Wednesday, November 07, 2007

Mortgage Elimination Scheme Results In 68 Count Criminal Complaint Against 10

In Stanislaus County, California, The Modesto Bee reports:
  • The Stanislaus County district attorney's office last month filed a 68-count criminal complaint against three real estate agents and seven alleged accomplices from Modesto, Ceres, Waterford, Turlock and Stockton. They are accused of stealing more than $2 million from lenders by filing false documents with the county clerk-recorder's office, indicating that loans to three properties had been paid so straw buyers could get new loans, then cash out the proceeds. [...] Authorities think Eric Charles Braun, 29, of Modesto did most of the legwork by meeting with lenders and managing the paperwork. His attorney, Bruce Perry, said Braun cooperated with authorities once they had a paper trail in hand, something that could help limit his culpability.

According to Braun (who, once he got nailed by authorities, appears to have wasted no time spilling his guts on his confederates to save his own hide), he downloaded legitimate deeds from a public access computer in the Stanislaus County clerk-recorder's office, which were then used to create fraudulent documents then filed with the same office. He also said he purchased notary stamps from a supply store, so the group could forge the names of Modesto-area notaries onto the phony documents. He also claimed that a fictitious mastermind given the name of "Seth Davis" was created and upon whom the blame for the fraud would be ultimately placed when the scheme was planned to end.

In addition to Braun (63 felonies), others charged were:
  • Noah Adam Yates, 29, of Modesto (53 felonies), Jearod Miles Robinson, 34, of Ceres (18 felonies), Doug Eugene Wallick, 32, of Waterford (15 felonies), Darin Eric Abell, 41, of Turlock (9 felonies), Dawna Lea Abell, 38, of Turlock (9 felonies), Elizabeth Marcela Ayhens, 24, of Stockton (2 felonies), Nicholas Matthew Ayhens, 24, of Modesto (2 felonies), Arnold Vergara Rodriguez, 32, of Modesto (2 felonies), Brian William Heytz, 32, of Ceres (1 felony).
Richard Morris, the loan originator whose suspicions and tip-off to authorities prompted the investigation, commented: "If they wouldn't have been so greedy, they might still be in business."

For more, see 3 accused of mortgage fraud (DA charges more than $2M stolen from lenders using false documents).

Homeowners In Foreclosure Being Clipped For Illegally Inflated Legal & Appraisal Fees, Says Lawsuit

In a class action lawsuit originally filed in a Delaware Federal Court in September, with an amended complaint filed yesterday, two Missouri homeowners accuse Mortgage Electronic Registration Systems, Inc. ("MERS"), a home loan registration system allegedly controlled by an all star team of nine big time nationwide mortgage lenders, of overcharging borrowers for legal services in foreclosures. MERS reportedly charged borrowers for "attorney fees" of as much as $1,200 - $2,000 and upwards (see Lawsuit - page 18, paragraph 49) while MERS is only charged $400 - $500 by the attorney actually handling the foreclosure (see Lawsuit - page 15, paragraph 36).

The lawsuit also accuses MERS of charging borrowers appraisal fees ranging from $300 to $500 for appraisals that are (1) often times not done at all, or (2) done but some times are nothing more than "drive by" appraisals where the appraiser never actually gets out of his or her automobile (see Lawsuit - page 19, paragraph 52).

In addition to MERS, the lawsuit names as additional defendants the following all star lineup of mortgage lenders who are allegedly the controlling shareholders of MERS:
  • Citigroup, Inc., Countrywide Financial Corporation, Fannie Mae, Freddie Mac, GMAC-RFC Holding Company, LLC, (doing business as GMAC Residential Funding Corporation), HSBC Finance Corporation, JP Morgan Chase & Co., Washington Mutual Bank, and Wells Fargo & Company.

Among other things, the lawsuit alleges that "MERS is grossly undercapitalized to cover the potential liability stemming directly from its role as primary mortgagee on tens of millions of Mortgage Notes." Because of this, the homeowners / borrowers also seek to hold the above listed all star lineup of mortgage lenders jointly and severally liable for damages as well as MERS (see Lawsuit - page 8, paragraphs 9(l) and 9(m)).

Representing the homeowners are Carmella P. Keener, Wilmington, DE, Jeffrey M. Norton, New York City, and Matthew S. Chase, University City, MO.

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

To view the lawsuit, see Trevino v. Merscorp Inc., et al..

For a media report which makes reference to this lawsuit, see Borrowers Face Dubious Charges in Foreclosures (subscription required; if no subscription, try here).

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics yak

Mortgage Servicer's Law Firm, Foreclosure Rescue Operator Hammered By U.S. Trustees In Bankruptcy Cases

On the TPMCafe blog, Warren Reports on the Middle Class reports:
  • [In bankruptcy cases] Seeing a few [U.S.] trustees step up to discipline mortgage lenders and servicers is a heartening development. [R]ecent examples (PDF) of activism by Trustees include an action in Pennsylvania against a firm that promised to save homes from foreclosure, but actually provided almost no services in exchange for its fees. In Texas, a Trustee is moving against a large mortgage servicer. Trustee involvement has already led to a $75,000 sanction against the mortgage servicer’s law firm for making inaccurate representations to the court.

Source: Bankruptcy Trustees Taking Action Against Dishonest Lenders.

Tuesday, November 06, 2007

Questionable Mortgage Servicing Practices Coming To Light In Bankruptcy Cases

The New York Times reports:
  • As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers. Because there is little oversight of foreclosure practices and the fees that are charged, bankruptcy specialists fear that some consumers may be losing their homes unnecessarily or that mortgage servicers, who collect loan payments, are profiting from foreclosures.

  • Bankruptcy specialists say lenders and loan servicers often do not comply with even the most basic legal requirements, like correctly computing the amount a borrower owes on a foreclosed loan or providing proof of holding the mortgage note in question.

  • Regulators need to look beyond their current, myopic focus on loan origination and consider how servicers’ calculation and collection practices leave families vulnerable to foreclosure,” said Katherine M. Porter, associate professor of law at the University of Iowa.

[...]

  • Questionable practices by loan servicers appear to be enough of a problem that the Office of the United States Trustee, a division of the Justice Department that monitors the bankruptcy system, is getting involved. Last month, It announced plans to move against mortgage servicing companies that file false or inaccurate claims, assess unreasonable fees or fail to account properly for loan payments after a bankruptcy has been discharged.

[...]

