Mass AG Bags Five In Alleged Straw Buyer Scam Connected With Widespread Foreclosure Rescue Scam; As Many As 60 Homes Involved; Probe Continues

Massachusetts Attorney General Martha Coakley's Office announced Friday:

• Two bank employees, a mortgage broker, an assistant of the mortgage broker, and a Worcester man had 106 indictments returned against them late [Thursday] in connection with allegedly creating false or misleading bank documents that were then used to obtain fraudulent mortgage loans in the millions of dollars.(1)

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• Authorities allege that the defendants conspired to produce false bank documents that were pivotal in fraudulently obtaining millions of dollars worth of loans. These bank documents were known as verifications of deposit, or VODs. [...] Authorities believe that the false VODs were used to bolster the loan applications of “straw buyers” in a widespread foreclosure rescue scheme. At this time, the investigation remains ongoing.

For the whole story, see Five People Indicted in Elaborate Mortgage Fraud Scheme (Four of These Individuals Arraigned [Friday] in Superior Court).

See also, Worcester Telegram & Gazette: Five indicted in massive mortage fraud scheme (Prosecutors allege a massive mortgage fraud scheme involving as many as 60 properties in Worcester County over the last two years).

(1) Those indicted are: Erik Tancun, age, 29, of Marshfield, Steven Stapleton, age 36, of Waltham, Kenneth Garabedian, age 51, of Worcester, Martha Sass, age 46, of Marshfield, and Thomas Itemere, age 28, of Worcester.