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.
Sunday, August 05, 2012
Head Of N. Jersey Sale Leaseback Equity Stripping Scam Gets 46 Months, Employee Gets 18 Months; Created Phony Liens To Divert Cash To Themselves
In Newark, New Jersey, myCentralJersey.com reports:
A Piscataway man who owned and operated multiple foreclosure rescue companies was sentenced Tuesday to 46 months in prison for his role in a mortgage fraud scheme that defrauded numerous mortgage lenders of more than $10 million, authorities said.
Ronald Harris Jr., 42, formerly of West Orange, previously pleaded guilty to a sworn, written indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering.
A former employee of Harris’ — Sterling Bruce, 38, of Newark — was also sentenced Tuesday, to 18 months in prison. Bruce previously pleaded guilty to one count of wire fraud conspiracy. U.S. District Judge Faith S. Hochberg imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court, Harris owned and operated Harris Capital and Skyline Capital Group, both of which held themselves out as foreclosure rescue companies and operated out of offices in Newark and Maplewood.
Harris admitted that he and other individuals, including Harris Capital employee Bruce, fraudulently promised to help homeowners avoid foreclosure, keep their homes, and repair their damaged credit. They directed the homeowners to allow the title to their homes to be put in the names of third-party purchasers, or straw buyers, for six months to a year.
Harris told the homeowners that during that time period, he and others would help them obtain more favorable mortgages and improve their credit ratings. The homeowners were told the titles to their homes would be returned to them.(1)
After the homeowners were signed up, Harris, Bruce and others recruited individuals with good credit scores to act as straw buyers of the distressed properties. The straw buyers were told that they were helping someone save his or her home and that they would make money when they sold the property back to the current owner.
Once the distressed homeowners and straw buyers were in place, Harris, Bruce and Pia Perkinson, 40, of Parlin — a mortgage loan officer at a number of different mortgage loan companies — and others caused loan applications to be sent in the straw buyers’ names to mortgage lenders.
Prior to the closings of these fraudulent transactions, Harris and Bruce regularly filed fraudulent liens for tens of thousands of dollars on the properties. At the closings of the transactions, the liens would be paid off with the proceeds of the fraudulently obtained loans.
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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