SW Fla. Alleged Rent-To-Own Straw Buyer Scam Leaves Would-Be Buyers Booted From Homes, Investors w/ Ruined Credit, Foreclosing Lenders Holding The Bag

In Fort Myers, Florida, The News Press reports:

• A Fort Myers real estate sales associate was arrested Thursday and charged with 61 counts related to a multimillion dollar mortgage fraud scheme in Southwest Florida. Mark Wallen, 38, [...] was booked into the Lee County Jail [...] and is being held on $100,000 bond, state attorney’s office spokeswoman Samantha Syoen said.

• The state alleges Wallen worked with a group of real estate professionals(1) who were filing fraudulent loan applications - taking advantage of those with both good and bad credit - and getting more than $3 million from fees and defaulted loans. [...] Investigators with the Florida Department of Law Enforcement have said that between 2002 and 2004, Fort Myers-based Alternative Home Finance would find renters with bad credit ratings and allow them to pick out a house to rent and eventually own. The company would then allegedly find people with good credit and take out multiple loan applications in the name of one borrower while falsifying applications. After collecting money from a bank, they would allow the house to go into foreclosure, leaving renters without a home, borrowers with bad credit and banks to foot the bill.

For the story, see Fort Myers man charged in mortgage fraud scheme.

(1) Reportedly, the State Attorney's Office filed charges in January against five people — Trinity Hansen, James Dalonzo, Jeremy Hatlee, Paul Bosnyak and Brian Chili. Of those, Dalonzo has yet to be arrested. Hansen, who runs Safe Harbor Title Co. of Fort Myers, was formerly engaged to Wallen. The State Attorney's Office alleges Hansen, Dalonzo, Hatlee, Bosnyak and Chili worked as part of the scheme with Christopher Kim Jack, Erich Heckler and Erling Hall. Heckler was a fugitive until he was picked up last month in Costa Rica (see Private investigator who caught Lee County fugitive talks to WINK News (Eric Heckler was on the run for over one year)). rent to own lease purchase option scams yellowstone