This BLOG post will be updated on an ongoing basis to update you on who's paying for their behavior. My guess is probably not enough people and not enough pain...
Public hanging or medieval stockades anyone?
(Does it seem like alot of little fish are caught, but not the big fish?)
2-22-2012: San Bernardino man is guilty of real estate scam involving promising to help home owners avoid foreclosure and gets $6 million fine and to serve 12 years in federal prison. Source: http://www.utsandiego.com/news/2012/feb/21/man-sent-prison-real-estate-scam/
2-18-2012: Minnesota businessman sentenced to 12 years for $226 million fraudulent development.
Source: http://www.startribune.com/business/139519448.html
2-7-0212: Family of real estate agents in Springfield MO sentenced to prison and fined >$4 million in restitution for mortgage fraud. Source: http://www.kspr.com/news/local/kspr-monett-family-of-real-estate-agents-sentenced-in-11-million-dollar-mortgage-fraud-20120206,0,373444.story
2-3-2012: Real estate agent & mortgage broker guilty of mortgage fraud in Las Vegas.
Source: http://www.legalnewsline.com/news/235120-real-estate-agent-mortgage-broker-found-guilty-of-fraud
1-27-2012: Birmingham man sentenced to 5 year in prison & over $500,000 in fines & restitution. Source: http://blog.al.com/spotnews/2012/01/birmingham_man_sentenced_in_fr.html
1-19-2012: Former real estate and mortgage broker awaits sentencing upon guilty verdict for embezzeling >$500,000. Source: http://www.santacruzsentinel.com/localnews/ci_19778676
1-18-2012: 4 out of 5 already get sentence and owe >$11 million in restitution in Florida mortgage fraud case. Source: http://www.loansafe.org/parkland-real-estate-agent-pleads-guilty-to-mortgage-fraud
1-16-12: North Carolina attorney sentenced to 14 months in prison for mortgage fraud.
Source: http://www.fbi.gov/charlotte/press-releases/2011/fayetteville-attorney-sentenced-for-mortgage-fraud
1-12-12: 2 of 10 people in Atlanta, Georgia area plead guilty of mortgage fraud -
Source: http://www.coosavalleynews.com/np94876.htm
1-11-2012: Man gets 13 years of prison over $1 million mortgage fraud scheme - Source: http://www.fayobserver.com/articles/2012/01/11/1149735?sac=Bus
12-22-2011: Cleveland Ohio Crook - Sentencing includes both some form of restitution and jail (maybe 6-16 years). Source: http://www.clevelandjewishnews.com/news/local/article_cbd26c8a-2cbf-11e1-b482-0019bb2963f4.html
12-21-2011: Wow, only one Canadian real estate agent gets convicted of tax evasion. Does this mean NO US real estate agent ever got convicted? Source: http://www.benzinga.com/pressreleases/11/12/m2217245/real-estate-agent-fined-93-679-for-tax-evasion
12-19-2011: Iowa Real Estate Agent sentenced to 2 years in prison for wire fraud.
