California Feds Storm Sacramento-Area Real Estate Offices; Seize Records

KCRA-TV Channel 3 in Sacramento, California reports:

• "More than 20 agents stormed the offices of Freedom Capital Mortgage, VFM Investment Group, Lyon Real Estate and several homes in the surrounding area. During one of the raids in Elk Grove, Gabriel Viramontes was arrested. Viramontes and his business partners Jim Martin and Mario Fellini allegedly falsified millions of dollars in loan applications so investors could qualify for loans they couldn't afford. The FBI and IRS seized hundreds of files, computers and other records. At Freedom Capital Mortgage, they detained Joesph Gallo, the company's president and the mortgage broker who handled almost all of the transactions. At Lyon Real Estate, agents seized records relating to Jennifer Huang, the real estate agent who handled the sale of almost 20 of the homes involved in our investigation."

For more, watch the KCRA-TV report (no longer available online) (by reporter Josh Bernstein). To read the online report, see FBI, IRS Take Action On Mortgage Fraud (Indictments Could Soon Be On The Way).

Go here for prior posts on the KCRA-TV investigation of this case.

North Carolina AG Settles Consumer Protection Lawsuit With Three Builders

In North Carolina, local media outlets are reporting that Charlotte-area builders Dixie Homes (Gastonia), and MCE Properties Inc. and Evans-Davis Inc., (both of Kings Mountain), have agreed to forgive nearly $2 million in second mortgages arranged by a broker accused of deceiving home buyers, according to the office of North Carolina Attorney General Roy Cooper.

A total of 66 second mortgage loans for homeowners in Gaston and Cleveland counties are being forgiven by the three companies and are part of a settlement agreement with the North Carolina AG's office and the Office of the Commissioner of Banks that resolve allegations that the companies violated state consumer protection laws that prohibit the use of unfair and deceptive business practices. The second mortgages were reportedly arranged by Hall Financial Services of Matthews, which, along with its owners, James Markham Hall and Sharese Hall, were accused of making unfair and illegal home loans to consumers in Gaston, Lincoln and Cleveland counties. One third of the 139 mortgage loans Hall Financial made are either in or near foreclosure. All three builders have agreed to cooperate in the ongoing investigation of Hall Financial. For more, see:

• Builders to forgive home loans (3 area firms agree to deal worth nearly $2 million, and will aid in probe of broker) (Charlotte Observer)
• Local builders to forgive $2M in loans (Charlotte Business Journal)
• North Carolina AG Press Release (6-4-07)
• Go here for other posts on this story

California Mortgage Banker Pleads Guilty In Massive Mortgage Fraud

(modified 8-16-07)
Originator Times reports that:

• "West Los Angeles mortgage banker Richard A. Maize has agreed to plead guilty to federal criminal charges in a massive mortgage fraud scam that caused more than $18.5 million in losses to banks, including his former employer. [...] Maize and five others previously charged in the case were involved in a wide-ranging and sophisticated conspiracy to defraud federally insured mortgage lenders out of tens of millions of dollars. As part of the scam, the conspirators obtained inflated mortgage loans on expensive homes in some of California's most exclusive neighborhoods, including Beverly Hills, Bel Air, Holmby Hills and Malibu. Five people have previously been charged in the scam. They are: Charles Elliott Fitzgerald, 47, of Newbury Park; Mark Alan Abrams, 45, of Long Beach; Nicole LaViolette, 37, of Palm Springs; Jamieson Matykowski, 33, of Laguna Niguel; and Timothy Holland, 35, of Santa Ana. Fitzgerald, who is in custody, is scheduled to go on trial on July 31 on a host of federal charges related to the alleged scheme. The other four previously charged have pleaded guilty to charges related to the fraud scheme and are pending sentencing."

For more, see Top Producing Originator Pleads Guilty In Massive Fraud Scam.

For copies of relevant Federal court documents, USA vs. Maize - Crininal information(Charging document setting forth all criminal allegations made by Federal prosecutors), and USA vs. Maize - Plea Agreement, drop me a line at HomeEquityTheft@yahoo.com and I'll e-mail you a copy (be sure and put USA vs. Maize in the "Subject" line). babajian

California Mortgage Broker Pleads Guilty In Mortgage Fraud

(orig. post 6-6-07; revised 7-5-07)
In California, The Monterey Herald reports:

• "In a real estate fraud case that stretched through nine California counties, Fremont mortgage broker Altaf Abdulrehman Shaikh pleaded no contest Wednesday to charges that he misrepresented home refinance loans to 16 people in Monterey County. As part of a plea agreement with prosecutors in all nine counties involving more than 100 felony charges, Shaikh will be sentenced to one year in county jail and five years felony probation, and will be required to pay restitution. He was facing up to 13 years in state prison."

