Wednesday, November 14, 2007

Miami Condo The Poster Child For Cash Back Mortgage Fraud Scams

In Miami, Florida, Reuters reports:
  • At first glance, the 43-story building in Miami's international banking district seems little different from other high-rise condominiums overlooking the turquoise waters of Biscayne Bay. But the 643-unit condo known as the Club at Brickell is a leader in mortgage foreclosures and it appears also to stand at ground zero in a blizzard of fraud that may lie behind many of the failed loans threatening to bury the U.S. property market.
***
  • The Club at Brickell has the highest current number of foreclosure proceedings involving any single south Florida property. [...] Doug Dewitt, a real estate broker contracted to work with several lenders on the valuation and disposal of foreclosed properties, said nearly 70 percent of the sales or closings at the Club over the last 18 months were questionable. That works out to more than 200 possibly shady deals in a single building, he said. The dubious transactions all fit a pattern that [Glenn Theobald, head of a mortgage fraud task force formed in south Florida's Miami-Dade County ] said should trigger "bells and whistles" for law enforcement anywhere -- time and time again properties that failed to sell for months when listed at around $450,000 were pulled from the market and then suddenly sold for more than $800,000.

For more, see Miami condo at ground zero in mortgage fraud.

See also, Buying In Brickell? Proceed At Own Risk (Report Says Brickell Condo Ground Zero For Mortgage Fraud, Foreclosures).

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

Erie, Pennsylvania Mortgage Fraud Scam Alleged In Both Criminal & Civil Proceedings

In Erie, Pennsylvania, the Erie Times-News reports that last Friday, mortgage broker Frank Conti, who used to head the local office of Regal Financial Services, was at the center of a series of claims that one of his customers -- Eloise Woodsbey, made in a civil case filed in Erie Federal Court. Woodsbey claims that she was defrauded when she bought her home in 2004.

Earlier on Friday, Regal Financial Services was mentioned in court documents outlining a federal criminal case against Erie home redeveloper Robert L. Dodsworth, who is accused of helping to run a mortgage fraud scheme. Conti has not been charged in the criminal case, and he has said he did nothing wrong in the civil case. According to the story:

  • Court filings in the Dodsworth and Woodsbey cases claim Conti or Regal Financial, which also has an office in Pittsburgh, participated in mortgage transactions that have led to allegations of fraud. Both cases will unfold in U.S. District Court in Erie in the coming weeks. Dodsworth, 60, the owner of RLD Enterprises, is scheduled to appear at a plea hearing on Nov. 19, and court records indicate he plans to plead guilty to the felonies of money laundering and conspiracy to commit mail fraud, wire fraud and bank fraud.

***

  • Woodsbey's house ... was one of nearly 200 properties that became the focus of the FBI and Internal Revenue Service as agents investigated the suspected fraud scheme. And Woodsbey's civil suit makes claims similar to the allegations the U.S. Attorney's Office in Erie is making against Dodsworth.

  • In the criminal case, the government is alleging Dodsworth and other "unnamed co-conspirators" manipulated financial records to make prospective homeowners, many of them unsophisticated and poor, eligible for mortgages they otherwise would have been unable to afford between January 2003 and March 2006. The criminal information filed against Dodsworth alleges he and the others artificially inflated customers' bank accounts.

Representing Woodsbey in her civil case is Margaret Schuetz, of the nonprofit Community Justice Project in Pittsburgh.

For more, see Suit names mortgage broker (Man headed office also mentioned in criminal housing fraud case).

For story update, see:

Go here for other posts related to this story.

Six Indicted In Alleged $14M Mortgage Fraud Scam

The Kansas City Star reports:

  • A federal grand jury in Kansas has charged six Kansas City area individuals in a $14 million mortgage fraud that preyed on low-income homebuyers. The indictment described a scheme that relied on false real estate appraisals that inflated the value of homes, so banks would lend more money than property was worth. The indictment said the additional funds ended up in defendants’ accounts.

  • The indictment names Wildor Washington Jr., 37, of Leawood; Maurice Ragland, 33, of Lee’s Summit; Victoria Bennett, 34, of Leawood; Kara E. Robinson-Franks, 37, of Grandview; Scott Alexander, 69, of Merriam; and Terrence Cole, 41, of Kansas City, Kan.

***

  • The defendants owned or worked for several businesses involved in the alleged scheme: Heritage Financial Investments, Legacy Enterprises, B&L Custom Development, Liberty Escrow, TERM Appraisers, the Real Estate Group, JTF Enterprises and Atlantic Mortgage.
  • The fraud’s targets were homebuyers with low incomes or little knowledge about real estate, according to the indictment. It said these homebuyers were unaware of the fraudulent information in the loan applications.

***

  • The group validated the fraud by stealing the identities of legitimate real estate appraisers, according to the charges. They found appraisers’ license numbers on the Internet and forged signatures, or in some cases “cut and paste” legitimate signatures onto false appraisals, the indictment said. The fraud also relied on nonexistent appraisers whose identities the group created.

For more, see Six area individuals charged in $14 million mortgage fraud scheme.

Inside Edition Investigates Florida Upfront Fee Foreclosure Rescue Operator

Tonight, the syndicated television show Inside Edition will run an investigative report on a Clearwater, Florida foreclosure rescue operator that is accused of shortchanging customers. The show alleges Foreclosure Assistance Solutions, or F.A.S, charged homeowners more than $1,000 apiece but failed in some cases to salvage homes from foreclosure. F.A.S. disputes the allegations and points to its many satisfied customers. Go here to watch the promo for tonight's show (no longer available online).

Go here to find out where Inside Edition is showing in your area (no longer available online).

Go here for a partial transcript of the Inside Edition investigative report (no longer available online).

Use Caution When Tapping Into 401(k) To Make Mortgage Payments

The Baltimore Sun reports:

  • Some companies that manage 401(k)s for employers report an increase in loans or hardship withdrawals from plans this year. Principal Financial, for instance, says hardship withdrawals to stave off eviction or foreclosure doubled in August from July. Baltimore's T. Rowe Price Associates reports a 9 percent increase in loans over a year ago. And Hewitt Associates has seen a "marginal uptick' in loans in recent months. With loans - unlike hardship withdrawals - workers don't have to say why they want the money. So it's hard to say how many desperate homeowners are using their savings this way. But David Wray, president of the Profit Sharing/401(k) Council of America, has no doubt that the uptick in loans is tied to the mortgage mess. Workers are just starting to deal with rate resets on mortgages and home equity loans, Wray says.