  • [O. Max Gardner III, a Shelby, N.C., consumer bankruptcy attorney said,] “Somebody files a Chapter 13 bankruptcy, they make all their payments, get their discharge and then three months later, they get a statement from their servicer for $7,000 in fees and charges incurred in bankruptcy but that were never applied for in court and never approved.

Included among the examples of questionable practices by mortgage servivcing companies is a reference to a class action lawsuit filed against Mortgage Electronic Registration Systems (aka "MERS"), a home loan registration system which oversees more than 20 million mortgage loans and is reportedly owned by Fannie Mae, Countrywide Financial and other large lenders. MERS is accused of overcharging borrowers for legal services in foreclosures. According to Jeffrey M. Norton, a lawyer who represents the plaintiffs, it pays its foreclosure attorneys a flat fee of $400 or $500 but charges the borrowers three or four times that amount. The plaintiff's mortgage loan is reportedly owned by Washington Mutual, and went into foreclosure in 2006.

For more, see Borrowers Face Dubious Charges in Foreclosures (if link expired, try here).

For another lawsuit accusing a mortgage servicing company of questionable practices, see Ellington Credit Fund, Ltd. vs. Select Portfolio, Inc., et al. (Plaintiff's First Amended Complaint - 19 counts - 52 pages, 2.35 MB approx.) - available online courtesy of Michael Dillon and GetDShirtz.com.

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics yak

Attorney Meets With Victims Of Eastern Pennsylvania Alleged Mortgage Investment "Ponzi Scheme"

Lancaster Online reports on an informational meeting held by attorney Joseph O'Keefe with about 430 property owners who face significantly higher mortgage bills due their involvement with local real estate operator Wesley Snyder and his companies, OPFM Inc. and Image Masters, among others. O'Keefe filed a class action lawsuit in September to void mortgages held by 25 lenders. In all, they hold about 800 disputed notes brokered by Wesley A. Snyder's OPFM Inc. and Snyder's other businesses.

Among other things, despite a temporary mortgage payment arrangement ordered by the Federal judge presiding over the case, O'Keefe states that some lenders have ignored that agreement, telling customers they must make the full loan payment. O'Keefe said his team has received a litany of complaints lodged by customers of one lending company and urged those customers to testify in federal court against the lenders.

Some at the meeting were upset at how easily the case was moved out of the area (a Berks County, Pennsylvania state court) where OPFM president Wesley A. Snyder operated his businesses. The case is now in a Philadelphia Federal Court. For more, see Creditors play tough on OPFM mortgages (Lawyer says judge sees case’s urgency).

Go here to view WFMZ-TV Channel 69 News coverage and comments from attorney Joseph O'Keefe and some of the victims of the alleged Ponzi scheme, or here to read the Channel 69 online report.

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.

Feds Investigating Nationwide Foreclosure Rescue Scam

A national foreclosure rescue scam has ensnared hundreds of victims in 27 states, including at least 17 homeowners in New Jersey, according to a story in the Asbury Park Press (Asbury Park, New Jersey). Among the New Jersey victims who unwittingly signed away title to their homes in purported sale leaseback arrangements are two mothers in Ocean County and a widow in Middlesex County. A disabled Vietnam veteran in Delaware also claims to be among the defrauded. According to the story:
  • An IRS search warrant obtained by the Press lists 256 affected properties stretching from Maine to Hawaii. The warrant identified 106 homeowners as victims and 99 third-party, or straw, buyers, who may have unwittingly propelled the fraud forward. Two dozen companies are also named, but it is unclear what their roles were in the investigation. An FBI spokesman and an IRS agent last week confirmed the investigation into the companies and people behind what had been touted as a way for small investors to save financially strapped homeowners.

  • "It is a large and significant case," FBI spokesman John Cauthen said. "We're investigating with the full force and weight of the FBI." Cauthen said no charges have been filed. Nonetheless, the FBI has sent letters to homeowners and investors to inform them they are victims.

  • Those letters identified Charles Head, operator of the now-defunct FundingForeclosure.com, as the focus of the investigation. Head could not be reached for comment. Private attorneys representing the victims said Head, believed to be from Florida, cannot be located.

Reportedly, the FBI letters have been helpful to some in that a couple of the victims have successfully used the letters to convince judges to postpone ongoing foreclosure proceedings. For more, see Victims of scam face losing homes.

For related stories on two of the New Jersey victims, see:

Go here for an earlier report from Hawaii on the Charles Head FBI investigation.

Go here for other posts on foreclosure rescue operator Charles Head.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Minnesota Equity Stripping Victim Now Suing Foreclosure Rescue Operator

Minnesota Public Radio reports the story of Anita Nunn, a Minneapolis-area resident who lost her home more than a year ago in a foreclosure rescue deal. She lived in her South Minneapolis home since 1999 until the onset of her financial problems triggered by a job loss when her job at a call center was transferred to India. She was unable to find another job until after her unemployment ran out, at which point she was already behind on her mortgage. When the offers of "help" started pouring in, she responded to one that resulted in a foreclosure rescue transaction involving The Ordway Group. The story describes what happened next:
  • The company and an outside investor bought Nunn's house, bringing it out of foreclosure. They then rented it back to Nunn. Under the agreement, she could eventually buy the house back. But her monthly rent payments were several hundred dollars higher than they were when she owned the house, and Nunn was soon unable to keep up.

  • If she had sold her house instead of taking the deal, she could have walked away with approximately $50,000 in home equity. Instead, she lost that equity, and in 2004, she lost the house. The company evicted her so they could resell it.

  • Nunn is now suing The Ordway Group, alleging the company misrepresented a deal that offered hope that she would keep her home but instead doomed her to losing it. "I think they took away her options," says Nunn's attorney Bryan Battina. He says the deal preyed upon her hope that she could stay in the house. "Just the simple fact that they talked her into this agreement that was basically set up to fail, they in turn took away any other opportunities she had," Battina says.
For more, see Equity-stripping scams could rise as foreclosures increase.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

"Quick Flips" Transform Luxury Estate Homes Into Public Nuisances

In Tampa, Florida, The Tampa Tribune reports on the fate of five luxury homes that were bought and sold on the same day (with simultaneous closings) by real estate operator Atlantic Coast Investments to straw buyers with questionable backgrounds:
  • Once they were dream homes, with views of the golf course, a marble-floored music room, servants' quarters and a taste of the good life behind the gates of some of Tampa's most posh communities. Now, they sit abandoned, with overgrown lawns, leaky roofs and deep-green, algae-filled pools. They are empty and overpriced. All are in foreclosure. One has been declared a public nuisance by Tampa Code Enforcement and two others have active cases against them. All were bought sight unseen by a South Florida investor who is suing his former business partners and lawyer for fraud and identity theft.

