Billion$ In Pooled Loans Were Defective, Ex-Citigroup’s Chief Underwriter Warned Bosses

eCreditDaily reports:

• Beginning in 2006, Citigroup’s chief underwriter overseeing $90 billion in loans warned the institution’s top bosses that at least 60 percent of mortgages purchased and sold were “defective.” By 2007, as the subprime mortgage bubble would give way to a housing market collapse, Citigroup’s Consumer Lending Group was sitting on pools of subprime mortgages with a defective ratio of 80 percent.

• Richard Bowen, the former Citi chief underwriter and senior vice president, testified before the Financial Crisis Inquiry Commission today, outlining unheeded warnings to [Robert] Rubin and other top Citi executives. Rubin, the former chairman of the executive committee of Citigroup’s board of directors, is to testify before the panel on Thursday.

• “Beginning in 2006, I issued many warnings to management concerning these practices, and specifically objected to the purchase of many identified pools. I believed that these practices exposed Citi to substantial risk of loss,” Bowen said in prepared testimony. Most notable was the lack of strict lending standards. Stricter credit oversight was abandoned in the rush to acquire mortgages originated by third-party underwriters for the purpose of selling in pools within mortgage-backed securities to the government sponsored enterprises, Fannie Mae and Freddie Mac, or Wall Street investors.

• This channel – from near blind origination into the hands of eager investors – was the underlying pipeline the fueled the financial meltdown of 2008, and the subsequent credit crunch and foreclosure crisis.

For more, see Ex-Citi Exec Warned Bosses of ‘Defective’ Mortgage Pools.

Loan Modification Scammer To Serve Minimum Of 12-30 Months In State Prison After Copping Plea In Upfront Fee Ripoff Targeting Homeowners In F'closure

From the Office of the Nevada Attorney General:

• Nevada Attorney General Catherine Cortez Masto announced today that Jeffery Tye Brown, 50, of Henderson, has pled guilty to felony mortgage fraud in violation of NRS 205.372,(1) in connection with the operation of DB Financial Services, a foreclosure rescue business located in Henderson.

***

• The State’s case against Brown was based on an investigation by the Attorney General’s mortgage fraud task force which revealed that between December 2007 and February 2008, Brown contacted victims whose homes were going into foreclosure and obtained advance payments upwards of $999.00 for foreclosure rescue services that he never performed. He failed to give refunds despite promising refunds in his contracts and advertising. He also forged documents to the Mortgage Lending Division to cover up the criminal activity.(2)

For the Nevada AG press release, see Mortgage Foreclosure Rescue Scam Guilty Plea Announced.

(1) According to the press release, the crime is a Category C felony and carries a potential jail sentence of one (1) to ten (10) years and/or a fine of up to $10,000. In addition, the plea agreement requires Brown to execute Confessions of Judgment to the individual victims in an amount totaling $19,407.00. Under the terms of the plea agreement, he is not eligible for probation and will serve a minimum of 12 to 30 months in the Nevada State Prison.

(2) Shortly after execution of a search warrant on the DB Financial offices in 2008 by the mortgage fraud task force, Brown fled the country, the press release states. He was extradited back to the U.S. from the Philippines, where he was in hiding to evade authorities. The plea agreement requires Brown to forfeit monies seized from his company to pay for the costs of his extradition from the Philippines.

NY Feds Net Three Attorneys Among Ten Bagged In Alleged Brooklyn/Queens Mortgage Fraud Scheme

In Brooklyn, New York, the ABA Journal reports:

• Three lawyers are among 10 individuals federally charged with conspiracy, bank fraud and wire fraud in an alleged $10 million New York City mortgage loan scam involving straw buyers and fraudulent documents.

• Akin Ayorinde, a Brooklyn lawyer, and attorneys Anthony Onua and Umana Oton are accused of working with real estate agents and, it appears, a title company owner to put together fraudulent loan applications on behalf of straw buyers and persuade mortgage lenders to fund loans on Brooklyn and Queens properties that they otherwise wouldn't have made, according to Bloomberg, Reuters and the New York Post.(1)

• Allegedly working together between 2005 and 2007 to inflate the credentials of their dummy buyers and the value of the properties, co-conspirators reportedly claimed down payments were being made that weren't, falsified income and employment information for the straw purchasers and altered titles to make it look as though properties hadn't been bought and resold within a few days, the articles recount.

For the story, see 3 Lawyers Among 10 Charged in Alleged $10M Mortgage Fraud.

For the U.S. Attorney (Brooklyn) press release, see Three Attorneys, Two Real Estate Brokers, And Five Others Indicted In $10 Million Mortgage Fraud Scheme.

Thanks to Bill Collins of Crossroads Abstract, Rochester, NY for the heads-up on this story.

(1) Other suspects snagged in the net were: Hervin Henry, Max Shimba, John Star, Anthony Suazo, Marisol Vasquez, and two other unnamed suspects.

BofA Hit With Class Action Suit; California Homeowners Claim Lender Stiffed Them On Reasonable Requests For Loan Mods Or Other Alternative Solutions

Consumer-rights class-action law firm Hagens Berman Sobol Shapiro LLP announces:

• California homeowners sued Bank of America on Tuesday claiming the lending giant is intentionally withholding government funds intended to save homeowners from foreclosure, announces Hagens Berman Sobol Shapiro.

• The case, filed in U.S. District Court in Northern California, claims that Bank of America systematically slows or thwarts California homeowners' access to Troubled Asset Relief Program (TARP) funds by ignoring homeowners' requests to make reasonable mortgage adjustments or other alternative solutions that would prevent homes from being foreclosed. Hagens Berman filed a similar complaint in Washington state last month.

***

• "Bank of America came up with every excuse to defer the Bayramian family from a home loan modification which forced them into foreclosure," said [the firm's managing partnet Steve] Berman. "And we know from our investigation this isn't an isolated incident."(1)

For more, see California Homeowners Sue Bank of America for Withholding Federal Bailout Funds.

For the lawsuit, see Bayramian v. Bank of America, N.A., and BAC Home Loans Servicing, L.P.

(1) The Hagens Berman law firm encourages homeowners in Washington and California with mortgages through Bank of America to contact them if they received an inadequate response from the bank for a home loan modification request after April 13, 2009. For more information or to join the lawsuit, please visit: www.hbsslaw.com.