***

  • But dipping into retirement accounts should be the last resort. Even then, do it only if you're sure that your housing troubles are short-term. If they're not, you could end up losing your house and your retirement.

***

  • When loans are permitted, you can borrow up to half the balance but no more than $50,000. You generally get five years to repay through payroll deductions. [...] Leave or lose your job before the loan is repaid, and you might have to repay it immediately. If you can't, the loan is considered a distribution. You will owe regular income tax on the money and possibly a 10 percent penalty for early withdrawal. (The penalty usually applies if you take money out before age 59 1/2 , but the age limit is 55 if you're leaving your employer.)
For more, see Using 401(k) for mortgage payment can worsen plight (if link expires, try here).

See also:

Tuesday, November 13, 2007

Pennsylvania Feds Charge Erie Man With Fraud Conspiracy, Money Laundering Regarding Fraudulently Obtained Home Mortgages

In Erie, Pennsylvania, the Erie Times-News reports on the legal trouble of local businessman Robert L. Dodsworth and R.L.D. Enterprises. According to the story:
  • Dodsworth, 60, is the president of RLD Enterprises, [a] home-redevelopment firm in Erie. He was charged Friday with felony conspiracy and money laundering in relation to an ongoing federal investigation into suspected mortgage fraud. Dodsworth is the first person charged in the probe, which includes a grand jury. [...] Court records indicate Dodsworth -- one of the probe's main figures -- intends to plead guilty at a hearing scheduled for U.S. District Court in Erie on Nov. 19. The government alleges Dodsworth worked with "unnamed co-conspirators," indicating others could be charged.

***

  • The FBI, Internal Revenue Service and other agencies since the summer of 2004 have been probing whether the sale of nearly 200 city of Erie properties involved inflated appraisals or other fraudulent information that led buyers to pay far more than market value for their homes. Many of the homebuyers have either lost their homes to foreclosure or have fallen behind on payments, according to documents and interviews.

Said one of Dodsworth's alleged victims, "I know it sounds vindictive, but I hope he goes to jail. I'm still upset with everything I had to go through, but I'm glad that finally something's being done about all this. The FBI didn't forget about us."

For more, see 'I hope he goes to jail' (Homebuyers say dealings with businessman charged in mortgage fraud probe seemed 'fishy').

For an earlier story, see Fraud case: Plea close (Erie businessman faces charges in three-year federal probe of suspected mortgage scams).

Go here for other posts related to this story.

More On NY AG Suit Alleging Puffed Up Appraisals

Syndicated columnist Kenneth Harney recently wrote a piece on the lawsuit brought by New York Attorney General Andrew M. Cuomo against First American Corp. and its appraisal management subsidiary, eAppraiseIT, alleging the practice of illegally inflated real estate appraisals. Highlights from the column:
  • Cuomo's suit, which rattled mortgage lenders, appraisers and settlement service companies nationwide, accused First American and eAppraiseIT of knuckling under to illegal pressure from Washington Mutual, the giant Seattle lender, to hit the numbers needed to close loan deals.

***

  • Washington Mutual was not named as a defendant in the complaint because, as a federally regulated bank, it is buffered from certain state legal attacks. In a statement, Washington Mutual said it was both "surprised and disappointed by the allegations," and has suspended business with eAppraiseIT pending its own investigation of the matter.

***

  • Frank Gregoire, chairman of the Florida Real Estate Appraisal Board and a St. Petersburg appraiser, said "every appraiser deals with this stuff every day," routinely confronting threats of nonpayment and blacklisting if he or she refuses to play the game. Perry "Pat" Turner, an appraiser in the Richmond, Va., area, said pressure to inflate values is so widespread that "it amounts to organized fraud by loan officers based on their need to generate fees and close deals, and then pass the loans on to Wall Street," where they get packaged into the mortgage bonds that are now experiencing heavy default rates and losses to investors. "And they all think they're never going to get caught," said Turner.

For more, see Banks bullying appraisers to boost values bad news (San Francisco Chronicle).

To view the New York AG's lawsuit, see Cuomo vs. First American Corporation and First American eAppraiseIT.

Go here to view E-Mail Excerpts in eAppraiseIT Case.

Go here for other posts on the NY AG's investigation of First American / eAppraiseIT. Cuomo OFHEO Fannie Mae Freddie Mac

Court Hammers Contractor In Dispute With Homeowners; Results In Free Home Improvements & More

The following is based on a report written by the late Bob Bruss, real estate author, broker, and attorney, on California state law regulating home improvement contractors:

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Two homeowners hired a home improvement contractor to do remodeling work at their residence. They paid him approximately $27,000. Later, the contractor sued them for an additional $11,000. The homeowners countersued for fraud, claiming that the contractor underreported his payroll to his workers' compensation insurer which resulted in an automatic suspension of his California state contractor's license, according to state law.

Because his ostensibly valid contractor's license was treated as having automatically lapsed because he underreported his payroll to his workers' comp insurer, the contractor was legally considered to be unlicensed at the time he performed the improvements on his customers' home. Accordingly, the court decided that not only was he not entitled to the $11,000 he sued for, he was also not entitled to the $27,000 that the homeowners had already paid him and was ordered to refund it to them. In addition, the contractor was also ordered to pay the homeowners $10,000 in punitive damages, plus $90,000 for the homeowners' attorney fees and $7,000 in court costs.

According to the judge:
  • "The importance of deterring unlicensed persons from engaging in the contracting business outweighs any harshness between the parties."

To view the Bob Bruss report, see Unlicensed remodeler makes costly mistake.

To view the California appeals court decision, see Wright v. Issak, 58 Cal.Rptr. 3d 1 (Cal. App. Ct., 6th Dist., March 20, 2007) (Court decision available online courtesy of Findlaw.com).

