On Nov. 8, Larry Reisman pleaded guilty to federal charges in the Eastern District of Texas to making a false statement in connection with an FHA-insured home loan. He is the 20th conviction in this scheme.
Reisman, who operated Springfield Custom Homes, was involved in a widespread mortgage fraud scheme involving homebuyers, recruiters, homebuilders, mortgage brokers, loan officers, and a title company employee. Reisman admitted that in order to enable homebuyers to purchase a home from him, he secretly supplied the down payment funds to the homebuyer so the homebuyer could qualify for an FHA-insured mortgage loan and that he falsely represented to FHA that he did not supply any of the down payment funds. Reisman’s scheme resulted in losses to mortgage lenders, including Fannie Mae and Freddie Mac.
Reisman faces up to five years in federal prison at sentencing and restitution of $1.5 million. A sentencing date has not been set. (usattyedtx11812)
MORAL
Remember how I have been saying the federal prosecutors are still chasing the fraudulent loans? Remember how I have been saying the lenders such as Chase, Flagstar, FDIC and Mortgage Law Recover Group and Celotti Law Firm have been chasing brokers, loan officers and lenders to pay for losses on loans that went into foreclosure and sale? Now we have those trying to resolve the matters on their own and appear to be faring worse than the results we have been getting. The main problem? They usually come to us after they try to settle on their own and give up potential available defenses in the process.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.
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