City Of Baltimore Revives "Ghetto Loans" Lawsuit Against Wells Fargo; Refines Reverse Redlining Allegations Against Lender

In Baltimore, Maryland, The Baltimore Sun reports:

• Lawyers for the city of Baltimore have prepared a new complaint in their reverse-redlining lawsuit against Wells Fargo, which alleges that the bank steered black borrowers into subprime loans and then foreclosed on hundreds of city houses, leading to blight and high public safety costs in low-income neighborhoods.

For more, see Baltimore city revives suit against Wells Fargo (New complaint sites specific damage to the city resulting from foreclosures).

City Of Memphis, Shelby County Amend Lawsuit Against Alleged "Ghetto Loans" Peddler In Fair Housing Litigation

In Memphis, Tennessee, The Commercial Appeal reports:

• Memphis and Shelby County have filed an amendment to a federal lawsuit(1) against mortgage lender Wells Fargo, detailing for the first time how the company allegedly used “predatory and deceptive” practices locally that targeted African-Americans for risky subprime loans. The amended complaint includes new testimony from four former Wells Fargo employees in Memphis. In sworn statements the former employees describe how the company targeted African-Americans for subprime loans.(2)

For more, see Memphis and Shelby County detail case against Wells Fargo.

For the amended complaint, see City of Memphis, et ano. v. Wells Fargo Bank, N.A., et al.

(1) According to the story, the initial complaint, filed in December, included testimony from two former high-ranking Wells Fargo employees involved in a Baltimore, Md., suit who say Wells Fargo intentionally made bad loans to African-Americans. The employees, who worked out of Virginia and Maryland but are knowledgeable about the company's national lending practices, said Wells Fargo marketed subprime loans to predominantly African-American ZIP codes and that company officials referred to the loans as "ghetto loans."

(2) The amended complaint, unveiled Wednesday during a news conference at City Hall, also asks Tennessee Attorney General Robert E. Cooper Jr., to take action against the company under the state Consumer Protection Act, according to the story.

NAACP To Drop Suit Against Wells Fargo Alleging Institutionalized, Systemic Racism In Its Subprime Mortgage Lending Practices

The Wall Street Journal reports:

• The National Association for the Advancement of Colored People agreed to drop a predatory-lending lawsuit against Wells Fargo & Co. in exchange for access to loan data. The pact, set to be announced on Thursday, marks a more conciliatory approach from the fourth-largest U.S. bank in assets as it works to eliminate legal headaches resulting from the housing bust.

• Filed in March 2009, the federal-court lawsuit accused Wells Fargo of "institutionalized, systemic racism" in its subprime-mortgage lending, saying the San Francisco bank "steered" African-Americans toward "less favorable loans" in the run-up to the recent financial crisis.

For more, see NAACP Will Drop Lawsuit Against Wells Fargo (requires paid subscription; if no subscription, try here, then click link for the story).

LPS Responds To WSJ Article On Federal Probe Into Alleged Dubious Pratices In Foreclosure Actions

From a recent press release from Lender Processing Services:

• Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage industry, [Monday] provided clarification to a recent article published by the Wall Street Journal.(1)

• As indicated in LPS' most recent Form 10-K, filed in February 2010, LPS reported that during an internal review of the business processes used by its document solutions subsidiary, the Company identified a business process that caused an error in the notarization of certain documents, some of which were used in foreclosure proceedings in various jurisdictions around the country.

For the press release, see LPS Offers Clarification to Recent Article.

For an earlier post on this story, see WSJ On Feds' Probe Into LPS' "Docx" Sub; Allegations Of Creation Of Bogus Paperwork & Dubious Notarizations In Foreclosure Actions Under The Spotlight.

(1) See U.S. Probes Foreclosure-Data Provider (Lender Processing Services Unit Draws Inquiry Over the Steps That Led to Faulty Bank Paperwork).

Texas Couple Claims Lender Screw-Up In Paying Homeowners' Insurance Premiums Out Of Mortgage Escrow Funds Left Them "Naked" During "Ike" Pounding

In Jefferson County, Texas, The Southeast Rexas Record reports:

• A Hardin County couple claim their Dallas-based mortgage company failed to pay homeowners and windstorm insurance premiums out of the monthly mortgage payments the couple made, causing the insurance company to refuse to pay for damages the couple sustained to their property from Hurricane Ike.

• Eanest Edward and Joseph Ann Jones filed a lawsuit March 30 in Jefferson County District Court against MGC Mortgage. The Joneses allege they financed property [...] in Beaumont through Citi Residential Mortgage. Out of the Jones' mortgage payments, Citi Residential should have paid homeowners and windstorm insurance premiums, according to the complaint.

• Later, in August 2008, MGC Mortgage purchased the Jones' mortgage and continued to accept their premium insurance payments, but failed to forward those payments to an insurance company, the suit states. Hurricane Ike struck in September 2008, causing property damage to the Jones' property, the complaint says. In October, they claim they notified their insurance company of the damages and requested the company cover the necessary repair costs. However, the insurance company refused to reimburse the couple, saying no insurance policy existed because MGC failed to secure a policy for the Jones, according to the complaint.

Source: Couple blames mortgage co. for failing to pay insurance premiums.

C. Florida Man Charged With Recording Phony Land Documents In Alleged Vacant Home Hijacking Racket; Cops Suspect Him In At Least Four Other Scams

In Central Florida, the Orlando Sentinel reports:

• When Andrew Brown moved into a home in Deltona, he furnished it, brought along his dog and even installed an alarm system. He changed the locks and took down the for sale signs, authorities said. There was just one problem, say Volusia County Sheriff's investigators: He didn't own the house. Brown, who faces charges of burglary, grand theft and criminal mischief, is free on $20,000 bail from the Volusia County Branch Jail, while investigators continue to look into his activities, Sheriff's Office spokesman Gary Davidson said.

• An investigation into Brown began in March when a Realtor arrived at a home on Clay Court in Deltona to show it to potential buyers and found it filled with furniture. The Realtor called the Sheriff's Office. After deputies knocked on the door for quite some time, a woman with a 1-year-old child answered, Davidson said. The woman, who told deputies she and her boyfriend had rented the house from Brown, was ordered to vacate the house. Investigators then began looking into Brown and found his name in court records associated with a house on Shadow Ridge Drive, Davidson said.

***

• Investigators said Brown filed a phony lien and a default notice at the courthouse and then insisted the paperwork proved he owned the house. Investigators disagreed and hauled him off the jail, Davidson said. Investigators believe Brown may have tried to pull off the same scam with at least four other houses, he said.