Source: http://qctimes.com/news/local/real-estate-agent-sentenced-for-mortgage-fraud/article_3051a97e-2a71-11e1-ba31-001871e3ce6c.html
12-15-2011: Mortgage fraud trial ready to wrap up -
Source: http://blog.al.com/live/2011/12/mortgage_fraud_trial_defense_c.html
12-15-2011: Internet auction fraud - http://www.fbi.gov/birmingham/press-releases/2011/illinois-man-pleads-guilty-to-internet-auction-real-estate-scam
12-5-2011: Alabama real estate investor pleads guilty of rigging bids mail fraud relating to real estate auctions. Source: http://7thspace.com/headlines/401399/alabama_real_estate_investor_agrees_to_plead_guilty_to_conspiracy_to_rig_bids_for_the_purchase_of_real_estate_at_public_foreclosure_auctions.html
11-23-2011: Real estate investor convicted of Wire and Bank Fraud for up to $6.5 million in funds and may serve up to 30 years and fine of up to $1 million. Source: http://7thspace.com/headlines/400551/real_estate_investor_convicted_for_leading_a_mortgage_fraud_conspiracy.html
11-8-2011: Former PA real estate agent convicted of wire fraud and money laundering involving 30+ homebuyers and over $6 million - http://www.abc27.com/story/15980916/former-real-estate-agent-convicted-of-money-laundering-wire-fraud
11-2-2011: Another person convicted of defrauding lenders and laundering money and faces 20-30 years in prison. - Source: http://newsandinsight.thomsonreuters.com/Legal/News/2011/11_-_November/Federal_jury_convicts_lawyer_in_real-estate_scam/
10-20-2011: Man from Sacramento convicted on $1+ million fraud - collected money to buy real estate and develop property but oops...he pocketed some money instead - what a guy! - Source: http://www.bizjournals.com/sacramento/news/2011/10/18/sacramento-man-prison-real-estaste-fraud.html
10-20-2011: Former real estate agent maybe sentenced to 13+ years for scam - collected near $1 million to be used to purchase real estate but didn't. - Source: http://www.wavenewspapers.com/news/local/132209508.html
10-15-2011: Real estate agent sentenced (after < 2 hours by Jury) to 8+ years in jail for $43 million mortgage fraud in Minnesota. Source: http://www.twincities.com/business/ci_19104689
10-13-2011: HUD suspends former President of Lend America from doing any business with HUD due to mortgage fraud scheme - it seems money collected to pay off loans being refinanced were channeled for unrelated purposes. Source: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-250
10-6-2011: Real estate agent was one of 19 defendants involved in a $12+ million inflated mortgage fraud scheme and got >$5 million fine and <2 years jail time. Source: http://www.forbes.com/feeds/ap/2011/10/03/general-mo-mortgage-fraud-sentence_8714539.html
9-16-2011: Man to serve more than 4 years of jail for >$5million mortgage fraud involving people using 100% financing. Source: http://www.lcsun-news.com/las_cruces-news/ci_18899795
9-8-2011: Man pleads guilty to $5 million mortgage scam/mail fraud in Sacramento and will serve 5 years. Source: http://www.egcitizen.com/articles/2011/09/06/news/doc4e66c34b0a658071704782.txt
http://www.statejournal.com/story.cfm?func=viewstory&storyid=106723
8-27-2011: Another Alabama fraudster files false loan applications for Condominiums and 2nd mortgage and took over $1 million. Source: http://realestate.bryanellis.com/5068/real-estate-scam-of-the-day-alabama-real-estate-scam-mastermind-pleads-guilty/
8-26-2011: Missouri developer guilty of million $ bank fraud scheme involving false vouchers. Source: http://www.bizjournals.com/stlouis/news/2011/08/26/st-charles-county-developer-sentenced.html
8-24-2011: Man pleads guilty to multi million dollar mortgage scam - some realtors and buyers were inolved too. Source: http://blog.al.com/live/2011/08/alleged_mastermind_of_baldwin.html
8-24-2011: Fourth person (former loan officer) pleads guilty in a Kentucky mortgage fraud scheme that ultimately totalled millions of dollars.
Source: http://www.loansafe.org/fourth-person-pleads-guilty-in-central-kentucky-mortgage-scam
8-19-2011: Former New York real estate agent/loan officer indicted by federal grand jury in $50 million mortgage fraud scheme and if convicted, may face fines and 3 years in jail.
Source: http://www.fbi.gov/newyork/press-releases/2011/real-estate-agent-indicted-in-50-million-mortgage-fraud-scheme
8-9-2011: Minnesota closing agent gets >5 years prison for $1.2M fraud case. Source: http://tcbmag.blogs.com/daily_developments/2011/08/real-estate-exec-gets-max-sentence-for-12m-fraud.html
8-5-2011: 3 people were charged in a $2.5 million scheme involving loan modifications - Source: http://www.loansafe.org/three-real-estate-workers-charged-in-miami-for-stealing-2-5-million-in-loan-modification-scheme
8-5-2011: 14 people were charged in a $58 million mortgage fraud scheme involving receipt of money in exchange for false paperwork on mortgages. Source: http://blogs.wsj.com/law/2011/08/04/real-estate-woes-five-lawyers-busted-in-58m-mortgage-fraud-scheme/
7-27-2011: Former Mortgage Company owner convicted of money laundering, mail fraud $30 million real estate fraud. Source: http://www.denverpost.com/business/ci_18525859
7-27-2011: Real estate securities fraud results in man being sentenced to >200 month and $1.9 million fine. Source: http://www.loansafe.org/fugitive-texas-real-estate-fraudster-sentenced-to-more-than-17-years-in-prison
7-26-2011: Alleged >$5 million mortgage fraud committed by former Minnesota real estate agent Source: http://www.loansafe.org/former-minnesota-female-real-estate-broker-charged-in-mortgage-fraud-scheme
7-26-2011: Connecticut real estate agent goes to jail for mortgage short sale fraud.
