Tuesday, September 12, 2006

Capital Enhancement Club Scheme Results in Home Equity Scam Sentences

Kevin Lawrence Wright, 39, Washington County, Utah and Michael Stephen Hurst, 44, Davis County, Utah, were sentenced in connection with their operation of an equity-skimming investment scheme.  Wright was ordered to serve 20 days in jail and both men were placed on probation for 2 years and ordered to work 500 hours of community service.  The two have already paid $143,410 in restitution and were each ordered to pay a $1,000 fine. Wright and Hurst both pleaded guilty on July 17 to one third-degree felony count of securities fraud.

“Utah’s housing market is booming and unfortunately con artists are eager to take advantage of people during this boom. We are grateful that the prosecutors and investigators in this case did everything possible to make sure this crime did not pay,” said Utah Attorney General Mark Shurtleff.

“We urge all citizens to beware of investment opportunities involving real estate; there are many schemes being offered where the only ones to benefit are the crooks,” added Utah Department of Commerce Executive Director Francine A. Giani.

According to court papers, Wright and Hurst persuaded Brad Nielsen to purchase a home in Bluffdale, Utah for $590,000 but obtain loans for $810,000. Nielsen was told he would then be given $75,000 as a reserve for making house payments. Wright claimed that the remaining equity would be invested into a mutual fund called the Capital Enhancement Club. Wright and Hurst told the investor that he could earn 8-10% profit on the mutual fund and as much as 30% in a high-yield fund.

After the home was purchased, the investor did not receive the $75,000 to put into savings and no money went to the Capital Enhancement Club. Instead, Wright used part of the money to pay off a debt and Hurst used some of the funds for a diamond investment scheme. The investor was never told that Wright had 3 unpaid judgments totaling $327,000 and also owed $56,000 for delinquent state income taxes.

“They are both very dishonest individuals and I am hoping that other victims will come forward to make sure they are held accountable,” says Nielsen.

mortgage fraud

1. I was a vitim of equity skimming the problem these people had they did not know the judge if they knew the judge they would have gotten away with it like my case. So the rule is if you are going to break the law know the Judge.

   Posted by  on  09/14  at  03:24 PM

2. Or if you want to break the law is to have enough money to buy the judge…

   Posted by  on  01/12  at  08:18 AM

3. Usefull content…
   Thanks :D
   Can I post it in my blog?

   Posted by  on  02/26  at  07:55 PM

4. hi this is koyali and what here is a warning to the laptop really i do not understand please tell me more details.I know some information that is now a days so many computers are available in the market that is pc computers but most of the people need laptop computers because it is carried who want to go so i will provide information about laptops visit that.
   =============
   koyali

   <a >Home Loans</a>

   Posted by  on  02/22  at  11:48 PM

5. Why is it that crooks like this are still selling real estate in St George to unsuspecting people?  One would think his Realtors license would berevoked permanently.  Two months is not long enough.  If he was caught on this deal I wonder how many others?

   Posted by  on  11/02  at  03:13 AM

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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc. Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010. Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area. Lend America, VP Ashley Banned from FHA Housing Wire Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week. Countrywide Tries to Pin Blame on Insurer Court House News Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse. Investors Say They Were Swindled in Property Scheme Fox 13 Now Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches. Greenfield Man Accused of Housing Scam The Republic A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said. Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes. Ownership Rights to Get Another Look TBO.Com State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County. Previous Articles

TRIAL COVERAGE

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All Foreclosure Information and Resources Housing Storm Calculated Risk Mortgage Lender Implode-O-Meter Home Gain Blog Rain City Guide Real Estate Tomato Blood Hound Blog Appraiser Active Fraud, Phishing and Financial Misdeeds The Collar - US News and World Report Georgia Bankruptcy Blog Fighting Fraud Newsday Real LI Matrix