.

40 Million in Mortgage Fraud, it Takes a Village

It takes a "team" of scammers to pull off mortgage fraud that costs $40 million

It must take an amazing amount of planning and a number of players to make it all work. It always boggles my mind how often these scammers are able to pull this stuff off. They can’t sentence these guy to long enough terms in prison.

In my area, there were two attorney’s that pulled off a multimillion dollar scam on a bunch of banks and mortgage companies. They asked for payoff’s for refinances, did new mortgages and never paid off the underlying debt. How did they not believe they were going to get caught?

Ten Charged With $40 Million Jersey Shore Mortgage Fraud

By: Business Week

Ten people were charged with a $40 million fraud relying on phony documents and straw buyers to bilk mortgage lenders for properties at the New Jersey Shore and resorts in South Carolina and Georgia, prosecutors said.

The 10 were accused today of using unqualified buyers to purchase 28 oceanfront condominiums from financially distressed developers in Wildwood Crest, New Jersey, according to an indictment in federal court in Camden, New Jersey. They used similar methods to buy 21 properties in Georgia and South Carolina, and eight properties in foreclosure in New Jersey.

Prosecutors said the scheme caused more than $40 million in losses to various lenders. Nine of the 10 charged were arrested, including Joseph Witkowski, 66, who helped to locate properties to buy; Isatu Tejan-Sie, 54, a loan representative at Citigroup Inc. (C); and Robert Serao, 46, a former loan officer at Wells Fargo& Co. (WFC), the government said.

After mortgage loans were approved, Witkowski and others “took proceeds from the fraudulent mortgage loans by having funds wired or checks deposited into various accounts they controlled,” according to the indictment.

Witkowski and others told straw buyers they “would maintain the properties, locate renters, collect rent and make mortgage payments,” according to the indictment.

“After the first or second monthly mortgage payments, there were no more payments on most of the properties, and on others, only nominal payments which then ceased,” Stephen Stigall, an assistant U.S. attorney, said in an interview.

image: sdmania/freedigitalphotos.net

Joe Petrowsky, NMLS #6869

Right Trac Financial Group,
Inc. NMLS #2709

110 Main St.

Manchester, Ct.,06042

860 647-7701 x116

860 647-8940 fax

www.joepetrowsky.com

www.righttracfg.com  

“You Can Expect Extraordinary Mortgage Solutions”

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »