Wednesday, March 26, 2008

California Mortgage Fraud Task Force Established

In recent months, an Eastern District of California Mortgage Fraud Task Force has been established. This action was taken as a result of the significant increase in reported mortgage fraud as economic conditions and the housing market have worsened. Members of the task force include representatives from the U.S. Attorney’s Office, FBI, IRS-CI, the Department of Housing and Urban Development, the United States Bankruptcy Trustee’s Office, and the California Department of Real Estate.

“Mortgage fraud is a very real problem, both legally and economically. Federal law enforcement here in the Eastern District is fully committed to holding responsible those who in their greed have stolen from their fellow citizens. It is our duty to do all we can to restore faith and confidence in the marketplace by placing these thieves where they belong: in prison.” stated U.S. Attorney Scott.

Drew Parenti, Special Agent in Charge of the Sacramento FBI, said, ”Mortgage Fraud has recently been elevated to the FBI’s highest financial crime priority, and we are attempting to address the numerous reports of fraud within the real estate industry that have occurred across the country. We are focusing on the industry professionals, the “insiders” who have manipulated the mortgage loan process for their own financial gain. These investigations are lengthy and complicated but we will work with our law enforcement partners and utilize every resource available to us to ensure these cases are investigated and prosecuted to the extent the law allows.”

Scott O’Briant, Special Agent in Charge of IRS Criminal Investigation said, ”Mortgage fraud adds secret dollars to the underground economy that erodes the integrity of our tax system and threatens the financial health of our communities. IRS-CI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that adversely affect our financial system.”

“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS-CI is committed to pursuing individuals who commit these types of crimes.”

The task force allows for a more targeted, coordinated approach in prioritizing the massive volume of referrals being made to federal and state agencies

mortgage fraud

1. Its about time but what really needs to happen is a tightening of broker licensing requirements.

   Posted by  on  03/26  at  09:11 AM

2. Ameriquest is a company that frauded us with a high appraisel, We never received the paper work have called the company a lot of times .Three years stll havent received it. They said it appraised at 298,000. I couldnt beleive it . We would be luckey to sell it for 45,000.

   Posted by  on  03/29  at  03:23 PM

3. Alleged real estate scammer arraigned
   LIVERMORE: Woman hit with eight felony counts after duping homeowners who still wound up in foreclosure
   By Sophia Kazmi
   STAFF WRITER

   Article Launched: 03/28/2008 03:03:14 AM PDT

   One of two women accused of scamming East Bay homeowners facing foreclosure was arraigned in a Hayward courtroom on Thursday.
   Verena Silva, 42, of Union City was charged with eight felony counts, ranging from first-degree burglary to attempting to defraud creditors. Superior Court Judge Gary Picetti referred Silva to the Public Defender’s Office and ordered her back in court today to make her plea to the charges.

   The Alameda County District Attorney’s office says the scam ran deep and victims included homeowners in Concord, Pleasanton, Berkeley and San Leandro. District Attorney investigators spent six months investigating the Livermore-based Community Home Savers Program, the company for which Silva worked.

   Sonia Alburez, 37, of Pleasanton, is the business owner. She is scheduled for arraignment Tuesday and faces 27 related felony charges.

   Reports in court files show the district attorney believes more than 100 properties in Alameda County could be involved.

   Homeowner Alan Grigas, of Oakley said Thursday that he and his wife went to the Home Savers Program after they received a letter in the mail addressed to them and marked “urgent.” Facing foreclosure on their home of 20 years, they decided to work with Alburez.

   “We’re trying to get out of the house mess and we got a little bit desperate,” he said. He said they were told to go the Contra Costa County Recorder’s Office and transfer some of the property interest to some holding companies. The couple

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   had already paid out $500 and Grigas said he was getting ready to pay the two women again when he read about their arrest in the Times. Grigas said he is now working with the district attorney.
   “I was busting my you-know-what to pay her to save our house,” he said.

   According to court documents, Silva and her boss, Alburez, trolled county recorder offices for the names of owners facing foreclosure and sent them letters. The mailers would tell potential customers that their could help stall the process.

   According to court records, in one case, Silva visited a San Leandro family and told them the program was put in place by the president to help homeowners facing foreclosure keep their homes. Silva also told the family they would not have to pay mortgage or taxes for up to two years.

   Victims were told to process grant deeds and to pay the Livermore company $1,500 to $2,000 upfront and a monthly fee of $1,500 to $2,000 so they could stall the foreclosure process as well as help pay down the mortgage and repair their credit, said David Lim, the prosecutor handling this case.

   The women would tell clients to transfer a portion of the interest in their properties to various holding companies. They were told those companies would file a petition with the U.S. Bankruptcy Court to forestall foreclosure.

