Arizona AG Indicts Two In Alleged Equity Skimming Operation; Homes Involved Ended Up In Foreclosure, Say Authorities

In Phoenix, Arizona, the East Valley Tribune reports:

• Jeffery Z. Sayegh, of Cave Creek, and Kimberly R. Werking, of Phoenix, were indicted by the Arizona Attorney General's Office on five counts of forgery, one count of money laundering and one count of fraudulent schemes and artifices. Werking, 42, was also indicted on six counts of residential mortgage fraud, five counts of theft and one count of illegal control of an enterprise.

• The charges, all felonies, relate to an alleged equity skimming operation in Phoenix and north Scottsdale. These are among the largest indictments issued under the state's residential mortgage fraud statute, enacted in 2007.

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• The indictment further alleges that Werking skimmed more than $1 million in equity from the homes through the refinancing process, and, once no more money could be pulled out of the properties, allowed them to go into foreclosure.

For more, see Pair indicted in mortgage fraud.

From the Arizona Attorney General's Office;

• Indictment: State of Arizona v. Werking, et al.,
• News Release: Terry Goddard Announces Indictments in $1 Million Mortgage Fraud.