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Mortgage Fraud Sentence

An article in Forbes talked about a report released by the Federal Bureau of Investigation this week stating that real estate fraud cases were on the rise.  They said reports of suspicious mortgage filings increased 36% during fiscal 2008 compared with 46,700 filings the year before, and that 2/3rds of all pending FBI mortgage fraud investigations last year involved more than $1 million at a clip, putting a rough estimate of the total at $1 billion.

It’s easy to understand why people would try to exploit a bad economy to help themselves, since that’s what criminals do, but it’s scary to see just how pervasive it is.  Just this week, there were four instances in four different states confirming what the FBI stated.

In North Carolina, banking regulators fined mortgage lender North American Real Estate Services Inc. $320,000 and revoked its state operating license after ruling the firm used shell companies and fictitious names to avoid state regulation.  They also ordered the company to refund $60,000 in what it called “illegal” broker fees to 13 borrowers.  Regulators allege the firm was engaged in a practice known as “net branching, which is where an existing mortgage company gives a franchise to another mortgage company in order to carry out its business in a particular area.”  Only, in this case, all the companies were under the same umbrella.  The North Carolina Commissioner of Banks’ office says it has taken enforcement actions against a number of net branch companies in recent years, with fines and settlements exceeding $1.3 million.

In Georgia, former attorney Steven H. Ballard pled guilty in federal district court to defrauding over a dozen victims in Georgia, Florida and Tennessee in a real estate investment scam.  Ballard collected over $2 million between September 2002 and May 2006 in what officials called a Ponzi scheme.  In a news release from federal officials, they stated "He told the victims that he was making 'lucrative' real estate and other investments which were not actually transacted.  He often used bogus HUD-1 settlement statements, warranty deeds and sales contracts to reflect non-existent property purchases, while using a portion of the scheme proceeds to repay former victim investors.  While the repayments included investors' principal plus "returns" often exceeding 50 percent of their initial investment, those repayments were all funded with money from new victim investors."

In the Philadelphia area, Jason Bloom was charged with keeping more than $1 million that was intended for mortgage and tax payments, according to the U.S. Attorney's Office there.  He was charged in one-count information, which is considered to be the prelude to a guilty plea.  He did this over an almost 4 year period, and could be sentenced to 30 years in prison and fined $1 million.

And finally, in the Detroit area, 7 men were charged in two separate real estate schemes.  In the first instance, 5 men were accused of using straw buyers (people who use, or allow their credit to be used, for the purchase of a property they never intend to use or control) to get fraudulent loans and sell homes with fake appraisals and buyers.  A fifth man was arrested for finding people to pose as home buyers.  In the second instance, a mortgage broker was charged with buying foreclosed, rundown or uninhabitable properties cheaply, then selling them using fake appraisals that overvalued the properties, while his partner paid underwriters to disregard any irregularities.

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FBI Mortgage Fraud Crackdown

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Mortgage Fraud Arrest Miami

FBI mortgage fraud cases involve drug gangs and organized crime and nets hundreds

Government official says losses in the fraud cases total $1 billion.

By Michael Webster: Investigative Reporter June 19, 2008 6:00 p.m. PDT

Mortgage fraud arrests
video

Hundreds of people across the country have been arrested by law enforcement officials today and yesterday targeting crooked mortgage brokers, real estate agents, industry officials, and drug gangs a top FBI official claims.

Sharon Ormsby, section chief in charge of financial crimes for the FBI, said “some cases, gang, drug and organized crime investigations have resulted in mortgage fraud cases because such schemes enable criminals to launder money.

FBI Director Robert Mueller and Deputy Attorney General Mark Filip announced the arrests the same day of two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin, surrendered to the FBI. The men are expected to face federal charges that they intentionally misled investors in two funds that collapsed last summer under the weight of wrong-way bets on mortgage-backed securities.

More than 400 people are believed targets of the far reaching criminal FBI investigations in the mortgage fraud probe. 300 plus suspects have been arrested, including 60 in a coordinated sweep Wednesday, the Justice Department said.