Source: Home sweet home was ticket to jail for Deltona man.

Sloppy Service, Subsequent Title Transfer In Foreclosure Process Leaves Lender Holding The Bag On $111K+ Error

A recent ruling by the Indiana Court of Appeals may be of some interest to title agents and examiners (who are already in the unenviable position of being expected to insure title to homes that have a foreclosure judgment and foreclosure deed in its chain of title), and to some real estate operators (those who profitably dabble in the "trafficking" of seemingly worthless judgment liens on properties in foreclosure). The following facts have been taken from the ruling:

1. Countrywide made a loan secured by a mortgage on a home on April 27, 2005.
2. On June 9, 2006, CSB, an unsecured lender, obtained a default judgment against homeowners in the sum of $111,499.38 based upon a promissory note executed by the homeowners in favor of CSB. CSB recorded its judgment and obtained a lien on homeowner's property, inferior in priority to Countrywide's mortgage.
3. Thereafter, Countrywide filed its complaint to foreclose mortgage against homeowners on August 28, 2006, and obtained a judgment of foreclosure on October 30, 2006.
4. Countrywide did not name CSB as a defendant in its complaint to foreclose despite the fact that CSB had properly recorded its default judgment against homeowners.
5. Therefore, CSB neither was made a party to nor had notice of the foreclosure action.
6. Countrywide obtained title to the real estate following a sheriff's sale on February 22, 2007, and later recorded such title on March 15, 2007.
7. Countrywide subsequently transferred title to the real estate to FNMA by deed recorded on May 3, 2007.
8. After learning of CSB's judgment lien against the property, Countrywide filed its complaint for strict foreclosure against CSB on October 2, 2007. Countrywide sought an order foreclosing CSB's equity of redemption and interest in the real estate.
9. CSB answered the complaint and also filed its own complaint to foreclose its judgment lien on the property naming FNMA and the Steuben County Treasurer as defendants.

Question: Which lender has priority and entitled to prevail in this matter?

Answer: If you said Countrywide, you're wrong.

The general rule applicable in Indiana, as well as in most (if not all) other states, can be generally, described as follows:

• When junior lienholders are not made parties to the action, the foreclosure and sale cannot be enforced against them, and they are not precluded from exercising any right of redemption.
• However, the rule then allows the foreclosing mortgagee to prevent junior lienholders from stepping up in priority as against the subject property, by allowing it (the foreclosing mortgagee) to re-foreclose on the property, and thereby giving it first crack at any money generated by foreclosure on the property, ahead of any junior lienholders, until it has been paid what it is owed in full.
• In Indiana (and possibly other states???), the right to conduct this re-foreclosure action is limited solely to the foreclosing mortgagee who acquires the property at the initial foreclosure sale (in this case, Countrywide, the foreclosing lender).

In this case, the fact that there was a screw-up (presumably by Countrywide's foreclosure attorney) in failing to name and properly serve CSB in the foreclosure lawsuit, standing alone, was not fatal to Countrywide's mortgage lien priority as against CSB's later-acquired and recorded judgment lien. What sank Countrywide (and/or FNMA) in this case was the fact that this initial screw-up was then followed, arguably, by a second screw-up. That is, the transfer of the property by Countrywide (the winning bidder at the foreclosure sale) to FNMA without the benefit of a title search.(1) The court held that this subsequent transfer extinguished Countrywide's right to assert its mortgage against the now no-longer-inferior $111,499.38 judgment lien held by CSB.(2)

For the ruling, see Citizens State Bank of New Castle v. Countrywide Home Loans, Inc.

(1) From the court's ruling:

• Contrary to Countrywide and FNMA's suggestion, we conclude that Brightwell correctly states Indiana law regarding priority rights when a foreclosing mortgagee sells the property to a third party. We hold that while Countrywide's mortgage lien was preserved after it acquired title to the property via sheriff's sale, Countrywide's right to assert the mortgage against CSB was extinguished upon subsequent transfer of the property to FNMA and, thus, the mortgage-assertion right did not pass to FNMA. When property is transferred for value or resold to a third party, that party cannot then assert what was formerly a superior mortgage lien position against the judgment lien. Rather, the third party takes the property subject to the valid judgment lien.

It is undeniable that there are plenty of judgment lienholders that have ostensibly been foreclosed by the owner/holder of a superior 1st mortgage. However, if the judgment lienholder wasn't served in the foreclosure action (much like CSB in this case), or if there was "sloppy" service attempted on the judgment lienholder that was so ineffectual so as to render it void, this ruling may support the proposition that the lien has not been extinguished, and is still "alive," thereby possibly giving:

• title examiners, agents, insurers another issue to sweat about when underwriting a title insurance policy on a foreclosed property, and
• clever real estate operators who seek out and buy these liens (usually at a steep discount) one more potentially profit-pocketing opportunity.

(2) For another case where a major lender's sloppiness in a foreclosure action, despite its priority position as against another party to the suit, left itself holding the bag, see Creditor's Failure To Record Request For Notice Allows Ex-Homeowner To Snatch Away Surplus Out From Under Subordinate Lienholder After F'closure Sale.

South Florida "Surplus Snatcher" Hit With Grand Theft Charge In Alleged Ripoff Of Sale Proceeds Due To Foreclosed Homeowner After Public Auction

In West Palm Beach, Florida, The Palm Beach Post reports:

• A Boynton Beach man who operates a business specializing in recovering unclaimed property and money found $60,000 for a client — then kept the windfall for himself, state investigators say. Richard Brandt, 41, of Woodgrove Harbor Lane in Boynton Beach, has been charged with grand theft by the state Department of Financial Services, two and a half years after his company allegedly convinced a Palm Beach County man that he could recoup tens of thousands of dollars for him.

• Investigators say Brandt was president and director of Above Par Loss Prevention, a company that promised to recoup unclaimed property for its clients. Brandt's company contracted with a Palm Beach County man in 2007 to recover $60,000 in unclaimed foreclosure money he was due from the Palm Beach County Clerk of Court, investigators allege. Under the contract, Brandt would keep 12 percent of the recovered money as a fee and the client would get the rest.

• Brandt recovered the money in April 2008 but didn't turn over any of it to his client, according to an arrest report. The client notified the state Department of Financial Services. When investigators began asking Brandt questions, investigators say he coughed up a fraction of the money. The rest he claimed he didn't have. In the end, investigators charged him with stealing $39,670 from the client.

