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Florida Mortgage Fraud

By
Real Estate Agent with La Rosa Realty

The state of Florida ranked first in mortgage fraud in 2006 in a national index released earlier this year by the Mortgage Asset Research Institute, an industry data clearinghouse. The most recent scheme - which has been under investigation since 2002, netted over $12 million, 30 homes and countless victims throughout the United States. The ring leader, Yvette Scott Patterson, 40, formerly of Lauderhill, is accused of masterminding this scheme to submit fraudulent loan applications by using the false information through her mortgage company, Khadmilroy Inc. In addition, 10 others were charge, these included the ring leader's husband, Delroy Patterson, 45, they were all charged with multiple counts of conspiracy to commit mail, wire and identity fraud.  Currently, some are in jail with the exception of the mastermind and her husband who have since flee the country.

It is reported that mortgage fraud is among the fastest-growing white-collar crimes in the country and has become problematic in especially in this fast-paced markets. This case highlights the growing problem of real estate related crime in Florida.

So, what is the point that we all need to take from this, if any transactions that we are doing seem too good to be true, we must have them checked out. By no means would any one of us want to get ourselves entangled with crooked deals. I also got caught up in a scheme recently. I had a so-called investor contacted me on getting properties here in Florida. His goal was to obtain at least 6-10 properties per year. Wow...that sounds good right? Anyway, I decided to copy the entire e-mail to Bryant Tutas.....he was able to see right thru the e-mail and requested that I ask this investor certain questions, not just the obvious. I listen to Bryant and ask these questions. Needless to say, that was the last time I heard back from that so-called investor. By no means do I want to be a participant in any illegal activities. I appreciated listening and learning from others especially ones with more experience like Bryant.

So what is the bottom line....if you have a good deal which might potentially 'make you rich' don't be selfish and wanting to keep it to yourself....do your research - feel free to confide in another Realtor, get their input. In the end we do not want to get ourselves caught up in any schemes that we will end up regretting later. I read a case sometime ago in which the Realtor blamed her broker who was involved in a similar scheme.  In my opinion, the only person I can blame should something goes wrong is myself!

Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Interesting.

Do you have a link to "a national index released earlier this year by the Mortgage Asset Research Institute" ? 

Nov 23, 2006 12:48 AM
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert

Hello Maureen, as requested, here is the direct link to the article:

http://www.mari-inc.com/pdfs/articles/Congress_testimny_mrtg_fraud.pdf

Not surprisingly, in 2000 - 2003, FL was ranked 3rd, while Georgia and Nevada held the lead.

Also visit this link and scroll down to page 5.

http://www.mari-inc.com/pdfs/nhema/nhemacaserpt3.pdf

and finally, the webiste is http://www.mari-inc.com/reports.html, they have ideal source of information.

Nov 23, 2006 04:38 AM
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Thanks Netta, great links, great report, great info. The thing I like best is that Ohio is not on it. 

 

Nov 23, 2006 05:30 AM
Anonymous
Foolish One
There is a massive mortgage fraud on-going in Southern California. Will cause over $1 Billion in damages. I personally lost over $500,000. The perpetrators are James B. Duncan, Hendrix Montecastro, Anthony Contreras, Maurice McLeod, Steve Kayden, Helen Montecastro, Charlie Choi, Paul Sluss, Rodd Leonard, Jogn Ranic, Bridgett Holbrook, and Chris Oetting. They operate under many shell companies, Stonewood Consulting, Pacific Wealth Management a NV LLC, Inland Coast Capital, The Henson Group, Success Strategies, Coast Wealth Management, Total Return Fund, Jovane Investments, Cathedral Capital Partners, Palm Valley Advisors, and many many others. Beware of them. They have damaged well over 1000 victims and still counting. See our victim website to understand their schemes http://www.coreclient.110mb.com/
May 22, 2007 01:28 PM
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