For more, see Plea Deal In Loan Fraud (Broker to pay restitution, serve year in jail) (no longer available online).

For more on Altaf A. Shaikh (aka Zak Khan), see Mortgage Mess Shines Light on Brokers' Role (Job-Hopping Mr. Shaikh Left Trail of Lawsuits, Failed License Exams).

Two More Sentenced In Colorado Straw Buyer Flipping Scam

In Colorado, The Denver Post recently reported that a Denver Federal judge sentenced Taiwan Lee (30 months) and Talita James (27 months) to federal prison terms in connection with a mortgage fraud conspiracy that devastated the Villas at Cherry Creek neighborhood, a 100 villa, gated community overlooking Cherry Creek State Park, with foreclosures. Both participated in the scheme as straw buyers; the scheme allegedly purchased 17 homes at inflated prices and took $2.1 million from the excess proceeds.

To date, eight people have pleaded guilty to felony charges in a continuing federal investigation. Developer Timothy Todd DeNeui and Jerrold Minney, a real estate broker who helped sell the villas, have denied knowing the buyers were engaged in a fraud conspiracy.

For more, see Two sentenced in mortgage fraud (Taiwan Lee and Talita James get federal prison terms for a scheme that led to foreclosures at Villas at Cherry Creek).

For an earlier Denver Post story on the devestation and subsequent revitalization of the Villas at Cherry Creek community, see Villas close on better future.

Abandoned Animals Feeling Foreclosure Fallout

In a recent online story, BusinessWeek Online reports:

• "The mortgage mess is getting even messier. Literally. Malnourished and flea-ridden animals, feces-covered floors and urine-soaked furniture, piles of rotting garbage, swarms of diseased mosquitoes—these are the horrors that may await the ill-fated sheriff, property inspector, Realtor, or passerby making that first visit to a deserted home."

For more, see Foreclosure's Filthy Aftermath (As foreclosures become more frequent, so do the bizarre and shocking stories of abandoned animals, insect infestations, and deplorable living conditions).

Go here for a BusinessWeek slide show of what people leave behind after they lose their homes to foreclosure.

For one story about 23 animals being found in a foreclosed home during eviction proceedings, see Animals taken from Lake Carmel home recovering.

Go here for more on pets and foreclosures.

Legal Complications Arise In Modifying Troubled Subprime Loans

Possible legal complications are arising on Wall Street that may impact the ability of financially strapped homeowners with subprime mortgage to negotiate with some mortgage holders to modify or otherwise alter the terms of their troubled mortgages. The New York Post reports:

• "A big hedge fund on one whopper of a winning streak is picking a bitter fight with Bear Stearns over whether renegotiating loans for homeowners struggling with subprime mortgages is fair play. Paulson & Co., an $11 billion hedge fund, has written regulators over concerns that Bear and other investment banks may be engaged "in market manipulation" when the banks' mortgage-issuance units modify loans so that homeowners can avoid foreclosure. The Madison Avenue-based Paulson is ready to do major battle."

Paulson & Co. has made "a multibillion-dollar bet on the decline of the subprime mortgage market, using [sophisticated, Wall Street] trading strategies." Apparently, Paulson & Co. is concerned that the help being sought by and given to homeowners stuck with onerous subprime mortgages in order to avoid foreclosure may cause Paulson's "multibillion dollar bet" to go sour. For more, see Hedge Fund Bear-ish On Subprime Relief.

For a comment on the concerns of hedge funds regarding the assistance being offered to homeowners facing foreclosure who are stuck with subprime mortgage loans, see The Dangers of Democratic Hedging (Not About Iraq), (by Robert Weissman in The Huffington Post). According to Weissman, "The hedge funds have invested in various derivative instruments that pay off when borrowers default and get thrown out of their homes."

