Maryland High Court To Address Constitutionality Of State Foreclosure Notification Requirements

In Maryland, The Baltimore Sun reports:

• Judges on Maryland's highest court yesterday suggested they could intervene to change the notification procedure for foreclosures, which have ballooned as more people took out loans they couldn't afford and lenders made deals they couldn't keep. "The argument that this court change its rules in light of changing circumstances in the mortgage industry" could be persuasive," Judge Dale R. Cathell told an attorney arguing a foreclosure case before him yesterday in the Maryland Court of Appeals.

***

• Yesterday's case looked at whether the foreclosure notification process in Maryland met the due process requirements of the Constitution. [...] The case involves [Maryland] homeowner Joyce Griffin, the Pasadena resident who says she first found out her home had been foreclosed in May 2006, when the new owner tacked a handwritten note to her front door.

For more, see High court takes up foreclosure notification (Judge hints procedure may be too quick).

Go here for earlier posts on this case.

Baltimore Files Suit Against Wells Fargo Alleging Discriminatory Predatory Lending Practices In Violation Of Fair Housing Act

In Baltimore, Maryland, The Baltimore Sun reports:

• Baltimore homeowners could receive counseling and financial support - including short-term loans to help avoid foreclosure - if the city wins the predatory and discriminatory lending lawsuit it filed yesterday against Wells Fargo Bank, Mayor Sheila Dixon said. [...] The lawsuit, filed in U.S. District Court in Baltimore, has been in the works since early last year, when city attorneys started to review foreclosure data. Wells Fargo issued a statement Monday saying the lender does not engage in illegal discrimination. City officials estimate that they could win "tens of millions" in damages if they prevail in the lawsuit and that a chunk of that money would be funneled into public programs to aid homeowners struggling with mortgages with adjustable interest rates.

For more, see City files suit over foreclosures (If Baltimore prevails, homeowners could receive counseling and financial support) (no longer available online).

See also:

• Baltimore Is Suing Bank Over Foreclosure Crisis (The New York Times),
• Baltimore Sues Wells Fargo for Subprimes (The Associated Press).

To view the lawsuit:

• see Mayor and City Council of Baltimore v. Wells Fargo Bank, N.A., et al. (8.76 MB) (available online courtesy of the Washington, D.C. law firm Relman & Dane, representing the City of Baltimore), or
• lawsuit also available here courtesy of Public Citizen's Consumer Law & Policy Blog, or
• go to this this direct link on the PACER system (approx. 11 MB - PACER registration required - 39 pages - $2.40).

For yesterday's post, see City Of Baltimore To Target Wells Fargo In Federal Race Bias Suit Alleging Discriminatory Predatory Lending.

Go here and go here for other posts on alleged race bias in real estate transactions. race bias predatory lending

Countrywide Fabricated Documents In Consumer Bankruptcy Case, Says Court Transcript

The New York Times reports:

• The Countrywide Financial Corporation fabricated documents related to the bankruptcy case of a Pennsylvania homeowner, court records show, raising new questions about the business practices of the giant mortgage lender at the center of the subprime mess. The documents — three letters from Countrywide addressed to the homeowner — claimed that the borrower owed the company $4,700 because of discrepancies in escrow deductions. Countrywide’s local counsel described the letters to the court as “recreated,” raising concern from the federal bankruptcy judge overseeing the case, Thomas P. Agresti. “These letters are a smoking gun that something is not right in Denmark,” Judge Agresti said in a Dec. 20 hearing in Pittsburgh.

***

• O. Max Gardner III, a lawyer in North Carolina who represents troubled borrowers, says that he routinely sees lenders pursue borrowers for additional money after their bankruptcies have been discharged and the courts have determined that the default has been cured and borrowers are current. Regarding the Hill matter, Mr. Gardner said: “The real problem in my mind when reading the transcript is that Countrywide’s lawyer could not explain how this happened.”

For more, see Lender Tells Judge It ‘Recreated’ Letters.

For additional documents in this case, see:

• Allegedly bogus letters from Countrywide,
• Transcript of Courtroom Exchange on the allegedly bogus Countrywide Letters.

Go here for other posts on the Countrywide matter in the Pittsburgh federal bankruptcy court.

Go here, Go here and Go here for more on recent Countrywide problems with consumers.

Go here , go here , and go here for posts on questionable mortgage servicing practices.

For more on the alleged misconduct and sloppiness by lenders and servicers against homeowners in the context of consumer bankruptcy cases, go here to download Misbehavior and Mistake in Bankruptcy Mortgage Claims, by Katherine M. Porter - University of Iowa - College of Law. questionable mortgage servicing practices tactics yak

More On Alleged Fraudulent Claims By Countrywide In Consumer Bankruptcy Cases

In South Florida, the South Florida Sun Sentinel reports:

• In December, U.S. Bankruptcy Judge Paul Hyman in West Palm Beach told Countrywide to turn over internal documents relating to how the company calculates its claims to the U.S. trustee, a Justice Department official who monitors bankruptcies. Countrywide is appealing Hyman's order. It's the second such case in Florida and part of a national investigation by bankruptcy trustees of lenders, including Countrywide, in at least three other states, Pennsylvania, Texas and Arizona. The trustees want to know if the lenders are making false claims against bankrupt homeowners or using questionable proof to make them pay. U.S. personal bankruptcies rose 40 percent last year, according to the National Bankruptcy Research Center.

• "As a general principle, if it is judicially determined that lenders are intentionally attempting to rip off their customers with false or fraudulent proofs of claim, that would have serious consequences for lenders," U.S. Bankruptcy Judge A Jay Cristol, who's presiding over a similar case in Miami, said Tuesday in an interview.

For more, see Countrywide accused of false claims (Bankruptcy rumors sink stock) (When link expires, try here for the same story).

Go here, Go here and Go here for more on recent Countrywide problems with consumers.

Go here , go here , and go here for posts on questionable mortgage servicing practices.

For more on the alleged misconduct and sloppiness by lenders and servicers against homeowners in the context of consumer bankruptcy cases, go here to download Misbehavior and Mistake in Bankruptcy Mortgage Claims, by Katherine M. Porter - University of Iowa - College of Law. questionable mortgage servicing practices tactics yak

Title Underwriters Fined $240K+; Incorrect Rates Used When Issuing Title Insurance To Homeowners

The Missouri Department of Insurance, Financial Institutions & Professional Regulation recently announced:

• The department announced [Jan. 3] that it is ordering two title insurance companies to pay over $240,000 in fines and to fix current title agency rating procedures. Market conduct examinations completed by the department indicate Land Title Insurance Company of St. Louis and First American Title Insurance Company, of California, allowed independent title agencies writing title insurance on their behalf to use incorrect risk rates or risk rates not filed with the department. Risk rates are used in calculating the premium a consumer will pay for the cost of title insurance.