Source: Boynton Beach man charged with stealing nearly $40,000 of client's recovered money.

Another Vulnerable Senior Falls Prey To Adult Child; Deed To Home Signed Over, POA Used To Siphon Savings From Bank Account

In Oklahoma City, Oklahoma, NewsOK.com reports:

• Her active life contrasts starkly with two years ago when [Rose] Howard (not her real name) sat alone and locked inside her daughter’s home for six months, while her daughter ran through her $39,000 savings account. She’d been hospitalized with a broken arm and upon discharge, her daughter convinced her to temporarily stay with her.

• "I could have stayed in my own home because I had home health,” Howard said. "But I figured there was no reason not to go. She’s my daughter. I trusted her.”

• A retiree of the Oklahoma Turnpike Authority who single-handedly raised three daughters, Howard said her only surviving daughter coerced her into signing over the deed to her home, convinced everyone she had Alzheimer’s disease and misused a financial power of attorney to tap Howard’s money to buy expensive furniture, clothes, a brand-new pickup and stop foreclosure on her own home.

***

• On Howard’s behalf, [Senior Law Resource Center(1) attorney Catheryn] Koss won a civil case against her daughter, resulting in a voided deed transfer on her home,(2) stopped payment on several large checks, monthly restitution paid by a granddaughter who was given some of Howard’s money, and imprisonment of her daughter, who has been in the county jail for a year. A criminal case, brought by the Oklahoma County district attorney’s office, is scheduled to be heard in two weeks. "All too often it’s impossible to recover money,” Koss said, "because many abusers are unemployed or underemployed.”

For more, see Financial elder abuse is feared widespread (More than 6,000 cases of mistreatment of seniors investigated last year).

(1) Senior Law Resource Center is a nonprofit organization in Oklahoma City that provides education and support to elders and their caregivers in Oklahoma and reportedly offers legal services on a sliding-scale fee.

(2) A quiet title action is typically the type of civil lawsuit initiated by the victim:

• to have the deed used in this type of unauthorized title transfer declared void, and
• to property restore the title to the property in the name of the victimized homeowner.

More Financially Strapped Homeowners Claim Lender Duped Them Into Defaulting On House Payments

In Sacramento, California, Courthouse News Service reports:

• JPMorgan Chase instructed homeowners to stop making mortgage payments, as that was the only way to be considered for a loan modification, then repossessed their house when they followed the bank's advice, a couple claims in Federal Court. "I've seen this happen to so many people," their attorney said. "When they come in here to tell me their story, I can actually tell it to them." Faiz and Khadua Jahani sued Morgan Chase and its predecessor, Washington Mutual Bank, on their own behalf and on behalf of the public.

For more, see Thanks a Lot, JP Morgan Chase.

For the lawsuits, in which the homeowners seek class action status, see Jahani v. Washington Mutual Bank, et al.

Massive Foreclosure Logjams Stall Court's Issuance Of Property Titles To Winning Bidders At Public Auctions

In West Palm Beach, Florida, The Palm Beach Post reports:

• Don Cameron's March 8 win in a Palm Beach County home auction is stalled somewhere on the third floor of the courthouse in stacks of foreclosure filings piled several feet overhead. He'd like to start fixing up the three-bedroom house, renovate the kitchen, maybe get it ready for a first-time home buyer hoping to cash in on the waning days of the $8,000 tax credit.

• But nearly a month after his $74,570 purchase, which he is required to pay for in full by noon the next day, the massive backlog of foreclosures in the Palm Beach County Clerk of Court's Office still has him waiting for the home's title. [...] By [Florida] statute, the clerk can't release a title for 10 days, but waiting up to 60 days to claim ownership is cutting into Cameron's profit margin and, some say, the economic recovery.(1)

For more, see As PBC foreclosure paperwork piles up, so does desperation.

(1) For an example of what can happen when a winning bidder at a foreclosure sale immediately takes possession of, fixes up, and rents out a property without waiting to have the title formally issued to him, see Family kicked out of rental that landlord didn't legally own.

The Big Short: Inside the Doomsday Machine

Sunday night on C-Span's Q&A program, author Michael Lewis talks about his new book, "The Big Short: Inside the Doomsday Machine," which tells the story of several key players in the subprime mortgage crisis. The book follows those who understood what was happening to the market and were able to greatly profit in the transactions.

Go here to read the program transcript, and here to watch program.

California Regulator Issues Advisory On Illegal Activities Associated With Short Sales

The California Department of Real Estate recently issued an advisory to real estate agents licensed by the state on short sales and some of the legal and ethical minefields to avoid when dealing in these types of transactions. Among the points addressed are the activities of unlicensed, self-described "short sale facilitators" and illegal short sale flipping.

For the advisory, see Short Sales -- An Overview and Warning to Real Estate Licensees Re: Fraud, and Legal and Ethical Minefields.

Arizona Bankruptcy Court Halts Foreclosure Action As Lender Lacked Standing To Prosecute, Not A Party In Interest

A recent ruling by a U.S. Bankruptcy Court in Tucson, Arizona refused to allow a foreclosing lender's request to continue with a foreclosure action on the grounds that it failed to establish that it was the real party in interest and lacked standing to prosecute the matter.(1)

For the court's ruling, see In re: Barry Weisband, Ch. 13, Case No. 4:09-bk-05175-EWH (Bankr. D. Ariz., Tucson Div., 3/29/2010).

(1) The basis for the court's denial of the foreclosing lender's ["GMAC"] request addressed the following three points:

• GMAC's failure to demonstrated that it was a holder of the note under under §47-3301 of the Arizona statute ("while it was in possession of the Note at the evidentiary hearing, it failed to demonstrate that the Note is properly payable to GMAC. A special endorsement to GMAC was admitted into evidence with the Note. However, for the Endorsement to constitute part of the Note, it must be on "a paper affixed to the instrument." A.R.S. § 47-3204; see also In re Nash, 49 B.R. 254, 261 (Bankr. D. Ariz. 1985). Here, the evidence did not demonstrate that the Endorsement was affixed to the Note. The Endorsement is on a separate sheet of paper; there was no evidence that it was stapled or otherwise attached to the rest of the Note. Furthermore, when GMAC filed its proof of claim, the Endorsement was not included, which is a further indication that the allonge containing the Endorsement was not affixed to the Note.),

• The MERS assignment of the deed of trust (ie. mortgage) did not provide GMAC with standing (MERS was named in the deed of trust as a beneficiary, solely as the "nominee" of GreenPoint Mortgage Funding, Inc. (the original lender), holding only "legal title" to the interests granted to the original lender funding the loan secured by the deed of trust. According to the ruling, "a number of cases have held that such language confers no economic benefit on MERS"),

• GMAC was unable to establish that it was the servicer of the promissory note (the evidence in this case did not demonstrate that the promissory note and deed of trust were properly transferred to the "special purpose" securitization trust ("Trust") holding the pool of loans, and, "without that evidence, there is no demonstration that GMAC is the servicer of the Note." In light of this, the court stated that "it is immaterial that GMAC is the servicer for the Trust.").

