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41 Suspects Arrested For Mortgage Fraud

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October 15^th, 2009

 

NEW YORK, 41 people have been charged by U.S. authorities for defrauding lenders of more than $64 million on over 100 properties located in New York State. 

 

In a sting operation code named Operation Bad Deeds, 31 suspects were arrested for charges in 8 separate criminal cases involving conspiracy, wire fraud and bank fraud. The arrests including surrenders were made in New York, Pennsylvania, Ohio and North Carolina.

 

The suspects were involved in a variety of schemes, one of which preyed on people who were on the brink of losing their homes to foreclosure. These scrupulous suspects convinced victims often who were desperate struggling homeowners to hand over their home equity in exchange of false promises to save their home.

 

Among the suspects charged were 6 lawyers, 7 loan officers, 3 mortgage brokers, 1 accountant and a property appraiser who collectively conspired to illegally profit from transaction fees and obscenely stripping the equities of victims’ properties.

 

In one of the reported cases, 4 individuals conspired in a scheme to sell foreclosed properties at over inflated prices to straw buyers whose applications contain incomes and assets which were overstated. The excess money generated from the over inflated mortgage loan was then pocketed by the 4 conspirators.

 

U.S. Attorney, Preet Bharara announced in a news conference that they will have no tolerance for individuals who conspire to cheat financial institutions and struggling homeowners on the verge of foreclosure. Fraud is on the rise as the economy struggles with desperate homeowners seeking solutions to their own mortgage payments.

 

Prosecutors cast shame on the fraudsters who were professional mortgage brokers and attorneys as they were suppose to look out for the public interest.

 

 

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