Go here for other related posts on mortgage servicing issues. MortgageServicingIssuesAlpha

Defending Consumers In Foreclosure Actions

A number of articles have recently addressed the use of the Federal Truth In Lending Act by attorneys defending homeowners facing foreclosure as a way to undo subprime mortgages where it is alleged that the loan originator failed to fully comply with Federal law when making the loan. For prior posts on this point, containing links to online media reports, see:

• Homeowners Facing Foreclosure Suing Lender To Undo Mortgage Loans,
• Homeowners Invoking "Truth In Lending" Rights To Back Out Of Bad Loans,
• Option ARMs The Target Of Homeowners' "Truth In Lending" Lawsuits

Another approach in defending homeowners facing foreclosure is addressed in a recent article in Forbes magazine. Mortgage loans get sold and resold in the open market and, if they end up in the hands of the Wall Street players who issue mortgage-backed securities, the ownership interests in those mortgages will then get "sliced and diced" among short, medium, and long term "investor pools". The focus of the Forbes article is the apparent difficulty many foreclosing mortgage lenders are having in maintaining, keeping track of, and presenting in court the required mortgage loan paperwork when they initiate a foreclosure action, given the number of times the mortgage loans are sold, resold, sliced, and diced.

Stated another way, some attorneys representing homeowners are making an issue of the sloppiness with which foreclosing mortgage lenders maintain their loan paperwork and the sloppiness with which they present their case in court. In one case in Florida, Jacksonville Area Legal Aid lawyer April Charney got a foreclosure filed against her client withdrawn after discovering that the company that filed to foreclose didn't own the mortgage loan that they were attempting to foreclose. The following excerpt from the article reflects the thinking behind this approach in defending homeowners:

• ""I buy time, then get lenders to cut interest rates and fees," says Charney, who claims she's stopped dozens of foreclosures over ownership issues. Other lawyers are making similar moves in Maryland, New York, Massachusetts, Ohio, Kansas and Washington State--often forcing sloppy lenders to offer generous terms to avoid litigation."

The article goes on to report that Charney "stumbled upon the industry's paperwork problem two years ago after noticing that nearly all lenders seeking to foreclose against clients were filing "affidavits of lost notes."" These affidavits are filed in court by foreclosing mortgage lenders in an attempt to get the judge to, in effect, waive the legal requirement that they present the required paperwork that proves that they, in fact, own the loan they are trying to foreclose.

Reference is also made in the article to prominent foreclosure filer--Mortgage Electronic Registration Systems ("MERS"), a Vienna, Virginia company whose name is reportedly on 30% of the mortgages in county clerk offices around the country, and have been known in the industry as a company that files foreclosure actions in connection with mortgage loans that they may service but do not actually own.

For more, see Paper Chase (You're in luck. Your mortgage lender has flipped, sliced and diced your loan--and now no one knows who holds it).

Postscript

The carelessness and sloppiness in which some foreclosing mortgage lenders and their attorneys often go about their business when initiating forecloure actions has been observed by at least one Federal bankruptcy judge in Massachusetts. In fact, the judge, Judge Joel B. Rosenthal, "has observed instances in which attorneys representing alleged mortgagees or their servicing agents did not know whether the client was a mortgagee or a serving agent, or how their client came to acquire its role." For more on the apparent cluelessness that some lenders and their attorneys seem to possess as it relates to their legal obligations when initiating a foreclosure action, see Judge Rosenthal's Memorandum of Decision in In re Shwartz, (Bankr. Ct., Ma. April 19, 2007).

For a comment on the significance of a foreclosing mortgage lender's failure to present in court the actual, original promissory note, signed by the borrower / homeowner when bringing a foreclosure action, see "Editorial Note" in my prior post, Dillon Continues Battle Against Alleged Predatory Mortgage Servicer.

For a copy of a court order from a Pinellas County, Florida trial court ruling that the mortgage servicer mentioned above, Mortgage Electronic Registration Systems, Inc. ("MERS") "lacked standing" to bring foreclosure actions on behalf of the actual mortgage holders whose loans MERS was servicing, (and, accordingly, dismissed twenty foreclosure actions that MERS brought on their behalf), see in re Mortgage Electronic Registration Systems, Inc. (MERS), available online courtesy of Mortgage Servicing Fraud .org, at msfraud.org.

(Please note that the Pinellas County, Florida trial court decision, the logic of which might still be found to be persuasive in courts outside Florida, has subsequently been reversed by a Florida appellate court. For more on this point, see Mortgage Servicer "Has Standing" To Bring Foreclosure Actions, Say Three Courts.)

