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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (26601)	12/17/2007 5:58:35 PM
From: Snowshoe	Read Replies (1) \| Respond to of 220063

Feds indict 31 in mortgage-loan scheme (Florida) sun-sentinel.com By Vanessa Blum Sun-Sentinel.com 4:27 PM EST, December 17, 2007 Federal officials announced charges Monday afternoon against 31 people accused of participating in a scheme to obtain fraudulent mortgage loans worth roughly $14 million. The group's leaders obtained inflated loans for the purchase of at least 28 properties and then pocketed the difference between the loan and the actual purchase price, prosecutors said. According to the indictment, several of the properties are in Broward County. Prosecutors said the conspiracy involved people working in all aspects of the real estate business, including a bank employee, a title agent, and an appraiser. The purported leaders, husband Juan Torrens, 40, and wife Rachael Torrens, 33, both of Miami-Dade, recruited individuals willing to pose as home buyers and prepared false mortgage loan applications in their names, the indictment states. The applications allegedly included false employment verification, pay stubs and IRS forms. In order to validate the inflated sales price, another individual would prepare fraudulent appraisals attesting to the inflated property value, the indictment states. Prosecutors said the appraiser and others involved in the scam received bribes for their assistance. Of the 28 properties listed in the indictment, nine are in Broward County. Monday's indictment is part of a South Florida mortgage fraud initiative combining federal and state resources. Since September, federal prosecutors have charged 55 defendants with taking part in mortgage fraud schemes worth more than $75 million. U.S. Attorney Alex Acosta said financial institutions are not the only victims in such cases, which make it harder for honest homebuyers to get approved for loans and contribute to higher interest rates. "Mortgage fraud is not a paper crime," he said. "Real individuals are being hurt."

To: Snowshoe who wrote (26601)	12/19/2007 12:06:39 AM
From: Snowshoe	Read Replies (1) \| Respond to of 220063

Update on the Alaska mortgage fraud indictments... HOW ONE OF THE ALLEGED SCHEMES WORKED The same house is sold three times FIRST SALE 1. Innocent seller offers house for $240,000. 2. Ringleader buys the house for $240,000. SECOND SALE 3. Immediately after buying the house, the ringleader sells it to a hand-picked straw buyer for $310,000. 4. Higher price is "justified" by crooked appraiser, who values house at $310,000. 5. Straw buyer obtains a $250,000 loan -- and should put up a $60,000 down payment -- for the $310,000 purchase. 6. Straw buyer actually makes no down payment, but the bank making the loan doesn't know that. A crooked title agent rigs paperwork to look as if the down payment was made. 7. Ringleader uses loan to pay off the first sale, then pockets $10,000 profit. THIRD SALE 8. Ringleader puts the house up for sale again. 9. Appraiser produces second false appraisal for $390,000. 10. Ringleader entices the buyer by promising a $50,000 "cash back" after closing the sale for $390,000. 11. Ringleader pockets another $90,000 ($390,000 minus $50,000 cash back minus $250,000 loan). His total profit now is $100,000. adn.com