Central Florida Bankruptcy Court Halts Foreclosure Action As Lender Lacked Standing To Prosecute, Not A Party In Interest

A recent ruling by a U.S. Bankruptcy Court in Orlando, Florida refused to allow a foreclosing lender's request to continue with a foreclosure action on the grounds that it failed to establish that it was the real party in interest and lacked standing to prosecute the matter.(1)

For the court's ruling, see In re: Jorge Canellas, Ch. 7, Case No. 6:09-bk-12240-ABB (Bankr. M.D. Fla., Orlando Div., 2/9/2010).

(1) The basis for the court's denial of the foreclosing lender's ("Movant") motion follows:

• Movant’s Motion, however, is due to be denied because Movant has failed to establish it has standing to seek stay relief. A motion for relief from the automatic stay must be prosecuted in the name of the real party in interest. 11 U.S.C. § 362(d); FED. R. 8 CIV. P. 17(a)(1); FED. R. BANKR. P. 7017. “The real party in interest in relief from stay is whoever is entitled to enforce the obligation sought to be enforced.” In re Jacobson, 402 B.R. 359, 366 (Bankr. W.D. Wash. 2009). Only the holder of the Note and Mortgage, or its authorized agent, has standing to bring the Motion. Id. at 367.

• Movant asserts in its Motion it is the “owner and holder” of the Note and Mortgage, but has presented no evidence substantiating that assertion. The copies of the Note presented do not contain an endorsement evidencing an assignment of the Note. The Affidavit executed by Movant’s loan servicer makes no mention of the location of the original Note or who has possession of it. Movant proffered no business records or testimony tracing ownership of the Note and establishing Movant is the present holder of the Note.

• The veracity of the Allonge and Assignment is questionable. The dates contained in the Allonge are chronologically impossible. The Allonge is dated August 1, 2006, but references a trust that came into existence on October 31, 2006. The signature of Jennifer Henninger is undated and not notarized. The Allonge was not referenced in or filed with Movant’s Motion in October 2009, but was presented three months later as an attachment to its post-hearing brief.

• The Assignment was executed and recorded post-petition approximately two weeks prior to Movant’s filing of the Motion for Relief. It was prepared by Jennifer Henninger, who executed the Allonge, and was recorded by the law firm that is representing Movant in this proceeding. Jack Jacob’s execution of the Assignment was notarized by Jennifer Henninger and witnessed by Louis Zaffino, the affiant of Movant’s Affidavit. It appears the Allonge and the Assignment were created post-petition for the purpose of the relief from stay proceeding. Movant did not establish Jennifer Henninger and Jack Jacob had authority to execute the Allonge and Assignment.

• Movant’s submissions are insufficient to establish it is the owner and holder of the Note and Mortgage or is authorized to act for whoever holds these documents. In re Relka, No. 09-20806, 2009 WL 5149262, at *5 (Bankr. D. Wyo. Dec. 22, 2009) (granting stay relief where movant established possession of note through testimony of witness who personally retrieved note from movant’s vault); In re Jacobson, 402 B.R. at 370 (denying movant’s stay relief motion due to movant’s failure to establish it was holder of note); In re Hayes, 393 B.R. 259, 270 (Bankr. D. Mass. 2008) (denying movant’s stay relief motion and sustaining debtor’s claim objection due to movant’s failure to establish it was holder of note). Movant has not established it has standing to bring the Motion and the Motion is due to be denied.

WSJ On Feds' Probe Into LPS' "Docx" Sub; Allegations Of Creation Of Bogus Paperwork & Dubious Notarizations In Foreclosure Actions Under The Spotlight

The Wall Street Journal reports:

• A subsidiary of a company that is a top provider of the documentation used by banks in the foreclosure process is under investigation by federal prosecutors. The prosecutors are "reviewing the business processes" of the subsidiary of Lender Processing Services Inc., based in Jacksonville, Fla., according to the company's annual securities filing released in February. People familiar with the matter say the probe is criminal in nature. Michelle Kersch, an LPS spokeswoman, said the subsidiary being investigated is Docx LLC. Docx processes and sometimes produces documents needed by banks to prove they own the mortgages.

***

• The case follows on the dismissal of numerous foreclosure cases in which judges across the U.S. have found that the materials banks had submitted to support their claims were wrong. Faulty bank paperwork has been an issue in foreclosure proceedings since the housing crisis took hold a few years ago. It is often difficult to pin down who the real owner of a mortgage is, thanks to the complexity of the mortgage market.

***

• Diana Adams, a U.S. government lawyer who monitors bankruptcy courts, argued in a brief filed earlier this year in [a] case that an LPS employee signed a document that wrongly said J.P. Morgan Chase & Co. had owned [the subject] loan. Documents related to the loan were "patently false or misleading," according to Ms. Adams's court papers. J.P. Morgan Chase, which has withdrawn its request to foreclose, declined to comment.

***

• Some lawyers representing homeowners have claimed that banks routinely file erroneous paperwork showing they have a right to foreclose when they don't. Firms that process the paperwork are either "producing so many documents per day that nobody is reviewing anything, even to make sure they have the names right, or you've got some massive software problem," said O. Max Gardner, a consumer-bankruptcy attorney in Shelby N.C., who has defended clients against foreclosure actions.

***

• LPS has acknowledged problems in its paperwork. In its annual securities filing, in which it disclosed the federal probe, the company said it had found "an error" in how Docx handled notarization of some documents. Docx also has processed documents used in courts that incorrectly claimed an entity called "Bogus Assignee" was the owner of the loan, according to documents reviewed by The Wall Street Journal.(1)(2)

For the story, see U.S. Probes Foreclosure-Data Provider (Lender Processing Services Unit Draws Inquiry Over the Steps That Led to Faulty Bank Paperwork).

