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[MichaelC 160]

http://www.sun-sentinel.com/business/reale...063,print.story

 

South Florida Sun-Sentinel.com

Federal agents charge 31 people in mortgage loan fraud

By Vanessa Blum

 

South Florida Sun-Sentinel

 

December 18, 2007

 

Federal officials in Miami announced charges Monday against 31 people accused of participating in a scheme to illegally obtain mortgage loans worth roughly $14 million.

 

Prosecutors said the group's leaders secured inflated loans for the purchase of at least 28 properties and then pocketed the difference between the loan and the actual purchase price.

 

Several of the properties involved in the charges are in Broward County, according to the 20-page indictment.

 

The alleged conspiracy involved people working in all aspects of the real estate business, including a bank employee, a title agent and an appraiser.

 

Among those arrested Monday was Katherine Harris, 36, of Plantation. Prosecutors contend Harris, who worked as a title agent, took bribes to conceal from lenders that they were awarding loans for more than the amount actually needed to buy the property.

 

Attorneys for the defendants could not be contacted because they were not identified in the court file or by the U.S. Attorneys' Office.

 

U.S. Attorney Alex Acosta said financial institutions are not the only victims in such cases, which make it harder for honest home buyers to get approved for loans and contribute to higher interest rates.

 

"Mortgage fraud is not a paper crime," he said. "Real individuals are being hurt."

 

According to the indictment, Juan Torrens, 40, of Miami, recruited home sellers willing to overstate the price of their property and other people willing to pose as home buyers.

 

Torrens and his wife, Rachael Torrens, 33, then prepared mortgage loan applications in the false buyers' names, including fraudulent employment verification, pay stubs and IRS forms, the indictment states.

 

In order to validate the inflated sales price, Alonso Muxo, 48, of Miami, would prepare fraudulent appraisals, the indictment states.

 

Prosecutors allege that Torrens paid bribes to those involved for their assistance and ultimately collected the difference between the loan and the actual sales price of each home.

 

Nine of the properties listed in the indictment are in Broward County, including four in Hollywood, two in Oakland Park, one in Pembroke Pines, one in Dania Beach and one in Miramar.

 

The mortgage loans obtained for the home purchases range from $144,810 for a Miami residence to $891,190 for a Marco Island property.

 

Monday's indictment is part of a South Florida mortgage fraud initiative combining federal and state resources. Since September, federal prosecutors have charged 55 defendants they say took part in obtaining fraudulent home loans worth more than $75 million.

 

According to a 2007 study by Fannie Mae and the Mortgage Asset Research Institute, Florida led the nation in mortgage fraud in 2006.

 

Vanessa Blum can be reached at vbblum@sun-sentinel.com or 954-356-4605.

 

Copyright © 2007, South Florida Sun-Sentinel

[<Steve> 82]

federal prosecutors have charged 55 defendants they say took part in obtaining fraudulent home loans worth more than $75 million.

That is some hefty $$$.

It always makes me wonder how long people think they can get away with this kind of stuff.

 

The way one makes it to their finacial goals has to be repeated to maintain that higher standard. If you are dishonest on your way up, you may have to continue to be dishonest to maintain your new fortune. And with so many players in this game they were sure to get burned.

[megabucks41 0]

MC. what else is new amigo this is the scam capital of the USA.

[MichaelC 160]

MC. what else is new amigo this is the scam capital of the USA.

Of course it is, Ernie. That's why we're here.