When the FBI said in mid 2008, that they would be making more arrests for cases they had been investigating since 2004, they weren't kidding! Originally when I first blogged about this in June, 2008, the FBI announced that they had arrested five people who all worked together perpetrating a scam that I detailed in that post. Then, just three days ago, I reported on the latest FBI bust, involving a couple who owned a mortgage financing company here in Honolulu.
Now today, the FBI has announced that yesterday they have arrested five more people associated with four lending companies, for participating in alleged foreclosure bailout schemes. The lending companies named were:
- Asian Pacific Funding
- New Horizons Financial
- Accel Mortgage LLC
- Walter P. Yim and Associates
The five persons arrested have all pleaded not guilty to multiple charges of mail fraud, wire fraud, money laundering, conspiracy and making false statements on a mortgage application. To date, more than 17 people have been arrested on similar charges. The FBI investigations have been active for the past 18 months.
I hope that all of those shady individuals that have perticipated in these kinds of fraud, who have not yet been arrested, are shaking in their boots! I believe there are many more perpetrators out there. I know I met a few lending agents, whom I refused to do business with because they were not shy about their willingness to stretch the truth on mortgage applications. A couple of them even went so far as to say that if the borrowers were willing to sign the applications, they could care less if they lost the property later!
Well, now it looks like the day of reckoning is about to land on their heads! More arrests are surely on the way. If any of those loan officers are reading this blog, what do you think about that?
Of course, I would rather hear from everyone else regarding their thoughts about these arrests!