Friday, July 13, 2007
Three Indicted In Massachusetts Alleged I.D. Theft / Attempted Home Theft
They are alleged to have attempted to sell a home from out from underneath the owner without the owner's knowledge, trying to pocket more than $420,000 from a mortgage company in the process. The "closing agent" who handled the phony sale was actually an undercover Massachusetts state trooper who was part of a sting operation conducted by law enforcement. For more, see U.S. Attorney Press Release - Three people Indicted On Fraud Charges In Connection With Bogus "Sale"Of Dorchester Property.
More On Maryland Foreclosure Rescue Class Action Lawsuit
Phillip Robinson, a lawyer and executive director of Civil Justice Inc., a Baltimore nonprofit group that helped prepare the lawsuit, said that most of the advertising for the mortgage foreclosure rescues was done on street signs and on radio and television stations that catered to black residents.
Attorney Stan Brown, who represents about 20 Prince George's plaintiffs, said he obtained an injunction last month to stop his clients' homes from going into foreclosure. Go here for more on attorney Stan Brown.
For more on the story, see Homeowners sue mortgage companies, alleging fraud, and Mortgage Companies Sued in Pr. George's (Homeowners Say They Were Cheated of Equity) (reported in The Washington Post).
For earlier post on this story, see Class Action Lawsuit Filed Against Maryland Foreclosure Rescue Operators.
Brooklyn Attorney Charged In Straw Buyer Scheme
- "Federal and New York officials Thursday announced the arrest of Brooklyn attorney, Alexander Kaplan, on charges of participating in a multimillion-dollar sub-prime mortgage fraud scheme. The arrest was made based on a Complaint filed in Manhattan federal court. The allegations against Kaplan relate to charges contained in a superseding Indictment, unsealed Wednesday in Manhattan federal court, charging 26 other individuals with participating in a wide-ranging scheme to commit mortgage fraud by submitting to sub-prime lenders loan applications and supporting documents that contained false information and material omissions."
For more, see Brooklyn attorney charged with multi-million dollar sub-prime mortgage fraud scheme.
See also, Brooklyn Attorney Charged In Mortgage Fraud Scheme (North Country Gazette).
For an earlier post on this story, see NYC Feds Charge 26 In $200 Million Straw Buyer, Identity Theft Mortgage Scam.
Louisiana Feds Get Guilty Plea In Straw Buyer, House Flipping Scam
- "As part of a plea deal with the government, Calvin Davis admitted to three felony charges: conspiracy to commit mail fraud, filing false loan paperwork and income tax evasion. He is scheduled to be sentenced Nov. 8. [...] Davis is the sixth person to plead guilty to charges related to the "house flipping" scam. His guilty plea comes on the heels of the recent grand jury indictment of Michael O'Keefe Jr., owner of Citywide Mortgage Co. and son of former state Sen. President Michael O'Keefe. Michael O'Keefe Jr. was indicted June 18 and is accused of defrauding the federal government into guaranteeing $600,000 in Citywide loans to unqualified borrowers."
Davis admitted to purchasing blighted or run-down properties and obtaining fraudulent appraisals that boosted the homes' values after minimal repairs were made. Straw buyers were then recruited by him to purchase the houses at their inflated prices. Phony employment and credit documents and tax returns were used to dupe mortgage lenders into providing the straw buyers with financing. Three of the straw buyers -- Timothy Falls, Dennis LeBlanc and Dennis Addison -- admitted in court to lying about their income, credit and the value of the houses they intended to buy and a fourth participant, Robert Green, pleaded guilty in April to charges that he prepared the false tax returns. Michelle Cochran, an underwriter for Citywide Mortgage, pleaded guilty to approving the fraudulent applications.
For more, see Abuse of loan program admitted (False information was filed with HUD).
Go here for related posts on Calvin Davis.Bidders Passing On Foreclosure Sales - Leaving Homes On Lenders Laps
- "In May, $2.8 billion worth of California real estate went up for sale in foreclosure auctions, according to ForeclosureRadar.com, a Discovery Bay company that sells foreclosure information to subscribers. Of that amount, about $2.6 billion worth failed to find buyers, and so became bank-owned. The figures represent the total value of the outstanding loans that went up for auction."