Source: http://realtybiznews.com/short-sale-fraud-agent-jailed/9874323/
7-24-2011: Wells Fargo gets fined $85 Million (a small pittance of the Billions in economic losses we all suffered in the mortgage fiasco) by the Federal Reserve Board for mortgage fraud related behavior by selling higher rate loans to >10,000 people who should have qualified for lower rates. Can you say "Yield Spread Premium"? Source: http://agentgenius.com/real-estate-news-events/wells-fargo-fined-85-for-abusive-practices-of-thousands-of-borrowers/
7-22-2011: This mortgage schmuck and his ponzi scheme gives bad image to the industry, but where was due diligence of investors? The theory: "If it's too good to be true, it usually is" remains a constant! Source: http://www.denverpost.com/business/ci_18525859
7-21-2011: Real estate agent in Idaho convicted of lying to lender - sentenced to >5 total years and fined. Source: http://www.greenfieldreporter.com/view/story/925722b9bbbd4f94af06f715ed9e146b/ID--Mortgage-Fraud-Sentence/
7-14-201: Two more involved with Taylor, Bean, Whitaker debacle were sentenced to jail time in addition to a $1.6 settlement - so far...Source: https://www.fis.dowjones.com/WebBlogs.aspx?aid=DJFDBR0020110712e77c000dx%20&ProductIDFromApplication=&r=wsjblog&s=djfdbr
7-13-11: Prospect Mortgage agrees to $3+ million fine involving FHA and kickbacks to real estate brokers. Source: http://www.inman.com/news/2011/07/13/hud-lender-paid-kickbacks-real-estate-brokers-agents
7-13-11: Two former real estate agents committed and admitted to $11 Million in mortgage fraud. Source: http://ozarksfirst.com/fulltext?nxd_id=487207
7-13-11: Real state agent convicted of mail fraud to serve 4+ years. Source:http://www2.timesdispatch.com/news/2011/jul/13/6/richmond-real-estate-agent-be-sentenced-fraud-sche-ar-1169735/
7-6-2011: Real Estate agent lies....and that's news? Well, it is in this case and when you lie to HUD - http://www.star-telegram.com/2011/07/06/3203853/fort-worth-real-estate-agent-faked.html
6-29-2011: Man sells houses that didn't exist. (Note: To whom would you sell - people that didn't exist? And where was the due diligence of the Buyers? I think there's contributory negligence here - isn't there always when stupid Buyers meet shifty sellers?)
Source: http://alabama.realestaterama.com/2011/06/29/birmingham-man-faces-mortgage-fraud-charges-for-selling-houses-he-did-not-own-ID0124.html
6-24-2011: Real estate attorney charged with mortgage fraud - gets 3 years of supervised release. Source: http://www.northcountrygazette.org/2011/06/23/kaplan_fraud/
6-21-2011: A former Colonial Bank executive was sentenced to eight (8) years in a federal prison related to Taylor, Bean & Whitaker Mortgage Corp fraud scheme.
Source: http://www.biggerpockets.com/renewsblog/2011/06/17/real-estate-news-by-the-numbers-week-of-june-11-june-17/
(Does it seem like alot of little fish are caught, but not the big fish?)
Here's an article outlining winners and losers from the mortgage meltdown - just to name a few: http://www.8newsnow.com/story/16049641/foreclosure-crisis-the-winners-and-losers
Yes, 49/50 states settled the lawsuit against largest US banks (see AG settlement ), but $26 Billion against a $1 Trillion mortgage fiasco and nobody of significance is in jail? Where are the derivative traders who failed in their Due Diligence responsibility? Or designers of CDOs who failed to disclose the real risks?
