Friday, May 30, 2008

Builder Banker Broker And LO Charged For Fraud

Christopher A. Upchurch, 33, a Nampa, Idaho contractor and Barbara L. Cobos, 36, a loan officer at Zions First National Bank, Eagle, Idaho, made their initial appearances in federal court in Boise, Idaho after being indicted, along with Nicholas R. Gossi, 26, Nicholas R. Coats, 29, and Max Reich, 32, who are also charged in the scheme to use straw borrowers to get construction loans. Trial was set for July 22, 2008, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The scheme is alleged to have defrauded the bank of approximately $20 million.

As previously reported by Mortgage Fraud Blog, Upchurch did residential construction under the name of Inline Construction, LLC. Cobos is alleged to have received approximately $125,000 in kickbacks from Upchurch in order to assure funding of fraudulent loan applications.

Gossi worked first for a bank and later as a mortgage broker, and is alleged to have received “finder fees” from Upchurch to locate people willing to have their identities used to obtain the fraudulent loans.

Coats was a real estate agent, and is alleged to have recieved approximately $49,500 in finder fees for locating straw buyers. Reich is alleged to have received approximately $67,900 in finder fees for similar work.

The scheme is alleged to have begun in October 2004 and lasted until November 2005. Once straw buyers were located, their information was used as the borrower’s on residential construction loan applications. In many cases, it is charged, the loan applications overstated the “borrower’s” income and credit, and falsely said that they were planning to build “owneroccupied” homes. Upchurch and others are also alleged to have forged the “borrowers” names on loan documents.

According to the indictment, the 49 fraudulent applications would have totaled approximately $20 millions, had they all been drawn down in full. The applications were not reviewed or approved by supervisory officials at Zions Bank.

Once the fraudulent loans were approved, Upchurch had the straw borrowers sign blank draw requests, so that he could draw on the loans at any time. The indictment alleges that he then filled out the draw requests for specific construction purposes, but diverted a substantial amount of the loan proceeds for his own personal benefit.

“Mortgage fraud in all its forms is a significant investigative priority of the FBI due to the staggering impact it has had on the U.S. economy,” said Timothy J. Fuhrman, Special Agent in Charge, Salt Lake City. “The FBI will devote the necessary resources to bring its perpetrators to justice. In this particular case, which exemplifies the types of mortgage fraud practices engaged in by individuals associated with the mortgage business, the FBI worked with partners in the law enforcement community to ascertain the extent of the fraud perpetrated by these individuals. The FBI will continue to conduct these types of investigations with our law enforcement partners and with the support of the United States Attorney’s Office for the District of Idaho. We applaud their prosecutive efforts in this case and appreciate their support of the FBI.”

mortgage fraud

1. There is a person who has posted a video of you on YouTube with the intention I think to cause you harm. Maybe to try & incite someone other than himself to harm you some way. He posted comments that you exposed him or his crime or something to that effect & that he wants you to remove him from your website.

   Maybe the police should be contacted?

   Search the following title & look at the comments.

   “Rachel Dollar gives away under pants”

   Posted by  on  06/01  at  06:20 PM