Two Stockton Realtors have been arrested by federal agents and charged with operating a unique mortgage fraud–short sale fraud business, according to U.S. Attorney Benjamin Wagner.
According to the indictment, both defendants enjoyed a long run: from February 2006 through August 2012 or later, both Marquez and Keatts submitted loan applications in which fraudulent pay stubs and tax documents were submitted to lenders.
The other side to the defendants’ business was that they allegedly facilitated short sale fraud. In a classic short sale fraud scheme, they would assist the homeowners in default with selling their homes to straw buyers. The “sellers,” however, would remain in their homes at much-reduced mortgages and lowered property taxes. Of course, they would also be relieved of paying taxes on the gains they received by not having to pay either the IRS or Franchise Tax Board (FTB) on their loan foregivenes. Both agencies are completely asleep-at-the-wheel when it comes to short sale fraud, as is most of law enforcement.
Even if these defendants are convicted, I doubt either of the above agencies will lift a finger to prosecute them, the straw buyers or the “sellers,” including putting a lien on the houses. The feds, including the Department of Justice, are too busy pretending to prosecute crooked bankers.
Read the original article in the Central Valley Business Times.