3-21-2012: Virginia man pleads guilty and gets $250K fine and may serve 3-20 years for real estate investment fraud. Source: http://www2.timesdispatch.com/business/2012/mar/21/david-silver-pleads-guilty-in-real-estate-investme-ar-1779889/
3-4-2012: 70 year old Tucson real estate agent gets 8 months and $700,000 in restitution for mortgage fraud. Source: http://www.vadvert.co.uk/government/22268-70-year-old-tuscon-real-estate-agent-sentenced-to-prison-for-mortgage-fraud.html
2-22-2012: Five people plead guilty in Cleveland, Ohio area to mortgage fraud involving $50 million mortgage scam from 500 real estate transactions. Source: http://www.wtam.com/cc-common/news/sections/newsarticle.html?feed=122520&article=9536914
3-21-2012: Virginia man pleads guilty and gets $250K fine and may serve 3-20 years for real estate investment fraud. Source: http://www2.timesdispatch.com/business/2012/mar/21/david-silver-pleads-guilty-in-real-estate-investme-ar-1779889/
3-4-2012: 70 year old Tucson real estate agent gets 8 months and $700,000 in restitution for mortgage fraud. Source: http://www.vadvert.co.uk/government/22268-70-year-old-tuscon-real-estate-agent-sentenced-to-prison-for-mortgage-fraud.html
2-22-2012: Five people plead guilty in Cleveland, Ohio area to mortgage fraud involving $50 million mortgage scam from 500 real estate transactions. Source: http://www.wtam.com/cc-common/news/sections/newsarticle.html?feed=122520&article=9536914
2-22-2012: San Bernardino man is guilty of real estate scam involving promising to help home owners avoid foreclosure and gets $6 million fine and to serve 12 years in federal prison. Source: http://www.utsandiego.com/news/2012/feb/21/man-sent-prison-real-estate-scam/
2-18-2012: Minnesota businessman sentenced to 12 years for $226 million fraudulent development.
Source: http://www.startribune.com/business/139519448.html
2-7-0212: Family of real estate agents in Springfield MO sentenced to prison and fined >$4 million in restitution for mortgage fraud. Source: http://www.kspr.com/news/local/kspr-monett-family-of-real-estate-agents-sentenced-in-11-million-dollar-mortgage-fraud-20120206,0,373444.story
2-3-2012: Real estate agent & mortgage broker guilty of mortgage fraud in Las Vegas.
Source: http://www.legalnewsline.com/news/235120-real-estate-agent-mortgage-broker-found-guilty-of-fraud
1-27-2012: Birmingham man sentenced to 5 year in prison & over $500,000 in fines & restitution. Source: http://blog.al.com/spotnews/2012/01/birmingham_man_sentenced_in_fr.html
1-19-2012: Former real estate and mortgage broker awaits sentencing upon guilty verdict for embezzeling >$500,000. Source: http://www.santacruzsentinel.com/localnews/ci_19778676
1-18-2012: 4 out of 5 already get sentence and owe >$11 million in restitution in Florida mortgage fraud case. Source: http://www.loansafe.org/parkland-real-estate-agent-pleads-guilty-to-mortgage-fraud
1-16-12: North Carolina attorney sentenced to 14 months in prison for mortgage fraud.
Source: http://www.fbi.gov/charlotte/press-releases/2011/fayetteville-attorney-sentenced-for-mortgage-fraud
1-12-12: 2 of 10 people in Atlanta, Georgia area plead guilty of mortgage fraud -
Source: http://www.coosavalleynews.com/np94876.htm
1-11-2012: Man gets 13 years of prison over $1 million mortgage fraud scheme - Source: http://www.fayobserver.com/articles/2012/01/11/1149735?sac=Bus
12-22-2011: Cleveland Ohio Crook - Sentencing includes both some form of restitution and jail (maybe 6-16 years). Source: http://www.clevelandjewishnews.com/news/local/article_cbd26c8a-2cbf-11e1-b482-0019bb2963f4.html
12-21-2011: Wow, only one Canadian real estate agent gets convicted of tax evasion. Does this mean NO US real estate agent ever got convicted? Source: http://www.benzinga.com/pressreleases/11/12/m2217245/real-estate-agent-fined-93-679-for-tax-evasion
12-19-2011: Iowa Real Estate Agent sentenced to 2 years in prison for wire fraud.