- Can we expect our neighborhoods to be flooded with billions of dollars of vacant (and possibly boarded up) homes, possibly with untended pools (mosquitos?) and uncut high grass and weeds (rats, snakes, etc.?), attracting an occasional vandal or two (to swipe appliances, copper tubing, and other assorted items of value from the home), thereby helping drive neighboring property values that much further into the ground than they already are?
For the story, see Once rare in valley, lender-owned homes on the rise.
In a related story, NBC Nightly News had a report last night on California and how hard hit it has been with foreclosures. Among other things, reporter George Lewis speaks with one concerned homeowner whose home is surrounded by empty, untended foreclosed homes. For more, watch the NBC Nightly News report, California Hit Hard With Foreclosures.
See also, The Newest Homeowners: Big Banks (The Motley Fool - reported on MSNBC).
Home Improvement Rip Offs Made Easy
- "Contractors can help homeowners find financing to pay for their renovations, and a segment specifically target low-income residents. Too often, experts say, some of these companies steer customers into a second mortgage with above-average interest rates, huge fees and terms homeowners don't understand. These loans typically get sold to another bank without the borrowers' knowledge. If a customer stops paying the contractor because of poor work, the new loan holder will require reimbursement of the full loan amount, setting up a homeowner for possible foreclosure -- the loss of their home. Contractors, however, have a win-win setup. Home repair provides a powerful incentive for someone to take out a loan. Once the financing comes through, the contractor often gets the bulk of payment before work starts. A contractor's fingerprints rarely show up on mortgage documents. And if a client sues, lawyers often find it difficult to prove criminal intent by the company."
For more, see:
For more on homeowners left in the lurch due to actions by builders/contractors, go here, go here, go here, go here, and go here. StiffingContractorsTheta
California CSLB "Stings" More Unlicensed Contractors
- "Investigators posed as people whose homes were destroyed during last week's fire, that destroyed 254 homes and 75 other structures. They invited suspected unlicensed contractors to bid on debris removal and various reconstruction projects."
The sting operation was conducted by investigators with the California Contractors State License Board ("CSLB") in cooperation with the California Department of Insurance, and the El Dorado County district attorney's office and sheriff's department. For more, see Five arrested in undercover Lake Tahoe contractor sting.
Thursday, July 12, 2007
NAACP Files Subprime Lending Suit; Seeks Class Action Status
- "The NAACP sued a dozen mortgage lenders Wednesday, claiming the companies discriminated against blacks by steering them into higher-interest subprime loans while giving more-favorable loan terms to white borrowers. The lawsuit, which seeks class-action status, was filed in U.S. District Court in Los Angeles. It demands a court order barring the lenders from discriminating against blacks and compelling them to comply with fair-housing and credit laws. Among the defendants named in the suit are Ameriquest Mortgage Co., Citigroup Inc., HSBC Finance Corp. and Washington Mutual Inc."
A similar suit is currently being litigated in Cleveland, Ohio (see Cleveland Fair Housing Lawyer Files Predatory Lending Class Action Lawsuit).
For more on the NAACP lawsuit, see Mortgage lenders discriminated against blacks, NAACP suit alleges.
For a copy of the lawsuit, see NAACP vs. Ameriquest Mortgage Corporation, et al., made available online courtesy of the NAACP.
For the NAACP press release, see NAACP Files Landmark Lawsuit Against Major Home Mortgage Companies For Discriminatory Lending.
Go here and go here for other posts on alleged race bias in real estate transactions. race bias predatory lending
NYC Foreclosure Rescue Operator Sued Again
Among other things, it is alleged that:
1) Ophelia Ray, working as a bird dog for Home Savers, first made face-to-face contact with the homeowners by showing up at the plaintiffs' front door, and "quoted from the Bible and professed to be a religious person who sincerely wanted to help the [plaintiffs],
2) Home Savers obtained well over $100,000 out of the equity in the plaintiffs' home, giving them $12,000, and pocketing the difference,
3) The plaintiffs thought they were getting a mortgage with payments prepaid for a year, but in June, the plaintiffs were served with an eviction notice.