Reportedly, two of the straw buyers (who together purchased four of the homes) have outstanding court judgments against them for more than $600,000. For more, see Questionable flips leave upscale homes derelict.

Florida Homeowner Stiffed By Unlicensed Contractor

A recent reader of The Miami Herald Action Line asks:
  • My wife and I live in New York and have a house in Palm Beach. On April 30, we gave North Star VP Shutters $6,474 -- a 50 percent deposit -- to purchase hurricane shutters. The company never delivered, and, according to the building department, never applied for a permit. The last we heard, in August, they were ''walking through'' the permit, whatever that means. [...] Can Action Line help us get our money back?

Action Line responds:

  • Unfortunately, there's a lot more wrong with this picture than you think. As you found out, North Star VP Shutters hasn't applied for a permit for your house, and with good reason; it's not licensed to do such work. It had you sign an application for an owner/builder permit (a major red flag of unlicensed contracting), which has gone nowhere.

Among other questionable paperwork the homeowner received from the company was a ''contract'' with no license number on it (illegal); a copy of another company's state license; a copy of a liability insurance certificate, which, according to state records, was canceled.

Action Line further informs:

  • Unlicensed contracting [In Florida] is a felony unto itself; accepting deposits without a license for jobs that require one constitutes grand theft. [...] In addition to all this, North Star VP filed for Chapter 7 bankruptcy on Oct. 22. However, this doesn't protect its principals from any potential criminal prosecution.

For more, see North Star VP shutter company files for Chapter 7 bankruptcy. (if link expires, try here).

Monday, November 05, 2007

Mortgage Industry Balks At Proposed Changes In Bankruptcy Law To Help Homeowners Facing Foreclosure

The Wall Street Journal reports:
  • Some major U.S. banks are concerned an effort by Democrats to help mortgage borrowers avoid foreclosure could lead lawmakers to scale back tough bankruptcy overhauls adopted two years ago, when Republicans were in power. To help address defaults and foreclosures on subprime mortgages, lawmakers are pushing a bill that would allow bankruptcy judges to rework the terms and conditions of loans. Consumer groups have gotten behind the effort, and caught the ear of some Republicans from districts seeing mortgage problems.

[...]

  • The new bill, sponsored by Reps. Brad Miller (D., N.C.) and Linda Sanchez (D., Calif.), would allow bankruptcy judges to change the interest rate and length of a mortgage for borrowers in bankruptcy, in an effort to avoid foreclosure. It could also potentially allow judges to change the balance of a loan. For example, if a borrower near foreclosure owed $125,000 on a house now worth $100,000, the judge could mark $25,000 as "unsecured debt," which would make it much harder for the bank to recover that portion.

[...]

  • [House Judiciary Committee Chairman John] Conyers said his panel could vote on the bill as early as this week. That could set the stage for action this month by the full House, where its scope possibly could be broadened. Sens. Richard Durbin (D., Ill.) and Arlen Specter (R., Pa.) are working on a related bill in the Senate. The Senate Judiciary Committee may take it up early next year, according to a panel aide.

From: Banks Fear Democrat Bids To Aid Mortgage Borrowers (may require subscription; if no subscription, try here or try here).

More On Central Florida Foreclosure Rescue Operator Peter Porcelli

The Sarasota Herald Tribune reports on how Central Florida foreclosure rescue operator Peter J. Porcelli did business. Porcelli formed Safe Harbour Foundation, which billed itself as a nonprofit group even though it never registered with the IRS for nonprofit status, and used the entity to allegedly arrange usurious loans to homeowners facing foreclosure as a way to save their homes from repossession. As part of the loan arrangement, the homeowners agreed that, in the event of a default on the loan, the lender would be able to exercise an option to buy the financially strapped person's home at below fair market value, an apparent attempt to bypass the foreclosure process and rip off the owner's home equity at the same time. Excerpts from the story:
  • [Six] homeowners who used Safe Harbour have filed a $40 million federal lawsuit against the company, accusing the Safe Harbour Foundation, Porcelli and 15 other individuals and companies of stealing their property through illegal loans. [...] "In every case, the title of the homes have been lost or is threatened by foreclosures," said attorney Michael Wasylik, who is representing the homeowners, four of whom are from Sarasota County. "If nothing else, we're confident this lawsuit will restore these people's homes to them."

In an unrelated case, Porcelli was sentenced to 13 years in federal prison last week for wire and mail fraud charges in Illinois in a separate scam. For more, see Desperate to avoid a foreclosure, homeowners say they were scammed.

To view a copy of the lawsuit, see Heise, et al. vs. Porcelli, et al.

Go here for other posts on Peter Porcelli.

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

First American Issued Phony Appraisals, Charges NY AG; Execs Knew It & Allowed It Anyway, Says Suit

(original post 11-2-07; modified 11-13-07)
The New York State Attorney General's Office announces:

  • Attorney General Andrew M. Cuomo [Thursday] announced that he is suing one of the nation’s largest real estate appraisal management companies and its parent corporation for colluding with the largest savings and loan in the country to inflate the appraisal values of homes. In a scheme detailed in numerous e-mails, eAppraiseIT (“EA”), a subsidiary of First American Corporation (NYSE: FAF), caved to pressure from Washington Mutual (“WaMu”) (NYSE: WM) to use a list of preferred “Proven Appraisers” who provided inflated appraisals on homes. The e-mails also show that executives at EA knew their behavior was illegal, but intentionally broke the law to secure future business with WaMu.

  • The independence of the appraiser is essential to maintaining the integrity of the mortgage industry. First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike,” said Attorney General Cuomo. “The blatant actions of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market. By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion.”
For more, see New York AG Press Release - NY Attorney General Sues First American And Its Subsidiary For Conspiring With Washington Mutual To Inflate Real Estate Appraisals.

To view the New York AG's lawsuit, see Cuomo vs. First American Corporation and First American eAppraiseIT.

Go here to view E-Mail Excerpts in eAppraiseIT Case.

For CBS News coverage, see N.Y. AG: Appraisers Inflated Home Values (Real Estate Appraisers Colluded With Banks To Inflate Mortgage Values, Andrew Cuomo Says).