Source: http://qctimes.com/news/local/real-estate-agent-sentenced-for-mortgage-fraud/article_3051a97e-2a71-11e1-ba31-001871e3ce6c.html
12-15-2011: Mortgage fraud trial ready to wrap up -
Source: http://blog.al.com/live/2011/12/mortgage_fraud_trial_defense_c.html
12-15-2011: Internet auction fraud - http://www.fbi.gov/birmingham/press-releases/2011/illinois-man-pleads-guilty-to-internet-auction-real-estate-scam
12-5-2011: Alabama real estate investor pleads guilty of rigging bids mail fraud relating to real estate auctions. Source: http://7thspace.com/headlines/401399/alabama_real_estate_investor_agrees_to_plead_guilty_to_conspiracy_to_rig_bids_for_the_purchase_of_real_estate_at_public_foreclosure_auctions.html
11-23-2011: Real estate investor convicted of Wire and Bank Fraud for up to $6.5 million in funds and may serve up to 30 years and fine of up to $1 million. Source: http://7thspace.com/headlines/400551/real_estate_investor_convicted_for_leading_a_mortgage_fraud_conspiracy.html
11-8-2011: Former PA real estate agent convicted of wire fraud and money laundering involving 30+ homebuyers and over $6 million - http://www.abc27.com/story/15980916/former-real-estate-agent-convicted-of-money-laundering-wire-fraud
11-2-2011: Another person convicted of defrauding lenders and laundering money and faces 20-30 years in prison. - Source: http://newsandinsight.thomsonreuters.com/Legal/News/2011/11_-_November/Federal_jury_convicts_lawyer_in_real-estate_scam/
10-20-2011: Man from Sacramento convicted on $1+ million fraud - collected money to buy real estate and develop property but oops...he pocketed some money instead - what a guy! - Source: http://www.bizjournals.com/sacramento/news/2011/10/18/sacramento-man-prison-real-estaste-fraud.html
10-20-2011: Former real estate agent maybe sentenced to 13+ years for scam - collected near $1 million to be used to purchase real estate but didn't. - Source: http://www.wavenewspapers.com/news/local/132209508.html
10-15-2011: Real estate agent sentenced (after < 2 hours by Jury) to 8+ years in jail for $43 million mortgage fraud in Minnesota. Source: http://www.twincities.com/business/ci_19104689
10-13-2011: HUD suspends former President of Lend America from doing any business with HUD due to mortgage fraud scheme - it seems money collected to pay off loans being refinanced were channeled for unrelated purposes. Source: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-250
10-6-2011: Real estate agent was one of 19 defendants involved in a $12+ million inflated mortgage fraud scheme and got >$5 million fine and <2 years jail time. Source: http://www.forbes.com/feeds/ap/2011/10/03/general-mo-mortgage-fraud-sentence_8714539.html
9-16-2011: Man to serve more than 4 years of jail for >$5million mortgage fraud involving people using 100% financing. Source: http://www.lcsun-news.com/las_cruces-news/ci_18899795
9-8-2011: Man pleads guilty to $5 million mortgage scam/mail fraud in Sacramento and will serve 5 years. Source: http://www.egcitizen.com/articles/2011/09/06/news/doc4e66c34b0a658071704782.txt
http://www.statejournal.com/story.cfm?func=viewstory&storyid=106723
8-27-2011: Another Alabama fraudster files false loan applications for Condominiums and 2nd mortgage and took over $1 million. Source: http://realestate.bryanellis.com/5068/real-estate-scam-of-the-day-alabama-real-estate-scam-mastermind-pleads-guilty/
8-26-2011: Missouri developer guilty of million $ bank fraud scheme involving false vouchers. Source: http://www.bizjournals.com/stlouis/news/2011/08/26/st-charles-county-developer-sentenced.html
8-24-2011: Man pleads guilty to multi million dollar mortgage scam - some realtors and buyers were inolved too. Source: http://blog.al.com/live/2011/08/alleged_mastermind_of_baldwin.html
8-24-2011: Fourth person (former loan officer) pleads guilty in a Kentucky mortgage fraud scheme that ultimately totalled millions of dollars.