(1) For examples of "Bogus Assignee" loan assignments, see

• Palm Beach Assignment of Mortgage,
• Broward County Assignment of Mortgage,
• Wayne County Assignment of Mortgage.

(2) For more in connection with the alleged manufacturing of phony documents in foreclosure actions, and dubious notarizations in connection therewith, see:

• Bogus foreclosure claim not isolated,
• Bombshell- Substantiated Allegations of Foreclosure/Affidavit Fraud,
• The Whole Country is BOGUS – Fabricated Mortgage Assignments All Over the Country,
• ENOUGH IS ENOUGH! Docx Assignment of Mortgage – Bogus Assignee for Intervening Asmts ALL OVER THE PUBLIC RECORDS!,
• National Call For Loan Documents Signed By Multiple Corporate Hat-Wearing Vice Presidents,
• FDCPA Suit Seeking Class Action Status Shines Light On Alleged "Assignment Manufacturing" Practices By Lenders, Servicers, Others In F'closure Actions,
• Video "Tutorial" Demonstrates Use Of Dubious Affidavits, Assignments, Notary Acknowledgements By Lender, Law Firm In Foreclosure Actions.

NY's Warren County Seeks To Reform Its "Surplus Snatching" Ways In Delinquent R/E Tax F'closures & Allow Ex-Property Owners To Keep Equity After Sale

In Warren County, New York, The Post Star reports:

• Once a county forecloses on your property, that property no longer belongs to you. It belongs to the taxpayers. So we have to wonder why Warren County supervisors are pushing so hard to give that money back. At issue is a law that allows counties to keep all the money from the sale of foreclosed properties, even if the sale price exceeds the amount of taxes owed on the property.(1) Some supervisors want the county to accept only the back taxes, and give any extra money back to the person who lost the property to foreclosure.(2)

For more, see County should keep money from foreclosures.

(1) The effect of this law, as it currently stands, is that the consequence of a failure to pay real estate taxes is a forfeiture of the real estate by a property owner. Forfeitures are generally unfavored in the law (a philosophy that forms the basis for the old maxim, "equity abhors a forfeiture"), and, clearly, the statute should be appropriately changed. There is no valid reason why the county should benefit from the delinquent property owner's built-up equity (over and above the amount due on the outstanding tax bill - plus interest, penalties, costs, etc.), and why these situations are not handled like any mortgage foreclosure, where the sale proceeds over and above what is owed to the foreclosing lien holder (ie. the "surplus" or "overage") belong to the foreclosed property owner (subject to any claims of subordinate lienholders).

(2) This story is actually an op-ed piece appearing on the "mullet wrapper" page of Warren County's local newspaper where the editorial board expresses its support for keeping the law unchanged, shamelessly advocating for the continued forfeiture, to the county, of the equity built up by tax-delinquent property owners over and above their unpaid tax debts.

Fake Real Estate Agent Charged With Using $80K Pocketed From Would-Be Homebuyer To Purchase Target Home In Her Own Name

In Stanislaus County, California, The Modesto Bee reports:

• A Ceres woman posed as a real estate agent and forged signatures to swipe $80,000 from an unsuspecting Spanish-speaking couple who thought they were buying a Modesto home, an arrest warrant says. Griselda Flores, 50, was arrested [] by the Stanislaus County district attorney's real estate fraud unit and charged with grand theft, forgery and impersonating a real estate agent. Bail was set at $25,000.

• Flores, who is bilingual, gained the victims' trust over several years while preparing their taxes at her Ceres office, the warrant says. She showed them a few houses and arranged to sell one whose owner faced foreclosure [...] for $98,000, accepting an $80,000 cash down payment, the document says.

• The couple believed that Flores would arrange an $18,000 loan for them, they told investigators. Instead, Flores forged receipts to fool them and arranged to buy the home for $80,000 in her name using a 3 percent down payment and a falsified loan application, the document states.

For the story, see Ceres woman arrested in real estate swindle.

Philly Feds Charge Pair For Alleged Use Of Home Improvement Racket To Swindle Unwitting Owners Out Of Their Home Equity

From the Office of the U.S. Attorney (Philadelphia, Pennsylvania):

• The owner of a home improvement company and a mortgage loan officer were charged today by information in a home improvement and mortgage fraud scheme, announced United States Attorney Michael L. Levy. Calvin Harris, owner of the Philadelphia Homes Improvement Outreach Program (“PHIOP”), is charged with two counts of wire fraud. Jonathan Ganz, a loan officer for a mortgage brokerage company, is charged with one count of wire fraud.

• Harris focused his sales efforts on the African-American community in Philadelphia, promising home improvement work on the houses of those clients who signed with him. He also promised to help them secure financing for the work. For the mortgages, he partnered with Ganz who would complete the necessary paperwork to obtain the loans for the PHIOP customers.

• According to the indictment, Harris took the funds intended for his clients’ home improvements and misspent them, using some of the money for cars, clothes, and vacations for himself and his family.

For the rest of the press release, see Two Charged In Home Improvement Loan Scam.

For the criminal charges, see U.S. v. Harris, et ano.

Ohio Man Charged In Alleged $500K+ Ripoff Of 70-Year Old Woman; Leaves Her Essentially Penniless, Facing Foreclosure

In Springdale, Ohio, the Cincinnati Inquirer reports:

• A financial planner is accused of stealing a 70-year-old woman’s life savings -- more than half a million dollars – and leaving her essentially penniless. When Springdale police arrested Martin Morris, 50, at his Mason home Thursday, night, they said he was on the phone with his attorney.

• A Hamilton County grand jury indicted Morris earlier this week on 14 counts, including aggravated theft, theft from an elderly person and forgery. Springdale Police Detective Keenan Riordan said Morris stole $509,637 by forging checks while handling all of the woman’s finances -- even doing her taxes -- and investing through Scottrade, an online brokerage. “It’s a shame, it really is,” Riordan said Friday.

***

• She discovered she was broke earlier this year when foreclosure proceedings began on her Springdale home. “That’s when she became suspicious,” he said. With someone’s help she checked her account on Scottrade online and discovered she had just $7.01 left, Riordan said. The woman is now struggling to make ends meet on her only source of income, monthly Social Security checks. She also received assistance from relatives that has staved off foreclosure, at least for now, police said.

***

• It doesn’t appear likely the woman will be able to get her money back. “He spent it,” the detective said. “It’s gone.”

