Categorized | Finance and Mortgage

27 Charged with Mortgage Fraud in South Florida

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The U.S. Attorney’s Office in South Florida has charged twenty-seven individuals in four separate cases with various forms of fraud against both banks and homeowners alike. Those accused in each of the four mortgage fraud cases also face charges of mail fraud, insurance fraud, and even arson.

These outrageous cases aren’t exactly a new thing, though, in the real estate industry of South Florida, as the area is tops in the nation when it comes to mortgage fraud. In these particular cases, the perpetrators had defrauded the victims for over thirty million dollars.

In two of the cases, straw buyers were recruited to falsify loan applications in order to buy homes at inflated prices. This practice enable those involved to take home a significant amount of the inflated bank loans, which amounted in over $20 million alone. The straw buyers were provided kickback payments that ranged from thirty thousand to one hundred thousand dollars.

The person accused in the third case allegedly bought a house using false employment information, attempted to burn the house down to collect the insurance coverage, and then performed an illegal short sale on the house. The individual is being charged with mail fraud, insurance fraud, and arson.

In the fourth and final case, a Miami attorney is being charged with fraudulently keeping over one million dollars of a client’s money for personal use, thus making the homeowner in danger of foreclosing on his house.

Nearly all those accused are in custody at this time, and, if convicted, could face up to twenty years in prison.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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