For more, see Two title insurance companies ordered to pay over $240,000 in penalties (Action comes as new title insurance laws become effective).

Go here for other posts involving legal issues related to title insurance. title insurance legal issues

Regulator Reviewing Elderly Complaints Against Financial Advisors With Lofty Titles

The Wall Street Journal reports:

• The Financial Industry Regulatory Authority is starting to evaluate complaints by investors about brokers who hold any of three popular designations that imply expertise in working with seniors and retirees. Susan Merrill, the agency's enforcement chief, says her staff is evaluating the requirements behind the three most popular senior-related designations: Chartered Retirement Planning Counselor, Certified Senior Advisor and Chartered Advisor for Senior Living. The agency also is compiling the records of complaints against advisers who hold those designations, to see whether any patterns exist.

• Many of the more than 50 titles that imply expertise in advising seniors or retirees reflect training that shows advisers "how to sell to this market" rather than how to help clients, says Jean Setzfand, director of financial security for AARP, the Washington-based advocacy group for people 50 years old and older.

For more, see Title Check (The latest news from the world of financial planners) (2nd story from the top; may require subscription - if no subscription try here, then click link).

Go here , go here , and go here for other posts on elder financial abuse. xero

City Of Baltimore To Target Wells Fargo In Federal Race Bias Suit Alleging Discriminatory Predatory Lending

In Baltimore, Maryland, The Baltimore Sun reports:

• In a potentially groundbreaking lawsuit intended to stem foreclosures in Baltimore, Mayor Sheila Dixon's administration is suing a leading mortgage provider for what the city says has been a pattern of predatory lending in black neighborhoods. The lawsuit, which the Dixon administration plans to file today in U.S. District Court, alleges that California-based Wells Fargo Bank sold higher-interest subprime mortgages to blacks more frequently than to whites and that the practice, known as reverse redlining, violates federal housing law. Lenders are increasingly coming under legal attack from borrowers and investors stung by the subprime mortgage crisis, but Baltimore's lawsuit could be the first in the nation in which a city is attempting to recapture costs associated with foreclosed homes that wind up vacant.

***

• "They knew that the minority community was so desperate to get loans because they had been denied credit for so long," said John Relman, a partner at the Washington law firm Relman & Dane, which the city hired to help litigate the case. "They knew that people were so ready to say yes to anything that they went in there and charged them higher rates."

For more, see Lawsuit by city targets lender (Subprime mortgages unfairly marketed to blacks, it alleges).

See also:

• Baltimore Is Suing Bank Over Foreclosure Crisis (The New York Times),
• Baltimore lawsuit will accuse bank of predatory lending practices (The Associated Press),
• City sues Wells Fargo (Examiner.com).

To view the lawsuit, see Mayor and City Council of Baltimore v. Wells Fargo Bank, N.A., et al. (8.76 MB).

Representing the City Of Baltimore is the Washington, D.C. law firm Relman & Dane.

Go here and go here for other posts on alleged race bias in real estate transactions. race bias predatory lending

"Bank Day" A Bad Day In Buffalo Housing Court For Foreclosing Banks Stuck With Blighted Homes

The cover story on a recent issue of BusinessWeek reports on what a few cities around the country are starting to do to hold giant lenders accountable for the blight being left behind by the foreclosure problem. The story begins as follows:

• On Dec. 17 in a windowless Buffalo courtroom, Cindy T. Cooper, a prosecutor for the city, buzzes among a dozen men in suits, cutting deals. "You've got to unboard [the house], go in, and clean it out," she tells one. "If all the repairs are done quickly, I wouldn't ask for any fines." To another, she says, "the gutters weren't done right," and asks to see receipts for the work. It's "Bank Day" in Judge Henry J. Nowak's housing courtroom, more typically a venue where landlords and tenants duke it out over evictions and back rent.

• Instead, Cooper is asking lawyers for CitiFinancial, JPMorgan Chase, and Countrywide Financial to fix problems like peeling paint, broken masonry, and overgrown or trash-filled yards at houses the city says the banks are responsible for maintaining. It may be surprising to find these financial-services giants hauled before this obscure local tribunal. In fact, Cooper and Nowak are at the forefront of a pioneering effort to deal with a vexing problem: the surging number of vacant and abandoned homes resulting from the mortgage market meltdown. The vacancies occur when lenders bring foreclosure suits against delinquent borrowers. Mere notice that such an action might be filed often sends residents packing. In Buffalo and other Rust Belt cities, the problem has been particularly acute, because in many cases banks are abandoning the houses, too, after determining that their value is so low that it's not worth laying claim to them. When city officials try to hold someone responsible for dilapidated properties, they often find the homeowner and bank pointing fingers at each other. Indeed, the houses fall into a kind of legal limbo that Cleveland housing attorney Kermit J. Lind calls "toxic title". While formal ownership remains with a borrower who has fled, the bank retains its lien on the property. That opens up a dispute over who is responsible for taxes and maintenance. Even when lenders do complete the foreclosure, they may walk away from the property, leaving it to be taken by a city for unpaid taxes, a process that can take years. Orphaned properties quickly fall into disrepair, the deterioration sometimes hastened by vandals who trash the interiors, lighting fires and ripping out wiring and pipes to sell for scrap. Squatters or drug dealers may move in.

For more, see Dirty Deeds (The mortgage crisis has blighted the landscape with boarded-up houses. Now a few cities are holding giant lenders accountable for what foreclosure leaves behind).

For a related post on a lender and a former homeowner "pointing fingers at each other" with regard to the responsibility for property maintenance on a foreclosed home, see Foreclosing Lender Fails To Record Title To Ohio Home, Leaving Former Owner On The Hook For Criminal Building Code Charges.

NYC Lawyer Suspended For Alleged Mismanagement Of Retired Judge's Estate

In Brooklyn, New York, the Brooklyn Daily Eagle reports:

• The allegations of fraud that have swirled around the handling of a retired judge’s once-vast real estate empire have finally taken solid form after a blockbuster decision by a Manhattan disciplinary committee leveled serious charges against a lawyer long at the center of the controversy. The attorney disciplinary body of the Appellate Division, First Department, recently rendered a decision condemning the handling of retired judge John Phillips’ assets by court-appointed attorney Emani P. Taylor. The former property guardian was charged with mismanagement of close to three-quarters of a million dollars in cash and real estate during her two-plus year tenure as property guardian. In the Dec. 27, 2007, decision by investigators looking into the case ordered Taylor, “be suspended from the practice of law, effective immediately.”