The complaint sets forth the following causes of action:
- (a) equitable mortgage - Section 320 of the New York Real Property Law; (b) numerous violations of the Federal Truth In Lending Act and its implementing regulations (Regulation Z), (c) violation of the Federal Real Estate Settlement Procedures Act, (d) violation of New York Deceptive Pratices Act - Section 349 of the General Business Law, (e) fraud, (f) civil conspiracy to commit fraud, (g) aiding and abetting fraud, (h) conversion, (i) quiet title action - Article 15 of the New York RPAPL (ie. void the mortgage and any other claims that may have arisen as a result of the transaction in question).
For a copy of the lawsuit, see Harvey vs. Home Savers Consulting Corp., et al.
Go here for other posts on Home Savers Consulting Corp. equitable mortgage yak
The High Cost Of "No Closing Cost" Mortgages
Go here for other posts on so-called no cost mortgages.
Go here for other posts on the Charlotte Observer's investigative reports on Beazer Homes.
Cleveland Fair Housing Lawyer Files Predatory Lending Class Action Lawsuit
- "[T]here was an unmistakable pattern: Nearly all were poor people of color, and all had been locked into unaffordable loans, with high interest rates and exorbitant broker fees."
- "So, after 32 years of applying state and federal fair housing statutes to defend clients against unfair housing providers, Kramer decided it was time to use the same laws differently. In April, Kramer turned plaintiff and filed a class-action complaint that goes past individual brokers and at the banks and mortgage companies that, he says, paid the brokers to target African Americans. The suit represents a tectonic shift in how predatory lending cases are handled. Case-by-case approaches have left attorneys and investigators unable to detect larger patterns of racially motivated lending. But now, Kramer's new approach, and pricing data available only since 2004, has emboldened a host of players - all separately coming to the conclusion that it's time to switch targets: to the banks and investment firms."
Kramer's firm itself filed the suit against Argent Mortgage Co., reputed to be the biggest subprime lender in Cleveland, in addition to Wells Fargo Bank. Reportedly, the Fair Housing Act allows organizations to file complaints if the discrimination in question is taxing their resources.
The article also describes the efforts of Ohio Attorney General Marc Dann, who is pursuing both criminal and civil actions through the statewide Predatory Lending Task Force which he created. He is also using Ohio's racketeering statutes and working with other law enforcement agencies and coordinating cases around racketeering charges.
For more, see Sue The *astards! (What To Do About Mortgage Brokers And Lenders Who Don't Play Fair?)
Go here and go here for other posts on alleged race bias in real estate transactions. race bias predatory lending
California Man Ordered To Pay $100K In Illegal Deal With Homeowner Facing Foreclosure
The Monterey Herald reports that Robert Janssen, of Abbey Management, Inc., has settled a civil lawsuit filed against him by the consumer protection unit of the Monterey County, California District Attorney's office. Without admitting to wrongdoing, Janssen agreed to a judgment of $47,588 in civil penalties and $52,412 in restitution — his profits from a transaction involving the home of a woman facing foreclosure in which he apparently attempted to execute an "equity sharing", foreclosure rescue agreement with her. Janssen's lawyer, criminal defense attorney Richard Rosen, said his client settled to avoid protracted litigation and the threat of criminal prosecution. For more, see Man settles real estate charge (Sold house without Realtor's license).
Wednesday, July 11, 2007
Michigan ACORN "Subprime" Protestors Storm Washington Mutual Subsidiary; Cops Called In
- "Police had to quell a sit-in Tuesday afternoon after angry protesters complaining about lending practices stormed into a mortgage office [in Livonia, Michigan]. More than a dozen members of the Association of Community Organizers for Reform Now descended on an office of Long Beach Mortgage about 4:30 p.m. They chanted "predatory lender, criminal offender." The company is the sub-prime branch of Washington Mutual Mortgage Co."