Postscript:

The text of the actual court decision describes the nature of the payroll underreporting resulting in the temporary invalidation of the home improvement contractor's license as follows:

  • "[the contractor] reported, under penalty of perjury, a payroll of $312 while having an actual payroll of $135,000. [State Compensation Insurance Fund records] show that [the contractor] reported zero or next to zero payroll for every payroll period between his initial application for workers' compensation insurance in May 2002 and the end of 2004. [The contractor's] underreporting was not inadvertent. It was his pattern and practice from the first moment he applied for workers' compensation insurance."

By bringing a lawsuit against the homeowner inspite of his self-created "achilles' heel" of illegally (and grossly) underreporting his payroll to his workers' comp insurer, the contractor in this case also appears to have violated the long-standing cautionary advisory, "Be careful who you pick a fight with." I wonder how many other "licensed" contractors have a similar "achilles' heel."

NY AG's Lawsuit May Shed Light Into Consumer Ripoffs When Obtaining Home Mortgages

A recently filed civil lawsuit by the New York State Attorney General's Office against First American Corporation and its real estate appraisal subsidiary, eAppraiseIt, charges them with allegedly allowing national mortgage lender Washington Mutual Inc. into strong-arming them into knowingly issuing inflated residential real estate appraisals in connection with home mortgage loans.

The following excerpt from the lawsuit may shed light for some into how so many consumers looking for home financing to either purchase or refinance a home were blatantly ripped off by the bad actors in the home mortgage and related industries.
  • Most people interested in purchasing or refinancing a home (“borrowers”) seek a financial institution (a “lender”) to lend them money on the most favorable repayment terms available. Traditionally the lender, as part of agreeing to loan the funds, wanted to ensure that the borrower was able to repay the loan and that the loan was adequately collateralized in case the borrower defaulted. The borrower and the lender had a common interest in accurately valuing the underlying collateral because both wanted to be sure the borrower was not paying too much for the property and would be able to meet the repayment terms, or that – in the event of default and foreclosure – the property value could support the loan.

  • Today, the landscape of the mortgage industry is quite different from this traditional model. Rather than holding the mortgage loans, lenders now regularly sell these mortgages in the financial markets, either directly or to investment banks or Government Sponsored Enterprises (“GSEs”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). The loans are then pooled together, securitized, and sold to the general public as mortgage backed securities. The money that the lender receives for the sale of the mortgage loans or bonds is then used to finance new mortgages, increasing the lender’s profits and aiding its stock price. Today, the vast majority of mortgage loans are sold to investment banks or GSEs, leaving the original lender holding far fewer mortgages in its portfolio.

  • This reconfiguration of the way that mortgages are held has transformed the incentives in the industry. Specifically, it has the effect of making the lender less vigilant against risky loans since any risk is quickly transferred to the purchasers of the loans. Moreover, as the lender does not hold many of its loans in its portfolio, the lender’s interest in ensuring the accuracy of the appraisal backing the loan is severely diminished. Even worse, because lenders’ profits are determined by the quantity of loans they successfully close, and not the quality of those loans, there is an incentive for a lender to pressure appraisers to reach values that will allow the loan to close, whether or not the appraisal accurately reflects the home value.

  • Further jeopardizing the process, mortgage brokers and the lenders’ loan production staff (also known as “loan origination staff”) are almost always paid on commission. Thus, the income of these individuals depends on whether a loan closes and on the size of the loan. Accordingly, brokers and loan production staff have strong personal incentives to pressure appraisers to value a home at the maximum possible amount, so that loans will close and generate maximum commissions. For these reasons, mortgage brokers and lenders frequently subject real estate appraisers to intense pressure to change values in appraisal reports.

  • The investment banks and GSEs also have an interest in inflating (or at least in not questioning) the value of the pooled loans. The values of these loans serve as a basis for the value of their securities. As such, the higher the value of the loans closed, the greater the value for which the securities are sold on the secondary market.

  • Thus, the only parties under the current system who want an accurate appraisal are the borrowers and the investors in the asset-backed securities market. Neither of these parties, however, has any contact with, or control over, the appraisal process.

(from the New York AG's lawsuit, Cuomo vs. First American Corporation and First American eAppraiseIT, paragraphs 12-17).

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As has been observed by others, it appears that the current foreclosure mess revolves around the fact that the home lending business, which was once dominated by "bankers" (with a focus on "loan quality") appears to be now dominated by "salespeople" (with little concern about anything other than "loan quantity").

For a recent story on inflated appraisals, see Banks bullying appraisers to boost values bad news (Kenneth Harney syndicated article). Cuomo OFHEO Fannie Mae Freddie Mac

Monday, November 12, 2007

Alleged Pennsylvania Ponzi Scheme Head Pleads Guilty Of Swindling 800+ Victims Out Of Millions

(original post -11-10-07; last modified 11-16-07)
In Harrisburg, Pennsylvania, Lancaster Online reports:

  • Wesley A. Snyder pleaded guilty in U.S. District Court in Harrisburg Friday to a mail-fraud scheme that defrauded more than 800 mortgage customers, including about 300 in Lancaster County. An evidentiary hearing was canceled Thursday because Snyder's lawyer worked out a plea agreement with the U.S. Attorney for the Middle District of Pennsylvania. The agreement requires Snyder to make restitution to his victims, which the court stipulates to be somewhere between $15 million and $32 million.

***

  • Authorities said that since 1988 Snyder took in more than $65 million from 811 purchasers of his "wraparound" mortgages but forwarded only $39 million to the banks and other institutions that provided the financing. [...] Snyder's wraparound mortgages were essentially second contracts tied to larger mortgages he brokered in their names with outside banks.

For more, see Snyder pleads guilty to mail fraud (Owner of bankrupt mortgage business admits to fraud involving more than 800 customers and faces paying up to $32 million in restitution).

Go here for an illustration of how the refi / wraparound mortgage scam works.

See also:

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.

Charles Head Nationwide Foreclosure Rescue Scam Nicks Arizona

The Arizona Republic reports:
  • Seven Arizona properties are part of a "foreclosure rescue" mortgage scam that snared hundreds of victims in 27 states, according to an Internal Revenue Service warrant. An IRS search warrant obtained by the Asbury Park Press of New Jersey lists 256 affected properties stretching from Maine to Hawaii. The warrant identified 106 homeowners as victims, so luckily Arizona wasn't this scam's main focus. The FBI has sent letters to homeowners and investors about the scam. Those letters identify Charles Head, who ran FundingForeclosure.com, as the focus of the investigation.Three of the Valley properties named as part of the investigation are in Phoenix. Two of the homes are in Mesa. One is in Cave Creek, and the other is in Litchfield Park.