Go here for more posts on homeowners who have refinanced into bad mortgage loans and are now using the Federal TILA to try and undo the bad loans.

For other posts that reference the failure of some mortgage lenders and their attorneys to file the required loan documents when starting foreclosures, Go Here, Go Here, Go Here and Go Here. missing mortgage foreclosure docs alpha undo mortgage loans TILA alpha

Homeowners Facing Foreclosure Suing Lender To Undo Mortgage Loans

The Boston Herald recently reported that Rhode Island attorney Christopher Lefebvre "said he is representing 200 current and former Ameriquest homeowners in Massachusetts and other states - many now facing foreclosure - who are suing to undo mortgages taken out through the California-based lender." According to the article:

• "The homeowners he is representing contend they were either not given all the correct mortgage paperwork, or that it was provided in a confusing or misleading way. Federal and state laws spell out, in minute detail, various disclosure documents mortgage companies are required to give borrowers. Lefebrve contends paperwork problems were common during the recent hectic boom in subprime mortgages. “People got sloppy,” he said."

For more, see Lawyer eyes Ameriquest: Clients: Home loan paperwork faulty (no longer available for free online; the story may be available in the Boston Herald paid archives).

For other posts about homeowners suing their mortgage lenders for violation of Truth In Lending statutes to undo onerous subprime mortgage loans, see:

• Homeowners Invoking "Truth In Lending" Rights To Back Out Of Bad Loans
• Option ARMs The Target Of Homeowners' "Truth In Lending" Lawsuits

Florida "No Money Down" Scam Artists Convicted Of Equity Skimming

Florida real estate agent Synthia Ippolito, 37, was convicted last week of scheming to defraud and equity skimming in connection with an abuse of the classic "nothing down" real estate acquisition technique that is commonly promoted at real estate investment seminars. Sentencing is forthcoming and she can receive up to 30 years in prison. A Tampa, Florida area jury took only three hours to reach their verdict. Ippolito's ex-husband, Christopher Nickelson, 45, was convicted in the scheme last year and was sentenced to 15 years in prison.

The real estate investment technique used, which in itself is not illegal (and is about as old as Methusalah's grandmother, notwithstanding what Carleton Sheets, Robert Allen, and the other real estate gurus may lead you to believe) involved seeking out properties that were owned by their owners free and clear of any mortgages (or had extremely low balance mortgages, relative to the property value). Once found, Ippolito and her husband talked the owner into financing approximately half the purchase price themselves by providing "owner financing" (ie. seller financing, holding or "taking back" paper, taking payments, etc.).

They then structured the transaction to make the seller-held mortgage subordinate in priority to a new first mortgage (the article is not expilcit as to whether they talked the property owners into voluntarily subordinating the priority of their seller-held mortgage to the new first mortgage, or whether Ippolito and her husband simply "snuck" a subordination clause into the purchase contract and/or the seller's mortgage without telling them, possibly in collusion with the closing agent). They then obtained a new first mortgage from a private lender to complete the 100+% financing, pocketing cash at each closing.

The final step taken by the scam artists was to rent the homes to tenants, collect the rent, and make a few payments on the mortgages before beginning to "milk the rent" from the properties, stiffing both the private lenders and the former homeowners on their expected mortgage payments and walking away from the properties.

Reportedly, some of the victims lost both their homes and their accumulated home equity altogether while others spent tens of thousands of dollars to get their homes back. For more, see Woman convicted in equity fraud case (She and her husband, who was convicted last year, made about $70,000 in two years) (reported in the St. Petersburg Times).

More On Tenants Unwittingly Renting Homes In Foreclosure

In California, KCRA-TV Channel 3 in Sacramento reports of the problem tenants face when they unwittingly find themselves renting homes on which the landlords are skimming the equity by pocketing the rent without paying on the existing mortgage on the property.

Go here to watch the Channel 3 report (by reporter Lynsey Paulo).

To read the online report, see Call 3: Renters At Risk In Property Foreclosure.

For other stories on tenants unknowingly renting homes in foreclosure, go here, or here, or here. alpha

Equity Skimming Statutes In Washington State, California, Florida

Equity skimming, which is generally (and very loosely) defined as a situation where a party obtains title to mortgaged property from another (typically with little or no out of pocket investment), and then proceeds to fail to make any mortgage payments while renting out the property (ie. "milking" the rent out of the property) until foreclosure takes place several months later, is the subject of specific statutes in a number of states.

