California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.

Archive for the 'Mortgage Fraud' Category

How JPMorgan Chase Forgave Mortgages It Didn’t Own in Sweet Deal with U.S. Attorney General Eric Holder

October 6th, 2017 at 9:02am

Interesting articles from Esquire and The Nation how JPMorgan Chase and its CEO Jamie Dimon got out of paying a $25 billion “settlement” with the Justice Department under former U.S. Attorney General Eric Holder.

 

California Man Sentenced to Prison for Defrauding 500 Distressed Homeowners

October 6th, 2017 at 8:26am

California resident Kevin Rasher will spend the next eight years in prison following his guilty plea last May to 12 counts of mail fraud.

According to court documents filed by the U.S. Attorney’s Office for the Central District of California, Rasher, 45, admitted that between 2011 and 2016 he told homeowners in distress to mail their mortgage payments to him to forward their lenders. The victims gained his trust because Rasher told them either that he was a HUD employee or an attorney. Instead, Rasher spent the $2.24 million on himself. The sum is the same as what the court ordered him to pay in restitution.

This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.

The case against Rasher was prosecuted by Assistant United States Attorneys Rosalind Wang and Robert J. Keenan of the Santa Ana Branch Office.

Read the original article in HousingWire.

Industry Expert Says Mortgage Fraud Characterized by Delayed Discovery

October 6th, 2017 at 8:10am

Bridget Berg, a principal in Industry Solutions and Property Intelligence for CoreLogic, says that mortgage fraud is different than other forms of fraud and is more prevalent than most lender think.

In a 3-part interview in Mortgage News Daily, Ms. Berg outlines five reasons lenders should be wary.

 

 

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

October 5th, 2017 at 8:16am

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.

 

San Diego Mansions Used in $50 Million Mortgage Fraud Scheme

September 21st, 2017 at 10:05am

A real estate broker and a senior executive at a real estate investment company have been indicted wire and mail fraud conspiracy, wire fraud, mail fraud, aggravated identity theft and criminal forfeiture in connection with a multi-million dollar mortgage fraud scheme.

According to a press release by the U.S. Attorney’s Office for the Southern District of California, Peter Cash Doye, a senior executive at the real estate investment firm known both as Conix and Variant Commercial Real Estate, and Raquel Reid, a licensed real estate broker and notary public, allegedly conned lenders into providing loans for four multi-million dollar mansions in La Jolla and Del Mar.

Court documents indicated that Doye and Reid used numerous forged documents to trick the lenders into believing the loans had been paid off in order to obtain new loans against the properties.

Co-defendants Courtland Gettel, and an Arizona attorney, Jeffrey Greenberg, previously pleaded guilty to their roles in the scheme.

The mansions had been represented to the lenders as rental and investment properties but were lived in by Doye and Gettel and their families.

Read the original article in HousingWire.

US-DOJ Sues Former Deutsche Bank Trading Executive Over Role in Mortgage Fraud

September 15th, 2017 at 10:01am

United States Department of Justice is suing the former head of subprime mortgage trading at Deutsche Bank for “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities that led to the crisis in the real estate market.

It’s rare for the government to pursue an individual for mortgage fraud; I know of no MBS (mortgage-backed securities) traders who have been prosecuted.

An announcement from the US Department of Justice, Paul Mangione, the former Deutsche Bank head of subprime trading, allegedly “engaged in a fraudulent scheme to misrepresent the characteristics of loans backing two residential mortgage-backed securities that Deutsche Bank sold to investors that resulted in hundreds of millions of dollars in losses.”

Read the original article in Housing Wire.

 

Bay Area Man Sentenced to 15 Prison in Short Sale Fraud Scam

August 18th, 2017 at 10:24am

Mahendra Prasad, 55, pleaded guilty on May 22, to one count of mail fraud affecting a financial institution in connection with a fraudulent short sale (short sale fraud), according to a Justice Department press release. On August 14, U.S. District Judge Lawrence J. O’Neill sentenced him to 15 months in prison and ordered him to pay $328,000 in restitution to the lending institution that was defrauded.

According to court documents, in 2006, Prasad allegedly submitted falsified documentation to a lender so that he could purchase a property in Sacramento. Following the purchase, he rented the property as Section 8 housing.

In 2013, Prasad completed a short sale of the property to another person, claiming that the sale was “arm’s length, which was a requirement of the lender.

His co-defendants Jyoteshna Karan, Praveen Singh, Sunita Singh and Nani Isaac are going to trial in U.S. District Court in Fresno, on Dec. 11.