For an earlier story on the NY AG investigation of eAppraiseIT, which reportedly appraises up to 15,000 homes a year in New York, see New York Subpoenas First American Appraisal Unit (Bloomberg.com).

11-12-07 supplement:

For a recent story on inflated appraisals, see Banks bullying appraisers to boost values bad news (Kenneth Harney syndicated article).

Go here for other posts on the NY AG's investigation of First American / eAppraiseIT. Cuomo OFHEO Fannie Mae Freddie Mac

Lawsuit Filings By Condo Buyers Seeking To Back Out Of Purchase Contracts Picking Up Steam In South Florida

The Miami Herald reports:
  • Brooklyn housekeeper Rita Dobrer was swept up in South Florida's real estate frenzy, using $600,000 from a jury award as deposits on six condominiums in two Miami projects in 2005. Dobrer said she never had the intention, let alone the financial ability, to buy the six condos -- which cost about $3 million. Rather, she claimed she was enticed by the developer's verbal guarantees that she could reap $600,000 in profits by selling the units without ever taking ownership.

  • Dobrer's hopes for a windfall, though, have cratered in the ailing residential real estate market. Unable to flip the units, Dobrer joined 35 other Russian immigrants in New York, New Jersey and Florida who on Friday sued Miami developer The Related Group for the return of the deposits on units in [two of Related's construction projects].

Reportedly, one buyer seeking to recover her deposit claimed that the developer wooed buyers with buffet dinners at a fancy Russian restaurant in New York and that the the sales rep told her she could make $100,000.

Among the allegations made against the developer is that it needed to register its condominiums as investments before pitching units to New York buyers, as required by New York state law. The purpose of the law is to ensure prospective buyers have detailed information to make a reasoned judgment about whether to buy.

For more, see Condo-buyer lawsuits mount (Lawsuits filed by would-be condo buyers wanting out of purchase contracts continue to increase as projects near completion).

Go here for other stories on real estate speculators looking to back out of purchase contracts.

Go here for other posts related to the Miami condo market problem. zebra

Twin Cities-Area Home Builder, Others Plead Guilty In Massive Straw Buyer Scam

(original post 11-2-07)
The Minneapolis Star Tribune reports:
  • The principal players behind a giant mortgage fraud conspiracy that beset several southern Twin Cities suburbs and cast a pall over the area's housing market pleaded guilty to felony charges today in U.S. District Court. Michael Parish, 62, president and owner of Parish Marketing and Development Corp., admitted to constructing the wide-ranging conspiracy that bilked lenders on nearly 200 properties that the company had built in New Prague, New Market and Lonsdale over the past few years.

  • The company, which also pleaded guilty in the case, made at least $25 million on $100 million in loans that Parish and his co-conspirators had obtained by using "straw buyers" to purchase the homes. In its plea agreement, the company admitted to using the money to keep building homes, to make payments on some of the mortgages, and to keep the scheme going.

[...]

  • His wife, Ardith, 61, admitted to playing a minor role in the conspiracy as a company's officer and its bookkeeper. She faces a maximum term of five years in prison plus 2 or 3 years of supervised release and restitution. Christopher Troup, 39, is a son-in-law of the Parishes who acted as a straw buyer on 60 properties, helped recruit other straw buyers, and created bogus documentation to qualify borrowers for larger loans and to substantiate inflated property appraisals. Troup pleaded guilty to conspiracy and one count of money laundering. The government estimates his recommended sentence at 9 to 111/4 years, plus 2 or 3 years of supervised release and restitution.

For more, see 3 defendants in mortgage fraud case plead guilty (A couple and their son-in-law in the wide-ranging scheme face from five to 14 years in prison).

See also, Developers plead guilty in Minn. mortgage fraud case (The Associated Press).

Go here for other posts on Minnesota homebuilder Parish Marketing and Development.

Institute For Foreclosure Legal Assistance (IFLA) Formed To Aid Families Facing Foreclosure

From a Joint Press Release from the Center for Responsible Lending and the National Association of Consumer Advocates:
  • As the nation's foreclosure epidemic continues to worsen, the Center for Responsible Lending (CRL) has formed the Institute for Foreclosure Legal Assistance (IFLA) to support groups giving legal representation to families facing foreclosure and financial ruin because of abusive subprime mortgages. The National Association of Consumer Advocates (NACA) will manage the project, which recognizes that one of the biggest barriers families face to avoid losing their homes is the lack of access to quality legal services. The Institute, launched with a $15 million grant from investment management firm Paulson & Co. Inc., will provide funding and training to organizations that help homeowners negotiate alternatives to foreclosure.

  • The majority of the funds will be grants to support direct legal assistance to borrowers in 10 or more states to fight foreclosure, predatory lenders and abusive loan servicers. It will do this primarily by providing money to top non-profit legal-aid groups and law school clinics.
For more, see Press Release - Helping Americans Keep Their Homes: Center for Responsible Lending Establishes New Institute to Help Homeowners Threatened by Subprime Lending Crisis (Institute to Provide Legal Assistance to Families Facing Surge in Foreclosures).

Sunday, November 04, 2007

Foreclosed Home Loaded With Toxic Mold; Note Left By Former Owner Tips Off Unwitting Buyer

WYFF-TV Channel 4 reports the story of a Greenville, South Carolina home that was so loaded with toxic mold and that made one of the then-homeowners and her two young daughters so sick, doctors told them to leave the home immediately. After discovering the toxic mold and after what the doctors told them, the family, with no money in savings to have the mold removed, stopped paying their mortgage and let the home go into foreclosure.

Prior to the bank taking ownership of the home, and under the belief that some unwitting homeowner down the road would end up in the same shoes he found himself in, homeowner George Leventis wrote a note warning of the mold problem contained in the home and left the note inside "a secret room" behind a bookshelf in the hope that the note would be found by a new homebuyer.
  • "I put it in the room because I didn't want anyone to find it if it was left out in the house. I figured if someone else who had another interest or a stake in the house found it, they would just throw it away or they wouldn't tell anyone," Leventis said.
As fate would have it, the note went undetected by the foreclosing lender, who took ownership of the home in foreclosure, or the real estate brokerage and sales agent who sold the home to the new homebuyers, also parents with a young child, who ultimately discovered the note after taking title to the home.

The new homeowners filed a lawsuit against the real estate brokerage, the sales agent, and the mortgage lender, Fannie Mae. Reportedly, Fannie Mae agreed to buy back the home for the original selling price of $75,000 and will be dropped from the lawsuit. The litigation against the brokerage and the sales agent continues. For more, see Hidden Room, Hidden Danger.