From: The Arizona Republic - Foreclosure Scam (2nd story from top).

Go here for other posts on foreclosure rescue operator Charles Head, Head Financial, Funding Foreclosure and related companies.

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

South Florida Condo Converters Unable To Unload Unsold Inventory; Units Reverting Back To Rentals

Regarding condo buyers who not too long ago thought investing in a unit in a converted rental building might be a good idea, the South Florida Sun Sentinel reports:
  • Stephen Mahaffee became one of those new buyers. He had been renting a one-bedroom apartment ... for about 10 years when he got word the building was being converted to condos. So in January he made his move and paid $199,900 for a two-bedroom unit. Less than a year later, he's one of only 18 owners in the 164-unit complex that Bankers Holding Group reluctantly decided to turn back into a mostly rental property. The emerging trend of going from rentals to condos and — when the units don't sell — back to rentals again is what South Florida real estate experts are calling "conversion reversions." Since 2006, about 6,059 units that were once for sale in Broward and Palm Beach counties have been switched back to rentals, according to Jack McCabe, a Deerfield Beach real estate analyst. "The condo-conversions sales market has absolutely fallen off the table," said McCabe.

For more, see Slow housing market spurs condo 'conversion reversions' (With no buyers, market forced to change units back to rentals) (story also available here).

Credit Card Skimming On The Rise

Some straw buyer, mortgage fraud scams have incorporated identity theft into the mix, whereby straw buyers who are in on the scam from the get-go use stolen identities to illegally obtain mortgage loans.

One technique for stealing identities which appears to be on the rise is credit card skimming. An entry in Wikipedia (as of 11-12-07) contains the following description of credit card skimming:
  • Skimming is the theft of credit card information used in an otherwise legitimate transaction. It is typically an "inside job" by a dishonest employee of a legitimate merchant, and can be as simple as photocopying of receipts. More imaginative routes are possible; an episode of The Sopranos showed how a compromised magnetic stripe reader could store account information for later use. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view. The skimmer will typically use a small keypad to unobtrusively transcribe the 3 or 4 digit Card Security Code which is not present on the magnetic strip. Many instances of skimming have been reported where the perpetrator has put a device over the card slot of a public cash machine (Automated teller machine), which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user's PIN at the same time.
WTVJ-TV Channel 6 in Miami, Florida recently ran a credit card skimming story reporting that "what started at restaurants, police records show, is now being found in fast food outlets, hotels, and grocery store ATM machines." The story describes one recent case in which an 18 year old drive-through cashier at a McDonald's was arrested in September for skimming 100 credit cards, police say, before he was stopped. Police say he admitted he did it.

To watch the report and see how easy it is for an employee of a local merchant to literally "swipe" an unsuspecting customer's I.D. information off the magnetic strip from a credit card, see Who's Swiping Your Card? (NBC 6 Investigates Credit Card Skimming).

Go here for additional footage of NBC 6 reporter Jeff Burnside talking about his investigation, "Who's Swiping Your Card?"

Go here to read the online story.

For another story on credit card skimming, see:
  • Authorities indicted 13 in alleged identity theft ring - Alleged New York City I.D theft ring accused of hiring waiters and waitresses to steal credit card info from restaurant customers by use of small skimming devices; ring accused of making millions of dollars of credit card charges, over 1000 victims identified.

Sunday, November 11, 2007

New Hampshire "Sleeping Judge" Admits Helping Hubby Stiff State Bar

In Dover, New Hampshire, SeacoastOnline reports:
  • Superior Court Judge Patricia Coffey admitted violating judicial conduct code by hiding her husband's assets in a trust to avoid paying $75,000 in fees related to his disbarment from practicing law. Coffey's admission was released Wednesday by the state Judicial Conduct Committee, which also scheduled a Dec. 10 hearing to decide what discipline will be imposed upon her. The JCC reports its options include a private reprimand or public censure.

***

  • The JCC reports Judge Coffey and her husband, John, ultimately paid the $75,000 in disbarment fees, but only after an investigation was launched. The investigation resulted in the discovery of their real estate trusts which were established within days of the disbarment proceedings, according to the JCC. Coffey's admission follows scandals alleging she slept on the bench during multiple court proceedings and her husband's disbarment for bilking an elderly woman out of a half-million dollars in Rye real estate.

  • The sleeping allegations came to light soon after a Sept. 26, 2006 jury poll was published by the N.H. public defenders office, quoting seven of 13 jurors who found Candia's Donald Spinner guilty of sexual assault. Two jurors said they saw Coffey sleeping on the bench during the trial. Juror Donna Kolber-Simonds, told a public defender's office interviewer "she noticed that the judge kept falling asleep during the trial," while fellow juror, Mary Fortuna, told the same interviewer the jury "got a kick out of Coffey nodding off."

For more, see Judge cooked the books (Hid husband's assets to save $75K).

For other current and past media reports on Judge Coffey, see:

For earlier post, see New Hampshire "Sleeping Judge" Accused Of Helping Hubby Hide Assets From Creditors. naughty judges

Virginia Judge Booted From Bench For "Coin Flipping" Approach to Decision Making (& Other Antics)

In Richmond, Virginia, The Associated Press recently reported:
  • A judge who ordered a woman to drop her pants and decided a custody dispute by flipping a coin was removed from the bench by the Virginia Supreme Court on [Nov. 2]. The decision against Juvenile and Domestic Relations Court Judge James Michael Shull of Gate City was unanimous. "Unless our citizens can trust that judges will fairly resolve the disputes brought before our courts, and treat all litigants with dignity, our courts will lose the public's respect and confidence upon which our legal system depends," Justice Barbara Milano Keenan wrote.

***

  • The justices could have merely censured Shull, but they noted that he had appeared before the Judicial Inquiry and Review Commission in 2004 for allegedly calling a teenager a "mama's boy" and a "wuss" and advising a woman to marry her abusive boyfriend. That complaint was dismissed with an admonition to Shull to chalk it up as a learning experience.