For more, see Livonia:Protesters storm mortgage firm.
NYC Feds Charge 26 In $200 Million Straw Buyer, Identity Theft Mortgage Scam
- "US officials charged 26 people with conspiracy and fraud, alleging in a criminal indictment unsealed on Tuesday that they used invented purchasers, stolen identities and inflated appraisals to fraudulently obtain subprime mortgages on more than $200m in property in and around New York City. Those who have been charged include real estate appraisers, a loan settlement agent, mortgage brokers and loan processors in addition to people who purchased the property. They allegedly conspired to lie to a series of lenders to obtain mortgages between 2004 and 2007."
Among those charged are three New York brokerage firms, Northside Capital, AGA Capital and its successor Lending Universe, and AGA Capital owner Galina Zhigun.
Among the victimized mortgage lenders include Countrywide Financial, New Century Financial, Washington Mutual and National City Corporation. For more, see:
U.S. atty indicts 26 for mortgage fraud in New York (Reuters).
Retired NY Judge Reportedly Left Homeless & Broke By Guardianship Process
For more, see Were Funds Pilfered from a Retired Judge’s Estate? (Supporters Say Accounting Should Reopen Criminal Probe).
For story update, see Watchdog Group Looks at Brooklyn Court’s Handling of Retired Judge’s Estate (Brooklyn Daily Eagle - 9-14-07) - which reports:
- A respected judicial watchdog group that maintains a Web site and a paid subscription service has taken on one of the more intransigent cases to have appeared on a court docket in recent years — the guardianship case of retired Civil Court Judge John Phillips, whose supporters have cried foul over the way his once vast estate has been mishandled by a series of court-appointed attorneys, experts and judges over the years. Go here for more.
Go here for other posts on this story.
Go here for other posts on the escapades of the public administrator's offices in New York City. daily eagle retired judge granny-snatching racket
Another Upstate NY Straw Buyer Cops Plea In "Andersen" Affair
Go here for other posts on this alleged mortgage fraud scheme.
Denver Pastor Accused Of Duping Church Members Into Being Straw Buyers
- "An investigation by the Rocky Mountain News into claims made by [the unwitting straw buyers], shows that on several occasions in 2005 Hicks used his power of attorney to sign real estate documents that contained false information. The two women maintain that Hicks provided the false information on the documents and that they signed them because they trusted him as their pastor. Doing so, they said, led to ruinous financial consequences."
For more, see Signing on faith (Ex-church members say pastor misused trust to conduct shady real estate deals).
Go here for updates on this Rocky Mountain News investigation.
SEC Investigating Alleged $100 Million Mortgage Fraud
- James Duncan, Maurice McLeod, Chris Oetting, companies linked to Steve Kayden and Dennis Dewitt Jr., Hendrix Montecastro and his Murrieta mortgage brokerage, Stonewood Consulting Inc.
The alleged scam reportedly left unwitting investors with close to $100 million in mortgage debt. For more see:
Feds probing investment ring (North County Times)
SEC investigating alleged Inland scam (The Press Enterprise)
Go here for other posts on this alleged mortgage fraud.
Tuesday, July 10, 2007
Missouri Foreclosure Rescue Operator Facing Felony Theft Charge; Allegedly Cheated 80 Year Old Woman Out Of Home
Involved in the foreclosure rescue transaction was the use of a "land trust" agreement that essentially placed the title to her home in a trust in which Ledman’s wife was named trustee. The elderly woman reportedly also signed over her beneficial interest in the trust to Ledman’s company, J. Michael Properties Inc., giving it the authority to transfer ownership of the house.
In addition to the hot water Ledman currently finds himself in, the real estate investment guru, who reportedly charged $2,900 and up per person for how-to training and gave out advice on his weekly radio show about everything from credit scores to how to buy and sell distressed property with no money down, also finds himself with financial problems. The Star reports that he was evicted from his office, a bank foreclosed on his $500,000 home, and in April, he lost his radio show when he ran out of money to pay for it. He reportedly has also left in his wake unhappy sellers, buyers and investors who lost money in his debt repair and get-rich-quick programs.
