Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Friday, July 13, 2012
Buffalo Feds Charge 33 In Alleged Upfront Fee Foreclosure Rescue Ripoff That Screwed 2,000 Homeowners Out Of $2.7M
In Buffalo, New York, The Buffalo News reports:
A cross-border loan fraud scheme victimizing 2,000 people and resulting in $2.7 million in losses was uncovered in Buffalo thanks to the initial tips of two suspicious grocery store clerks.
Prosecutors said the clerks' tips began an investigation that on Tuesday resulted in a 62-count indictment charging 33 defendants with taking part in an international scam directed at people facing home foreclosure.
"It's exploitation," John Morton, director of U.S. Immigration and Customs Enforcement, said a news conference in Buffalo. "It's targeting the vulnerable." Morton said the scheme was directed at people at the lower rungs of the economic ladder, especially those at risk of losing their home to foreclosure.
Victims were lured into the scam by newspaper or web advertisements offering loans to anyone having trouble getting a loan or trying to get out of debt. The red flag, according to prosecutors, came at a point early in the loan review process when people were asked to make a security deposit or insurance payment to ensure their loan would be approved.
"There was a request for an upfront payment," said U.S. Attorney William J. Hochul Jr. "That should have been a warning sign of sorts." All of the defendants - 23 from Canada and 10 from the United States - are charged with conspiracy to commit wire fraud and conspiracy to launder money.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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