For more, see Judge booted for flipping coin to decide (if link expires, try here).

Go here to view the Virginia Supreme Court ruling booting Judge Schull from the bench.

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For an opposing point of view, see In Defense of Judge James Michael Shull - Part I, Part II, and Part III. naughty judges

Sleeping On The Bench: Conduct To Be Condemned Or "Harmless Error" ???

Let me start by saying that this post is not about poor, down-on-their-luck homeless people looking to catch a few winks on the bench in a neighborhood park or at a bus stop.

The blog, Bits Of News, recently ran a piece on a subject that I found quite interesting - the issue of trial judges who, in the course of presiding over a court proceeding and without formally calling for a recess and retiring to their chambers, take an occasional nap in plain view of those in the courtroom. Included in the story is a description of the presiding judge in a criminal trial who reportedly was seen by the jury nodding off during parts of the proceeding. The trial ended in a conviction of the defendant and, despite the judge's reported nap-taking tendencies, was upheld on appeal. For more, see When Justice Sleeps: The Law on Snoozing at the Bench.

For other stories of judges accused of taking occasional snoozes on the bench, see:

In defense of our robed members of the court system, a "Letter to the Editor" appears in the Utah Bar Journal, in which the writer (who identifies himself as a judge) suggests that the problem with sleeping judges may rest with the attorneys appearing before them who may be "mumbling and stumbling with mind-numbing effect" in their courtroom presentations, as well as those barristers so mesmerized by their own eloquence that they just don't know when to shut up (asking "Do you make your point and then just stop talking, or do you flog it until the judicial mind retreats to sleep in self-defense?").

The above "Letter to the Editor" was written in response to this "Letter to the Editor" (also from the Utah Bar Journal) which tries to address ways to deal with the problem of the occasional snoozing judge. naughty judges

Arsonist Facing Foreclosure Takes Plea Deal; Admits Torching Home For Insurance Cash

In Suffield, Connecticut, The Journal Inquirer reports:
  • A Suffield arsonist with dozens of prior felony convictions was sentenced Thursday to seven years in prison for torching his house for the insurance money. Michael Paul Schook had in October rejected a plea offer, but with a trial looming, he accepted the deal that also requires him to serve eight years of special parole when he's released from prison.

***

  • [P]olice say an ex-convict who had spent time in prison with Schook and was living with the family told authorities that Schook asked him how to set a fire that wouldn't look suspicious. That man said Schook told him he had financial difficulties, and police say a credit check revealed the house was in foreclosure, Schook's car was being repossessed, and he owed thousands to credit card companies.

For more, see Suffield man gets 7 years for burning home for insurance money.

For more on fires & foreclosures, go here and go here. foreclosure arson yak

Trial Of Accused Arsonist Facing Foreclosure Ends In Mistrial

In Marietta, Ohio, The Marietta Times reports:
  • Alleged juror misconduct brought an abrupt end Friday to the trial of Newport man accused of having his own house burned down. Testimony in the trial, in which Willard Bush, 30, ... is accused of arranging to have his house torched to collect insurance money, ended on Thursday. Jurors deliberated into the evening before requesting a break that night. Deliberations resumed Friday, but the case ended in the afternoon with Common Pleas Judge Ed Lane declaring a mistrial. “We had a report that some information reached the jury room other than what was provided through the trial, and there was some concern that it might affect the jurors’ decision,” said Assistant Washington County Prosecutor Kevin Rings.

For more, see Mistrial declared in arson case (11-3-07).

In an earlier story published during the trial, The Marietta Times reported:

  • Assistant Washington County Prosecutor Kevin Rings said it [was] suspicious that Bush bought insurance 10 days before the fire. Also, he said Bush lied on his insurance application, failing to report several past claims — including another house fire just four years earlier. Also, Rings said Bush failed to report he was facing foreclosure on the property.

For more, see Newport man’s trial out of home fire continues (11-1-07). foreclosure arson yak

Home Burns Down Three Days Before Foreclosure Sale; Homeowners Charged With Arson

In South Beloit, Illinois, the Rockford Register Star reports:
  • Three days before Dean and Jaclyn Jacobson’s house was scheduled to be sold at a foreclosure auction, it went up in flames. Now the couple are charged with arson, accused of setting the home ablaze. [...] The Jacobsons are charged with aggravated arson, a Class X felony, which carries a penalty of between six and 30 years in prison, January Smith, spokeswoman for the marshal’s office, said. The charge was upgraded to aggravated arson in this incident because a South Beloit firefighter was injured during the blaze. [...] Court records show that the Jacobsons were having trouble making payments on their home, automobile and medical expenses.

Reportedly, the home was a total loss, with damages estimated at approximately $120,000-$150,000. For more, see South Beloit couple charged with arson (if link expires, try here). foreclosure arson yak

Flue Fire Damages Home In Foreclosure; Fireplace Used For Heating After Gas Service Shut Off

In Somerset, Pennsylvania, The Tribune-Democrat reports:
  • A Somerset family had to leave home Thursday after a flue fire left it temporarily uninhabitable. Jay Patton said he filled the fireplace at his mother’s home ... with six logs Thursday morning and let them burn for an hour while he played video games. The family heats the home with a fireplace because their gas service has been shut off since last year, Patton said. The house is up for sheriff’s sale Nov. 16 after a mortgage foreclosure.

***

  • Greg Davis, Somerset second assistant chief, said most of the damage was contained to the walls. The fire is not considered suspicious, he said. “I would tell people that, if they are using a wood-burner, they should have their flue cleaned first,” Davis said, adding that the damage should be fairly minor, though he did not have an estimate.

For more, see Flue fire damages home in Somerset. foreclosure arson yak

Another Vacant Foreclosed Home Goes Up In Flames; Investigators Suspect Squatters

In Mansfield, Ohio, the Mansfield News Journal reports:
  • After living in the same place for 26 years, Glenna Hershberger said she was heartsick to see her former two-story home ablaze Sunday afternoon. Hershberger, 59, and her husband only recently lost the 521 Springmill St. home to foreclosure. [... According to Mansfield Fire Captain Don Yarger,] "It looked like a mattress in the living room was all burned up, so I don't know if someone was smoking on it or what happened. We're still not sure what actually caused the fire, but I'd be leaning toward vagrancy." [...] Neighborhood watch coordinator Amanda Stamfield, 33, said she suspected drug dealers had been in and out of the home since the Hershbergers moved out.

