Florida AG Files Civil Suit Alleging Straw Buyer Scam Involving At Least 60 Homes, $37M+ In Fraudulently Obtained Mortgages

In Orlando, Florida, the St. Petersburg Times reports:

• The Florida Attorney General's Office [yesterday] sued 10 companies and 15 individuals for their alleged roles in a major mortgage fraud scheme first reported by the St. Petersburg Times last year. In number of defendants, the case may be the largest mortgage fraud case ever filed in the United States, the office said.

• According to the lawsuit filed in Orlando, the ring obtained more than $37-million in mortgages for at least 60 home purchases and siphoned off more than $6-million of the proceeds for their own use. Approximately 50 of the houses later went into foreclosure. [...] A criminal investigation of the alleged fraud ring is also underway.

For more, see Florida attorney general sues 25, claiming mortgage fraud.

For the 2007 story in the St. Petersburg Times, see Unsigned letter accuses agent of mortgage fraud (Real estate agent says it may be a rival using smear tactics).

From the Florida AG's Office:

• Complaint - State of Florida v. American Heritage Mortgage Group, et al.,
• AG's Press Release - 10 Companies, 15 Individuals Sued for Mortgage Fraud in Central Florida.