For the story, see Cops: Woman bilked of $500K.

Bay Area Woman Gets 30 Days "Time Served," 3 Months House Arrest For Using Forged POA, Stolen IDs In Attempt To Steal Long-Time Friend's Home

In Alameda County, California, Laney Tower reports:

• A former College of Alameda counselor was sentenced March 29 to five years probation and 120 days jail time(1) for multiple felony charges including forgery and identity theft. Shirley Robinson, 69, who has been in custody at Santa Rita Jail since a jury convicted her of 10 felonies on March 1, was sentenced at Alameda County Superior Court on March 29 and ordered to pay restitution and stay away from the victims.

• The convictions stem from a real estate fraud and identity theft scheme perpetrated at the height of the real estate boom in 2005, according to prosecutors. Robinson and the victim, former COA counselor Alze Roberts, were friends for 50 years. Robinson created a forged power of attorney authorization to act on behalf of someone else - in an attempt to sell the property without Roberts' knowledge, prosecutors said. To make that transaction appear legitimate, Robinson also stole the identity of three other individuals.

For the story, see Ex-COA counselor convicted of forgery (Sentenced to five years probation, house arrest, fined).

(1) Robinson's four months in jail includes 30 days time served with the remaining to be under electronic home confinement (house arrest).

Hubby's Failure To Disclose Cheating Relationship Results In Favorable Ruling In Wife's Attempt To Undo Mortgage Refinancing Of Family Home

In Gorelston, Norfolk (UK), Norfolk News reports:

• A Norfolk mother has won a landmark court ruling that may give her judicial protection against her home being repossessed - because she was unaware her husband was cheating on her.

• Top judges ruled that Jayne Hewett was “unduly influenced” by her husband Darren Hewett, who had kept quiet about his affair when he persuaded her to charge his massive credit card debts against their family home, a breach of his “duty of fairness and candour”. Mrs Hewett had reluctantly agreed to take out the substantial loan against their home in [] Gorleston, in January 2004.

• She had faced the choice of agreeing to the deal or saying no and holding on to her half of the already-mortgaged house, a move Mr Justice Briggs described as akin to having a “plank in a shipwreck”.(1)

***

• However Mrs Hewett may not necessarily be able to remain in her home, because a County Court judge will now have to decide whether First Plus is entitled to enforce the debt against Mr Hewett's former half share in the property. If that is the case, Colomb Road will have to be sold, although Mrs Hewett will not be as badly off.

For the story, see Norfolk mum wins landmark property ruling.

(1) The court's additional observations in support of their decision is reflected in this excerpt from the story:

• “I am persuaded that Mr Hewett's concealment of his affair from his wife did amount to the exercise of undue influence against her, sufficient to vitiate the re-mortgage transaction, as between them,” said the judge. Mr Justice Briggs added that the affair was “plainly a material fact calling for disclosure” as Mrs Hewett had agreed to enter into the mortgage transaction because she believed her husband was as “committed to the marriage as she was”. He said Mr Hewett was “guilty of a deliberate concealment of the affair” because he knew that if he had told his wife about it, she may not have consented to his proposal. “It is evident from his forgery of his mother-in-law's signature on the consent form that Mr Hewett was prepared to stop at nothing to achieve his objective,” added the judge, observing that Mr Hewett was later convicted over that matter.

Caretaker Dodges Charges After Pocketing 2nd Mortgage Cash On Alzheimer's Victim's Home, Then Failing To Make Payments; Cops Say No Crime Committed

In Anderson County, Tennessee, the Knoxville News Sentinel reports:

• Living alone in his Claxton area house, elderly Auburn Casey apparently became smitten with his caretaker, a detective said. The 86-year-old signed blank checks for the 39-year-old woman to fill in the amount and cash.

• He allowed the woman to take out a second mortgage on his house, valued at $177,900. The caretaker then didn't make mortgage payments, sending the home into foreclosure proceedings.

***

• A family member and friend of Casey's became aware of the situation late last year and rushed to obtain power of attorney over his affairs. By that time, "everything was gone," Anderson County Sheriff's Department Investigator Danielle Alexander said. Casey was broke, his house had been sold at a foreclosure auction for $19,000, and he had moved into an assisted living facility.

• For weeks, Alexander investigated the incidents. The Tennessee Bureau of Investigation looked at the case, records show. The Anderson County District Attorney's Office checked it out. Employees of the Department of Human Services' Adult Protective Services Division also became involved. But all law enforcement officials have concluded no crime was committed. The case is closed.(1)

***

• Cora Logan-Lunny, director of the Anderson County Office on Aging, said last week she was aware of the situation, which she described as "the worst case we've ever seen." Logan-Lunny said Casey has Alzheimer's, and "he really didn't know what he was doing. That's the saddest part of it." "This is a shame," Alexander said of the case. "I'm seeing it happen more and more when these elderly people form relationships with young girls."

For the story, see Police say more taking advantage of the elderly.

(1) The story states that Casey repeatedly insisted he willingly gave the money to the caretaker, whom he described as "a great person" with a "good heart," according to a detective's report.

Live-In Caregiver Surrenders State Nursing License After Convincing Now-Deceased 91-Year Old Oregon Man To Sign Over $900K Estate

In Portland, Oregon, Willamette Week reports:

• A licensed practical nurse accused of manipulating an elderly Portland man into giving up his estate has surrendered her Oregon nursing license. The state Board of Nursing uncovered disturbing new details of the case in the investigation that led to Patricia McIntosh surrendering her LPN license last month.

• Last year WW reported the story of Warren Cummins, who died at age 91 in his Southwest Portland home shortly after giving his property and savings to McIntosh. She had been his live-in caregiver for four months when he died.

• Cummins’ stepson and three adopted children challenged McIntosh in court. Multnomah County Circuit Court Judge Katherine Tennyson ruled in their favor last May, saying McIntosh used “undue influence” and “manipulation” to convince Cummins to sign over his estimated $900,000 estate.

• The case also went before the Oregon State Board of Nursing. On Feb. 10, McIntosh voluntarily surrendered her license because of “conduct derogatory to the standards of nursing.” She also promised never to practice nursing in Oregon again. The nursing board’s six-page report (PDF) contains details not yet made public about the case, [...].

For more, see ‘Manipulative’ Caregiver Surrenders her Nursing License.

