Call Now 866-718-3994

Mortgage Fraud Archives

Unemployed Man Served As Buyer, Now Sentenced To Prison

A group of mortgage brokerages, property management companies and home improvement businesses were used to find individuals willing to serve as "buyers" in transactions that involved falsified mortgage applications. One of the buyers, an unemployed Connecticut man, was sentenced this week to 18 months in prison and asked to pay $328,516.31 restitution as well as forfeit $25,000 for his role in the mortgage fraud scheme. He was paid two installments of $5,000 and given bonuses by the group for identifying other buyers.

Loan Officers Plead Guilty In Mortgage Fraud Case

Two men who were working as mortgage loan officers were indicted last April for their roles in recruiting straw buyers for mortgage transactions. The men pleaded guilty this week to one count of conspiracy to commit mortgage fraud through the use of interstate wires. The scheme involved submitting false loan application to various lenders using straw buyers, who were often friends and relatives of the men, to purchase the homes.

Florida Still Dead Last In Mortgage Fraud Index

There is no way to rank the frequency with which fraudulent real estate transactions occur. The Mortgage Fraud Index tries to get a sense of how often this is occurring by tracking the volume of criminal cases in a given jurisdiction. A poor placement on the ranking could be a sign of zealous law enforcement and heavy prosecution as much as a sign that the practice is common. Florida again ranks as the worst state in the Mortgage Fraud Index, indicating that there are more criminal cases against people charged with mortgage fraud than in other states.

Miami Man Sentenced In Mortgage Fraud Case

A Miami loan officer for Great Country Mortgage Bankers pleaded guilty in April to a single count of conspiracy to commit wire fraud. For his role in a larger plan to commit mortgage fraud, he was sentenced to 4 years and 6 months in prison and ordered to pay $9.2 million in restitution. The federal court levied the sentence this week.

Florida Man Sentenced In Real Estate Fraud Case

A former loan officer for Washington Mutual was sentenced to 15 months in prison by a federal judge last week. The sentence was for his role in a mortgage fraud scheme based in Southwest Florida. The 66-year-old banker is the fourth person involved in the house-flipping scheme to be sentenced and is one of 19 who have been convicted or pleaded guilty for their roles in the real estate fraud.

2 mortgage industry executives plead guilty to fraud

A 38-year-old woman who ran a pair of mortgage title and loan processing companies in Boca Raton pleaded guilty to five counts related to what prosecutors said was a scheme to sell properties in Florida to straw buyers and collect more than the cost of the homes from the lender than was needed. The defendant could be sentenced to up to 140 years in prison, though given her guilty plea, it is possible that she has reached a plea bargain with the federal prosecutors pursuing the case.

Taylor Bean Mortgage Fraud Cases Continue

On Tuesday, the former chief financial officer of Taylor Bean entered a guilty plea in U.S. District Court. He was charged with conspiracy to commit fraud and making false statements for his role in the roughly $3 billion dollar mortgage fraud scheme. Last year, the founder and chairman of Taylor Bean, Lee Farkas, was given a 30 year sentence in federal prison. Six other people have also been convicted, with the CFO becoming the 8th person convicted from Taylor Bean. The crimes he pleaded guilty to carry a maximum penalty of 10 years in prison.

South Florida Residents Accused of Mortgage Fraud

Six people are facing charges related to allegations that they bought homes and, through misrepresentation, secured overly large loans. The alleged mortgage fraud scheme is said to have defrauded real estate investors and banks out of nearly $6 million. The arrests are the latest result of an investigation that began in 2007 in which several straw buyers and an account were arrested in connection with the group's activities.

  • In the Media:
  • abc Nightline
  • the O Reilly Factor
  • Court TV
  • abc 20 20
  • CNN
  • Larry King Live
  • The Miami Herald
  • Good Morning America

Coral Gables Office
550 Biltmore Way Suite 780
Coral Gables, FL 33134

Toll Free: 866-718-3994
Phone: 305-858-5300
Coral Gables Law Office Map

Houston Office
712 Main St.
Houston, TX 77002

Toll Free: 866-718-3994
Phone: 713-574-7716
Map & Directions