Colorado Regulator Brings Administrative Charges Against Two Alleging Cash Back, Mortgage Scam Involving $45M In Fraudulent Loan Activity

In Denver, Colorado, the Rocky Mountain News reports:

• The state's Division of Real Estate has sent "notices of charges" to two brokers the agency claims are the masterminds behind a $45 million Front Range mortgage fraud scheme.

• Erin Toll, director of the real estate division, alleges the two brokers would sell homes at inflated values based on an inflated appraisal. Then, at closing, a large sum of money would be given to a management company with the understanding that they would improve the home.

• The management company instead would return the money to the buyer, minus a commission. No payments were made on the house, and banks are ending up holding the bag in a foreclosure. The brokers are Jerrold Minney and Steven Scott Werner.

For more, see State accuses two brokers of mortgage fraud scheme.