See also:

• Estate Of Denial: Think prosecuting elder abuse will be easy under Newly passed Measure 57? Maybe not,
• Estate Of Denial: Caregiver Loses in Court Battle for Inheritance,
• Oregon State Board of Nursing: In re Patricia Ann McIntosh.

Oregon Woman Charged With Abusing POA In $224K Ripoff Of 85-Year Old, Now-Destitute Mother; Victim Puts Home Up For Sale To Pay Nursing Home Bills

In Milwaukie, Oregon, KPTV-TV Channel 12 reports:

• A woman accused of stealing more than $224,000 from her 85-year-old mother's bank accounts was arrested Thursday on charges of aggravated theft and criminal mistreatment. Milwaukie police said Janet Durkee left her mother destitute after taking the money over a five month period. The financial exploitation began, police said, when Durkee's mother, Geneva Smith, suffered serious injuries in a fall. Friends said Smith was no longer able to care for herself and that Durkee made her mother sign over her power of attorney.

***

• Smith is now living at an assisted living home. She has her home up for sale so she can pay the bills.

For more, see Police: Woman Stole $224K From Elderly Mom.

Fannie-Related Mortgage Foreclosures No Longer To Be Carried Out In The Name Of MERS

DSNews.com reports:

• In new policy guidelines released this week, Fannie Mae told servicers that they can no longer name MERS [Mortgage Electronic Registration Systems] as the plaintiff in any foreclosure action, whether judicial or non-judicial, on a mortgage loan owned or securitized by the GSE.

***

• Fannie Mae stated in its new servicing guidelines that when MERS is listed as the mortgagee of record, the servicer must prepare a mortgage assignment transferring the position from MERS back to the servicer, and then bring the foreclosure in its own name.

For more, see Fannie Bars Foreclosure Actions in the Name of MERS.

Go here for Fannie Mae's new servicing guidelines.

More Spotlight On Short Sale Fraud

The Orange County Register reports:

• The [California] Department of Real Estate is issuing warnings about fraudulent short sales. [...] Short sales, in which properties are legally sold for less than what’s owed on the mortgage as long as the lender agrees, have been on the upswing this year. The DRE says it’s also been alerted to fraud surrounding short sale transactions.

For some examples, see Watch out for fraud in short sales.

Unwitting Family Gets The Boot Six Months After Paying $11K Deposit On Home "Purchase" From R/E Agent Now On Trial On Fraud, Forgery Charges

In Kitchener, Ontario, The Record reports:

• [Natasha] Embro said she and her former husband, David, had been looking for a house, but didn’t have much money for a down payment, when they saw a newspaper advertisement for assumable mortgages requiring no approval.

• [Real estate agent Steven] Stojadinovich(1) took them to three places and they agreed to buy the Wooley Street house for $189,900, with an $11,000 down payment, without negotiating the price or knowing the interest rate on the mortgage. “We were just excited to be able to get a house,” Embro said.

• Naïve and inexperienced, she said, the couple didn’t use a lawyer and began paying Stojadinovich in cash after leaving their rented quarters and moving into the house with four children under 10 in the fall of 2005.

***

• The eviction notice came without warning about six months later, leaving the couple scrambling to load all the belongings they could into a truck while officials secured the house behind them. [...] Embro said they lost their $11,000 “down payment” and all the money they gave Stojadinovich while thinking they were paying a mortgage.

***

• The legal owner of the house was really Ryan Dewulf, a young friend of Stojadinovich. He testified he thought it had been sold until he began receiving notices about mortgage arrears. Dewulf was involved in all three of the house deals, but said he trusted Stojadinovich to handle the details. He was eventually sued in relation to the transactions and had to declare bankruptcy. Shown several documents in court, Dewulf said he had never seen them before and that the signatures on them weren’t his.

For the story, see Family evicted after thinking they had purchased house.

(1) Steven Stojadinovich, 49, is on trial after pleading not guilty to fraud and forgery charges related to three house deals in 2005 and 2006.

Trial Begins For Real Estate Broker Accused Of Using Stolen IDs To Obtain 47 Loans For $17.5M+ On 35 Properties; Two Other Suspects On The Lam

In Orange County, California, The Orange County Register reports:

• A real estate broker is on trial for allegedly conspiring with her boyfriend and his brother to commit $17.5 million in real estate fraud by buying 35 properties using stolen identities and purposely defaulting on loans to get the money.

• Kathy Chen, 49, Westminster, is charged with 157 felony counts, including conspiracy, grand theft, forgery, recording false documents, identity theft and other crimes. They carry a total maximum of 109 years in state prison.

• Chen’s boyfriend, Richard Salgado Gonzalez, 60, and his brother, Daniel Gonzalez, 57, face the same charges and sentence as Chen. The brothers are fugitives and have outstanding arrest warrants. Both may currently be living in Puerto Vallarta, Mexico, according to the Orange County District Attorney’s office.

• Chen worked as a real estate broker and owned several businesses including Chen Financial, Western Escrow, Nationwide Tax Services and SBC Financial.

• The trio is accused of obtaining 47 fraudulent loans from 13 lenders on 35 properties for more than $17.5 million. Prosecutors say they used the identities of unsuspecting or unqualified victims to get the loans. The victims often spoke little or no English, had no jobs or little income and never intended to live in the homes or repay the loans in their names, according to the D.A. The properties included 13 in Orange County, 16 in San Bernardino County, and 6 in Kern County.

Source: $17.5M real estate fraud trial underway.

Cops Seek Real Estate Agent Accused Of Swiping Cash From Company Trust Account

In Rancho Cucamonga, California, the Inland Valley Daily Bulletin reports:

• District attorney's fraud investigators are hoping that a woman wanted on suspicion of real estate fraud will turn herself in. Authorities served a search warrant at the Rancho Cucamonga home of Jodi Lee Nazir, 40, [...] said Vance Welch, prosecutor with the San Bernardino County District Attorney's Real Estate Fraud Unit. Three people, including Nazir's son, were in the house at the time, Welch said.

***

• The case against Nazir has been building since 2007 when she was first arrested, Welch said. The District Attorney's Office has filed six counts of grand theft and embezzlement against Nazir.

• One count of the criminal complaint alleges that Nazir fraudulently obtained cash from a trust account for her personal use. She was able to obtain the cash using her position as a real estate agent with the Inland Empire Real Estate Solutions Trust Co. The criminal complaint also alleges grand theft in which Nazir "took, damaged and destroyed property exceeding $200,000."

Source: Real estate fraud suspect eludes authorities.