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Five More Arrests in Honolulu

Real Estate Agent with CENTURY 21 All Islands

FBI LogoWhen 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.



FBI Agents

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

Man in Jail

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 Man with contractbeen 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!

Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI

Good.... it was inevitable for those to get caught....more to come no doubt!

Apr 24, 2009 08:38 AM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL

Hi Michael.  I appreciated what you said about not doing business with those willing stretching the truth.... It all boils down to the fact that the TRUTH will come out in the end.

Apr 24, 2009 09:12 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

I have no stomach for fraud.  Mortgage fraud is more damagaing than most would like to admit.  It can hurt neigborhoods, banks, and those living on a fixed income.

Apr 24, 2009 09:18 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI

Celeste "SALLY" Cheeseman HAWAII Relocations & Real Estate (Century 21 Liberty Homes)I'm still waiting to see if certain names show up on the arrest roles!

Rice Property Management & Realty, LLC Diane, I know of many real estate agents who protected their clients interests by steering them away from the bad apples in the mortgage industry.

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) Jim, you and I both! The blatant boldness of the fraud is very disturbing also. I'm glad to see that the FBI is getting results.

Apr 24, 2009 10:46 AM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Michael: Wow - I guess it's not over until the FBI says its over!


Apr 24, 2009 01:41 PM
Nate Rowe
Oakstone Properties, Homes in Richmond VA - Richmond, VA
Realtor, Homes in Richmond VA

I am with you all the way Michael.  This type of crime makes it harder on everyone and simple ruins some innocent peoples lives.  I hope they like cell bars.  I wish you the best.

Apr 24, 2009 03:33 PM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI

National Credit Fixers - Matt Listro That's right, there are more arrests to come, for sure!

Nate Rowe, Homes in Richmond VA Realtor in Richmond VA, (Oakstone Properties, Homes in Richmond VA ) Thanks Nate. I think it's necessary to expose these crimes as much as possible as a warning to those who might be tempted to cheat.

Apr 25, 2009 03:42 PM
Sharon Harris
Keller Williams Keystone Realty - Hanover, PA

Well I guess they are where they belong. It was bound to catch up to them in the long run.

Apr 26, 2009 12:54 AM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Michael - Wow ! It is a shame that these kinds of actions occurred.  The good news is that it catches up to the criminals and I am glad they got caught.  I agree that it does serve society well to expose the crimes so people know that folks just did not get away with these types of actions !


Apr 26, 2009 01:22 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Michael, just wait until everything shakes out in CA for the loan mod companies & the mega-REO listing agents, that will be interesting to watch.

Apr 26, 2009 12:30 PM
Mary Strang
Viroqua, WI

Michael, Thankfully this type of loan activity is a thing of the past. It is amazing that lending during the boom days became such a free for all for. We now know how bad it all really was. 

Apr 27, 2009 12:57 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI

Sharon Harris (AllQuest Real Estate) So far the arrests are being made on the most blatant criminals. It will be interesting to see if lesser offenders will be prosecuted.

Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate (RE/MAX Affiliates) Yes, let the news go out, so anyone tempted to do such things in the future might think twice!

Regina P. Brown Real Estate on the California Coast Regina, I imagine there are lots of swindlers taking advantage of the desperate right now. They too will reap their own rewards!

Mary Strang ~ Viroqua, WI Real Estate (RE/MAX Hill Country) Unfortunately, the scammers just move on and find something else to cheat the unsuspecting. Thank goodness the FBI is catching up to them. Thanks for your comments!

Apr 27, 2009 05:06 AM
Richard Weeks
Dallas, TX


That is great news.  I am sure there are many more out there wondering if they will be next.

Apr 28, 2009 01:47 AM