Which is less expensive? Having us audit you or being potentially liable for over $4 million. You should have an internal experienced HUD QC person or have us audit you for compliance.
CALIFORNIA MAN IS THE 27TH PERSON WHO AGREES TO PLEAD GUILTY TO RIGGING BIDS AT PUBLIC FORECLOSURE SALES OF REAL PROPERTY
On Feb. 5, felony charges were filed against Gilbert Chung, a Northern California real estate investor who has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.
He is the 27th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Chung conspired with others not to bid against one another but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Francisco and San Mateo Counties. Chung was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Chung conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo Counties beginning as early as January 2010 and continuing until about December 2010.
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco and San Mateo County public foreclosure auctions at non-competitive prices.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400. (usatty2513)
If you have any questions about “bid rigging” at foreclosure sales you may reach me at 888-6678-8529
RIVERSIDE COUNTY IN CALIFORNIA TO INCREASE REAL ESTATE FRAUD PROSECUTIONS’ DRAMATICALLY
You should ask how? The answer is by raising the fee for all documents you file with the county recorder.
On Feb. 5, Riverside County supervisors approved doubling the fee charged for filing a variety of real estate documents to raise revenue for anti- fraud investigations and prosecutions. The board hiked the Real Estate Prosecution Trust Fund fee from $3 to $6 per document. The change takes effect on March 5.
The fees are imposed whenever an individual or business records a deed of trust, notice of default, notice of trustee sale, affidavit, lien, lease or quitclaim deed, as well as other documents filed with the Office of the Assessor-Clerk-Recorder.
Revenue generated from the fees is placed into an account from which the District Attorney's Office withdraws funds as needed but which are restricted for investigations and prosecutions of mortgage and foreclosure-related scams, according to county officials.
A staff of eight people makes up the D.A.'s Real Estate Fraud Unit, which often has to plow through tens of thousands of pages of documents to uncover fraud and abuse.
If anyone has filed questionable documents with the recorder or been involved in creative mortgage loans in the past several years you might want to ask us a few questions since it is attorney client privilege and we cannot be forced to disclose what you tell us by anyone. That is as long as it does not involve a future crime.
COLORADO MAN SENTENCED FOR SHREDDING DOCUMENTS RELATED TO MORTGAGE FRAUD INVESTIGATION
On Feb. 1, Justin H. Knight was sentenced by U.S. District Court Judge Robert E. Blackburn to serve five years’ probation, with the first 12 months in home detention for shredding documents in an attempt to obstruct an investigation into a mortgage fraud scheme.
Knight pled guilty to destruction of records on Feb. 10, 2012. In connection with a larger mortgage fraud scheme, Peter V. Capra, Demetrious G. Gianopoulos and Brian Waring were charged in three separate indictments.
Gianopoulos pled guilty to one count of money laundering on May 10, 2011, and was sentenced to serve five years’ probation. Warning pled guilty to one count of conspiracy to commit mail fraud, wire fraud, and money laundering and is expected to be sentenced later this year. Capra was indicted on April 25, 2012, which was then followed by a superseding indictment on May 23, 2012, for obstruction of justice, mail fraud, wire fraud, and money laundering. The Capra case is currently scheduled for trial on Sept. 23, in front of Judge R. Brooke Jackson. Capra was president of Golden Design Group Inc., a home builder.