SEP 6, 2012

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Compliance Matters

Actor Tommy "Tiny" Lister Pleads Guilty to Mortgage Fraud

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After Powell repeatedly lied to him, Bertsch said, he confronted Powell, who admitted to the scam. Bertsch said he told Powell he planned to go to the authorities. "I don't care," Bertsch said Powell told him. "I am going to get five years, and I'll be out in two." Bertsch, who said his cancer is in remission, told the court that Powell and Rose are dangerous and shouldn't be out on the streets.

Mike Gough said he lost $340,000—most of his retirement savings—and was persuaded to refinance his house. "Many of our retirement plans have been canceled," said Gough. Sharon Gough told the court, adding her husband will have to return to work "because we lost so much."

Nicole Corsi said she lost $100,000, wiping out her children's college fund.

Powell and Rose apologized to their victims. Powell's lawyer, Willard Wiksell, said Powell is broke. "He has nothing," Wiksell told the judge. He asked the judge to sentence Powell to a maximum of 16 years.

Weiss said Rose used some of the money on a car, mortgage and other personal expenses. Weiss said Powell was the brains and Rose was the heart of the fraud, and that her role was to get victims emotionally involved in the investments. After the sentencing, Bertsch said he didn't believe Powell's apology.  (ventuar8112)

MORAL

I guess Powell was wrong. He is alleged to have said he will get five years and be out in two. Instead he got 18 years. So I guess he will not be out in two. Sounds like it would have been just as well for him to go to trial considering the sentence.

THREE COLORADO RESIDENTS GUILTY OF MORTGAGE FRAUD

FACTS

On Aug. 30, Michael Jacoby, Derek Zar and Susanne Zar were found guilty by a jury of wire fraud, bank fraud and money laundering. The guilty verdicts were the result of a four-week trial before Visiting U.S. District Court Judge Kathryn H. Vratil. Jacoby was taken into custody immediately after the jury returned the guilty verdict. They are scheduled to be sentenced by Judge Vratil on Dec 10.

They were indicted by a federal grand jury along with Michael Macy, who pled guilty previously. Guess who cooperated with the prosecution?

The jury returned guilty verdicts against the defendants on all counts with which they were respectively charged. Michael Jacoby was found guilty of 11 counts of wire fraud, three counts of money laundering, and two counts of bank fraud. Derek Zar was found guilty of four counts of wire fraud and one count of money laundering. Suzanne Zar was found guilty of three counts of wire fraud and one count of money laundering.

Between January 2005 and continuing through September 2006 in Colorado, the defendants knowingly devised and intended to devise a scheme to defraud various financial institutions and other commercial lenders that funded residential mortgages and to obtain money, funds, and other property owned by and under the custody and control of those financial institutions and commercial lenders by means of materially false and fraudulent pretenses and representations. In furtherance of the scheme, one or more of the defendants participated in real estate transactions involving 18 properties located in Colorado.

It was part of the scheme that Derek Zar and a co-defendant bought homes at purported discounted rates because they paid cash. Jacoby often lent them the cash for these initial purchases and was then paid back with interest. Furthermore, Jacoby acted as the Realtor for the sales.

Derek Zar and a co-defendant usually bought the homes through limited liability companies they owned and operated and then resold these homes within a very short time period to themselves as individuals at inflated prices financed by mortgage loans. Additionally, Susanne Zar often refinanced the homes with mortgage loans based on an inflated value. Sometimes, the inflated value was supported by false documentation showing a higher initial purchase price than the actual initial purchase price. The defendants also prepared and submitted and caused to be prepared and submitted applications for loans which contained various materially false and fraudulent representations.

It was further part of the scheme for the co-defendants to cause to be submitted false appraisals for some of the properties. Jacoby usually recommended an appraiser to the mortgage broker for the loan approval. He supplied the appraiser with inflated values of comparable homes or omitted information concerning the home sales so the appraiser would overvalue the current home. At closing, through a grant program, the defendants funneled money back to the home buyer who was one of the defendants. They concealed from the lenders and other parties associated with the transactions that the home buyer was receiving a kickback for buying the home.  (loansafe.org83112)

MORAL

Since January 2005. You will note the federal prosecutors indicted them for loans that funded over 7-1/2 years ago!

MINNESOTA REAL ESTATE WOMAN GETS FIVE YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD

FACTS

On Aug, 31, Barbara Lynne Puro, a 49-year-old real estate who previously pleaded guilty, was sentenced for her participation in a multi-million-dollar mortgage fraud scheme that victimized lenders across the country.

From Jan. 1, 2005 to Jan. 1, 2008, she conspired with others to obtain loan proceeds by making false representations to and withholding material information from lenders during the loan application process.

At the time, she was employed by Homestar USA, Re/Max Advantage Plus and Coldwell Banker Burnet, where she was responsible for recruiting and representing buyers and sellers of residential properties.

As part of the scheme, Puro arranged for unwitting homeowners to sell their properties to straw buyers at inflated prices. The result was fraudulent loans in excess of $10 million and losses of approximately $5.3 million.  (cbsmn83112)

MORAL

Again note, the loans prosecuted occurred 7-1/2 years ago.   Remember, a lawyer is cheaper if you see them before the indictment and you can usually see the indictment coming long before it arrives.

LAS VEGAS MAN PLEADS GUILTY TO LOAN MOD FRAUD

FACTS

Comments (1)
And some think it's the Dodd Frank rules that made them go under.
Posted by Anonymous | Monday, September 10 2012 at 3:11PM ET
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