In Washington State, equity skimming, as it is specifically defined by statute, is both a criminal act as well as an unfair or deceptive act or practice and unfair method of competition in the conduct of trade or commerce that is a basis for a civil lawsuit. For more, see Chapter 61.34 RCW - Equity skimming.

In California, the statutes addressing equity skimming (referred to as rent skimming in California) also provide a basis for both criminal prosecutions and civil lawsuits. For more, see Section 890 through Section 894 of the California Civil Code.

In Florida, the statute defining equity skimming provides for criminal sanctions only. The statute does not specifically create a private cause of action for the victim. For more, see Section 697.08, Florida Statutes. (It wouldn't surprise me, however, if such conduct violates the Florida Deceptive and Unfair Trade Practices Act - Section 501.201-501.213, Florida Statutes, which does provide a basis for a civil lawsuit.)

Southeast Missouri Hit With Rash Of Home Title Thefts

KFVS-TV Channel 12 in Cape Girardeau, Missouri has recently reported on a rash of forgeries and other improprieties that is threatening the property ownership of many Missouri residents. In one story, a 78-year-old Sikeston man reportedly had the title to three properties that he owned sold out from under him as a result of a forgery of his signature. According to the story:

• "Scott County Recorder Tom Dirnberger noticed an unusual pattern in property sales, dating back to 2004. Dirnberger explains is as a three part process: 1. Low-end rental homes are bought 2. The homes are purchased through an out-of-state bank for two to three times their assessed value 3. The homes are foreclosed on just a few months later. Dirnberger [says] he's seen hundreds of properties sold like this, adding up to more than $15 million. In the last few weeks, he's also received several calls from local property owners wanting to check their deeds."

The Sikeston man is currently represented by Missouri attorney Jim Robison, who filed a "petition to set aside deeds and deeds of trust" in order to restore clear title to the three properties in the victim's name. Robison is reportedly also representing three other Scott County property owners, who have also experienced the same problem with forged signatures. For more:

• watch Part 1 - Channel 12 TV report, (by reporter Kathy Sweeney)
• watch Part 2 - Channel 12 TV report, or
• to read online report, see House-jacked in the Heartland.

For another Channel 12 story, this time of a Millersville, Missouri family whose home is threatened with foreclosure due to what appears to be a skimming scam, where payments made by the homeowner to one party (a modular home vendor) weren't ultimately remitted to the mortgage lender who now seeks foreclosure, see:

• House jacked...again!, or go here to watch the Channel 12 TV report. (by reporter Crystal Britt).

Go here for other posts on this story.

S. California Man Accused Of Stealing His Grandmother's Home Equity

According to a report by television station NBC 7/39 in San Diego, California:

• "Jay Ladran, 31, is facing charges of elder abuse and fraud. According to the sheriff's department, Ladran forged his grandmother's signature in order to steal her home. He allegedly borrowed close to $400,000 against the home, which is located in Imperial Beach. The sheriff's department said that Ladran admitted he used some of the money for a down payment on a home, a failed business and on his "sexual compulsions.""

For more, watch the NBC 7/39 TV report (no longer available online).

To read the online report, see (no longer available online) Man Accused Of Stealing Grandma's Cash (Deputies Say Grandson Used Cash On Strippers, Prostitutes)

Mass. AG Issues Emergency Rule Banning Foreclosure Rescue Scams; Sues Attorney / Foreclosure Rescue Operator

In Massachusetts, The Boston Globe reports:

• "Massachusetts Attorney General Martha Coakley yesterday issued an emergency regulation to ban foreclosure-rescue scams that rob financially troubled homeowners of their properties. The ban extends for 90 days, but Coakley intends to follow up with a permanent regulation to make foreclosure-rescue scams illegal in Massachusetts."

Also in the article is the story of one foreclosure rescue victim who said she lost $96,000 in equity and her Brockton home after signing over her property to attorney Alec G. Sohmer, who offered to help homeowners facing foreclosure save their homes. The victim reportedly stated, "I trusted him, because he's a lawyer".

Reportedly, the attorney general brought legal action last August against Sohmer and his wife, Jennifer, claiming they were offering a foreclosure rescue scam. According to the story:

• "The state said Sohmer persuaded clients to sell him their properties unwittingly , promising they could stay in them by making payments to him and then "repurchase" them later. When the clients couldn't make the payments, Sohmer tried to evict them and sell the property, the attorney general's office claims."