For more, see Disciplinary Committee Suspends Attorney (Retired Judge’s Former Property Guardian Charged With Improper Handling of Estate Funds).

See also, Judge’s Guardian Suspended For Handling Of Money (North Country Gazette).

For the New York Appellate Court ruling on this case, see In the Matter of Emani P. Taylor, (Supreme Court Appellate Division, 1st Department, December 27, 2007).

For an earlier post on this story, see Retired NY Judge Reportedly Left Homeless & Broke By Guardianship Process.

Go here for other posts on the escapades of public administrators' / public guardians' offices when taking over the assets of the dead and incapacitated. daily eagle retired judge

Insurance Cash Motive For Torching Omaha Home In Foreclosure, Says Investigator

Years ago, homeowners who dutifully made their home mortgage payments until the loan was fully paid would engage in a ritual konwn as "burning the mortgage" whereby, upon receiving their mortgage papers back from the bank (yes, in the old days and unlike today, the bank would actually return that (negotiable) promissory note that you signed at the mortgage closing years earlier after it was fully paid), the homeowner would burn the loan papers as a symbol that the mortgage obligation no longer existed.

In recent times, however, some financially strapped homeowners are increasingly engaging in a slightly different ritual; rather than paying off the home mortgage and torching the papers, they're torching the home and letting the insurance company pay off the mortgage. The following excerpts from the Omaha World-Herald describe one homeowner suspected of doing same:

• Arson charges were filed Friday in Omaha against the owner of a Rockbrook neighborhood home that was badly damaged by fire in November. Brad T. Cox, 27, is accused of having a friend, 29-year-old Joseph Smith, start the fire at Cox's house, [...] . The alleged motive: insurance fraud. A big clue: Some of Cox's furniture ended up in Smith's home, [...] , investigators say. The Nov. 10 blaze caused an estimated $240,000 damage to Cox's house, according to its insurer, Travelers Insurance, said Capt. John Glesinger, an Omaha Fire Department investigator. At the time of the fire, the house was going into foreclosure, Glesinger said. "Our allegation is that Mr. Cox wanted to have the house burned to collect insurance money on it," Glesinger said. Cox is accused of persuading Smith to start the fire. "This was done while Mr. Cox was out of town to make sure the shadow of suspicion would not be cast upon him," Glesinger said.

For more, see Owner, friend face arson charges in Omaha house fire.

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

Clients Sue Financial Firm For Losses In Mortgage-Backed Junk; May Be Part Of "First Wave" Of Subprime Litigation

The New York Times reports:

• The State Street Corporation, which manages $2 trillion for pension funds and other institutions, ousted a senior executive on Thursday and said it would set aside $618 million to cover legal claims stemming from investments tied to mortgage securities. State Street made the announcement after five clients sued it, claiming they had lost tens of millions of dollars in State Street funds that they were told would be largely invested in risk-free debt like Treasuries. One fund lost 28 percent of its value during the credit troubles in the summer after placing big bets on mortgage-related securities, according to the lawsuits.

***

• Last month, a town in Australia sued a unit of Lehman Brothers for selling it collateralized debt obligations that lost 84 percent of their value, a charge refuted by the firm. In Norway, Terra Securities filed for bankruptcy protection in November after regulators revoked its license for selling risky American securities to a cluster of towns near the Arctic Circle. “This is the first wave of these securities fraud suits,” said Gregory J. Hindy, a securities lawyer and partner at McCarter & English in Newark. “There could be many, many more.”

For more, see State Street Corp. Is Sued Over Pension Fund Losses.

For a related story, see Tort Lawsuits Soar Over Subprime Lending (The New York Sun).

The Boston Globe On NACA CEO Bruce Marks

The Boston Globe recently ran a story on their 2007 Bostonian of the Year, consumer advocate / housing activist Bruce Marks, the founder and chief executive officer of the nonprofit Neighborhood Assistance Corporation of America, or NACA. The following excerpts provide a prelude for the rest of the story:

• [I]f you should find yourself up against one of the nation's most powerful banks, feeling abused by a maddening loop of automated messages, threatening letters, and buck-passing paper pushers, if you should feel powerless to reassure your little daughter when she tearfully asks you if you're going to lose the only home she's ever known, well then, there's nobody you'd want in your corner more than Bruce Marks. And sadly, a whole lot of desperate people had to turn to Marks for help this year, and a whole lot more will need his emergency services in the year ahead.

One veteran banking executive describes Marks as follows:

• "It's almost as if Bruce has two personalities. There's the advocate and bomb thrower, which has made many people in banking wary of him. But behind that, there's this incredibly effective, disciplined businessperson."

For more, see Guarding the House (Wall Street made billions off the backs of homeowners. But when the mortgage crisis blew up, a pit bull named Bruce Marks stood up for the Average Joes and, incredibly, got some of the biggest banks to bend).

HUD Settles Case With Six Home Builders In Alleged Scheme To Hide Title Insurance Kickbacks

HUD allegations of violations of Federal law by six major homebuilders involving hidden title insurance kickbacks, referral fees, etc. allegedly received by them were settled by the parties, according to the following excerpt from a 10-29-07 HUD press release:

• The U.S. Department of Housing and Urban Development [...] announced separate settlement agreements with six major homebuilders that engaged in complex business arrangements involving captive title reinsurance. The agreements announced [...] stem from alleged violations of The Real Estate Settlement Procedures Act (RESPA) and total nearly $1.4 million. [...] “There’s no legitimate purpose for captive title reinsurance when it comes to single-family homes,” said Brian D. Montgomery, HUD Assistant Secretary for Housing and Federal Housing Commissioner. “It’s increasingly clear to us that these complicated business arrangements serve no other purpose than to hide referral fees and kickbacks which are expressly forbidden by law.” [...] In HUD’s view, any captive title reinsurance arrangements in which payments are not bona fide and exceed the value of the reinsurance are a violation of RESPA.

The six builders targeted by HUD in this enforcement action were: Pulte Homes, Inc., KB Home, Beazer Homes USA, Inc., Meritage Homes Corp. and affiliates, The Ryland Group, Inc., and Technical Olympic USA, Inc. (TOUSA Homes), along with their captive title reinsurance companies.

For more, see HUD Announces Six Settlement Agreements With Builders Involved In Captive Title Reinsurance Arrangements (Nearly $1.4 million in settlements the result of Department’s enforcement effort).

For links to the six separate 10-29-07 settlement agreements, as well as RESPA settlement agreements resulting from enforcement actions by HUD against other alleged RESPA violators, see RESPA Settlement Agreements, on the HUD website.