For more, see Real estate’s market crash ensnares guru (No-money-down leader in legal trouble).
NJ Man Facing Felonies In Equity Stripping, Straw Buyer Scam
While the incident does not appear to have occurred in the context of a foreclosure rescue context, the suspect's alleged conduct essentially mirrors that of an equity stripping, foreclosure rescue transaction.
More On Minnesota Feds' Foreclosure Rescue Prosecution
They were charged with (1) conspiracy to commit mail fraud, (2) mail fraud - 3 counts, (3) engaging in a financial transaction with criminally derived property (money laundering). The government is also seeking forfeiture of all property obtained, connected with, or traceable to the proceeds of the alleged scam.
For the Federal grand jury charges, see - Indictment - United States vs. Fiorito & Jerde.
Go here for other posts on this story.
Criminal Cases Involving Foreclosure Rescue Arrangements Not Unheard Of
For links to stories and cases involving criminal prosecutions in these situations, see Criminal Prosecutions Of Foreclosure Rescue Operators (posted on the companion blog, The Home Equity Theft Reporter Cases & Articles).
Monday, July 09, 2007
Wisconsin Widow Sues Foreclosure Rescue Operator To Keep Home
According to the report, the transaction involved the use of trust documents purportedly establishing a "family trust" that were signed by the widow and that was one element in the overall arrangement that resulted in the home being sold out from underneath the widow to a straw buyer. Attorneys from the Legal Aid Society of Milwaukee are representing the widow in an attempt to help her keep her home and void the foreclosure rescue transaction.
In addition to the "main event" in this court battle between the widow and the operator, other fights on the "undercard" involve (1) the straw buyer, who has reportedly filed a claim against Johnson, saying she was duped, and (2) the lenders, who have reportedly filed a counterclaim and are seeking damages against the appraiser involved in the transaction, saying he overvalued the widow's home.
For more, see Facing eviction, widow sues (Lawmakers consider bill against 'rescue scams').
For other foreclosure rescue stories involving the attorneys from the Legal Aid Society of Milwaukee, reported in the Milwaukee Journal Sentinel, see:
From foreclosure fire into eviction frying pan (Desperate homeowners are targets of buyback plans),
Beware those offering help on foreclosures.
The use of trust agreements (and, in connection therewith, the use of assignments of beneficial interests) in foreclosure rescue transactions appear to be relatively common. It is undeniable that using trusts is a legitimate way of establishing and maintaining a businessperson's privacy in connection with legitimate business and family transactions. In my view, however, using complicated trust agreements in an attempt to conceal or otherwise obscure transactions that are ultimately found by a court to be based in fraud, deception, or any other act of overreaching can only exacerbate the situation for a foreclosure rescue operator when a court (after finding such fraud, etc.) determines that the imposition of punitive damages against the operator is warranted. For punitive damage awards in foreclosure rescue situations, see for example, Foreclosure Rescue Victim Wins
New York Times On Foreclosure Rescue / Equity Stripping
Lea Weems, a lawyer at the Home Ownership Preservation Project at the Legal Assistance Foundation of Metropolitan Chicago, represents the Chicago homeowner and reportedly has helped her client get the title to her house back. As far as the lender who provided the mortgage in the equity stripping transaction is concerned, the victimized homeowner is currently suing them to declare the mortgage void because of the fraud involved when she signed away the title to her home. A hearing in her case is scheduled for mid-July.
For more, watch A Victim Of Equity Stripping (By New York Times reporters Gretchen Morgenson and Rob Harris).