Go here to view the WYFF-TV Channel 4 video report.

Go here to read the mold warning note left by the prior homeowner.

Copper & Metal Theft Stings Around The Country

Honolulu, Hawaii: Hawaii recyclers seized in stolen-copper sting (Two metal recyclers became the first people arrested under a new state law designed to choke off the market for stolen copper by increasing the amount of documentation needed for scrap metal transactions.).

San Leandro, California: Sting nets nine in theft of metal (Nine people were arrested in a follow-up sting for Operation Hotwire to catch metal thieves. It was a follow-up to an operation in which 23 people were arrested in three days. The more recent sting ran from 7:30 a.m. to 5:30 p.m. at AlCo Iron and Metal, a metal recycling company. "We did a follow-up because the problem is so big with burglaries of wire and copper from buildings that are sold for cash," said San Leandro Lt. Tom Overton. ).

Austin, Texas: APD arrests 11 in undercover sting (The Undercover Operation was conducted due to the increasing problem of theft of copper and items that contain copper such as wire and cable. This investigation targeted scrap metal dealers who purchase stolen copper or copper materials.).

Chattanooga, Tennessee: Sting nets several charged in metals thefts (Chattanooga police cooperated with a local business to arrest several alleged metal thieves in a recent undercover sting. The sting operation helped authorities catch several people who reportedly have been stealing metals in and around the Chattanooga area. Assisting was Commercial Metals of Chattanooga, which furnished 124 pounds of copper, 23 pounds of steel and 20 pounds of brass.). copper metal theft zebra

More Copper Theft Stories

Yakima, Washington: State strikes back at copper thieves (Faced with copper wire thefts that disable warning signs, weather monitoring stations and traffic cameras through Snoqualmie Pass, state road crews are welding shut electrical junction boxes along I-90).

Fort Smith, Arkansas: Man Found Electrocuted In Warehouse (A man was electrocuted in Fort Smith while possibly attempting to steal copper from a former furniture factory. “I’m not sure this gentleman had a legal reason to be there, but copper theft is a definite possibility,” an investigator said.).

Macon, Georgia: Copper theft knocks radio station off the air (A central Georgia radio station was knocked off the air after someone stole copper from the station's transmitter. "They basically stripped the entire site,'' said James Gay, engineer for rock station Q106. "Pretty much everything that keeps us on the air is removed.'' The thief or thieves stripped copper from the air conditioner, generator, transfer switch and took all the electronics, Gay said. Equipment also was damaged, he said. The station was reported off the air about 9 a.m. Monday, and wasn't back on until 4:30 p.m. It was the third time in two months the station has been hit by a copper theft, Gay said.

Chicago, Illinois: Rising scrap prices fire up thieves (Copper pipe, catalytic converters high on list). When an electrical crew arrived at a construction site on a recent Monday morning, the workers made an unwelcome discovery: Thieves had plundered the unfinished building during the weekend, using ladders and electric saws to expertly cut copper piping out of the structure's ceiling. "It was already in place," site manager Jim Senderak said of the stolen copper piping. "They took cordless saws, cut everything out and left," Senderak said. Material thieves don't stop at construction sites, either. In September, two men swiped at least 60 copper or bronze vases from a cemetery in Oakbrook Terrace, and, if the duo had not been caught, the theft could have netted them $8,000. From 2002 to 2006, the price of copper more than quadrupled, from 75 cents per pound to $3.20 per pound, according to the U.S. Geological Survey.

California: Unusual Culprits Cripple Farms in California (Copper thieves have been stripping the copper wires out of irrigation systems throughout California. The rampant thefts have left farmers without functioning water pumps for days and weeks at a time, creating financial loss and occasional crop devastation in a region still smarting from a spectacular freeze last winter. Theft of scrap metal, mostly copper, has been fueled largely by record-level prices for copper resulting from a building boom in Asia. Common in developing counties, metal theft is now committed in nearly every state, largely by methamphetamine users who hock the metal to buy drugs, the authorities say.). copper metal theft zebra

Firefighter In Foreclosure Charged With Stealing $43K From Fire Company Till

In Halfmoon, New York, WTEN-TV Channel 10 (Albany, NY) reports that 50-year-old Lee Lussier - a firefighter in the Town of Halfmoon, who was originally accused of stealing more than $8,000 from the Mansfield Hose Fire Company in the West Crescent Fire District, actually took about $43,000, according to a recent report by the State Comptroller. They also say his wife, who was responsible for collecting money paid for renting the fire hall, took nearly $19,000 herself. Both were arrested in August. At the time, Lussier was the treasurer of the fire company. He allegedly told fire officials he was desperately trying to save his home on Crescent Road from foreclosure. Source: Halfmoon Firefighter Accused of Stealing $43K from Department.

Elderly Couple Facing Foreclosure Commits Suicide

In Prineville, Oregon, the Statesman Journal reports:

  • [Last week], Crook County sheriff’s deputies went to the home east of Prineville after neighbors called with concerns that they were not answering their door, and their dogs were missing. They walked up the driveway and smelled gas. Inside the attached locked garage, a 1981 Cadillac Eldorado sat empty, its engine running. Then they entered the house. They found the bodies of Raymond Donaca, 71, and three golden retrievers. Upstairs they discovered the bodies of Deanna Donaca, 69, and a fourth dog. [...] Court records show that the couple lost the home in Central Oregon this summer following a court battle after more than a decade of financial trouble.

For more, see Oregon couple facing foreclosure commits suicide (if link expired, try here).

See also, KTVZ-TV Channel 21 reports:

Go here for other posts on foreclosures and suicide.

Go here for other posts on Police stories involving homes in foreclosure. SheriffDeputiesForeclosureAlpha suicide homeowner foreclosure zeta

Saturday, November 03, 2007

Wall Street Journal On Tenants Being Squeezed By Foreclosures

The Wall Street Journal recently reported:
  • The mortgage mess is claiming a new group of victims: renters. Across the country, a rising number of landlords are falling behind on mortgage payments, sending their properties into foreclosure, according to legal-services attorneys, local officials and financial experts -- and in many cases, their tenants are being forced out of their homes. Often, the tenants' first inkling of trouble occurs when they get a letter from the bank directing them to leave the premises.

For more, see Mortgage Turmoil Hits Renters (Tenants Face Eviction When Their Buildings Go Into Foreclosure).

