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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (27505)	3/1/2005 11:41:45 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Originator Takes ABN Amro For Over $2 Million Monday, February 28, 2005 - By Staff Writer, The Originator Times Avg. User Rating FORT WAYNE, IN -- Recently ABN Amro alleged in a civil suit filed in Federal court that Justin Stuckey an originator that operated Maximum Mortgage, Inc., in Fort Wayne, Indiana, together with Rex D. Wells, a real estate investor, and others orchestrated a complex scheme in which they enticed two seemingly innocent investors to purchase 149 properties using inflated appraisals and false terms that netted the perpetrators close to $2.5 million dollars. According to the complaint obtained by The Originator Times, ABN Amro alleges that in early 2002 Mr. And Mrs. Null decided they wanted to work together and own their own business. The Nulls believed the rental real estate business could be a lucrative business and decided to investigate what was required to enter the profession. The Nulls spent several weeks looking at properties and identified four properties they wished to purchase. The Nulls then contacted Justin Stuckey of Maximum Mortgage and explained to Mr. Stuckey their plans. Mr. Stuckey told the Nulls that Mr. Rex Wells was one of the most successful and experienced investors in the Fort Wayne area. Mr. Stuckey also told the Nulls that Mr. Wells would be more than happy to speak with them about the rental business. Mr. Wells eventually convinced the Nulls the properties they had identified were overpriced, and that since he was currently looking to scale down his business, he would be willing to sell the Nulls some of his own properties. The Nulls eventually bought 79 properties from Mr. Wells in which Mr. Stuckey through Maximum Mortgage arranged the financing. During the same period of time, Mr. Brogen, another would-be investor, was introduced to Mr. Wells through a local real estate broker. Mr. Brogen was also looking to enter the real estate investment business, and like the Nulls, Mr. Brogen also eventually purchased 70 properties from Mr. Wells. Mr. Wells introduced Mr. Brogen to Mr. Stuckey, and Maximum Mortgage arranged the financing. The suit further alleges that Mr. Greg Chevalier appraised all of the properties at the direction of Maximum Mortgage or Mr. Wells. Mr. Chevalier valued the properties greatly in excess of the fair market values, in some cases up to five times their actual value. Additionally, Mr. Chevalier routinely used his past appraisals as comparables for additional appraisals ordered by Maximum Mortgage and Mr. Wells. Maximum Mortgage completed most of the loan applications by Maximum Mortgage on behalf of the Nulls and Mr. Brogen as refinance transactions when, in fact, the primary purpose of the loan was to purchase the property. In order to complete the fraud, Mr. Stuckey funneled most of the settlement transaction to Accelerated Title, which is owned by a relative of Mr. Stuckey’s, Corey Stuckey. Accelerated Title closed 139 of the 149 transactions at its office. It is further alleged that Accelerated Title knew or should have known that the purpose of the loans was not to refinance the properties but, in fact, to purchase the properties since in many cases the title was first acquired by the Nulls or Mr. Brogen after the day of or the day before the closing of the supposed refinance loan. The scheme began to fall apart when the purchasers of the properties were unable to service the inflated mortgages. At present each of the 149 mortgages are in default, the original amount of the loans were in excess of $5.5 million and ABN Amro estimates the properties securing the loans have an aggregate value of less than $3.1 million. originatortimes.com