Go here for other posts involving legal issues related to title insurance. title insurance legal issues

Santa Clara DA Obtains Indictment In Alleged Foreclosure Rescue, Refinance Scam

In Santa Clara County, California, the Silicon Valley / San Jose Business Journal reports:

• In one of the first criminal cases in the Silicon Valley stemming from the subprime scandal, the [Santa Clara] district attorney obtained indictments against a Realtor and a broker with the now-defunct Su Casa/Century 21 office [...] . Charged are Realtor Alberto Parra and mortgage broker Oscar Nuñez, who set up [an] alleged scam that snared [homeowner Boris] Michel and his family, according to the indictment in Santa Clara County Superior Court. Parra and Nuñez have pleaded not guilty.

***

• Prosecutors call the Su Casa case a co-signer scam. According to the district attorney, [... t]rouble began [...] when [Michel] lost his warehouse job at Lifescan, when the company transferred positions to Japan. His mother and sister also worked there and lost their jobs. Parra had also worked at Lifescan, but left before the layoffs to become a real estate broker. Michel's mother contacted him. According to court documents, Parra arranged a $16,000 short-term loan to Michel and then, later, a refinance.

• But this was not your usual refinance. Since Michel had missed some payments, he was no longer credit worthy. [Assistant district attorney Stephen] Gibbons says Parra arranged for a co-signer. Michel claims that he was not aware that the deed of trust would be in the name of the co-signer, and that he could lose his home. Nuñez was the mortgage broker on the deal. The grant deed Michel signed was a blank document, investigators say. The name entered on the deed was not Michel but [a straw buyer], who was paid $3,500 for the use of his name, the case file says.

• In April 2004, the Michels received a good clue that something was wrong: the loan servicing statement they received was addressed to [the straw buyer]. According to the investigation report, Parra told the Michels not to worry about that, but to just make the payments. On July 21, 2004, they were served with a notice of eviction.

For the story, see Santa Clara district attorney targets subprime loan scandal.

Three Lenders Belted For $100+ Million In Class Action Damages For Clipping Missouri Homeowners For Illegal Fees On 2nd Mortgages

(originally posted 1-5-08)
In Jackson County, Missouri, The Kansas City Star reports:

• A Jackson County jury Friday ordered three mortgage lenders to pay $99 million in punitive damages to Missouri residents who claimed they were charged illegal fees for second mortgages. The jury, which had assessed $5.1 million in actual damages against the three companies earlier in the day, reconvened in the afternoon and handed down the punitive damage awards. Collectively, the awards are among the highest assessed by a Jackson County jury in recent years in a commercial case.

• The mortgage companies — Residential Funding Co. LLC, Household Finance Corp. III and Wachovia Equity Servicing LLC — bought second mortgage loans from a lender that had charged excessive interest and illegal origination, loan discount, underwriting, processing, document preparation and legal fees under Missouri’s Second Mortgage Loan Act [sections 408.231 to 408.241, RSMo.]. The plaintiffs claimed that the companies knew of the lender’s fraudulent conduct and “stepped into its shoes.”

***

• The originating lender, Mortgage Capital Resource Corp. of California, is no longer in business. Its former chief executive, Kenneth C. Ketner of Newport Beach, Calif., was sentenced last year to 57 months in prison for mortgage fraud and ordered to repay banks he swindled $9.27 million.

• Hit hardest by Friday’s jury’s verdict was Residential Funding, which is owned by GMAC Mortgage Group and was ordered to pay $4.33 million in actual damages and $92 million in punitive damages.

***

• The case is one of several pending in Jackson County against mortgage companies that allegedly violated Missouri’s Second Mortgage Loan Act. About 10 months ago, one of the suits, against Memphis, Tenn.-based First Horizon National Corp., resulted in a $36.3 million settlement. The settlement covered the claims of more than 4,000 homeowners who obtained second-mortgage loans from First Horizon and Kansas City-based McGuire Mortgage Co. between Nov. 16, 1994, and April 13, 2005.

For more, see Mortgage lenders ordered to pay $99 million in punitive damages.

Ohio Court Rulings Frighten Away Federal Court Foreclosure Filings

In Ohio, the Cleveland Plain Dealer reported late last month:

• A Cleveland federal court ruling that has the potential to block foreclosures across the country looks as if it is already doing that in the court where the decision was written. And the bandwagon may be just starting to roll. The federal court averaged 100 new cases a month before judges recently started insisting that banks provide up front a document giving them authority to collect loans made by other lenders and held by investors. As of Friday, the number of new filings in December was two. Foreclosures are rare in federal courts but zoomed in Cleveland's in the last two years as banks seized a quicker alternative to a clogged Cuyahoga County system. Foreclosures are mounting nationwide, and filing could get tougher throughout the country if state courts adopt the federal ruling.

For more, see Federal court ruling stems foreclosure cases (Case dismissals slow banks' filings).

For other posts that reference the failure of some mortgage lenders and their attorneys to file the required loan documents when starting foreclosures, Go Here, Go Here, Go Here and Go Here. missing mortgage foreclosure docs alpha

NYC Federal Judge Halts Eviction Of Low Income Tenants In HUD-Owned, Mortgage Fraud Affected Buildings

In New York City, The New York Sun reports:

• A plan by the federal government to sell thousands of subsidized housing units in New York to private developers has suffered a setback, after a federal judge ruled Thursday that tenants facing eviction had been denied any explanation or opportunity to challenge their removal. At issue are eviction notices from the Department of Housing and Urban Development ["HUD"] to residents living in low-incoming housing, mostly in Harlem and the Bedford-Stuyvesant section of Brooklyn. A judge in Brooklyn, Frederic Block of U.S. District Court, said the notices violate the Constitution's guarantee of due process by failing to explain the reason for the evictions. Additionally HUD the agency must provide tenants with an avenue to contest them, Judge Block found.

The federal government ended up stuck with the buildings following large-scale mortgage fraud by real estate operators who obtained HUD-insured mortgages secured by the buildings, and then stiffed the lenders out of their mortgage payments, abandoning the buildings and allowing them to fall into foreclosure For more, see HUD Suffers Setback in Plan To Sell N.Y. Properties.

Landlord, Justice Dept. Settle Discrimination Complaints; Allegations Include Tenant Lease Terminations Based On National Origin

From The U.S. Department of Justice:

• The Justice Department [Friday] announced that it has reached an agreement resolving a housing discrimination lawsuit against Gary Luke, Mary Ngo and Hoa Ngo concerning alleged discrimination on the basis of national origin. Under the consent decree filed [Friday] in federal court in Santa Ana, Calif., the defendants will pay $270,844 in monetary relief to the complainants and the United States. The Department’s amended complaint alleges that the defendants terminated the leases of Hispanic tenants to replace them with Vietnamese tenants, misrepresented the availability of units to non-Vietnamese prospective tenants, and made statements in connection with the rental of apartment units that expressed a preference, limitation, or discrimination based on national origin.