For other stories on tenants unknowingly renting homes in foreclosure, go here, or here, or here. equity skimming unwittingly delta

Basic Protection Tips Against Contractor Liens For Florida Homeowners

For Florida homeowners looking for some basic tips when dealing with and paying home improvement contractors, as well as protecting against having mechanic's liens filed against your home when your contractor stiffs the subcontractors actually performing the work on your home and material suppliers providing the building material, see:

Ex-Homeowner Lobs Molotov Cocktails At Cops Before Taking His Own Life; Refused To Vacate Home Lost In Foreclosure

In Houston, Texas, the Houston Chronicle reports:
  • A 12-hour standoff ended [last week] with a north Houston man lobbing Molotov cocktails at Houston Police before taking his own life rather than vacate a home he'd lost to foreclosure. James Hahn, a chemist, had told police he would not be taken from the home alive, said Capt. Bruce Williams, an HPD spokesman. "'You know what I do for a living and you know what I am capable of,'" said Williams, recalling one of the conversations police had with the man on Wednesday.

  • It would appear that Hahn had prepared for the standoff. He had nailed plywood over windows and doors and stuffed insulation into cracks. A cache of weapons and explosive devices were found in the home, along with a gas mask, chemical suit similar to those worn by Haz-Mat crew members. Williams said it explained why Hahn didn't vacate the house after police shot tear gas into the residence on three separate occasions in the hopes of bringing the standoff to an end. Williams said Hahn was recently divorced, depressed and struggled with financial problems and drug addiction.

For more, see Lengthy standoff ends in Spring with man's suicide (if link expires, try here).

Go here for other posts on foreclosures and suicide.

Go here for other posts on Police stories involving homes in foreclosure. SheriffDeputiesForeclosureAlpha suicide homeowner foreclosure zeta

Connecticut Lawyer Who Admitted Embezzling $700K From Clients Found Dead In Iowa

In Clinton, Connecticut, the New Haven Register reports:
  • Jonathan Hoyt, the once-respected lawyer who vanished in July after embezzling some $700,000 from his clients, has been found dead in a rented room in Cedar Rapids, Iowa, police report. Cedar Rapids police told Clinton police that Hoyt, 59, committed suicide with a combination of nitrous oxide and sleeping pills in the modest room he had rented under the name "Jim Bragg." [...] Hoyt, whose professional and personal life evidently was dissolving in what his son, Christopher, a partner in the Hoyt Law Group office in New York City, called a clinical depression, was last seen in his Clinton offices July 6. The next day, he wrote a letter describing in detail the embezzlement of money from his clients and accepting full and sole responsibility for the crime. Police estimate more than $700,000 was stolen from about eight clients as Hoyt helped himself to money deposited in his attorney’s trust account. One victim apparently was duped into a bogus investment scheme, police said.
For more, see Missing lawyer found dead in Iowa.

Go here or go here for other stories of theft of escrow / trust funds by account holders. sneaky slick escrow agents beta

Friday, November 02, 2007

Metropolitan Grapevine Mortgage Investment Program A "Ponzi Scheme" Says Court; Placed Into Receivership

The Maryland Attorney General issued a press release yesterday announcing the placement of Metropolitan Grapevine, Andrew H. Williams, Jr., and POS DH, LLC into receivership. An excerpt from the press release:

  • Attorney General Douglas F. Gansler announced today that POS DH, LLC, Metropolitan Grapevine, LLC, and Andrew H. Williams, Jr., have been placed in receivership, effective Monday, October 29, 2007. After hearing three days of testimony detailing the business activities of the Defendants, the Honorable Thomas P. Smith, Circuit Court for Prince George’s County, issued an order placing the companies into receivership and freezing their assets as well as those of an additional 18 entities that were shown to be affiliated with the Defendants’ business operations.

  • The court determined that over 1,000 people invested approximately $50,000,000 in promissory note and investment contract securities offered and sold by the Defendants, investments that are essentially without value. The court also determined that the Defendants’ businesses generated no significant income and that they are insolvent with liabilities of $200,000,000 to $300,000,000 and current assets of approximately $2,000,000. The court concluded that the Defendants were paying previous investors with funds received from new investors, and that the investment program was, in fact, a Ponzi scheme.

  • This court order now places the financial control of POS DH, LLC, Metropolitan Grapevine, LLC, and Williams, in the hands of the court-appointed receiver,” said Attorney General Gansler. “The receiver will now take all of the assets of the Defendants traceable to this investment scam and create a pool of money to be refunded to the investors and other creditors.”

[...]

  • The companies used a variety of business names, including POS Dream Homes, Metro Dream Homes, POS Café, Metro Grapevine, and other names as part of the overall scheme.

For more, see the Maryland AG Press Release - Court Places Laurel-Bsaed Mortgage Payment / Investment Program Into Receivership (Ponzi Scheme Accused of Securities Violations and Investment Fraud).

Go here for other posts & links to other stories on Metropolitan Grapevine / POS Metro Dream Homes.

Another Maryland Foreclosure Rescue Operator Tagged With Lawsuit

From the Office of the Maryland Attorney General:

  • Maryland Attorney General Douglas F. Gansler announced today that the Consumer Protection Division has filed a complaint in Baltimore City Circuit Court against a group of individuals and companies alleging they violated numerous laws in the course of providing services to homeowners who were facing foreclosure.

  • The complaint names Michael K. Lewis, Earnest Lewis, Cheryl Lynn Brooke, Winston Thomas, and two companies, In the House Technologies based in Upper Marlboro and Cornerstone Title & Escrow based in Laurel. The Division alleges that the defendants market their services to homeowners who are facing foreclosure or are in foreclosure, falsely promising that they can help save the consumers’ homes. Instead of helping homeowners retain title to their homes, the defendants attempt to take title and then strip the equity out of the properties by charging the homeowners numerous undisclosed fees.

  • After the defendants purportedly take the title to the homes, they charge the homeowners rents that are substantially higher than their previous mortgage payments. As a result, the homeowners find it exceedingly difficult to rebuild their credit and save amounts sufficient to retain their homes. The scheme results in homeowners losing both their homes and the vast majority of equity they had accumulated.

  • The complaint seeks to stop the defendants’ unlawful practices and impose fines for violations of the Protection of Homeowners in Foreclosure Act and the Consumer Protection Act. It also was filed to ensure that the original homeowners retain title to their homes and to provide restitution for homeowners who were harmed by the defendants’ actions.

Source: Maryland AG Press Release: Attorney General Files Complaint against Foreclosure Service Providers.

