California Real Estate Fraud Report

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05
Oct

Navy FCU Hit by Home Equity Loan Fraud (HELOC Fraud)

Atlanta business owner Thomas Scott Brown, 47 was sentenced to three years in prison last week for operating a home equity loan fraud (HELOC fraud) scheme that cost losses of almost $3 million for the $82 billion Navy Federal Credit Union.

In addition to his prison sentence, U. S. District Judge Claude M. Hilton also ordered Brown to pay $2.7 million in restitution and to serve five years of supervised released. Brown pleaded guilty in May to one felony count of bank fraud and one felony count to making a false statement to a financial institution.

Brown’s scheme – which involved over 50 properties – centered on him purchasing properties with his own money and putting them in the name of straw buyers. Ownership was transferred to the straw buyers, who were then directed to apply for HELOC loans and to pay those proceeds to him. For his efforts, he earned profits of $1.4 million.

Read the original article in Credit Union Times.

 

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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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