California Real Estate Fraud Report

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Rancho Mirage Man Charged in Complex Mortgage Fraud Scheme against Ally Bank

Steven Pitchersky, 64, the operator of Nationwide Mortgage Concepts, was indicted on August 2 with one count of wire in what prosecutors say was an effort to defraud Ally Financial (formerly GMAC) out of $5.3 million (loan fraud).

The indicted charges Pitchersky of misrepresenting the business of Nationwide Mortgage Concepts in order to get a $10 million warehouse line of credit from Ally, which he used for his personal gain. He told Ally that his firm already had a $10 million warehouse line of credit through MPL, a company Pitchersky had created, but no such line of credit existed.

A warehouse line of credit is used to provide mortgage lenders with  money they can they lend to home buyers.

In the indictment, U.S. Attorney Zane Memeger (U.S. District Court in Pennsylvania) stated that in reliance of the MPL credit line, Ally advanced Nationwide Mortgage Concepts approximately $5.3 million from December 2010 to about January 2011 in order to pay off 23 first mortgages for Nationwide’s customers. But instead of paying off those mortgages, the funds were used to pay off different mortgages.

There’s much more to this story. Read the original article in the Press Enterprise.

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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