The losses in the mortgage fraud cases cost consumers more than $1 billion, FBI Director Mueller said.

"We will, as appropriate, seek prison terms," Filip said. "It is a very, very serious matter."

"Operation Malicious Mortgage," the investigation by the FBI and Justice Department, began March 1, government officials said. It resulted in 144 fraud cases in which 406 defendants were charged.

The FBI is investigating about 1,400 more cases of potential fraud, Mueller said, calling it "a substantial number of investigations, unfortunately."

The agency has 42 mortgage fraud task forces in operation, employing 180 agents, Mueller said.

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.

Most of the arrests came Wednesday, federal law enforcement officials said, in Miami, Houston, San Antonio, Baltimore, Chicago, and other cities.

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America's leading authority on Venture Capital/Equity Funding. A trustee on some of the nations largest trade Union funds. A noted Author, Lecturer, Educator, Emergency Manager, Counter-Terrorist, War on Drugs and War on Terrorist Specialist, Business Consultant, Newspaper Publisher. Radio News caster. Labor Law generalist, Teamster Union Business Agent, General Organizer, Union Rank and File Member Grievances Representative, NLRB Union Representative, Union Contract Negotiator, Workers Compensation Appeals Board Hearing Representative. Investigative Reporter for print, electronic and on-line News Agencies.

Article Source: ArticlesBase.com - Fbi Mortgage Fraud Cases Involve Drug Gangs and Organized Crime and Nets Hundreds

Mortgage Default Specialist

The word mortgage brings confusion to many people and they tend to panic, but a mortgage is just the same as any secured loan you would consider. There are different types of mortgage available and if you want the best advice and cheap mortgages then looking online is the easiest way.

The basics behind a mortgage are that you borrow a large sum of money to buy a property and the property is secured against the money borrowed. This means that should you default on the repayments then your home is at risk of being repossessed. The different types of mortgage include a fixed rate, a variable rate and a balloon mortgage.

In order to get the cheapest rates of interest on any mortgage you should go online with a specialist website. A specialist website will allow you to search with the whole of the marketplace for the best rates and deals. The interest rate on a mortgage can vary greatly and as a mortgage is taken out over 20 years or more then getting the lowest rate is imperative. Comparing cheap mortgages online with a specialist will allow you to gather the results together. This makes comparing interest rates easier and quotes should come with the key facts.

A fixed rate mortgage will allow you to know exactly how much you will be paying each month on your mortgage. A fixed rate is taken out for a certain period of time and helps greatly when budgeting. This means that you have peace of mind that if the rate of interest should rise, your monthly repayments would remain the same. However if the rate were to drop then you would lose out. This type of mortgage can usually be taken out over a period of anywhere between 3 and 25 years.

A variable rate mortgage means that the interest rate would vary over time. This type of mortgage will usually come with a lower rate of interest than the fixed rate. So if you can afford to take advantage of a low interest rate for a short period of time then this is a good way to compare cheap mortgages. However if you were thinking of taking this type of mortgage out over several years then you have to remember that the rate of interest could rise drastically.

The balloon mortgage relies on you paying a fixed rate of interest over a fixed period of time. The amount that is left has to be paid off in total so arrangements have to be made as to how you would pay this off. The rate of interest will be fixed for a certain period of time and like any mortgage you have to compare cheap mortgages online.

It is essential when comparing cheap mortgages that you do read the key facts of any loan you are considering taking out. Mortgage quotes should come with the key facts attached when you compare with a specialist site. Just as the rates of interest vary then so does the terms and conditions so it is essential that you check each. The key facts contain how much you would pay in total, the rate of interest and how much interest the loan accumulates. It also tells you of any hidden fees such as early repayment fees or fees if you decide to switch mortgage within a specific time.

About the Author:

Jason Hulott is Business Development Director at
Mortgages
service, PolarMortgages. Visit Polar Mortgages now for more information about UK mortgages and remortgages.

Article Source: ArticlesBase.com - When It Comes To Comparing Cheap Mortgages Online Is The Easiest Way

Arizona Default Overview