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.
Wednesday, July 11, 2012
Sale Leaseback Peddler Gets 12 Years In Equity Stripping, Foreclosure Rescue Ripoff That Victimized Homeowners Of $1M+
In Los Angeles, California, The Orange County Register reports:
An Anaheim Hills man was sentenced to 12 years in federal prison Monday for his role in a mortgage fraud conspiracy and for evading taxes. Gregory Flores was also ordered to pay more than $1 million in restitution to homeowner victims and more than $98,000 to the IRS, the U.S. Attorney's Office in Los Angeles said. Flores pleaded guilty in February to one count each of wire fraud conspiracy and tax evasion.
According to the plea agreement, Flores, along with co-conspirators Sheri Gale, a realtor in La Mesa, and Amy Hall, also of Anaheim Hills, a loan processor, executed an illegal scheme to defraud distressed homeowners facing foreclosure and lenders who made mortgage and home equity loans, the U.S. Attorney said.
From May 2003 through June 2006, Flores managed the satellite offices in Anaheim Hills and Murrieta of All Fund Mortgage, based in Tacoma, Wash. He and the others falsely claimed they could save the homeowners from foreclosure. Homeowners with typically poor credit were solicited through mailings, prosecutors said. At least 21 homeowners were victimized for a total of $1.04 million.
As part of the conspiracy, Flores and others convinced homeowners to allow an investor, who was really a "straw buyer" with good credit to be added to the title of their homes, and told them they could then refinance under more favorable terms.
In most cases, title was never transferred back to the homeowner, essentially stealing the equity out of the property, prosecutors said. Few if any payments were ever made and the properties were eventually sold during foreclosure proceedings.
Most of the time homeowners and their families were evicted without the knowledge they had no title to the property, Assistant U.S. Attorney Ami Sheth said.(1) Gale and Hall were charged with wire fraud; Gale has pleaded guilty, Hall's case is still pending, Sheth said.
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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