For more, see:

• State cracks down on bailout scams (Coakley: Emergency rule needed to protect those in foreclosure)
• AG’s mortgage crackdown aims to rescue the ‘rescued’ (Boston Herald)
• Massachusetts Attorney General Press Release
• Go here for other posts on this case.

Florida Non Profit Law Firm Swamped With Calls From Homeowners Facing Foreclosure

In Jacksonville, Florida, The Times-Union reports:

• "Jacksonville Area Legal Aid, a nonprofit law firm, has been swamped with people seeking help to keep their homes. Since January, the firm has been able to open 26 new foreclosure cases but it has been forced to turn away 152 people because it lacks enough attorneys, [executive director Michael] Figgins said. He said that based on the firm's past success, he figures Jacksonville Area Legal Aid could have been successful in at least 90 percent of the cases that were turned away. Lenders often must make accommodations to homeowners, but the process is so complex that homeowners "run into a brick wall" if they don't have a lawyer representing them, said Lynn Drysdale, an attorney for Jacksonville Area Legal Aid."

For more, see Wait's longer for help with foreclosures (The city's new no-interest loan program won't be ready until fall).

Washington Authorities Investigating Fire Of Home Involved In Foreclosure; Arson Suspected

In Clark County, Washington, The Columbian reports:

• "A Sifton-area man died Friday of injuries he suffered in a house fire early Thursday that also severely injured his wife. Also Friday, the Clark County Sheriff’s Office said the fire was arson."

Reportedly, the couple was renting the house from Gary Colemansmith, who said he bought the house at a foreclosure auction last October and rented it back to the couple, the former owners. Colemansmith said the wife had given him written notice recently that the couple would be moving out May 31. For more, see Sifton-area man dies from fire injuries; arson blamed. zebra

Another California Appraiser Fighting Mortgage Fraud

In Southern California, the North Country Times reports the story of one local real estate appraiser's efforts to combat mortgage fraud. According to the article:

• "Real estate appraiser Todd R. Lackner's second job as mortgage fraud investigator began when he stumbled onto a suspicious-looking transaction while online one day last March, he said last week. Within weeks, he was chest-deep in dozens of investigations of suspected mortgage fraud, and was helping federal investigators get the goods on real estate scammers who commit what are known as inflated-sale and-crash schemes, Lackner said."

For more, including how he went about compiling the information on the suspicious transactions for authorities, see Real estate scam emerges -- 'Crash and inflate' method generally leads to foreclosure.

Go here for prior posts on Northern California real estate appraiser Gary Crabtree's efforts to compile and provide authorities with information on suspicious real estate transactions.

Typo In Mortgage Scam Letter Claims Unintended Victim

In Utah, The Salt Lake Tribune reports that a woman received 75 phone calls over a few days - all mistakenly directed to her cell phone number by what appears to be a typographical error contained in a mortgage fraud scam letter. "I just hope it stops and that I don't have to change my [cell-phone] number," said the accidental victim. For more, including the details contained in the scam letter, see Sorry, wrong number: Scam snares accidental victim (A fake letter meant to deceive mortgage holders somehow gums up cell-phone user's voice-mail).

Pennsylvania AG's Elder Abuse Unit Fast-Tracks Financial Crime Cases Involving Senior Victims

The Pittsburgh Tribune-Review recently ran a story about several financial scammers who preyed on the elderly in scams involving millions of dollars, and the work of the Elder Abuse Unit of the office of the Pennsylvania Attorney General in prosecuting those cases. Included in the cases was that of a Fayette County lawyer accused of stealing more than $100,000 in mortgage settlement payments from older clients. Mark Morrison, 49, of Hopwood, is awaiting trial. The AG's office is targeting these types of cases and encouarges seniors to come forward and report these crimes. For more, see Western Pa. scammers who prey on elderly targeted.

If a Pennsylvania attorney is representing you and screws you out of money or property through dishonest conduct, go to the Pennsylvania Lawyers Fund for Client Security for more information.

For other states, see:

• Directory Of Lawyers' Funds For Client Protection (American Bar Association - November, 2007);
• Check the USA Client Protection Funds Map; or
• try this "Google" search.

