee, The Chattanoogan reports:

• "A former escrow agent who authorities say defrauded Milligan-Reynolds Title Company of over $76,000 over a three-year period was sentenced Monday to 15 months in federal prison. Cindy Gail Almany pleaded for no jail time, saying it would make her family suffer. [...] But Federal Judge Sandy Mattice said some prison time was warranted to deter others from committing similar fraud. Ms. Almany was also ordered to repay the $76,487 she took."

Reportedly, the theft was accidentally discovered while she was away from the office. For more, see Escrow Agent Gets 15 Months In Federal Prison.

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha

Florida Widow Loses Home In Mortgage Scam; Police Charge 3, Look for 2 More

In Florida, the St. Petersburg Times reports that Hillsborough County sheriff's deputies have arrested Ron and Lois Lichte and charged them with exploiting the elderly grand theft, money laundering, conspiracy and related crimes where, among other things, they allegedly tricked a 77 year old Tampa, Florida widow into signing a mortgage on her home of 35 + years. They, along with three other conspirators, allegedly swindled a total of at least $335,000 from the widow and another Hillsborough woman, according to police. The widow ended up forced to sell her home to pay off the mortgage and now lives in a nursing home.

As for the other alleged conspirators, authorities are still searching for Clyde Fretwell, 37, of Ruskin, and Joel Hill, 37, of Tampa. Michael Richardson, 34, of Bradenton, is the fifth member of the alleged ring and is already being held without bond after being arrested on June 25 on unrelated charges, police said.

Investigators believe that the group has struck many more bay area victims. For more, see A 'trusting soul' is fleeced (Hillsborough deputies believe Mary Shower is one of many conned by a five-person ring).

See also, Sheriff's office says scam exploited elderly.

Story updates:

• Authorities say woman, 85, lost thousands in home repair scheme (Sarasota Herald-Tribune, 9-28-07),
• A fourth suspect is now in custody. See Man Charged With Exploiting Elderly (The Tampa Tribune),
• Clyde T. Fretwell, 37, was arrested by deputies Monday (9-3-07) and being held in Orient Road Jail with bail set at $300,000. He surrendered at the jail on warrants charging him with grand theft of more than $100,000, exploitation of the elderly, money laundering, contracting without a license and committing a white-collar crime, records show. For more, see 5 Charged With Bilking Elderly In Repair Scam (The Tampa Tribune, 9-4-07).

Virginia Widow Facing Loss Of Home After Subprime Surprise

In Virginia, C-Ville Weekly reports on the story of a 78 year old widow who reportedly was led to believe that she was being given a fixed rate mortgage on her home, but instead, was given an adjustable rate, subprime loan and now faces the loss of her home of 27 years. Kathleen Caldwell, an attorney with Legal Aid Justice Center in Charlottesville, Virginia and familiar with the woman's case is quoted:

• "The good faith estimate that was sent to her was for a 30-year, fixed-rate mortgage. Later, the closing attorney brought a stack of papers for her to sign that were different from those that had been previewed for her."

Reportedly, upon receiving her first monthly statement, the widow discovered that she'd taken out not one, but two mortgages, one of which was an adjustable rate mortgage and the other a high rate balloon mortgage. Upon the reset of the interest rate on the ARM loan, she will effectively be priced out of her home, according to the story. For more, see Virginia mortgage foreclosures increase (Metro area has nation's worst racial discrepancy in high-cost lending).

Bankruptcy Judge Approves Deal Between HomeBanc, Stiffed Closing Attorneys

The Associated Press reports:

• "A bankruptcy judge has cleared the way for HomeBanc Corp. to surrender more than $20 million worth of mortgages to Georgia lawyers who were forced to fund the loans when HomeBanc's checks started to bounce. Judge Kevin J. Carey of the U.S. Bankruptcy Court in Wilmington ruled Monday after hearing testimony from veteran Atlanta real estate lawyer Edwin R. Neel, who said he put up his own home to make sure that rubber checks from the failed lender wouldn't ruin home sales his firm handled for HomeBanc."

Upon receipt of the mortgages from HomeBanc, the attorneys will then have to quickly unload them on other lenders, possibly (and hopefully for them) in time to make sure the homeowners' first checks are received and processed properly. For all the details, see Judge Approves HomeBanc Deal.

For prior post on this story, see HomeBanc Stiffs 26 Closing Attorneys With An Estimated $20 Million In Rubber Checks; Fires 1,100, Files Chapter 11.