Source: http://www.loansafe.org/fourth-person-pleads-guilty-in-central-kentucky-mortgage-scam
8-19-2011: Former New York real estate agent/loan officer indicted by federal grand jury in $50 million mortgage fraud scheme and if convicted, may face fines and 3 years in jail.
Source: http://www.fbi.gov/newyork/press-releases/2011/real-estate-agent-indicted-in-50-million-mortgage-fraud-scheme
8-9-2011: Minnesota closing agent gets >5 years prison for $1.2M fraud case. Source: http://tcbmag.blogs.com/daily_developments/2011/08/real-estate-exec-gets-max-sentence-for-12m-fraud.html
8-5-2011: 3 people were charged in a $2.5 million scheme involving loan modifications - Source: http://www.loansafe.org/three-real-estate-workers-charged-in-miami-for-stealing-2-5-million-in-loan-modification-scheme
8-5-2011: 14 people were charged in a $58 million mortgage fraud scheme involving receipt of money in exchange for false paperwork on mortgages. Source: http://blogs.wsj.com/law/2011/08/04/real-estate-woes-five-lawyers-busted-in-58m-mortgage-fraud-scheme/
7-27-2011: Former Mortgage Company owner convicted of money laundering, mail fraud $30 million real estate fraud. Source: http://www.denverpost.com/business/ci_18525859
7-27-2011: Real estate securities fraud results in man being sentenced to >200 month and $1.9 million fine. Source: http://www.loansafe.org/fugitive-texas-real-estate-fraudster-sentenced-to-more-than-17-years-in-prison
7-26-2011: Alleged >$5 million mortgage fraud committed by former Minnesota real estate agent Source: http://www.loansafe.org/former-minnesota-female-real-estate-broker-charged-in-mortgage-fraud-scheme
7-26-2011: Connecticut real estate agent goes to jail for mortgage short sale fraud.
Source: http://realtybiznews.com/short-sale-fraud-agent-jailed/9874323/
7-24-2011: Wells Fargo gets fined $85 Million (a small pittance of the Billions in economic losses we all suffered in the mortgage fiasco) by the Federal Reserve Board for mortgage fraud related behavior by selling higher rate loans to >10,000 people who should have qualified for lower rates. Can you say "Yield Spread Premium"? Source: http://agentgenius.com/real-estate-news-events/wells-fargo-fined-85-for-abusive-practices-of-thousands-of-borrowers/
7-22-2011: This mortgage schmuck and his ponzi scheme gives bad image to the industry, but where was due diligence of investors? The theory: "If it's too good to be true, it usually is" remains a constant! Source: http://www.denverpost.com/business/ci_18525859
7-21-2011: Real estate agent in Idaho convicted of lying to lender - sentenced to >5 total years and fined. Source: http://www.greenfieldreporter.com/view/story/925722b9bbbd4f94af06f715ed9e146b/ID--Mortgage-Fraud-Sentence/
7-14-201: Two more involved with Taylor, Bean, Whitaker debacle were sentenced to jail time in addition to a $1.6 settlement - so far...Source: https://www.fis.dowjones.com/WebBlogs.aspx?aid=DJFDBR0020110712e77c000dx%20&ProductIDFromApplication=&r=wsjblog&s=djfdbr
7-13-11: Prospect Mortgage agrees to $3+ million fine involving FHA and kickbacks to real estate brokers. Source: http://www.inman.com/news/2011/07/13/hud-lender-paid-kickbacks-real-estate-brokers-agents
7-13-11: Two former real estate agents committed and admitted to $11 Million in mortgage fraud. Source: http://ozarksfirst.com/fulltext?nxd_id=487207
7-13-11: Real state agent convicted of mail fraud to serve 4+ years. Source:http://www2.timesdispatch.com/news/2011/jul/13/6/richmond-real-estate-agent-be-sentenced-fraud-sche-ar-1169735/
7-6-2011: Real Estate agent lies....and that's news? Well, it is in this case and when you lie to HUD - http://www.star-telegram.com/2011/07/06/3203853/fort-worth-real-estate-agent-faked.html
6-29-2011: Man sells houses that didn't exist. (Note: To whom would you sell - people that didn't exist? And where was the due diligence of the Buyers? I think there's contributory negligence here - isn't there always when stupid Buyers meet shifty sellers?)
