Former Bank of America Employee Gets Prison Time For Short Sale Fraud

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Short Sale Fraud is not a thing of the past. It's alive and well!! Normally the fraud is related to property value. Get the lender to accept way less than the property is worth and BAM! instant profit when you flip it. Sounds good right?

Well it's not. It's illegal to provide a fabricated value to a lender with the intent of thievery. That's right. Thievery. Don't do it.  

Here's an example of short Sale Fraud from an article over at

  • A former Bank of America employee, Kevin Lauricello, of Thousand Oaks CA was sentenced on Monday to 30 months in federal prison for his participation in a fraudulent short sale scheme. As an employee of the Short Sale Department at Bank of America, Lauricello was paid $1.2 million in bribes for his insider access to approve short sales at a much lower price than current market value, which resulted in $5.7 million in losses for the bank. READ THE REST OF THE ARTICLE.

Folks this stuff just makes Orlando Short Sales more difficult for the people that truly need help. Agents and borrowers are required to jump through hoops that exist for no other reason than to help weed out Short Sale fraud.

Lenders want as much money as possible for the Short Sale. Getting as close to market value as possible increase the chances of the Short Sale being approved. A higher price reduces the lender's loss and limits the borrower's tax liability and deficiency.

So folks if you need help with a Florida Short Sale then contact your Orlando Short Sale Specialist. That would be me, Bryant Tutas. Let's talk.

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Lisa Friedman
Great American Dream Realty - Essex, VT
29 Years of Real Estate Experience!

It is completely shocking to me that anyone would do this and put their entire life at risk like this for money.

Jul 23, 2014 02:07 AM #1
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Bryant, and I thought they were all in collusion with the bank to make short sales more expensive!  How naive of me.

Jul 23, 2014 09:07 PM #2
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA

Bryant, it does not surprise me that more of this is not picked up on. I have always felt that banker types of their hands in the mess as well.

Jul 23, 2014 09:35 PM #3
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Great post. This type of stuff gives everyone a problem...

Jul 23, 2014 11:33 PM #4
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I always knew it! Finally, someone from that bank went to jail!

Jul 27, 2014 04:54 PM #5
Christopher Lotte
Red 1 Realty - Lithopolis, OH
Central Ohio Realtor, 614-390-9243

Hey ,

wow! that is really  a huge problem now a days...

and it cannot be solve coz some people doing it over and over again.

well, thanks God we are all doing clean business here.

Aug 19, 2014 03:58 PM #6
Ralph Nudi
Success Realtors brokered by eXp Realty - Kenosha, WI
"YOUR success IS our success"

There's a fine line sometimes between being a shrewd negotiator and fraud.  That line is in the form of providing accurate information to all the parties involved about the FACTS, while still giving your opinion as to how you think those facts should be interpreted.  The fraudsters instead try to mask or deceive the material facts of the transaction. 

Aug 27, 2014 04:00 PM #7
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Bryant - This obviously is not good news, but somehow it doesn't surprise me. Thirty months in a federal prison for taking $1.2 mil in bribes, and costing B of A $5.7 mil in losses? Should have been much longer in my opinion.

Jan 15, 2015 07:38 AM #8
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