***

• In addition to $174,000 in damages to be paid to the aggrieved tenants, the landlord agreed to pay the following amounts: (1) $59,344 for legal fees and expenses to the tenants' attorneys; (2) $30,000 in civil penalties to the United States; and (3) $7,500 in damages to an aggrieved individual.

For more, see Justice Department Settles Housing Discrimination Case with Orange County, California, Landlords.

For copy of lawsuit, see Complaint - U.S. v. Luke, et al.

Missouri Apartment Manager Settles HUD Housing Discrimination Charges Of Making Eviction Threats To Families With Children

From the Department of Housing and Urban Development:

• The U.S. Department of Housing and Urban Development [last month] announced a $170,000 settlement with managers of a St. Louis apartment complex for alleged violations of the Fair Housing Act. Seven families claimed the managers of the Ridge Crest Apartments subjected them to stricter community rules than residents without children and/or retaliated against them for exercising their fair housing rights. [...] Management at Ridge Crest Apartments routinely threatened tenants with eviction for allowing their children to play outside unsupervised and at least one tenant was unlawfully evicted.

***

• Under the [HUD] settlement agreement, Ridge Crest's management will pay $83,000 to the seven families and establish a $15,000 fund for any additional victims. The property will also spend $72,000 over the next two years to create an after-school program for children who live at the complex.

The apartment management applied their policy on unsupervised children to anyone under 18 years of age, according to the HUD press release. For more, see HUD Settles Discrimination Complaints Against Managers Of St. Louis Apartment Complex.

The HUD Housing Discrimination Complaint Form is available for download. For more on housing discrimination from HUD, see Fair Housing--It's Your Right, on the HUD website. Complaints must be filed within one year after an alleged violation.

California Man Facing Federal Felony Charges In Alleged Scam Promoting Sale Of Lists Of Foreclosed Homes

The Des Moines Register reports:

• A California man who authorities say stole $560,000 from more than 100 newspapers and their readers has dropped plans for a guilty plea after federal prosecutors moved to put him in prison for nearly seven years. Mark Allen Davis allegedly used bogus newspaper ads - eight were placed in The Des Moines Register between September 2004 and January 2007 - to raid the bank accounts of 998 people across the country.

***

• Federal prosecutors say Davis used his Tiburon, Calif., home to run a scheme focused on the resale of foreclosed properties. Documents say people who called a toll-free telephone number in newspaper ads would be promised a list of government-foreclosed properties in their area. Instead, a federal indictment charges, Davis used bank information provided by the callers to raid their accounts for between $126 to $189 per person.

Reportedly, documents say the scheme ultimately cost 998 individuals about $236,000, while the newspapers were stiffed to the tune of about $248,000 (including $3,700+ owed to The Des Moines Register) when Davis paid for 700+ ads with rubber checks. Abandoned accounts with negative balances allegedly controlled by Davis accounted for an additional loss of about $83,000 to a half dozen banks.

For more, see Mail fraud suspect rejects plea deal.

Florida Roofer Notorious For Leaving Trail Of Unsatisfied Customers Faces Criminal Charges

In Broward County, Florida, media reports say that Florida roofer Randolph Maya has been arrested and charged in connection with homeowners complaints that he repeatedly violated contracts and didn't perform the services contracted for. According to the reports:

• Police said Maya did the same thing over and over again. They [the homeowners] said he contracted work, started a job, took two of three payments from his clients and then left town.

***

• Polk County Sherriff's Office arrested Randolph Maya on January 3rd and has been charged with an organized scheme to defraud. Detectives said Maya was the owner of Randolph Maya LLC, which he owned and operated from December 2005 to September 2006. Investigators reported Maya took about $109,000 deposits from homeowners, but never returned to do the repairs.

***

• The Coral Springs Police Department suspects there are other victims of Maya and asks victims to call Detective Shawn Hines at 954-346-1323.

For more, see:

• Roofer Accused Of Taking Coral Springs Clients' Money (WTVJ-TV Channel 6),
• Coral Springs Roofer Arrested Fraud Charges (go here for video report) (WFOR-TV Channel 4),
• Police: Jailed roofer bilked homeowners (The Miami Herald).

For complaints against Randolph Maya, see:

• Florida Department of Business & Professional Regulation website - Complaint Details for Randolph Maya (Florida revoked Maya's license December, 2007),
• Scam Club Complaints,
• Complaints.com, #1 , #2 ,
• Feeds4all.com complaints - #1 , #2.

NY AG Hits Heating Contractor With Civil Suit For Pocketing Customer Cash Without Doing Work

From the Office of the New York State Attorney General:

• Attorney General Andrew M. Cuomo announced that his office has sued a Buffalo-area heating and cooling contractor who defrauded consumers out of thousands of dollars. The Attorney General is seeking restitution for consumers and penalties and costs against the contractor. [...] As alleged in the suit, Daniel Myers, 45, of Hunt St. in Buffalo required customers to make advance payments to install furnaces. However, he repeatedly failed to provide the work for which he had been paid, and he failed to deposit the advance payments into a trust account, as required by New York State law. The Attorney General’s suit seeks to bar Myers from the home improvement business until he posts a $20,000 performance bond.

Past customers of Myers who believe they may have been victims of similar actions should contact the Attorney General’s Buffalo Regional Office at 716-853-8400.

For more, see Attorney General Cuomo Sues Buffalo Heating Contractor For Defrauding Homeowners Out Of Thousands Of Dollars (AG’s suit seeks $20,000 performance bond; Judge signs temporary restraining order barring contractor from taking any new jobs).

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here. contractors stiff subs customers yelbow Cuomo hammers contractors

Phoenix Pool Builder Publicizing Alleged Kickback Scam Between New Home Builders, Pool Companies Costing Consumers Million$

In Phoenix, Arizona, The Arizona Republic reports:

• One of Arizona's largest pool builders has taken to the air waves claiming that home buyers are being duped into spending thousands of extra dollars to put swimming pools in their new homes. Ron Ostlund, owner of Riviera Pools in Phoenix, has launched an advertising and Internet campaign to publicize what he describes as a "kickback scheme" between new home builders and several pool companies. Ostlund estimates that agreements between home builders and pool companies to act as "preferred pool builders" have cost 70,000 homeowners as much as $250 million in overpayments since 1997.

For more, see Pool builder: 'Kickbacks' cost homeowners millions.