Source: http://alabama.realestaterama.com/2011/06/29/birmingham-man-faces-mortgage-fraud-charges-for-selling-houses-he-did-not-own-ID0124.html
6-24-2011: Real estate attorney charged with mortgage fraud - gets 3 years of supervised release. Source: http://www.northcountrygazette.org/2011/06/23/kaplan_fraud/
6-21-2011: A former Colonial Bank executive was sentenced to eight (8) years in a federal prison related to Taylor, Bean & Whitaker Mortgage Corp fraud scheme.
Source: http://www.biggerpockets.com/renewsblog/2011/06/17/real-estate-news-by-the-numbers-week-of-june-11-june-17/
6-18-2011: A California real estate broker charged with mortgage fraud for inflated property values & inflated incomes of buyers, and other charges. Also, two people were harge with a fraud scheme involving a financial firm promoting foreclosure rescue/prevention services. Source: http://www.thereporter.com/news/ci_18298413
6-10-2011: I don't know whether this former real estate agent will use the "one armed man" defense, but hey - what could it hurt? Source: http://www.heraldtribune.com/article/20110609/BREAKING/110609559/2055/NEWS?Title=Fugitive-real-estate-agent-arrested-on-fraud-charges-
6-10-2011: Anytime a Real Estate Agent breaks a bond of trust and tried to get away with a rime, all other honest agent cringe. Yes there are dishonest agents, but far more are honest an hard working. Source: http://blogs.sacbee.com/crime/archives/2011/06/couple-pleads-n-1.html
6-10-2011: Another Ponzi scheme for commercial properties in Florida - Is there also such a thing as "greedy" or "stupid" investors? Contributory negligence of due diligence? Source: http://www.housingwire.com/2011/06/08/former-tv-host-charged-in-florida-real-estate-ponzi-scheme
5-29-2011: Real estate agent (as President of an HOA), was accused in fraud scheme to sell 22 Condo units the HOA didn't own or she didn't have authorization to sell. Source: http://www.myfoxtampabay.com/dpp/news/local/pinellas/real_estate_fraud_arrest_clearwater052811
5-28-2011: Three (3) Utah men were indited with conspiracy to commit mortgage fraud using "straw buyers" (i.e., using real people's information to falsely stage mortgage lending, getting false appraisals, etc,.) to get lender to provide the loan funds for closings that aren't real. Possible penalties are sentences, about $2 million in fines, and property. Source: http://www.sltrib.com/sltrib/money/51894227-79/meier-goff-false-prowell.html.csp
5-27-2011: Two former California realtor "sister" fraudsters had paid people $5K to use their personal and financial information as "straw buyers" and promised to buy the homes back. They only got less than 2 years jail time and $200K fines. (Note: Small fish in the sea, but fish nonetheless!)
Source: http://california.realestaterama.com/2011/05/27/former-real-estate-professionals-sentenced-for-mortgage-fraud-scheme-in-vallejo-ID01148.html
http://rejournalonline.com/real-estate-scam-of-the-day-pennsylvania-appraiser-set-to-pay-up/853783/, a Pennsylvania appraiser was convicted of fraud and paid a $15K fine, but wasn't sent to Federal prison like 5 others were. Like the article questioned - tough enough sentence?
4-30-2011: Co-founder of Omni National Bank (Jeffrey L. Levine) was fined $6.8 Million and sentenced to 5 years in Federal prison for involvement of inflating values of bank assets and mortgage fraud. (Atlanta Business Chronicle - 4-29 thru 5-5, page 13A).
