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 September, 2017

Appraisal-free mortgages will make closings easier – and create more opportunities for fraud

September 23rd, 2017 at 10:02am

There’s no doubt that decisions by Fannie Mae and Freddie Mac to not require appraisals on certain loan categories will create a shift in residential real estate transactions. The downside is that this creates new opportunities for fraud.

Read the full article in Inman News.

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.

 

North San Luis Obispo County Lenders Accused of Scamming Investors Headed to Trial

September 15th, 2017 at 8:43am

Two years after Rodney Jarmin and Tammy Jordan, former owners of Real Property Lenders, could have accepted a deal two years ago that would have kept them out of jail and required minimal restitution to the real estate investors they allegedly defrauded.

But Jarmin, 76, and Jordan, 65, rejected the deal and now they’re headed to trial.

Real Property Lenders acted as a middleman between investors who put up their funds to be used as hard money loans to developers. These investors were promised 12% annual interest payments.

Rodney Jarmin and Tammy Jordan were charge in March 2011 by prosecutors who alleged they didn’t disclose to the investors that the builders had defaulted and that earlier investors had not been paid their dividends. This is despite documents filed with the California Department of Corporations that Real Property Lenders had reported over $55 million in outstanding real estate loans in 2007.

Here is the web page prosecutors created to keep the investors notified of developments in the case.

Read the original article in The San Luis Obispo Tribune.

Man Charged with Stealing Identities, Forging Real Estate Documents

September 14th, 2017 at 12:31pm

Vu Hoang Ho has been charged the the L.A. County District Attorney’s Office with stealing the identities of deceased persons or “living elderly victims.” He allegedly forged their names on real estate documents and recorded them with the L.A. County Recorder’s Office so that he could acquire them (title fraud), says the Sheriff’s Information Bureau.

Ho then tried to re-sell the properties to buyers who were unaware of what had transpired.

The case was investigated by the Real Estate Fraud Unit of the Sheriff’s Fraud & Cyber Crimes Bureau.

Read the original article in the San Gabriel Valley Tribune and MyNewsLA.com.

Four Phoenix Family Members Sentenced For Real Estate Fraud and Tax Evasion

September 14th, 2017 at 12:13pm

All in the Family – parents and two sons go to prison for operating large-scale real estate fraud scheme.

“PHOENIX – Yesterday, Senior U.S. District Judge Neil V. Wake sentenced Daphne Iatridis and her husband, Arthur Telles, both 59, to 30 months in prison and ordered the couple to forfeit 26 fraudulently purchased properties to the United States. Both had previously pleaded guilty to conspiracy to commit mail and wire fraud and tax evasion. The couple’s sons, Brendyn Iatridis and Spenser Iatridis, also pleaded guilty to related crimes and were sentenced to 10 months in prison and probation, respectively.”

Read the full press release by the U.S. Attorney for the District of Arizona.

Equifax Data Breach: What can you do to protect yourself?

September 8th, 2017 at 1:18pm

From my colleague Erik Kaplan at THD Credit Consulting

Hey it’s Erik,
This data breach is among the worst ever because of the amount of people affected and the sensitive type of information exposed. With Social Security numbers, names, birth dates, addresses, driver’s licenses and credit card numbers exposed, up to 143 million Americans could be vulnerable to identity fraud.
Here is what you can do today:
  • Fraud Alert: Consider placing a fraud alert on your files for 1 year. This warns creditors that you may be an identity theft victim and they should verify that anyone seeking credit is actually you. You can do this by clicking here.
  • Credit Freeze: Also known as security freeze, this tool lets you restrict access to your credit report, which makes it more difficult for identity thieves to open new accounts in your name. Click here to do this now.
  • Monitor Your Credit: Keep an eye on Hard Credit Inquiries, New Accounts, and Uncharacteristic Transactions. CreditKarma.com offers free credit monitoring of your TransUnion credit report, which means you will receive notifications if something changes.  The service is free to all members. *credit karma scores are not always accurate
  • Check Your Credit Reports: Every year, you can request a free copy of your report from each of the three major credit reporting agencies. This means that you can effectively check your credit free every four months or so.
Have questions?
Reach out to our team of experts at asktheexpert@thdcreditconsulting.com.
Erik Kaplan
THD Credit Consulting

Central Coast Developer Kelly Gearhart Gets New Sentencing, Restitution Hearing

September 8th, 2017 at 8:47am

Developer Kelly Gearhart, sentenced to 14 years in prison in 2015 for wire fraud and money laundering, will receive a new sentencing and restitution hearing after the Ninth U.S. Circuit Court of Appeals ruled that Judge Otis Wright II erred in sentencing Gearhart to 14 years in federal prison. Gearhart pleaded guilty in 2014 to real estate fraud.

The appellate court determined that Judge Wright erred when he sentenced Gearhart to 14 years for money laundering even though the maximum sentence is 10 years according to statute. The appellate court further determined the judge didn’t spend enough time on matters related to enhancements and the restitution amount, which is currently sealed.

Kelly Gearhart failed in his motion to have the rehearing assigned to another judge.

Read the original article in the Cal Coast Times.

© 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.