For more, see Vagrants suspected in Mansfield house fire.

Go here for posts on vacant homes, foreclosures and squatters. foreclosure arson yak squatter zebra

Saturday, November 10, 2007

Reports Of Rent Gouging Due To Southern California Wildfires

In Southern California, The San Diego Union Tribune reported about two weeks ago:
  • North County real estate agent Christine Richards described the race to find rentals in areas hit by wildfires as “a feeding frenzy.” “On Wednesday and Thursday, I probably had 60 phone calls,” said Richards, who handles rentals. “You see a lot people raising rents, unfortunately. The prices jump up a couple of thousand dollars in houses that don't rent for that much. If someone requested me to do that, I would cancel the listing.”

***

  • [The San Diego County Apartment Association] posted a notice at warning landlords that raising rents by more than 10 percent during a declaration of emergency is a crime punishable by a $10,000 fine and/or up to a year in jail. The rent restriction remains in effect for 30 days.

For more, see Rental hunt 'a feeding frenzy' (It might be hard to find places near burn areas).

Maryland Legislator No Stranger To Foreclosure Rescue Suits

HometownAnnapolis.com reports:
  • While his fellow delegates were in Annapolis Tuesday to work on the state's budgetary woes, Del. Tony McConkey made the trek downtown for another reason: The Severna Park Republican is being sued. Reginald D. Williams of Crofton reopened a 2005 lawsuit earlier this year, alleging that Mr. McConkey - who buys and sells homes in foreclosure - violated a previous court order and stole more than $12,500 from the sale of Williams' home. [...] Mr. Williams and his ex-wife, Deborah Ann Williams, first sued Mr. McConkey in July 2005, saying the delegate scammed them out of their house, according to court documents. The case was settled in January 2006 when Mr. McConkey agreed to sell the house, pay off the mortgage and pay Mr. and Mrs. Williams $12,516 each. But Mr. Williams, who originally hoped to keep the entire house, claims Mr. McConkey never sent him his $12,500 check.

***

Teresa Milligan, another disgruntled client, filed a lawsuit against Mr. McConkey in October 2006, also claiming the delegate tricked her out of her Pasadena townhouse. A year later, the lawsuit is still pending. Michael Gregg Morin, Ms. Milligan's attorney, said in court papers that Mr. McConkey has been involved in "years of effort" in "perfecting various schemes." He claimed the delegate approaches "susceptible and vulnerable consumers" and that he never told Ms. Milligan she was signing over her house.

For more, see Delegate faces suit (Former client says he was swindled out of $12,500) (link no longer available online).

For more on Tony McConkey, see:

  • Suit Against Maryland Delegate Reopened (WBAL Radio AM-1090 - 11-1-07) (link no longer available online),
  • Maryland Legislator Accused of Fraud (Lenderloft.com - 12-1-06),
  • Delegate accused of fraud (The Examiner - 10-25-06),
  • Let Me Work For You, Specializing In Problem Properties - 17 Homes Saved From Foreclosure In 05 (link no longer available online).

See also, Maryland State Legislator Sued For Alleged "Foreclosure Rescue" Scam; Police Investigation Ongoing.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Oregon Jury Convicts Real Estate Con Artist On 28 Felony Counts

In Multnomah County, Oregon, The Oregonian reports:
  • After nearly 11 days of listening to Corey Jerry Pritchett talk about his innocence -- sometimes for hours at a time -- a Multnomah County jury Thursday found the Gresham pastor guilty of 28 felony counts of swindling low-income people out of an estimated $43,000. Pritchett, 44, represented himself as a successful real-estate investor who would use his clients' money to flip houses, promising 30 percent returns. Or he sold or rented them houses he didn't own. In one case, he sold two people the same house on the same day. Lisa Heinemann, 44, a single mother of five who was about to lose her Southeast Portland house in a foreclosure, testified that Pritchett took $1,000 from her.

***

  • Many of the victims encountered Pritchett through Craigslist, newspaper ads or by chance. Special prosecutors Simon Whang and Jason Weber said Pritchett told his victims he was a pastor and prayed with them. But investigators found earlier this year that his congregation had dwindled to his immediate family. While wooing clients, he failed to mention that he had filed for bankruptcy five times, had at least 40 civil judgments against him, and owed a few hundred thousand dollars, according to prosecutors.

For more, see Jurors find swindler guilty of 28 felonies (Flipping houses - Corey Jerry Pritchett promised 30 percent returns on real estate) (no longer available online).

Disgraced Florida Attorney / Ex-Sheriff To Fork Over $46K To IRS

The St. Petersburg Times reports:
  • Broward County's former sheriff has agreed to pay about $46,000 in back taxes, interest and penalties to the Internal Revenue Service, federal court records show. The payments stem from Ken Jenne's guilty plea in September to tax evasion and wire fraud conspiracy for accepting thousands of dollars in hidden payments and favors while sheriff. Jenne resigned in disgrace on Sept. 4 after a nine-year tenure as sheriff.

Jenne, 60, also a former Florida state senator and a former partner at the high powered, Fort Lauderdale law firm formerly known as Conrad, Scherer & Jenne, is currently awaiting his scheduled Nov. 16 sentencing. He is looking at 18 to 24 months in prison. For more, see Former sheriff to pay $46,000 to IRS.

Friday, November 09, 2007

Story Updates On Alleged Florida Escrow Funds Theft, Pennsylvania Mortgage Investment Ponzi Scheme

Alleged Eastern Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Inc., Image Masters:
  • A hearing scheduled for Thursday in U.S. District Court in Harrisburg concerning the personal assets of bankrupt mortgage broker Wesley Snyder was delayed. For more, see Hearing for OPFM founder delayed (Lancaster Online - 11-9-07),
  • Broker’s assets frozen indefinitely (Lancaster Online - 11-9-07),
  • Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.

