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BEWARE... your "buyer" may be a Fed Agent!

By
Mortgage and Lending with US Mortgages - David Shamansky NMLS#392126

who is thisBEWARE... Your "buyer" may be a Fed Agent!

In an ongoing effort to remove fraud and suspicious actions in our industry the Feds have taken further action by going out and presenting themselves as "Straw Buyers" and disclose to those involved in the transaction their true intention to see how they will react. Fear NOT if you have Morals, Values and Character and make good decisions that don't surround your wallet, or purse, you will be fine but for those on the fence or truly operating on the dark side your days may be numbered.

Here is an excerpt from a recent article where 13 were indicted and sent to Federal Prison for making foolish choices...

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eyeglassAs part of an undercover investigation called “Operation Madhouse” conducted by the Federal Bureau of Investigation, the Department of Housing and Urban Development's Office of Inspector General and the Internal Revenue Service Criminal Investigation Division, 13 individuals have been arrested in Chicago for participating in a mortgage fraud scheme carrying out three separate transactions involving four homes on the city's south side.

During the investigation, federal agents posed as straw buyers of houses and were seeking assistance in financing and closing fraudulent mortgage transactions.

According to the complaint affidavits in each of the three cases, a cooperating individual who was working with the federal government claimed to know someone at a bank who would approve fraudulent loan applications on behalf of the straw buyers provided by the undercover investigation.

The defendants supposedly knew that the purchaser (straw buyer) had no intention of occupying the property and that the loan application contained multiple false statements.

Each defendant allegedly played a role in the fraudulent transactions by preparing loan applications and other documents that they knew contained false information about the undercover agents' identity, employment and income as well as creating false appraisals for the properties being purchased.

“Mortgage fraud continues to occur despite widespread publicity about the real and serious financial consequences that result,” said Patrick Fitzgerald, U.S. attorney for the Northern District of Illinois. “Undercover operations like this help provide an effective deterrent because corrupt mortgage industry professionals and others will have to wonder whether the person sitting across the closing table from this is actually an undercover agent.”

Two of the defendants were charged with one count of bank fraud in two separate cases. The remaining 12 defendants were each charged with one count of bank fraud in one of the three different transactions.

Bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine.

The Department of Justice said a bank and title company assisted in this investigation.

 

Posted by

araward

Colorado 1st Time buyers, if you are ready to stop renting, get the many benefits from home ownership, or maybe your a current homeowner looking to move up or maybe looking into what it takes to become an investor in this incredible market, that WILL create millionaires, and you are looking for a strategy, answers and direction, please feel free to call or email me. My 22yrs in mortgage lending and 30+ years in finance gives me an in depth knowledge, critical to helping others and making their dreams go from dream to reality!

David Shamansky
"Positive reinforcer, promoter, success coach, entrepreneur, team builder, wealth builder, blessed individual, business leader and professional lender"

US Mortgages
6855 S Havana St Ste 520
Centennial CO 80112
720-524-8020
NMLS#392126
Equal Housing Lender

*photos used may come from my personal pictures or www.freedigitalphotos.net

 

Comments(11)

Eric Crane -- Your Full Service, Discount Fee Realtor®
DPR Realty LLC - Gilbert, AZ
Greater Metro Phoenix Arizona

Hi, David -- good to go after the bad apples... but my goodness, when are they going to go after the fraudsters who precipitated the crisis to begin with.  you would think the actions that took place, on wall street, and elsewhere would have kept them busy for several years.  Have a good one

Aug 26, 2011 06:31 AM
Jennifer Prestwich
Henderson, Thornton, Broomfield and Westminster - Henderson, CO
Madison & Co Properties

Wow, David, this is incredible.  Also, I agree with Eric!  Wouldn't it be nice if all fraudsters were seen equally in the eyes of the law? 

Aug 26, 2011 06:44 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Eric - Agreed and read my previous post the ones who helped push this mess on all of us here and globally are now in the HOT seat!

Jennifer - yes that would be nice but it will never happen. A good indicator will be what happens to Moody's now.

Thanks for the comments and have a great wkd

Aug 26, 2011 06:51 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi David - I know it's the big guys who cause all the real trouble, but it's nice to see some heat on these guys at the street level too. We've watched them run amok without worry for way too long. Two good posts in one day - you're on a roll, bro! Have a great weekend.

Aug 26, 2011 07:47 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Dick - thanks my friend and remember... "its all in the wrists" lol

You have a great weekend too and enjoy the rain

Aug 26, 2011 07:50 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello David and this is a interesting post, great read and love the comments!

VB ;o)

Aug 26, 2011 09:34 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Thanks VB - I likewise enjoyed yours. A little more colorful than mine but very much along the same line of thought.

Have a great wkd and enjoy the rain

Aug 26, 2011 01:27 PM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

We're walked away from writing an offer on a HUD home that we knew the buyer was not going to occupy, but wanted to sign stating he was.  Not worth my real estate license.

Aug 26, 2011 03:08 PM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Very good decision. That only leads to trouble and after hearing this thats trouble with a CAPITOL "T".

 

Thanks for the comment and have a great wkd

Aug 26, 2011 04:39 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I can't even believe agents would think of doing something so stupid. They deserve to get caught, as well as Wall Street deserves it too.

Aug 29, 2011 07:29 PM
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Thankfully I never have to worry about that sort of problem. If I ever run in to any thing like that, I'd call the appropriate agency and try to set up the scammer. I would like to make the papers THAT way!

Aug 29, 2011 07:30 PM