More Foreclosure Rescue Victims Fighting Back To Keep Their Homes
One case involves a Brooklyn, New York couple did business with Home Savers Consulting Corporation, a Brooklyn company that advertised help for people facing foreclosure. The homeowners signed their home away to this company. According to the story:
- "Jessica Attie, co-director of the Foreclosure Prevention Project at South Brooklyn Legal Services and the lawyer for the [Brooklyn homeowners], said her office was overwhelmed with homeowners who had handed over their deeds to people pretending to help “save” their homes. Officials at Home Savers could not be reached; the company’s telephone has been disconnected."
A third case involves a Chicago, Illinois homeowner who did business with foreclosure rescue operator RYM Technologies and Felix Daniel, the head of the company. Within four months after signing up for a program offered by RYM, the home was in foreclosure. Lea Weems, a lawyer at the Home Ownership Preservation Project at the Legal Assistance Foundation of Metropolitan Chicago, represents the Chicago homeowner and has helped her client get back the title to her home. They are also suing the lender who placed the mortgage on the house that was part of the equity stripping transaction. They are seeking to void the mortgage. A hearing in her case is scheduled for mid-July.
Reportedly, securities regulators in Utah have issued a cease and desist order against RYM Tech, and Arizona officials said a hearing was scheduled for this month in its civil suit against the company for offering securities inappropriately.
For more, see Predators Bilk Struggling Homeowners, or
Predators Bilk Struggling Homeowners (The Times Daily).
Go here to watch NY Times video - A Victim Of Equity Stripping.
Go here for other posts on foreclosure rescue operator, Home Savers Consulting.
For copy of one of the above lawsuits, see Johnson vs. Home Savers Consulting Corp., Phil Simon, et al. equitable mortgage yak
Foreclosure Rescue Scams Growing
Go here to watch KOMO-TV Channel 4 report (by reporter Connie Thompson) or, to read the online story, see Beware of foreclosure rescue scams.
Facing Foreclosure? Say No To Bird Dogs!
For the 2005 report, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (file size - 4.61 MB).
Sunday, July 08, 2007
Foreclosure Consequences On The Community
Lack Of Maintenance Results In Loss Of Home For Owner & Headaches For Upstate NY Town
The home, in the upstate New York Village of Owego, ended up being sold to the local municipality in a tax foreclosure sale when the prior owner failed to pay real estate taxes. However, the problems dated back prior to the foreclosure when the village worked with the Tioga County Health Department to evict the owner, after her inability to maintain the home resulted in unsanitary living conditions that affected the entire neighborhood. According to the story:
- "Shortly after the eviction, the village contracted three companies to clean up trash inside and outside the two-story home. Exterminators removed at least 280 rats... [T]he garbage was about 3 feet high in every room and was full of feces... [C]leanup costs totaling $7,222.89 were attached to [the owner's] property taxes... [F]urther fees included routine outdoor maintenance, according to village bills."
Reportedly, the owner sufferred from a medical condition that restricted her from standing on her feet for long periods of time. Neighbors and a local church had cleaned the property on several occasions, but the owner simply couldn't maintain the home. According to the story, the owner's husband told her not to pay the taxes because the property would be condemned anyway.
The village board is now considering when to demolish the home, the average cost of which reportedly ranges from $20,000 to $25,000. For more, see Owego takes over house that had rats.
California Court Orders Forcible House Cleaning Of Home Nearing Foreclosure
- "Citing health and fire code violations, and an ongoing rat infestation, the city will remove accumulated trash and other debris from a private home in Oceanside's Capistrano Park neighborhood. [The Oceanside manager of the city's code enforcement division] said his department has received 14 complaints about conditions at the property and added that the enforcement action is likely to cost $5,000 to $7,000 and will be billed to property owner ..."
Ohio Man Killed, Wife Injured In Accident With Fire Truck Responding To Suspicious Vacant (Foreclosure) House Fire
- "A World War II veteran was killed and his wife critically injured Wednesday when their car was struck by a fire truck on the way to a vacant house fire. [They] were celebrating their 53rd wedding anniversary, said friends at the nearby American Legion post they had just left."
Firefighters were responding to a burning 2 1/2-story wood-frame vacant house, which also caused some damage to the house next door. No injuries were reported at the site of the fire.
