4 Sentenced In Straw Buyer Scam That Fleeced Banks, Then Used 'Rent To Own' Lure To Dupe Would-Be Buyers Into Paying On Homes That Ended In F'closure

In Raleigh, North Carolina, The News & Observer reports:

• Triangle, state and federal officials say they used a relatively new state law to break up a mortgage fraud ring in the Triangle that bilked housing lenders across the state out of millions of dollars. Four people were charged with being part of the ring and were the first to be convicted under the N.C. Residential Mortgage Fraud Act of 2007.
• Douglas Scott Allen, 37, his wife Renee Keiser, 44; Antonious Iskander, 27; and Matthew Garrett, 45, all were sentenced to prison as a result of their involvement in a mortgage fraud scheme with Saving Carolina, a company that operated in Wake and Durham counties, according to state Commissioner of Banks Joseph Smith Jr.(1)

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• Authorities say they participated in a scheme that involved the purchase of residential properties by illegitimate borrowers, who submitted false information about their employment and income to qualify for mortgage loans.
• The properties were then rented to residents who hoped eventually to own the properties. The conspirators pocketed the cash but never repaid the loans, causing the properties to go into foreclosure, resulting in millions of dollars in losses to the home lenders.

For the story, see Four sentenced for mortgage fraud.

For the North Carolina Commissioner of Banks press release, see N.C. Commissioner of Banks and Wake County District Attorney Stop Mortgage Fraud Ring.

(1) According to the story:

• Allen pleaded guilty to five counts of obtaining property under false pretenses and was sentenced to 44 to 62 months in prison;
• Garrett pleaded guilty to one count of residential mortgage fraud and was placed on 18 months of probation and fined $5,000. Garrett's real estate license was suspended;
• Iskander pleaded guilty to two counts of residential mortgage fraud and was placed on 18 months of probation and fined $2,000;
• Keiser spent eight months in jail and was sentenced to time served after she pleaded guilty to residential mortgage fraud. rent skimming