Go here , go here , and go here for other posts on elder financial abuse. zeta elder financial abuse

Hawaii Passes Law To Protect Elderly From One Form Of Home Equity Theft

The State of Hawaii has passed three new laws directed to the protection of its senior citizens from scams, according to the Hawaii Reporter. Included in those laws is HB1336 SD1 (Act 50), which is designed to punish unscrupulous brokers who convince elderly homeowners to sign mortgages that cause them to forfeit the equity in their property or lose their home by imposing fines of up to $10,000 for each violation. For more, see Governor Signs Bill to Protect Hawaii's Seniors from Financial Abuse and Fraud.

Go here , go here , and go here for other posts on elder financial abuse. zeta elder financial abuse

Weekend I.D. Theft Blotter

This week's identity theft related links follow:

• I.D. theft victim receives IRS letter demanding taxes on income earned by suspect who stole victim's I.D.; victim now has new Social Security number (see Tax season brings rise in ID theft cases),
• Four men charged with I.D. theft for allegedly stealing credit and debit card account information through tampered PIN-pad terminals in supermarkets (see Another guilty plea in identity theft case),
• Credit union pays for two years' worth of I.D. theft protection for thousands of members after their Social Security numbers ended up on the Internet (see Credit union paying for ID theft protection after info error),
• Red Cross I. D. theft scam invoves scammers impersonating Red Cross reps on phone & tell military spouses that loved ones have been hurt (see Red Cross warns military families about scam).

Homes Used As Marijuana Grow Ops A Concern For Some

Realty Times reports today a story from Canada regarding the increased use of single family homes being used as marijuana grow operations . According to the story:

• "An increasing number of grow ops are being discovered across the country, leaving mortgage lenders and sometimes unsuspecting new homeowners with dangerously contaminated homes. The cultivation of large amounts of marijuana in confined spaces gives rise to safety issues involving mold from excess moisture, as well as contamination from the use of fungicides and insecticides, various solvents and other chemicals used for various purposes."

For more, see National Remediation Strategy Urged for Marijuana Grow Ops.

-----------------------

In addition, the San Francisco Chronicle recently reported a story about the problems landlords face when their tenants turn a rental home into a marijuana "grow room." The story includes the plight faced by one landlord who actually went through this nightmare; the pot-growing tenant actually threatened to sue the landlord -- for mold. For more, see Hard to just say 'no' to marijuana-growing tenants.

Tenants Suffering Fallout From Unwittingly Renting Homes In Foreclosures

It used to be that when a landlord rented to a tenant, it was the landlord who scrutinized the tenant's background to determine if the tenant was a good risk. Now, it seems that the tenant has to scrutinize the landlord (and probably even check the property title for recent activity - recent sales - ie. property flipping, existence of a lis pendens or notice of default indicating a possible foreclosure or government forfeiture action, but even that may not help) to determine if the landlord is a good risk (or is he/she merely skimming the equity in the house by pocketing the rent and security deposit without paying the mortgage).

The St. Petersburg Times is reporting a couple of stories of tenants who have unwittingly moved in and rented homes in the Tampa, Florida area, only to learn that the owner hasn't been making his mortgage payments and, consequently, found themselves as defendants in foreclosure actions.

One family, who moved from The Bronx into a Tampa-area home two months ago, were served with notice on May 19 that the bank seeks to foreclose because the owner is months behind in his mortgage payments.

For another couple, this scenario played out on two consecutive rentals. First, they rented a home from Victor Clavizzao, a loan officer (and reportedly, a felon) whose real estate transactions have been the subject of prior investigative reports in the St. Petersburg Times. When that home went into foreclosure, they moved into a home purportedly managed (and possibly owned) by Billy Womack, whose own real estate activities were the subject of a prior story in The Tampa Tribune. The Womack house had reportedly been recently flipped for more than double the previous price within a six month period, and the mortgage is also reportedly now in default.

For more, see Renters, too, face mortgage fallout (Unwary tenants find themselves caught in a widening web of fraud and foreclosure).

For story update, see Felon changes tune on mortgage fraud (8-23-08; In filings made public this week in U.S. District Court in Tampa, Clavizzao agreed to plead guilty to conspiring to fraudulently obtain nearly $6-million in mortgage loans on the Venetian Isle house and 12 other homes and condos in Pinellas County).

For other stories on tenants unknowingly renting homes in foreclosure, go here, or here, or here.

For more on Victor Clavizzao, see Multi-Flipped St. Pete Home Raises Suspicion.