   “In reality, (the companies) don’t have any assets and the bankruptcy petitions were fake,” Lim said.

   The banks would then file motions to get back the property, and they would win because no one from the “holding companies” would show up to court and the banks would continue the foreclosure.

   The victims would then would be out of a house and thousands of dollars. The district attorney’s office contends the women knew that would be the result.

   Lim said Silva and Alburez may have been making as much a $178,000 a month based on monthly fees and the number of properties involved.

   When the San Leandro family, who paid about $4,000 in fees, found out they had lost their home anyway, they went back to the women to complain. They were given $900 back.

   Reach Sophia Kazmi at 925-847-2122 or skazmi@bayareanewsgroup.com.

   Posted by  on  03/29  at  08:19 PM

4. Is there a task force in NY?

   Posted by  on  04/02  at  01:28 AM

5. Has anyone else had problems with First American Title Company? Their agents seem to act as ‘unbiased professionals’ closing loans, not through escrow. I received defective Title deeds, and the notes to secure money owed me were unrecordable, and First American Corporate says they have no responsibility for agent misconduct?
   Except when I issued a complaint I was asked to sign documents saying the transaction was valid.
   The ‘agent’ claimed she was only acting as a notary, yet she signed as escrow officer and we were in her office over an hour. The same ‘agent’ acted in other transactions. My property was taken without paying me. It couldn’t have happened without her help. Any comments would be appreciated.
   Ellie

   Posted by  on  04/20  at  11:00 PM

6. In 2006 I purchased a property and the appraisal came in about 100K higher than the other properties in the tract were selling for.  I questioned this with the lender and he said the appraisal was accurate.  I should have questioned further because comps outside of the tract I bought were apparently used. (THE TRACT WAS ONLY 1 YEAR OLD AND NEW PROPERTIES WERE STILL BEING SOLD; THEY ALSO OPENED A NEW TRACT 1/4 MILE FROM OURS AS WELL) I had no knowledge of this at the time as I’m not an appraiser. The lender also told me my rate was going to be in the 6’s but it is actually 9.9% adjustable and can adjust up to 15%.  had 100% financing, $740,000 loan, and no second. Credit score at the time was in the mid to upper 6’s. This lender made a GRIP of money on my loan.  I’ve since gone back over all my paperwork after gaining a good knowledge base of how lenders and loans work.  I’m floored that this loan was actually processed and funded.  We did stated income and I produced copies of all my bank statements for the proof of income.  At the time income was great.  I’ve now had to file a Chapter 7 and the arrearages on the loan are $98,000 and growing.  Current market value of my model is $469,900.00 based on short sale comps in my tract.

   Do I have any recourse against the appraiser and lender?

   Posted by  on  05/09  at  07:30 AM

7. What I would like to see is a law for all tile agancys to have a linanse in each and every state. This way the puplic would be protected.

   Posted by  on  05/09  at  08:09 PM

8. how do we report to them, we have a mortgage document auditing co and a lot of homeowners desperately need them NOW.
   661-794-6318

   Posted by  on  05/13  at  03:21 PM

9. Does anybody have any information on Wayne Lee, former ceo of Ameriquest/Argent and Brenda K. Simon, vp of sales for the same co. This would be in regards to orange, ca. and specifically suspicious loan activity in the northern ca. region.  Any information regarding this issue would be greatly appreciated.

   Posted by  on  11/28  at  09:34 AM

10. **For the previous post #9, please refer to post #10.  The contact email on post 9 was a typo and will not go through.

    Does anybody have any information on Wayne Lee, former ceo of Ameriquest/Argent and Brenda K. Simon, vp of sales for the same co. This would be in regards to orange, ca. and specifically suspicious loan activity in the northern ca. region.  Any information regarding this issue would be greatly appreciated.

    Posted by  on  11/28  at  09:41 AM

11. Hello,
    I looked into employment with a Mortgage audit company called ABS Business Solutions.  The owner is Paul Kilmer.  He is going out to clients and collecting $1295.00 to process paperwork and $2500 for a forensic audit on mortgages.  He is promising clients that they will get the 2nd eliminated, the 1st mortgage will be reduced and they will get a cash reward.  He is telling clients to stop paying the mortgage payment. He put a friend of mine in a very bad position because she thought all of this would happen.  In his paperwork he is stating that if there is a reduction he gets 3% back and if there is a cash reward he will keep 33%.  I believe he started his business in June and from what his processor told me he has not had a client get what has been promised.  He just keeps padding his wallet with excessive fees and promises.  He is stating how bad the mortgage companies are and he seems to be doing something much worse and is praying on spanish speakers.  I’m not sure what direction to go so I started with your website.
    thank you

    Posted by  on  02/11  at  12:54 PM