Two Bribe-Taking Judges Report To Jail; Join Bribe-Paying Attorney

In Jackson, Mississippi, The Associated Press reports:

• Two former judges report[ed] to federal prison [last week] to begin serving lengthy sentences for their roles in a judicial bribery scandal that entangled one of the state's most prominent plaintiffs attorneys. Former Circuit Judge John Whitfield and former Chancery Judge Wes Teel, both of Harrison County on the Mississippi coast, were convicted in March of bribery and mail fraud. Whitfield, 45, was sentenced to more than nine years. Teel, 57, was sentenced to almost six years. Paul Minor, who was convicted of bribing the judges, is already serving an 11-year sentence in a federal prison in Tallahassee, Fla. The 61-year-old Minor was once considered among the top trial lawyers in Mississippi, amassing a fortune from tobacco, asbestos and other litigation.

The men were found guilty at the end of a second trial. The first trial in 2005, which ended with the acquittal of Mississippi Supreme Court Justice Oliver Diaz Jr., ended in a hung jury as to them. Diaz was the only one cleared of all charges and has since returned to the bench.

Minor and the former judges are appealing their convictions, claiming to be victims of a political witchhunt by a Republican controlled [U.S.] Justice Department that wanted to bring an end to Minor's financial support of Democratic candidates.

For more, see Former Miss. judges report to jail.

Go here for other posts on judges and their "judicial misjudgments". naughty judges knuckleheaded judges zeta

Upstate NY Man Gets 3 To 6 Years For Fleecing 80+ Year Old Grandmother Of $875K

The New York State Attorney General's Office recently reported:

• Attorney General Andrew M. Cuomo [recently] announced the guilty plea of a Delaware County man who stole more than $875,000 from his grandmother. Michael Schmitt, 38, of Franklin, pleaded guilty to Grand Larceny in the Second Degree (class C felony) [...] .“My office is committed to protecting New York’s elderly population from those who would seek to victimize them for financial gain,” said Attorney General Cuomo. “This case is especially egregious since this defendant stole from his very own grandmother.”

For more, see:

• Delaware County Man Pleads Guilty To Stealing More Than $875,000 From His Grandmother (Michael Schmitt allegedly spent her money on gambling, lavish personal expenses) (NY AG Press Release),
• Man imprisoned for thefts from grandmother (Schmitt will go to prison for three to six years; Binghampton Press & Sun-Bulletin).

Go here , go here , and go here for other posts on elder financial abuse. xero

Subprime Mortgages, Home Equity Scam Artists Hammering Prince George's County

Buried in a story on the foreclosure problem in Prince George's County, Maryland, WRC-TV Channel 4 reports:

• State and county leaders said the [foreclosure] problem is bad and getting worse. Prince George's County had just more than 1,200 foreclosures in the entire 2006 fiscal year.
  In the first three quarters of the current fiscal year, the number has totaled more than 3,300. Labor, Licensing and Regulation Secretary Tom Perez said the county primarily suffers from two problems: a disproportionate amount of homeowners with subprime loans and a high number of scam artists. "Our investigators are spending a lot of time in Prince George's County investigating cases involving scam artists who are swindling very hardworking Prince Georgians out of their homes," Perez said.

For more, see PG Officials Hold Forum To Discuss Foreclosure Problem (read story) (watch video).

Colorado Man Nailed With 62 Count Indictment Alleging Theft Of Million$ From Dozens In Foreclosed Home Investment Scam

In Denver, Colorado, KUSA-TV Channel 9 reports:

• A Colorado man is accused of stealing millions from would-be investors through an elaborate real estate fraud. A Denver grand jury indicted 64-year-old Kenneth Germain on January 2 on 62 counts, including theft and securities fraud. Prosecutors say Germain scammed dozens of people into buying foreclosed properties from the U.S. Department of Housing and Urban Development and then kept the money for his own benefit. An arrest warrant has been issued for Germain and the Denver District Attorney's Office says he has made arrangements to turn himself in to authorities in the next few days. The indictment lists 60 victims with 167 properties involved in the alleged scam. [...] An economic crime unit for the Denver District Attorney's office investigated Germain, along with the Office of Inspector General for the U.S. Department of Housing and Urban Development.

In addition to the theft charges and multiple counts of state securities fraud, Germain faces state racketeering charges. Reportedly, the damage caused by the alleged scam includes loss of savings, ruined credit, homes in foreclosure due to inflated appraisals, illness, divorce.

For more, see Man accused of scamming 60 different people.

Go here for the Indictment - State of Colorado v. Germain.

Bankrupt Mortgage Company Proposal To Destroy 490,000 Mortgage Loan Files Draws Heavy Criticism

(originally posted 1-3-08)
In light of the recent stories about stalled mortgage foreclosure actions attributable to the foreclosing lenders' inability to produce original loan documents establishing ownership, and other stories on homeowners invoking their Truth In Lending rights to undo bad loans, a recent story reported by The Associated Press caught my eye:

• American Home Mortgage Investment Corp.'s plan to destroy 490,000 hardcopy mortgage loan files has drawn fire from federal bankruptcy monitors, who say it could hurt homeowners' ability to sue the failed lender. The company, once one of the country's largest mortgage lenders, says it can no longer afford the $45,000-per-month rental on warehouse space to preserve hard loan files. Its bid for court permission to destroy the files has been criticized by Kelly Beaudin Stapleton, the U.S. Trustee monitoring the case.

• Destruction of the paper files could mean big trouble for American Home borrowers, compromising their ability to file lawsuits against the Melville, N.Y., company, Stapleton said in papers filed with the U.S. Bankruptcy Court in Wilmington, Del. American Home, which collapsed into bankruptcy in August, is selling its assets and going out of business. "Homeowners may have claims against (American Home) and/or third parties stemming from the origination of their mortgage loans," Stapleton said in court papers filed last week. "These homeowners may need access to the original copy of the loan file to prove their claim."

• John Kalas, American Home's deputy general counsel and chief compliance officer, said Thursday that the planned destruction would not affect homeowners, because the paper copies are duplicates. "The only loan files that we are destroying or seeking to destroy have been fully imaged," Kalas said. "Anything related to consumer concerns or loan fraud or anything like that, the information would be available on American Home servers."

• Investors who own the loans also have protested the plan to destroy the files, complaining in court papers that they have had trouble getting full documentation from American Home, and don't want to see the paper files destroyed.

For more, see American Home Under Fire Over Loan Files.