For more on Billy Womack, Tampa-based Womack Property & Asset Management, and the 12 houses Womack's brother and sister-in-law got stuck holding the bag on (allegedly purchased on Womack's advice), see A Dozen Houses, A Dozen Headaches (The Tampa Tribune). alpha

Landlords' Rent Skim Leaves Tenant Without Home

In Virginia, the Loudoun Times-Mirror reports of a lupus-stricken Leesburg woman who, five months ago, unwittingly moved into and rented a townhome that either was in foreclosure or about to go into foreclosure. That home was just sold last week in a foreclosure sale and now the woman and her son are forced to uproot again. The former landlords, who apparently were content with skimming the equity by pocketing the rent and letting the home be auctioned, reportedly still owe her $4,850 in rent, deposit money and the $500 she said she spent to landscape the property. For more, see Foreclosure costs Leesburg woman her home.

For other stories on tenants unknowingly renting homes in foreclosure, go here, or here, or here. alpha

$20 Million Scam Dupes The Well-Heeled & Sophisticated

A recent article appearing in the Village Voice's weekly publication, SF Weekly in San Francisco, serves as a reminder that it isn't only the poor, uneducated, and/or financially unsophisticated that are vulverable to scam artists. The educated and financially well-heeled can be just as susceptible to being fleeced, as this story (not a real estate scam) tells. It was an almost $20 million beating that was suffered by a group of investors from the Bay Area of California that included tech executives, physicians, lawyers, and other monied types among those being duped. Not surprisingly, embarrassment was a key factor in keeping the victims from discussing the case in any detail with the columnist for the story. The information for the story was gleaned primarily from court documents, including a criminal indictment and civil lawsuits filed against the alleged scam artists. For more, see Take the Money and Run (Rebecca and Terry Solomon face charges of fleecing almost $20 million from investors, but not even the feds know where the couple is hiding).

Ohio Man Allegedly Steals Parents' House Payments, Home Goes Into Foreclosure

In Ohio, The Sheboygan Press reports that Cleveland man William R. Stingl, 52, was charged with stealing $2,900 given to him by his parents to make mortgage payments on his parents’ property. Stingl allegedly told his parents that he would forward the payments to the bank along with his own portion of the mortgage, but he instead cashed the checks for personal use. His parents found out when they received a foreclosure notice. For more, see Cleveland man charged in theft from parents.

New Hampshire Woman Charged With Stealing Elderly Woman's Home Sale Proceeds

In New Hampshire, The Citizen of Laconia reports that a Belknap County Superior Court grand jury on May 24 returned three Class A felony indictments against Candy L. Latour, 38. Reportedly, Latour was the subject of three indictments. Among other things, the indictments charge Latour with the crime of theft by unauthorized taking of $73,000, which included the proceeds from the sale of the woman's home, the liquidation of the woman's individual retirement account and from her monthly Social Security income. All of the crimes are alleged to have occurred in Moultonborough. For more, see Woman indicted in theft of elder's money.

NY Attorney Pleads Guilty Of Ripping Off Aunt Of Home Sale Proceeds

In New York, the Mid Hudson News reports that attorney Shelly Ann Rivera of East Haven, Connecticut pled guilty in Westchester County Court to grand larceny in the second degree for stealing $550,000 from her aunt. She represented her aunt in a number of real estate and financial matters. In May 2005, Rivera received a check for approximately $480,000 from her aunt as the proceeds of the sale of a house in the Riverdale section of the Bronx. In August of 2006, Rivera received another check for $522,248 which was a portion of the proceeds for the sale of another house in Warwick in Orange County. Rivera held the money in trust to be used in a subsequent real estate transaction. On October 9, 2006 she failed to provide her aunt with $860,000 needed by her to purchase a new property in Riverdale, New York. For more, see Attorney pleads guilty to defrauding her aunt of cash.

Disbarred Florida Lawyer Accused Of Stealing From Trust Accounts

In Florida, The Pensacola News Journal reports that disbarred Pensacola attorney Vincent J. Whibbs Jr. faces more possible prison time with a racketeering charge added to three previous felony fraud and theft charges. The additional charge of racketeering relates to an allegation that he took $683,827 of clients' money for his personal use from law firm trust accounts while the senior partner at his former firm. Whibbs already faces two charges of grand theft of more than $100,000 and a charge of mortgage fraud. For more, see Whibbs faces fourth charge (Disbarred attorney also is accused of racketeering).