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

In an article in The Baltimore Sun, the story of one alleged victim of the foreclosure rescue plan is described, in which after the purported rescue, her monthly payments more than doubled, she ultimately defaulted on her payments, and felt compelled to move out because of a foreclosure action pending against one of Michael K. Lewis' straw buyers. The Maryland AG was able to halt the foreclosure, but the alleged victim said she is afraid to move back in. She has put her furniture in storage and is living with her sister.

An excerpt from the story:

  • Michael Lewis said he and [his brother] Earnest were lured into trying to help bail out credit-poor homeowners who were unable to refinance their loans. "This was a good deed gone wrong," Michael Lewis said. Lewis said he runs an office that helps clients straighten out their finances and get started running home-based businesses to boost their income.
For more, see State alleges home aid ruse (Complaint says foreclosure advice victimized owners) (if link expires, give this link a shot) (these links no longer available online).

Editor's Note: All this comes on the heels of federal agents seizing documents, papers and computers from Michael K. Lewis last week in what apparently is a separate investigation of his foreclosure rescue business (see Feds Seize Business Records Of Baltimore-Area Foreclosure Rescue Operator).

See also:

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

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

OPFM (& Related Entities) Books Finally Opened; More Alleged Ponzi Scheme Victims Revealed

In two separate stories on the recently defunct Pennsylvania mortgage investment program that the Feds have called a Ponzi scheme, Lancaster Online reports:
  • A mortgage brokerage firm that has left more than 800 homeowners and investors on the hook for about $40 million finally opened its books Thursday in U.S. Bankruptcy Court. Six companies related to Wesley A. Snyder's bankrupt Personal Financial Management Inc. reported assets of nearly $83 million and liabilities of about $122 million in debts. However, forensic accountants will take several days to break down and interpret the voluminous information, U.S. Bankruptcy Court trustee Lynn E. Feldman said Thursday. [...] A class-action lawsuit, one of three separate court actions related to the bankruptcies, claims [Wesley A.] Snyder signed customers to "wrap-around" mortgages in which he secretly brokered larger mortgages in their names with outside banks.
Among Snyder's companies invloved in the alleged Ponzi scheme are Image Masters amd OPFM Inc. For more, see OPFM books finally opened (Show $39M deficit).
-------------------
In another recent story on Lancaster Online:
  • [T]here's another, smaller group of victims, whose numbers were disclosed in U.S. Bankruptcy Court documents filed Wednesday. That group is the 31 individuals and couples, including three in Lancaster County, who funded $3.5 million in mortgages offered as investments by the company. With Personal Financial Management and its affiliates filing for bankruptcy liquidation, this group could lose every cent.

For more, including other recent developments in the case, see More victims of mortgage scam revealed.

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.

Mortgage Lender Refuses To Foreclose On Upstate NY 'Bat House'

In Conklin, New York, the Binghampton Press & Sun-Bulletin reports:
  • No one wants the house at 36 Stillwater Road. Steven Barker, whose name is on the mailbox, walked away from the house two years ago, thinking it was the bank's problem. It was an understandable assumption, considering The First American Corp. started foreclosure proceedings in 2005 and Barker's bankruptcy filing was discharged in March 2006.

  • In September 2006, Broome County Court issued a judgment of foreclosure against Barker. "I wasn't trying to contest that in any way," Barker said. But for reasons unknown to town officials, First American never sold the house following the foreclosure, and the house remains in Barker's name.

  • Now, as the foreclosure hangs in limbo, the town's attorney is trying to sort out who is responsible for the building known to neighbors as the "bat house" for the growing population of winged vermin that now call it home. "This is an unusual occurrence," said Mark S. Gorgos, Conklin's attorney. "Usually you have the (foreclosure) judgment, you have the sale and everybody moves on from there." As long as the property tax bills are paid, the county can't foreclose on it. According to the Broome County Office of Real Property, tax bills are sent to the bank and they are being paid.
For more, see Who owns Conklin's 'bat house'? (Foreclosure in limbo as house decays).

Foreclosure Rescue, Sale Leaseback Deals "An Unregulated Free-For-All" In Great Britain

In Great Britain, The Scotsman reports:
  • DEBT is increasing alarmingly fast and many people are being forced to take drastic measures to get out of their financial straits. Arising from this is the boom in "sale-and-lease-back" schemes, which involve selling your home to a company for less than its market value and then paying rent to continue living there. [While a viable option for some,] the problem is that the sale-and-lease-back market is currently an unregulated free-for-all.

For more, see Calls for FSA to step in and end lease-back 'free-for-all'.

See also, Over-sold, over-rated and over here (American-owned sub-prime mortgage lenders have been funding mortgage rescue schemes in the UK – leaving people homeless when the schemes collapse) (The Telegraph).

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Thursday, November 01, 2007

"Cash Back" Arrangement Being Used To Purchase Central Florida Condos; Deals Raising Eyebrows Among Local Real Estate Pros

In Sarasota, Florida, the Sarasota Herald-Tribune reports:
  • As condo owners across the state bemoan a downward slide in values, an unusual situation is taking place at the Bermuda on Osprey condominium complex near downtown Sarasota. A group of Californians -- two of whom were arrested in March on charges of running a brothel in the Anaheim area -- have been snapping up units at prices that are hundreds of thousands of dollars higher than those paid during the boom. The buyers, led by John Edward Couch of San Clemente, say they will convert the 46-unit complex into a senior-living center complete with a luxurious clubhouse, communal dining room and limo service.

Reportedly, the California group has purchased 15 units out of the 46 units in the two-story walk-up building built in 1969 in transactions in which the complex owners claim to have received a little more than half of the stated price, with the balance (ie. the "cash back") being placed in an "amenity fund" controlled by the buyers to be used for future improvements. Representatives of the seller of the units claim that the amenity fund was clearly defined and disclosed to the mortgage lender on the closing statements so that there is nothing improper about the sales.

According to the story:

  • the entire complex was sold in March, 2005 for about $109,000 per unit to a tax felon now awaiting extradition from Italy on money laundering charges connected to a cocaine deal,
  • the complex was then resold nine months later to Warren Hickernell, a condo converter, for about $222,000 per unit, involving a $9.4 million loan from the Bank of Commerce,
  • the Bank of Commerce loan subsequently went into default and was bought out of its interest in the complex by an investor with prior ties to Hickernell,
  • since November, 2006, the California group has purchased 15 units at an average price of about $566,000, with about $300,000 going to the complex owner and about $250,000 or so going into the amenity fund.

