Wednesday, August 09, 2017

Vegas Feds Indict Pair In Alleged Short Sale, Buyback Scam Designed To Dupe Lender Into Taking Haircut On Mortgage While Allowing Underwater Homeowner-Seller To Continue Residing On Premises, Regain Title In Future; Defendants Accused Of Failing To Disclose Non-Arm's Length Nature Of Transaction From Bank

From the Office of the U.S. Attorney (Las Vegas, Nevada):
  • Dustin M. Lewis, 42, of Henderson, Nev., and Brian Sorensen, 49, of Las Vegas, were each charged with one count of conspiracy to commit bank fraud and one count of bank fraud. If convicted, Lewis and Sorenson each face a statutory maximum penalty of 30 years in prison and up to a $1,000,000 fine.

    According to allegations made in the indictment, from about August 15, 2011 to about January 17, 2014, Lewis and Sorensen conspired with each other to defraud OneWest Bank. The defendants allegedly devised and executed a scheme to avoid foreclosure so that Lewis could retain ownership of a 5,331 square foot, five-bedroom Henderson, Nev. home.

    As part of the scheme, Lewis submitted a fraudulent short sale application to the bank, which induced the bank to allow Lewis to sell the property to Sorensen’s family member for much less than Lewis owed under the existing mortgage loan. It is further alleged that Lewis did not disclose that he and Sorensen agreed that Lewis would continue to reside at the property and Sorensen would later cause the property to be sold back to Lewis free of the bank’s mortgage loan. It is further alleged that on or about July 21, 2017, Lewis then listed the property for sale at a price of $1,195,000.
Source: Two Men Indicted For Mortgage Fraud. leaseback arm's length transaction