For other posts that reference the failure of some mortgage lenders and their attorneys to file the required loan documents when starting foreclosures, Go Here, Go Here, Go Here and Go Here. missing mortgage foreclosure docs alpha undo mortgage loans TILA alpha

Title Insurance Companies Targeted In Class Action Lawsuits For Miniscule Overcharges In Real Estate Closings

In Kansas City, Kansas, The Kansas City Star reported last month:

• Two Kansas residents who sued Chicago Title for charging $6 more in recording fees than it paid have lost their bid to bring the case as a class action. James A. and Aimee Doll alleged that when they refinanced the mortgage on their house in 2002, Chicago Title, which acted as the settlement agent, charged them recording fees of $45 for the mortgage and release. The company, however, paid only $39 to record the documents, the Dolls contended, and failed to refund the excess charge.

• The couple sought to have the case certified as a class action on behalf of residents of Kansas, 17 other states and the District of Columbia. But in a 29-page decision last [month], U.S. District Judge John Lungstrum ruled that the Dolls’ claims were not typical of all claims in the would-be class — a prerequisite for class-action certification.

***

• [The Doll's attorney Kirk] May and his law firm have already filed similar suits against title insurance companies in other jurisdictions. Pending in Jackson County Circuit Court are four such actions — against Chicago Title, Nations Title, Kansas City Title and Old Republic Title. Yet another action against several firms, including Chicago Title, is pending in Texas. Although all the pending suits involve minuscule amounts of money on an individual basis, multiplied by thousands, or even millions, of transactions, the sums at stake are considerable.

• “It’s death by a thousand cuts,” May said. “For the one person, we’re not talking about much. But when you have 5 million, 7 million transactions, it turns into some real money.”

For more, see Lawsuit against title company won’t be a class action (if link expires, try here).

Go here for other posts involving legal issues related to title insurance. title insurance legal issues

Maryland Class Action Suit Alleging Illegal Mortgage Prepayment Fee Allowed To Continue

In Baltimore, Maryland, Examiner.com reported recently:

• A class-action lawsuit against Provident Bank’s alleged charging of prepayment fees on mortgages will go forward after the state Court of Appeals [last month] overturned a lower court’s decision in favor of the bank. The Court of Appeals ruled 7-0 that the Circuit Court of Baltimore City erred in ruling against Andrew Bednar, who filed suit in 2005 against Provident alleging that the bank charged him a penalty in violation of state law after he paid off a second mortgage within three years of taking out the loan. In an opinion, retired Judge John C. Eldridge wrote that state law “unambiguously and flatly” forbids a prepayment charge, and to find an exception to the law “would be to violate the most basic principle of statutory construction.”

***

• Bednar claims he was charged $681 by Provident when he refinanced with another lender and paid off a $17,000 second mortgage two years after taking it out with the bank. According to court documents, in taking out the loan, the bank waived closing costs on the condition that Bednar not close the account for a minimum of three years. At the settlement of his refinanced loan, Bednar said the bank collected $681 in a variety of fees from his original closing cost. Provident argued, and the lower court maintained, that the charge was imposed not at the time of Bednar’s refinancing but when he closed the second mortgage in 2003. The Court of Appeals disagreed.

The Maryland prohibition against charging prepayment fees apparently applies to Provident Bank, a state chartered bank, and other non-federally chartered lenders. One gripe about the law is that since it doesn't apply to federally chartered institutions, those lenders arguably have a competitve advantage over lenders like Provident.

For more, see Court of Appeals allows class-action lawsuit against Provident.

See also, The Baltimore Sun: Md. mortgage fee lawsuit reinstated (State high court finds against Provident Bank).

Maryland Law Students To Volunteer Services To Gulf Coast Residents Facing Foreclosure

Examiner.com reports:

• University of Maryland law students plan to travel to the Gulf Coast this week — and give up their winter vacation — to offer their legal smarts and rebuild broken lives. [...] The project’s participants have more than tripled from 25 to 80, and for the first time this year, Welch and other students will work pro bono at the Mississippi Center for Justice to aid residents at risk of losing their homes after falling behind on mortgage payments.

For more, see Law students to help victims of Katrina to keep their homes.

Grand Rapids Homeowner Victimized In I.D. Theft / Refinance Scam, Says Federal Lawsuit

In Grand Rapids, Michigan, WOOD-TV Channel 8 reported last month:

• Identity theft through mortgages is enough of a problem these days that an FBI agent went to a local group of real estate professionals and warned them of the consequences. In one such case - in which a federal lawsuit was filed in Grand Rapids - the victim says someone who she thought she could trust took her advantage of her because she doesn't speak English.

• Artemia Maldonado's son got sick last fall so she wanted to sell her Grand Rapids home to go live with her son. She then went to Adriana Salazar. "She was familiar and she could speak Spanish, so it was a lot easier," Artemia Maldonado's interpreter said of Salazar. "Said she was going to help sell her home, that she was going to sell it to some investors."

• But Salazar didn't sell it. Instead, according to the lawsuit, Salazar conspired with a couple of Ottawa County brothers working in real estate and made Maldonado sign documents that refinanced her home, and bought another one [...] . Maldonado says she was told they were sale documents. She couldn't read them because she doesn't speak English.

For more, see Woman claims she's a mortgage ID theft victim. (watch video) (read story transcript).

Editor's Note: The lawsuit includes allegations of civil racketeering (RICO - involving alleged conduct constituting mail fraud, wire fraud, and bank fraud), fraud, civil conspiracy, violations of the Real Estate Settlement Procedures Act, breach of fiduciary duty, among others.

To view the lawsuit, see Complaint - Maldonado v. Salazar, et al.

Go here and go here for other posts on deed theft by forgery, swindle, etc. deed theft yahtzee

$3M Bond Sustained In 147 Count Akron-Area Mortgage Fraud Indictment

In Akron, Ohio, the Akron Beacon Journal reports:

• A Summit County judge denied a defense request on Wednesday to reduce the $3 million cash bond for Evergreen Corp. President David B. Willan. Willan, 37, was among 17 suspects named last month in a 147-count indictment in connection with a two-year investigation into Akron-area mortgage fraud. [...] Defense lawyer Brian J. Williams called the bond ''utterly ridiculous'' and told [Summit County Common Pleas Judge Thomas A.] Teodosio that bond for a defendant in a pending Summit County murder case is $1 million for the most serious crime under Ohio law. By contrast, Williams said, Willan is charged with a ''white-collar'' crime, has no previous criminal history, was born in Barberton, still lives here and, therefore, should not be considered a flight risk.

For more, see Bond upheld for mortgage fraud suspect (Evergreen president's lawyer says $3 million is ridiculous for white-collar crime case).

In a related story, see Homebuyers trapped (Inflated prices, double mortgages lead to problems)

• "[A Stark County, Ohio homeowner] wonders if she’s caught in the same mortgage-fraud trap that Summit County prosecutors say ensnared at least 300 properties near Akron. One Summit County prosecutor thinks so. And he says Hammond likely isn’t the only Stark County resident affected." [Homeowner purchased house from David Willan's Evergreen Homes.]