Not surprisingly, eyebrows are being raised among Sarasota-area real estate observers. For more, see In Sarasota, an unusual condo deal (Group snapping up units at prices higher than during boom).

Go here for a related story on this California "investor" group.

With One Company Forced Into Bankruptcy, Virginia Real Estate Operator Soliciting Investors For New Venture

In Hampton Roads, Virginia, The Virginian-Pilot reports:
  • Even as he faces questions about millions lost in his company's investment program, CM Development President Cary McEntee is soliciting investors for a new housing business. McEntee has been posting advertisements on online classified sites, ... . The ads are similar to the newspaper listings he used to find investors for CM Development, a housing company that owned or managed more than 250 properties before it collapsed amid allegations that McEntee had failed to pay mortgages, hadn't maintained the properties and had falsified at least one bank loan. Investors forced McEntee and CM Development into bankruptcy in July.
McEntee reportedly used what sounds like a "straw buyer - house flipping" arrangement in financing his last real estate venture; The Virginian-Pilot describes the arrangement as follows:
  • [CM] Development paid investors flat fees to gain access to their credit, and used the money to buy properties in all seven of Hampton Roads' largest cities. It sold the houses repeatedly among investors, taking out bigger loans each time. About three dozen people put their names on loans for the business, with the promise that CM Development would make mortgage payments, collect rents and maintain the houses.
McEntee is reportedly soliciting investors for his new venture, looking to hit them up for $175-200K a pop for a 1 year loan offering 12-13% interest, and is utilizing Craigslist web sites in Norfolk, Richmond, New York, Raleigh, Atlanta and Detroit to communicate his requests for new cash.

To date, there have been no reported criminal charges brought by law enforcement authorities or investigations by Virginia state regulators against McEntee for running potentially improper straw buyer, property flipping arrangements or unregistered promissory note programs. Based on a prior report, equity skimming was also involved in the mess currently in the bankruptcy court as rent was reportedly being collected and pocketed by CM Development without applying those funds to the mortgage payments, real estate taxes or water bills due on the homes titled in the straw buyers' names, thereby allowing homes to go into foreclosure. Many of the units were rented through the federal Section 8 program, which helps pay rent for low-income residents. Also, tenants have complained about their inability to get back their security deposits, according to a prior report.

For more, see Head of failed real estate firm trolling for investors.

For other Virginian-Pilot coverage on CM Development and Cary McEntee, see:
Go here for other posts on CM Development and Cary McEntee.

Cops Looking To Supplement Retirement Benefits Duped Into Real Estate Flipping Scam, Says Lawsuit

In South Bend, Indiana, the South Bend Tribune reports:
  • A local real estate investor and his son, already fighting separate mortgage fraud lawsuits from African immigrants, face a new suit filed by three South Bend police officers and a former officer. The officers, Jack Stilp, James Aters, Kris Hinton and James Turnbo III, say they were looking for investment income to supplement their pensions when they decided to buy rental properties through Michael Sheneman and his son, Jeremie Sheneman, in 2003 and 2004. Instead, two of the men have filed bankruptcy.

  • Months after buying the properties, many in the same blighted neighborhoods the officers patrol on midnight shift, the officers say they learned some alarming things: The properties were worth less than what they had paid for them; the houses were in worse shape than the Shenemans had led them to believe; and the tenants already living in the houses weren't actual tenants, but rather, were paid by Michael Sheneman to pose as good tenants until the transactions were complete, their lawsuit claims.

Reportedly, the officers' lawsuit accuses the Shenemans, their company, and six other individuals of violating Indiana's racketeering law. Attorney Charles Lahey has agreed to represent them on a contingency fee basis, meaning he will only charge them a fee if he recovers damages. Lahey told The Tribune he and a paralegal researched the case for about nine months before filing the suit. For more, see South Bend officers allege mortgage fraud in lawsuit (They say they were conned while trying to supplement their retirement benefits).

For an earlier story describing others who claim to have been scammed by the Shenemans in real estate investments scams, see Mortgage maelstrom (Scheme appears to target African immigrants).

More On Wesley Snyder, Image Masters, OPFM Scandal

For those following the the media reports on the "Equity Slide / Wrap Around Mortgage" investment scandal involving Wesley A. Snyder, Image Masters, OPFM and other entities, below are links to two recent media reports related to the story:

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.

Copper Thieves Wreaking Havoc On South Florida Apartment Complexes; Theft Of 28 Backflow Preventers Reported In Last Two Weeks

In Broward County, Florida, WPLG-TV Channel 10 reports:

  • Police in Lauderhill and neighboring Lauderdale Lakes said there have been more than two dozen thefts of devices used to direct the flow of water from city pipes into apartment buildings. A total of 28 backflow preventers have been stolen from apartment complexes during the past two weeks, including eight taken from various apartments in Lauderhill during the night Tuesday. Without the devices, residents are left without water in their buildings. It also causes flooding around the pipe. Police are unsure how the devices are being removed, but they do have a few ideas as to why. "Two theories: One, they could be reselling the preventers for plumbing, maybe new construction or retrofitting, whatever projects they might be working on, but more than likely they're probably selling the metal because they're made of copper," said Lauderhill police Lt. Rick Rocco. The cost to replace the backflow preventers is between $150 and $400.

Source: Thieves Steal Water Devices From Apartments (28 Backflow Preventers Stolen In Past 2 Weeks).

Go here for WPLG-TV Channel 10 video report.

See also:

Go here for other stories on copper theft. copper metal theft zebra

Vacant Homes Make Up One-Third Of "For Sale" Residential Market In Metro Phoenix

In Phoenix, Arizona, The Arizona Republic reports:
  • At least one out of every three homes for sale across metropolitan Phoenix is empty, and owners are motivated to cut prices to sell. Many empty houses are owned by investors who can't find renters and need to sell. Others are owned by people who moved to other houses in the Valley or elsewhere and can't afford two mortgages. Some empty homes for sale are new houses that home builders are offering deals on. And a growing number of vacant houses are owned by lenders that foreclosed on the properties and want to cut their losses by selling them quickly and often cheaply. About 36 percent of the Valley homes posted on the Arizona Regional Multiple Listing Service are empty. That's almost 20,000 of the record 55,000 houses for sale now.

(Hopefully, the copper thieves and the squatters don't catch wind of all these vacant houses.)

For more, see Of Valley homes for sale, a third sit empty (20,000 vacant homes pushing prices lower).