Real Estate Broker Convicted- faces a "Prison Sentence" up to 111 years

By
Mortgage and Lending with First Colorado Lending

Used 92 Year Olds Personal and Credit Information

 A California, a real estate broker, was convicted of conspiring with her boyfriend and his brother to commit $17.5 million in real estate fraud by purchasing 35 properties using stolen identities and intentionally defaulting on loans in order to steal the loan money.

Kathy Chen's boyfriend, Richard Salgado Gonzalez, and his brother, Daniel Gonzalez, face the same charges and sentence. The brothers are fugitives have outstanding arrest warrants, it is believed that both may currently be living in Puerto Vallarta, Mexico.

Read the whole story @ http://tinyurl.com/32zuzgh

The faster we all help prevent real estate fraud; the sooner all of these costs could be reduced, thus saving homeowners and tax payers money ... and people will not be unlawfully evicted from their homes because of the paper work shuffle by the fraudsters at the closing table.

When we believe in the existence of fraud could affect us individually, more will then start taking active steps, every day, to combat against it. It may be an everyday battle, but the longer we fight the stronger we get, and once something becomes a habit the less difficult it is to achieve; and the harder it is to forget.

We can prevent mortgage and real estate fraud one transaction at a time!

Michael S. Richardson

Director/Chief Quality Officer
Author of "An American Epidemic, Mortgage Fraud a Serious Business"

www.preventmortgagefraud.com

Follow me on Twitter @ FocusonFraud

 

Comments (66)

Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

Send them away.  Just punish people for fraud.  Don't do all this HVCC stuff.

May 23, 2010 07:49 PM
Stephen P. Panczak, MBA
Keller Williams Coastal Partners - Palm Beach, FL
Real Estate Agent & Business Coach, (561) 254-8098

Michael - they did the crime, let them do the time.

May 23, 2010 11:31 PM
Jeff Baxter
Jeff Baxter Mortgage Team - Bethany Beach, DE

It's too bad that it took a meltdown of the real estate market and the economy for participants to begin to take fraud seriously.  Many of use say things happening years ago and may have even reported concerns, but nothing happened until everything came crashing down. Sad, but happy that more mortgage and real estate fraud is now being investigated.

May 23, 2010 11:39 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Michael, there is one more off the street who give our profession a bad name. Thanks.

May 24, 2010 01:50 AM
Jody Keating
Jody Keating Connective Realty,LLC, Bryan/College Station,TX - Bryan, TX
Broker/MM/Realtor, Bryan / College Station, TX

Michael, and their just the ones we know about. I wonder how many more are out there doing the same thing???

:)

May 24, 2010 03:13 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Michael...

Unless they get all the money back, I mean every single dime, then they got away with it. The prisons that put away "fraud violators" are fun places to be. The strategy by most of these swindlers is to do a sizable crime, get the money, hide it and then be prepared to claim you lost it all as you serve out your "time". When you get out, the money is waiting for you. Prosecutors know this and all they can do is threaten longer jail time. I am reminded of Michael Milken..the junk bond king. He manipulates or swindles 1 billion dollars, gets caught, is fined 500 million with minimum jail time and then let go. Allowing him to keep $500 million sends the wrong message. BTW, drug dealers know this well and retire wealthy no matter what happens..........

thank you

 

May 24, 2010 03:41 AM
Monica Hess
Feng Shui This Kentucky - Lexington, KY
Kentucky's Feng Shui Master

I guess I had lived an innocent life until I got involved in real estate.  I didn't believe the hype...now I do.  It's a shame.  I'm glad these guys were caught...now putting them in jail will help.  But, the problem is deeper than this one.  So many agents are just crooked.  We have to start cleaning up the business from the ground up.  Drill ethics...weed out people who do not have basic integrity.  I don't know how, but something has to be done to get these crooks out of this business.

May 24, 2010 03:42 AM
Kyle Jan
Scottsdale, AZ
Phoenix AZ Homes for Sale

The more of these types of individuals we help get out of the business, the better it is for everyone.  Their actions impact us all.

May 24, 2010 03:42 AM
Frank & Jodi Orlando
Frank & Jodi Orlando Get Us A Home Realty Atlanta Homes Sale - Cumming, GA

Stupidity & greed, a recipe for disaster. Why are you in jail said a prisoner? I committed mortgage fraud, yikes!!!

May 24, 2010 03:45 AM
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Send Sheriff Joe after them. The "posse" will get 'um!

May 24, 2010 03:55 AM
Vince McEveety
Gilleran Griffin Realty - Sherman Oaks, CA

good tenor - eyes open people

May 24, 2010 04:00 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Throw them in jail and throw away the key.  Sometimes you see a story where people started down a path and then it got crooked slowly (Still wrong) but here this is out and out premeditated fraud.

May 24, 2010 04:30 AM
Krista Barnes
Carolina One Real Estate; Realtor, SFR,ABR,CIAS - Mount Pleasant, SC

Yup! Throw the book at em! Gives us all a bad name and we have to work that much harder to overcome the stigma!

May 24, 2010 04:51 AM
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Every industry has fraud and corruption.  It's still most upsetting when it is in your own industry.

Vacationing in Mexico huh?  Sad.

May 24, 2010 04:52 AM
Tina Parker
Prudential Gary Greene-Friendswood - Clear Lake City, TX

Unbelievable!! Well, not really, but I do agree it makes us work harder to prove our trustworthiness.  I hope they get the maximum punishment allowed.  They should be ashamed of themselves!

May 24, 2010 07:51 AM
Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Good grief. This turns my tummy!

May 24, 2010 10:01 AM
Guy Thomas
WR Starkey Mortgage - Colorado Springs, CO

The ingenuity of the criminal mind is truly an amazing thing. If that much thought were put to honest work I wonder where some of them wouldbe today?

May 24, 2010 11:03 AM
Kymberly Caldwell-Muniz
(909) 973-0410 - Fontana, CA
TCR Group Keller Williams Realty Rancho Cucamonga

Great post, I can't believe the things that people do. I hope they like stripes because they will be wearing them for a long time.  

May 24, 2010 03:59 PM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

I hope they lock them up for good!

May 26, 2010 01:50 PM
Liane Thomas, Top Listing Agent
Professional Realty Services® - Corona, CA
Bringing you Home!

Wow, no wonder we have a terrible reputation. Shame on the crooks, and good for the law for catching up with them.

Aug 21, 2010 06:44 AM