Alleged theft of escrow funds (estimated at approximately $4M) by Vero Beach, Florida attorney Ira C. Hatch and his now-defunct escrow company, Coastal Escrow Services:

Washington State Homeowner Sues To Void A "Charles Head-Orchestrated" Foreclosure Rescue Sale Leaseback

Andrews Publications reports:
  • A victim of a mortgage fraud scheme is asking a Washington state court to declare that title to her home was not transferred to Deutsche Bank National Trust Co. in a foreclosure action. Seattle homeowner Phyllis Reynolds wants the King County Superior Court to declare that the defendant bank's title to her home is void.

  • Reynolds sued Deutsche Bank, its agent Northwest Trustee Services Inc. and escrow company First American Title Insurance Co. after learning that the loan she took out to refinance her mortgage was fraudulent. The suit also names as defendants Donald and Linda Theriault, a married couple whose identities were allegedly stolen and used by con artist Charles Head to defraud Reynolds. Head is not named in the lawsuit.

***

  • Reynolds says that since she was not a Deutsche Bank customer and was the victim of a scam, the bank's title to her home is void and the foreclosure conducted by Northwest Trustee Services is a nullity. Reynolds also says any transfer of the title to the Theriaults is void as well. She seeks a declaration that title to the property belongs to her. Reynolds is also seeking unspecified damages from First American on the grounds that the company breached its fiduciary duty when serving as the escrow agent during the fraudulent loan closing.

Charles Head entities that are allegedly involved in this case are Funding Foreclosures (aka FundingForeclosures), Nations Property Management, and A-One Investment Management Inc. For more, see Woman Sues to Keep Home After Mortgage Scam.

Case Filing Information: Reynolds v. Theriault et al., No. 07-2-29304-3, complaint filed (Wash. Sup. Ct., King County Sept. 6, 2007).

Go here for other posts on foreclosure rescue operator Charles Head, Head Financial, and related companies.

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Equity Stripper Ordered To Return Deed To Home To New Jersey Resident; Status Of Existing Mortgages Up In The Air

In Ocean County, New Jersey, the Asbury Park Press reports on a local homeowner who found herself unwittingly signing away her home in another bogus Charles Head-orchestrated sale leaseback deal:
  • Marie Citarella said she never wanted to sell her house. But land records show Citarella signed a "warranty deed" to Michael and Deanne Mattice of Colorado Springs, Colo., transferring the property for nothing, and thus paying no real estate transfer taxes. The Mattices, in turn, took out two mortgages on the property for a total of $204,250, according to documents. Neither the Mattices or their attorney could be reached for comment. However, a letter to Citarella from the Mattices' attorney said the couple was working with the U.S. Attorney's Office in Sacramento, Calif.,which is leading the investigation, and expressed the couple's intention to return the property to her.

Citarella said that Charles Head, a principal in FundingForeclosure (aka Funding Foreclosure), attempted to evict her in June 2007, but an attorney representing Head dropped the case after reviewing Citarella's paperwork. The attorney said he no longer represents Head or his companies and declined to comment further.

The home went into foreclosure, and while the local judge in Toms River, New Jersey ordered the Mattices to reconvey the title to the home to Citarella, it appears that the foreclosure action is continuing, though the judge did give Citarella a 30 day stay. For more, see Defrauded woman fights to stay in house she didn't intend to sell.

Go here for other posts on foreclosure rescue operator Charles Head.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Financially Strapped Orlando-Area Homeowner Unwittingly Signs Over Deed To Home In Sale Leaseback, Rescue Deal

In Orlando, Florida, a story by the Orlando Sentinel that came out in June reported on another Charles Head sale leaseback deal gone bad:
  • If you're not careful, homeowner Arthur Washington warned Wednesday, your house may be the next to go. [...] Washington, 59, said he was surprised how easily he was persuaded to give up the title to his home. When he and his elderly mother moved here from Massachusetts, Washington said, he wanted the kind of house often showcased in glossy magazines. But when his mother spotted the coffee-colored three-bedroom house on Montague Place in Pine Hills, she fell in love. The pair bought the home in 2003. Then the 2004 hurricanes hit, bringing water damage and a long wait for insurance money. In early 2005, bankruptcy and foreclosure loomed briefly but were avoided. But Washington was never quite able to catch up financially.Washington, who has poor credit, found a loan he thought would help keep him afloat. A lender told Washington he would hold the title to the home if Washington paid $600 a month in rent for one year. When the year was up, Washington could refinance his home. It didn't work out that way. Instead, in 2006, the lender sold Washington's home to an investor, who was unaware of the situation. Washington is still living in the house.

  • The Federal Bureau of Investigation already is looking into the actions of Charles Head, the lender who dealt with Washington. Meanwhile, Washington is searching for a lawyer to help him regain ownership of his home.

For more, see Foreclosures fly through roof, or go here for the same story.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

More On The Metropolitan Grapevine / Metro Dream Homes "Ponzi Scheme"

The Laurel Leader (Laurel, MD) reports on last week's Prince George's County Circuit Court ruling placing Laurel home- mortgage company Metropolitan Grapevine under receivership and freezing the company's assets:
  • Judge Thomas P. Smith took the action against POS Dream Homes, also known as Metropolitan Grapevine, following a three-day trial that ended Oct. 31. [...] "The only income that the defendants have shown of any significance is the investments of each succeeding generation of investors," Smith wrote in his ruling. "Investments are not income ... because they have to be repaid." Smith not only froze POS' assets, effective Oct. 29, but also those of 18 other entities affiliated with the company.

***

  • "The examiner wasn't able to do a thorough investigation because at times the office was closed, and (when he did get in he) found computers and files missing," said Raquel Guillory, spokesperson for the state attorney general. The examiner did determine that the company only had $150,000 in cash assets and 50 cars, including numerous S-Class Mercedes Benzes, Corvettes, Escalades and other high-end vehicles. Those vehicles, along with 14 real estate properties in Laurel, Virginia and the District, totaled $2 million, according to court documents.

***

  • "The only method of the defendants paying older investors was to obtain new investors in a classic Ponzi scheme," Thomas ruled.

For more, see Judge freezes assets (Payoff plan seen as 'classic Ponzi scheme').

