Ex-Real Estate Agent Faces Forgery, Theft Charges For Use Of Fraudulent HUD-1s To Dupe Lenders Into Giving 100% Financing To Same Buyer For 6 Homes

In Weld County, Colorado, The Greeley Tribune reports:

• A former Greeley Realtor whose license was yanked last year faces 12 felony charges in Weld District Court upon a grand jury indictment. The Weld County Sheriff's Office has a warrant out for the arrest of Tracy Todd, 35, of Greeley. The grand jury handed down the 20-page indictment against Todd in late August, alleging he participated in a kickback scheme on six home sales in February 2006. Todd's Realtor license was suspended in June 2006, and it was revoked last year for his participation in mortgage fraud schemes.

• The indictment charges Todd with six counts of felony forgery and six counts of felony theft. The forgery charges stem from misrepresentations alleged on the Housing and Urban Development [closing] statements [also known as HUD-1] that are included in any home sale closing. The indictment also charges six counts of felony theft, each of which could put him in prison for 12 years. According to the indictment, Todd participated in a scheme to sell six homes to the same investment buyer, Tom Lee, paying $78,000 on all the sales for the buyer to qualify for 100 percent financing, plus an additional $36,000 after the sales went through, without disclosing it in the sale documents. The kickback schemes all apparently have many forms, but the common theme for most is forgery, or misrepresentations on closing documents.

For more, see Greeley man faces 12 felony charges for his alleged role in mortgage fraud.