Four Arrested for Defrauding Mortgage Lending Institutions
Federal Information & News Dispatch, Inc. |
Four Arrested for Defrauding Mortgage Lending Institutions
Mortgage Broker, Title Agent, Real Estate Appraiser, Attorney, Property Managers, and Others Conspired to Steal Funds in a Multi-Million-Dollar Scheme
The charges were announced by
According to the indictments unsealed this morning, the defendants and other participants in the scheme ("the conspirators") caused mortgage loan applications with false information to be submitted to lending institutions in connection with the purchase of residential properties located within the
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. Previously, co-conspirators
To carry out their scheme, the conspirators allegedly often conducted simultaneous purchases and sales of the properties, sometimes called "flips," in an effort to conceal their criminal involvement and to inflate the value of the properties. For example, a conspirator would purchase a property from a homeowner. That same day, the conspirator would sell the property to a straw purchaser at an inflated value. The conspirators, through the use of backdated and falsified documents, concealed from the lending institutions the fact that the purchase and sale had occurred on the same day and made it appear as if the transaction between the homeowner and the conspirator had occurred over 60 days prior to the sale from the conspirator to the straw purchaser.
As a result of the false applications and appraisals, the lending institutions were fraudulently induced to issue millions of dollars of mortgage loans secured by properties that had inflated appraisal values to individuals who had insufficient income and assets to qualify for the mortgage loan. In many instances, the straw purchasers and the other borrowers failed to make required mortgage payments to the lending institutions, which caused the mortgage loans to be placed into default status.
At approximately the time of the closings of the properties, the conspirators diverted for their own use the portion of the loan proceeds that exceeded the actual value of the properties. The conspirators collectively caused the financial lending institutions to loan out over
"Through a web of lies and false documentation, these real estate professionals allegedly stole millions from banks, which they used to line their own pockets," stated
FBI Assistant Director-in-Charge Venizelos stated, "In an elaborate scheme between brokers, appraisers, straw buyers, and others, it is alleged that these defendants conspired to shake down and defraud banks. The scheme not only victimized those institutions, but millions of consumers who either paid higher rates or could not get a loan."
HUD-OIG Special Agent-in-Charge Christina Scaringi stated, "The arrests and charges announced today serve to remind the public that we will continue the important work of investigating mortgage industry professionals who deceive and defraud homeowners, the
FDIC-OIG Special Agent-in-Charge Derek Evans stated, "
FHFA Acting Inspector General
The government's case is being prosecuted by Assistant United States Attorney
This case was brought in coordination with President
The Defendants:
Age: 47
Residence:
BARTHELEMY ADJAVEHOUDE
Age: 54
Residence:
Age: 42
Residence:
Age: 47
Residence:
Age: 42
Residence:
Age: 33
Residence:
Age: 39
Residence:
Age: 32
Residence:
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