See also, Maryland Shutters 'Investment Firm' Amid Fraud Charges (Victims lost more than $50 million in Ponzi scheme) (Consumer Affairs - 11-6-07).

Go here for other posts & links to other stories on Metropolitan Grapevine / POS Metro Dream Homes.

Virginia Judge Stripped Of Robe For Courtroom Antics

The New York Post reports:
  • A family court judge in Richmond, Va., was removed from the bench after several kangaroo-court moments, including flipping a coin to decide a custody case. James Michael Shull was unanimously stripped of his robe by the state's Judicial Inquiry and Review Commission, which also found the jurist guilty of calling a teen a "mama's boy" and a "wuss" as well as telling a woman to marry her abusive boyfriend.

Source: Weird But True. Go here for other stories on naughty judges. naughty judges

Thursday, November 08, 2007

Ohio Feds Squeeze Plea From Upfront Fee Foreclosure Rescue Operator

In Ohio, Cincinnati.com (The Enquirer) reports:

  • A Springboro man faces up to 20 years in prison and a fine of up to $250,000 after pleading guilty to one count of mail fraud for falsely promising help to Cincinnati and Dayton homeowners concerned about foreclosure. Operating under the name American Foreclosure Group LLC, Randall Webb promised to negotiate with lenders for strapped homeowners in exchange for a $600 to $700 fee. Instead, he filed bankruptcy on behalf of clients, sometimes without their knowledge or consent.

  • Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio, said that Webb's business was similar to other foreclosure-rescue scams that promise desperate homeowners help but instead pocket upfront fees. [...] Prosecutors say Webb did little for his distressed customers and, in at least one case, pocketed money from a client that was intended to fund a new payment plan. His clients remained in the dark, in part because he instructed them not to contact their lenders.

For more, see Foreclosure scam triggers plea.

See also, Ohio Man Pleads Guilty to Mail Fraud.

For press release announcing the initial indictment, see Springboro Man Indicted In "Operation Truth Or Consequences" National Action Bankruptcy Fraud.

Connecticut Homeowner Slaps Foreclosure Rescue Operator With Federal Lawsuit

In New Haven, Connecticut, the New Haven Independent reports on a foreclosure rescue deal involving a homeowner facing foreclosure and local real estate agent Alex Ortner and his investors, operating through the Whittier Road Land Trust and the Temperly Investment Group LLC:
  • Arthur and Joanne Taylor were days away from losing their Westville home to foreclosure when a man came knocking on the door. He had a plan to save them. Alex Ortner and his real estate company ended up making at least $25,000 off the family in a buy-back scheme now being challenged in New Haven U.S. District Court. After getting slapped with a lawsuit filed in October by attorney Gary Sklaver, Ortner said he won't be making the same offer to desperate homeowners anymore.

***

  • Sklaver considers Ortner's transaction was not just a sale with buyback option, but a "disguised loan" with an exorbitant interest rate. In this case, investors advanced $36,000 towards the mortgage and were repaid $78,583 a year later, Sklaver calculated - that's a 120 percent interest rate.

  • Sklaver contends the Taylors' home sale falls under the Truth In Lending Act, which requires disclosure of certain information including the interest rate and an option to rescind. Since no such information was disclosed, his clients should be able to rescind the transaction they unwittingly fell into ... , Sklaver argued.
***
  • Ortner said he's been sued once before by homeowners in a similar buyback case. He agreed to pay a settlement, because "our paperwork wasn't clear for our case." This time, with the Taylors, he said he made sure "everything was made clear." [...] Though Ortner didn't agree he had done anything wrong, he did say the lawsuit has forced him to change his ways. When he knocks on the doors of soon-to-be-foreclosed homes, he said he no longer offers owners to buy back the house: "I can't do that anymore, because people seem to want to sue me if I do that."

For more, see Suit Reveals Foreclosure Rescue Scam.

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Bankrupt Lenders Prohibited From Wiping Out Borrowers' Right To Sue

A statement has recently been filed with Congress on behalf of the United States Trustee Program in connection with their mission of promoting the integrity and efficiency of the United States bankruptcy system.

Among other things, the statement reports that The Program has been active in enforcing a provision of the bankruptcy statute (11 U.S.C. § 363(o)) , which, in the context of credit transactions to which the Truth in Lending Act applies, prohibits bankrupt lenders from selling off their loan portfolios or other interests “free and clear” of the rights of their customers to assert claims or defenses provided under applicable laws. According to the statement:
  • The United States Trustee’s role to enforce [the statute] is paramount because consumer borrowers may not receive notice of the intended sale of their loans. Even if they receive notice, they may not have the financial means to object to the sale or request the sale provisions contain [legally required] safeguards to preserve their rights. To date, United States Trustees have filed pleadings to enforce [this statute] in at least a dozen cases in which bankruptcy sales by lenders did not provide the required and appropriate consumer protection.

(What I guess this means is that, among possibly other things, home mortgage lenders are prohibited from making mortgage loans that violate (blatantly or otherwise) homeowners' rights under consumer protection or other laws, and then file bankruptcy, using the bankruptcy process to (1) wipe out those homeowners' legal rights that the lenders' violated when making the mortgage loan, and (2) subsequently sell off their mortgage loans to other investors, free of the homeowners' ability to enforce those violated legal rights through a lawsuit against a subsequent purchaser of those mortgages.)

Source: The United States Trustee Program: Watchdog Or Attack Dog? (page 5).

Sacramento Feds' Nationwide Investigation Of Charles Head Foreclosure Rescue Scam Largest Current Case In Office

Earlier this week, reports from the Asbury Park Press (Asbury Park, NJ) stated that the FBI is currently investigating a nationwide foreclosure scam allegedly mastermined by Charles Head of FundingForeclosure (also of Head Financial) affecting 256 properties stretching from Maine to Hawaii. A report indicates that the case is currently being investigated by the FBI office in Sacramento, California and that it is the largest case currently under investigation by that office. The report also indicates that of the 256 properties listed in a warrant to search the offices of FCO Inc., Costa Mesa, Calif., which is believed to be part of owner Charles Head's financial operation, at least 69 properties are in California. Reports also indicate that Charles Head's whereabouts are currently unknown. For more, see:
For examples of Charles Head's online solicitations and personal profile, see:
For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).