4-22-2011: Mortgage Loan Processors (mostly in major US banks) are getting regulatory actions, fines and penalties for sloppy foreclosure processing. However, I haven't hear the final count of the foreclosures that kicked people out of their homes while there were in loan modification processing. 5-10-20-100? Has there been any restitution for those folks? - http://www.mortgagenewsdaily.com/04132011_mortgage_servicing.asp
4-8-2011: Wives of WAMU accused of transferring assets to avoid access from legal claims...As of 3-15-2011, FDIC authorized suits to recover $3.5 B (wow, a far cry from the almost Trillion $ loss)! Source: WSJ, 3-18-2011, C1
3-15-2011: Credit Suisse Group settled a securities class action lawsuit (about misleading some investors about their mortgage exposure by failing to write down some mortgage related securities) and will pay $70 million. WSJ, 3-11-2011, C1 (Comment: I wonder what the attorney's cut is out of the $70 million and how much the plaintiffs will actually receive? Probably not near the damage to investors?)
3-1-2011: WSJ 2-25-11, C3 - Former executive with Taylor, Bean, Whitaker pleaded guilty regarding a $1.9 Billion scheme may result in 30 years of prison on charges executives falsified sales of mortgage loans. (Hey, I didn't see any form of victim restitution....)
WSJ 2-24-2011, A1: Possible settlement of $20 Billion and write downs of loans with large banks under Federal investigation over loan servicing issues like improperly foreclosing on borrowers and not providing sufficient help to restructure loans. If the settlement isn't reached with the Obama Administration, different Federal agencies could pursue other penalties.
MDJ -2-12-2011, 6B = The Securities and Exchange Commission filed civil fraud charges against three former IndyMac Bank executives by disclosing false and misleading reports about the financial stability of IndyMac Bank to investors just before it failed. So far there's only a $100K fine and $2K in restitution - a far cry from the millions of $ in stock that were sold without the alleged proper disclosure of the financial situation.
WSJ-10-16/17-2010=Angelo Mozilo (former Countrywide Financial Chief) has recently settled out of court by paying a $67.5 million fine stemming from insider trading of about $140 million in stock. It was also reported that he has been banned from servicing as officer or director of a public company (but I guess that doesn't prevent him from working for a private 'investment' firm - does it?) Oh, and alot of the fine will be paid by current employer - Bank of America ---Priceless!
Earlier in 2010 Goldman Sachs settled a $550 million suit stemming from misleading investors in the sale of mortgage backed securities.
Note: A 10-21-2010 WSJ Opinion column mentioned that $45 million of the $67 million fine will be paid by Bank of America insurers (via the Countrywide acquisition) and goes on to say the settlement won't protect Mr. Mozilo from criminal charges. Furthermore, Bank of America agreed to pay $9 Billion over Countrywide's lending practices.
10-7-2010: Wells Fargo agreed to pay $24 million and reduce the amount of mortgage loans by $400 million (by lowering balance, interest rate, extend term, or reduce monthly payment) after 8 states' investigation of the marketing of risky mortgages by Wachovia and Golden West Financial Corp, both of which Wells Fargo acquired in in 2006 and 2008, respectively. Some of the risky
I don't think anything short of a hanging or public execution would have been good enough. To think, their "fast and easy" loans based solely on credit score were part of the problems tempting homebuyers to stretch their finances to get a crazy loan like this...even though the borrower is partially at fault, tempting a baby with candy will get the baby sick and you their money.
Federal Housing Finance Agency (FHFA) subpoenas 64 Mortgage Issuers
The FHFA oversees government backed mortgage companies and regulates 12 home loan banks that are major fund sources for hundreds of banks.
This inquiry centers on "private label" securities related to subprime, Alt-A, and other risky home loans. Apparently, Fannie and Freddie couldn't buy them directly but bought $255 billion in slices of those with Triple A ratings - but were basically crap. Freddie has almost $30 billion of the $100 billion of subprime and Alt-A loans went bad. Fannie had $16 billion of $44 billion go bad.
The investigation will focus on whether these "bundles" of loans were sold under false pretences or mistakes, Fannie and Freddie could force the lenders to buy them back.
Maybe one possible tragedy is that Fannie and Freddie, being the major buyers of loans, were in a position to disclose such risk for all investors, yet never sent up warnings.
WSJ 6-25-2010: Morgan Stanley agreed to pay $102 million ($58 million to >1,000 MA homeowners
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