Go here for other posts on the Akron-area 147 count mortgage fraud indictment.

35 Of 37 Plaintiffs Bail Out Of Pennsylvania Ponzi Scheme Class Action

In eastern Pennsylvania, Lancaster Online reports:

• Thirty-five homeowners stung in a mortgage scheme operated by bankrupt mortgage broker Wesley A. Snyder have voluntarily withdrawn their claims in a class-action lawsuit filed against a group of banks with which Snyder did business. But attorneys who are seeking to have a federal judge revoke the more than 800 mortgages — which ballooned collectively by about $40 million when Snyder's business collapsed in September — say they are still seeking to establish a class-action suit against the 27 banks that hold the mortgages. [...] A Lancaster attorney said [last week] it's likely Snyder's customers will file hundreds of other lawsuits against the banks.

For more, see Mortgage suit loses 35 of 37 parties (But class-action push not dead, lawyers say).

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

Nebraska Foreclosure Rescue Operator Back In The News

In Omaha, Nebraska, The Associated Press reports:

• Foreclosure fraud is a concern in many states because of the growing number of foreclosures. One Omaha company, Mid-America Financial Investment Corporation, was already ordered to return title to 11 homeowners and pay $378,000 in fees to the victims' lawyers for using fraudulent tactics. Now Mid-America will be back in the state Supreme Court to argue that it shouldn't have to pay damages to two other homeowners. Mid-America executives defended their business practices in court. But the courts ruled their testimony wasn't credible. Mid-America no longer buys properties from the owners right before foreclosure auctions. At least eight states have adopted laws designed to help protect consumers from the questionable practices some foreclosure consultants use. Nebraska's Legislature considered but did not pass such legislation last year.

Source: Foreclosure fraud is a concern in many states.

See also, The Associated Press: Neb. Foreclosure Fraud Cases in Court for additional details.

For a prior post on Mid-America Financial, see Foreclosure Rescue Operator Ordered To Return Homes To A Dozen Victims.

Las Vegas Man Facing Multiple Felony Counts In Rent Skimming, Rent To Own Scam; Targeted Homeowners Facing Foreclosure & Unwitting Renters

The fact that many homeowners facing foreclosure in today's market have minimal or no equity in their homes (many actually owe more on their mortgage than the value of the home - ie. "upside down") is no deterrent to scam artists looking to victimize them for financial gain under the guise of a foreclosure rescue, as the follwing story shows.

In Las Vegas, Nevada, KVBC-TV Channel 3 reports:

• It's a housing scam so big investigators admit the cases they know about may be just the tip of the iceberg. A Las Vegas man is behind bars accused of preying on those who were about to lose their homes. He said he could save them from foreclosure. [...] Matt Marlon has gone by plenty of names: Andrew Johnson and John Alson, among others. If you recognize him, the Secretary of State's Office wants to hear from you.

***

• At least sixty valley homeowners thought Marlon could help them. He offered to save them from foreclosure. "He would locate victims by doing a search of the public records on the Recorder's Office (website) for notice of default that are recorded then contact the victims saying he was interested in purchasing your home," [Nevada Secretary of State spokesperson Carolyn] Ellsworth explains.

• "He'd come to the house with a notary in tow," Ellsworth continues. "He'd give them documents saying he'd take care of everything. Take care of the payment, take care of paying off the mortgage and I'll pay you some cash too. He'd have them sign a contract of sale." Despite how official the forms signed by the homeowners might look, Marlon didn't really buy the house and he didn't pay off the mortgage. "After he would get the rightful owners out of the house under false pretenses, he would put renters in the houses in many cases. And those people... my investigators talked to one renter who felt they were leasing to own," Ellsworth said.

Reportedly, he used at least four different aliases, created at least 45 different corporations in his alleged scam, and used a post office box as his office. Marlon faces multiple felony counts of:

1. offering a false document for filing or recording,
2. theft of property by false pretenses,
3. theft of property by false pretenses from victims over the age of 60, and
4. forgery.

See Criminal Complaint - State of Nevada v. Marlon (if no longer available online, drop me a line at HomeEquityTheft@yahoo.com and I'll e-mail it to you - please put "State of Nevada v. Marlon" in the subject line).

For more, see Accused foreclosure scam artist behind bars (read story) (watch video).

See also, KLAS-TV Channel 8 report: Local Businessman Arrested in Massive Mortgage Fraud Case (read story) (watch video).

For more on "Rent To Own" and Lease / Option real estate scams, see "Rent To Own" Scams I.

For other posts involving rent / equity skimming scams, see Tenants Unwittingly Renting Homes In Foreclosure I , II , III , and IV.

Editor's Note: As the number of "upside down" homes going into foreclosure increase, you can watch the number of incidents involving this scam to increase as well. rent to own lease purchase option scams zebra; equity skimming unwittingly gamma

Alleged Rent-To-Own / Rent Skimming Scams Among Those Linked To Jailed Twin Cities-Area Mortgage Broker

In Oakdale, Minnesota, the Pioneer Press reports:

• An east metro mortgage broker imprisoned for defrauding co-workers and customers across the Twin Cities metro area is being investigated for similar accusations in Oakdale. Oakdale police have searched U.S. Bank in Oakdale for documentation of transactions involving Christopher James Whidby, 32, his alleged victims and the companies he did business under, according to documentation supporting a search warrant executed by Oakdale police. Investigators believe the Woodbury man might have swindled more than half a dozen people out of tens of thousands of dollars in the past 2½ years.

***

• According to documents related to the search warrant, police are looking into five separate scams. In one, Kari Lynn Mueller, 34, and her husband entered into a rent-to-own agreement with one of Whidby's companies for a residence on Upper 24th Street in Oakdale. The Muellers made monthly home payments to Whidby's company, and Whidby assured them he was applying the payments to their home loan. But in April, the couple learned their house was going into foreclosure and their property taxes were delinquent, the documents state. Whidby, they say, never paid them. "It has devastated our lives," Mueller said Friday. She said she and her family have had to move out of the house. According to an affidavit, the couple lost more than $20,000 in the deal. [...] Another couple told police they lost about $2,800 in a similar scam with Whidby involving a residence in Somerset, Wis.

For more, see Oakdale / Broker may have scammed others (Woodbury man already serving three years for fraud).

For more on "Rent To Own" and Lease / Option real estate scams, see "Rent To Own" Scams I.

For other posts involving rent / equity skimming scams, see Tenants Unwittingly Renting Homes In Foreclosure I , II , III , and IV. rent to own lease purchase option scams zebra; equity skimming unwittingly gamma