Reportedly, the house was in foreclosure and was scheduled for sheriff's sale Monday. The cause of the fire, while not yet declared arson, remains suspicious and is under investigation. For more, see Tragic end to wedding anniversary. zebra
Another Suspicious Fire Burns Down Vacant Yakima Condo Project
Reportedly, the original owner lost the condos to foreclosure, and the current owners bought the property in a Sheriff's sale for $450,000 two years ago. Yakima Fire Chief Charlie Hines says damage estimates could easily be into the millions. Authorities said it's unclear whether the property was insured. The current owner, Deerfalls Property, reportedly filed for Chapter 11 bankruptcy last month. It also owes more than $25,000 in delinquent property taxes for the past three years. Jacques Von Speyer and Alexa Petschek-Von Speyer, who are listed as the debtors on the bankruptcy petition, could not be reached Thursday.
Federal Alcohol, Tobacco & Firearms agents will be working on the investigation with Yakima Fire and Police investigators to figure out what caused the empty condos to burn down. While not yet calling it arson, they are calling the fire suspicious. For more, see:
ATF Agents Join Investigation Into Fire That Burned Down Empty Condos. (KNDO-23/KNDU-25).
Go here to watch the KNDO-23/KNDU-25 video report (Brian Levitan reports) (no longer available online).
Condo project destroyed in latest suspicious fire (Yakima Herald-Republic). zebra
South Dakota Man Cops Plea In Foreclosure Arson
More On Foreclosure Eyesores
USA Today recently ran a story on the mosquito problem in parts of Arizona, Southern Nevada, and California due to the untended pools of vacant and abandoned homes. See Vacant pools leave neighbors swimming in mosquitoes.
Concerned that high grass attracts rats and snakes from the river, the borough council in Scottdale, Pennsylvania has recently passed a "tall grass" ordinance that can result in a $600 fine per offense and as long as 90 days in jail for violators, according to the Connellsville Daily Courier. Reportedly, the borough has spent much time with problem properties owned by banks and other lenders. See Scottdale adopts high grass ordinance.
In Binghampton, New York, the Press & Sun-Bulletin reports on the plight of one area homeowner who has been pressuring local code enforcement for ten years to force her neighbors living next door to clean up their home. The home is described as a hodgepodge of cracked paneling, broken windows and faded paint. Asphalt roofing shingles are multicolored and mismatched. And trash is strewn throughout the yard. While the neighbors have since lost their home to the city in a tax foreclosure sale, the homeowner is still waiting for the cleanup. See 10 years later, woman still waits for cleanup of adjoining property.
Saturday, July 07, 2007
New Jersey Man Charged In Alleged Distressed Property Scam
Alleged Theft Of Back Tax Money Results In Foreclosure For NJ Homeowner
Illinois Feds Indict Realtor In Mortgage Fraud
- "A 41-year-old Caledonia man was charged in federal court Tuesday with doctoring documents so borrowers could receive commercial and Federal Housing Administration-insured loans to boost his own real estate commissions. Raymond S. Talan is facing two counts of interstate carrier fraud, five counts of wire fraud and three counts of making false statements to a federal agency."
Montana Feds Charge Loan Officer In Mortgage Fraud
For more, see Ex-mortgage agent facing fraud charges (Billings Gazette).
For story update, see Men plead guilty to mortgage fraud (10-6-07).
Colorado Man Victimized In Identity Theft / Mortgage Fraud Scam
St. Pete Loan Officer In More Hot Water
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 links to other stories on Victor Clavizzao, see Multi-Flipped St. Pete Home Raises Suspicion.
California Man Gets Five Years In Federal Prison For Scamming $32 Million From Clients In Ponzi Scheme
- "Favata had persuaded clients to refinance their homes and use the cash, and other assets, to invest in another arm of the company, promising investment returns of 30% to 60% a year. An investigation, triggered by tips to the Securities and Exchange Commission, revealed that little of the money was invested. Instead, Favata was paying earlier investors with funds from new investors in what is known as a Ponzi scheme."