Missouri Cash Back Mortgage Scam Foiled By FBI At Closing Table

The St. Louis Post-Dispatch reports that mortgage broker Angela Renee Williams-Buchanan approached the owners of a four-family building in St. Louis that was listed for $171,000 and presented an offer for $254,000. Rather than going to the sellers, the extra money was part of a "cash back" mortgage fraud scam that landed Williams-Buchanan in Federal Court on criminal charges. What she hadn't counted on was that the seller knew an FBI agent. FBI agents broke up the attempted scam at the title company's offices before the deal closed. Williams-Buchanan pleaded guilty of wire fraud on Thursday and received six months of house arrest and three years probation. For the whole story, see Mortgage broker avoids prison.

State AGs Target Califormia Upfront Fee Foreclosure Rescue Operator

American Housing Authority ("AHA"), a California-based company in the business of providing foreclosure consulting services in exchange for an upfront fee has been recently sued by the Attorneys General for Illinois and Ohio for alleged conduct in connection with its foreclosure consulting business.

In Illinois, Attorney General Lisa Madigan filed suit against AHA (doing business as American Housing Help) and its president, Brandon Roberts, for violating Illinois ' recently-enacted Mortgage Rescue Fraud Act, as well as the Consumer Fraud and Deceptive Business Practices Act and alleges that AHA and Roberts defrauded homeowners by falsely promising to help them escape foreclosure, taking their money as a fee, and then failing to provide any real help.

In Ohio, Attorney General Marc Dann filed suit against AHA and, according to the complaint, affiliate American Housing Financial, Inc. ("AHF") - principal place of business in Phoenix, Arizona - for violating a number of Ohio consumer protection laws. The complaint in this case identifies Brandon Roberts as AHA's president, and Mace Miller as AHF's president.

For more on the Illinois case against AHA and Roberts, see:

• Illinois AG Press Release
• Copy of lawsuit - State of Illinois vs. American Housing Authority

For more on the Ohio case against AHA and AHF, see:

• Ohio AG Press Release
• Copy of lawsuit - State of Ohio vs. American Housing Authority, American Housing Financial.

A recent media report mentions American Housing Authority in connection with an alleged problem that a Texas resident facing foreclosure reportedly had with the foreclosure consulting services (see Texas Homeowner Facing Foreclosure Falls For Upfront Fee "Rescue" Offer). No word if any official investigation has taken place in that reported incident.

Woman Charged With Trying To Rent Out Vacant Foreclosure Belonging To Bank

In California, the Daily Breeze reports:

• "A woman accused of trying to rent out a Torrance house she didn't own testified Friday she was hired by the owner as a property manager. [The judge] said at the conclusion of 24-year-old Glenda Anderson's preliminary hearing that she gave an "arguably reasonable explanation for her presence at the house." However, [he] ruled there was enough evidence to send her to trial on two counts of attempted grand theft because there was no evidence to support her explanation. The judge ordered her to return to court Aug. 31."

For more, including the details of how the alleged scam was discovered, how police set up an undercover "sting" to catch Anderson in the alleged illegal act, and the uncooperative response given to police by an employee of Nationwide Mortgage, the company Anderson said she worked for, see Woman says she's a victim during preliminary hearing (But judge orders her to stand trial for trying to rent out a Torrance house she didn't own).

For the story of an Austin, Texas man accused of swindling money from people by purportedly renting houses not belonging to him (reportedly used the Internet and Craigslist to find victims), see Real estate fraud suspect caught.

Go here for other posts on tenant victims of rent scams. unwitting tenant rent scam zebra unwitting tenant rent scam zebra

Upstate NY Widow Loses Home By "Helping A Friend"

The Times Herald-Record reports on a 76 year old, Warwick, New York widow who "made the mistake of taking out a $236,000 mortgage on her home at the request of her friend's son-in-law ... who told her he needed the money for his business. Then she left the payments in his hands — and he didn't pay a dime. One foreclosure later, [the widow] no longer owns her home." The friend's son-in-law, Mitchell Ames, also had his name added to the title to her home as part of the refinancing transaction. Once he got the cash, the widow reportedly said that she never heard from him again. When reached for the story, Mitchell Ames had no comment other than to say that he wasn't a thief who wouldn't take advantage of anybody. For more, see Trust turns to terror for Warwick widow.

For story updates, see:

• He's a 'nightmare,' accusers say of Mitchell Ames (A lawyer for the widow will be in court Sept. 27 to argue that she should be allowed to stay in her home and mount a defense in her foreclosure case with Countrywide Home Loans. She is still in the home she bought with her husband in 1967. She lives there with two adult daughters, one of whom is bedridden with multiple sclerosis.),
• North Confidential: Businessman meets with cops (9-2-07).