Read the original article in News India Times.

Wells Fargo Pays Out Again, This Time For Fraudulent Anti-Veteran Lending Practices

August 18th, 2017 at 9:08am

Banking giant Wells Fargo must pay over $100 million to settle allegations of fraud that included overcharging military veterans using the VA Home Loan to refinance their mortgages. The victims were not only veterans but U.S. taxpayers.

Brokers Victor Bibby and Brian Donnelly were the two whistleblowers in the lawsuit who sought to recover the losses that the federal government suffered when the loans it guaranteed loans defaulted. The two men sued Wells Fargo and seven other lenders to recoup losses; notably the federal government declined to join the qui tam lawsuit, which was filed under the federal False Claims Act, aka Lincoln’s Law (31 USC §§ 3729-3733.

The other banks are Bank of America Corp (BAC.N), Citigroup Inc (C.N), First Tennessee, JPMorgan Chase & Co (JPM.N), PNC Financial Services Group Inc (PNC.N) and SunTrust Banks Inc (STI.N). The total pay-out is $161.7 million.

Depending on whether the federal government offers to assist, the private person can receive a portion of the recovered damages, from 10% to 30%. If the government intervenes, the person bringing the lawsuit, the “relator”, receives between 15%-25%. If the government does not, the relator receives between 25%-30%. If the government intervenes and most of the information is already public, the relator is only entitled to 10%.

Read the full article, including Wells Fargo’s boilerplate “apology,” in DisabledVeterans.org

Attorney General Becerra Urges US Senate to Keep Rule That Holds Corporations Accountable

July 28th, 2017 at 8:55am

The following is a press release:

SACRAMENTO California Attorney General Xavier Becerra today urged the U.S. Senate to support a rule that allows people to pursue justice against financial services companies. The rule — known as the Arbitration Rule — was issued by the Consumer Financial Protection Bureau on July 10, but is already under attack in Congress. Specifically, Senate Republicans have filed a Joint Resolution for Disapproval in order to repeal the Arbitration Rule. In a letter to U.S. Senate leaders, Attorney General Becerra and 19 attorneys general underscored that the Arbitration Rule would provide relief to hardworking Americans who were previously prohibited from joining class action lawsuits or even going to court at all. As opposed to costly individual arbitrations, class action lawsuits are often the only realistic way for consumers to hold these companies accountable.

“The Arbitration Rule is one tool that helps protect consumers and hold corporations accountable,” said Attorney General Becerra. “It allows people to seek justice when financial services companies break the law. But some in Congress continue to do the bidding of Wall Street instead of Main Street and want to gut this rule. Senators should stand up for consumers instead of corporate interests.”

In recent years, when opening a bank account or obtaining a credit card, consumers have been forced to agree that they will not bring or join a class action lawsuit. In short, this means that they could only hold these corporations accountable through individual arbitration, which is a costly endeavor. Thanks to the Arbitration Rule, that is no longer the case.

“While the financial services industry promotes arbitration, the truth is that most of their consumers can’t afford it. When financial services companies require their customers to use individual arbitration to address their complaints or disputes, most consumers simply lack the time and resources to arbitrate a dispute on their own or to hire an attorney to file a claim on their behalf. This is especially true where consumers have been defrauded out of small amounts of money. In the words of Judge Richard Posner of the Seventh Circuit Court of Appeals, ‘only a lunatic or a fanatic sues for $30.’ If consumers cannot join class actions, the result is “not 17 million individual suits, but zero individual suits.’” write the attorneys general in the letter. 

A copy of the letter is attached to the electronic version of this release at oag.ca.gov/news.

Three Men in Bakersfield Sentenced for Running Foreclosure Rescue Scam

July 25th, 2017 at 9:58am

A federal judge in Fresno sentenced three men to prison for operating a foreclosure rescue scam in Bakersfield and two other California cities.

Norwalk resident Martin Calzada, 30, received nine years; Juan Curiel, 38, of Visalia, received three years and five months; and Santiago Palacios-Hernandez, 48, of Salinas was sentenced to two years and nine months.

In addition, all three were ordered to pay over $1.1 million in restitution to their victims and federal mortgage lenders Fannie Mae and Freddie Mac.

Read the entire article in the Kern Golden Empire.

© Copyright 2007-2017 Monique Bryher

Legal Disclaimer.

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.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.

BLOG POWERED BY SHARP BIZ IMAGE

Copy Protected by Chetan's WP-Copyprotect.