Wednesday, March 21, 2007

Colorado Federal Housing Fraud Snares Eight

Seven men and one woman were arrested on suspicion of having provided forged documents to purchase FHA insured homes. The defendants are believed to have purchased homes using fraudulent citizenship and/or financial documentation.  Those arrested include:

Edgar De La Rosa

Manuel Barron

Adela Hernandez

Ruben Martinez

Ventura Moreno

Manuel Jilenez-Galindo

Arturo Flores

Inocencio Landa-Madera

The homes were sold by participants of a mortgage fraud ring operating in Jefferson County, Colorado. Between July and September 2005, ten people were indicted as part of that operation. They were doing business out of the ReMax 100 office in Lakewood, Colorado. In three separate indictments, the alleged illegal activity was the same: real estate agents, loan officers and sales agents were accused of working together to sell single-family homes to 256 persons who, because of their citizenship and/or financial circumstances, were not qualified for home loans.

According to the indictments, the defendants in the mortgage fraud ring were able to obtain loans for the unqualified buyers by creating false documents concerning the homebuyer’s identity, employment and credit history, showing that the unqualified homebuyers were in the US legally, and then submitting these false documents to legitimate mortgage lenders. They each earned commissions or other financial remuneration for each of the fraudulent house sales.

Colorado District Attorney Scott Storey says, “The illegal activities involved in the sale and the purchase of these homes constitutes identity theft as well as mortgage fraud.  All of the social security numbers used in these transactions belong to actual people.  It is our job as protectors of the public trust to hold anyone who breaks the law accountable for their conduct.”

“To combat this type of crime, it’s critical that agencies work together to share information on such schemes as this,” said Jeffrey Copp, special agent in charge of the ICE Office of Investigations in Denver.  ”ICE has created a local Document and Benefit Fraud Task Force composed of various agencies for this very purpose.  It’s vital that the people who receive any such government benefit are positively identified.  Otherwise, it’s the American taxpayer who may be required to pick up the tab for defaulted loans.” Copp heads a four-state area which includes:  Colorado, Wyoming, Montana and Idaho.

All of the 191 houses involved were purchased using HUD-guaranteed loans.  ”This action is evidence of our continuing commitment to make sure HUD’s programs are administered in accordance with the law and are free from fraud and abuse. I would like to complement the staff at our Denver Homeownership Center who uncovered this abuse,” said Jereon Brown, HUD Deputy Assistant Secretary. ”As much as we intend to expand the FHA program to help more families become homeowners, we will not do so at the expense of the financial integrity or reputation of the Federal Housing Administration.”

mortgage fraud

1. Wow, this is unbelieveable...I didn’t know that there were so many fraud stories out there in the home mortgage market.

   Jord

   Posted by  on  03/24  at  10:38 AM

2. This does not surprise me at all & if anything only represents the tip of a very large iceberg in Colorado! Illegals run rampant & unchecked here & the fraud levels are astronomical ... Personally I’m glad to see it all hitting the fan!  Once upon a time our industry was respected, today people see us as nothing more than crooks & it’s becuase of loser’s like these!

   Posted by  on  03/28  at  07:27 AM

3. A garden apartment has some characteristics of a townhouse: each apartment has its own entrance, and apartments are not placed vertically over one another.

   Posted by  on  05/16  at  12:51 AM

4. My Dad’s former “Caretaker” is taking advantage of my Dad. He has moved and she is saying she wants to buy the house but she has been remodeling and is now moving in and “will” pay a small amount of rent. She is definately taking advantage of him and had kept him from selling the house and has already changed things. What recourse do we children have if she has gotten him to agree to these things?
   I am paying on a 2nd mortage on the house which is very difficult for me.
   I did not pay the last months as I am trying to get her to just buy. I am worried I have done the wrong thing but I cannot continue these payments and I thought the house would be sold by not.
   I hope you can help me with info.
   sincerely, Marolyn Mills

   Posted by  on  07/01  at  08:53 AM

5. Such incidents are common in most of the countries. The bank managers must be careful about this kind of work. It is because the two parties will have to bear. Such kind of agencies are working all around the world.

   =========================
   peter
   

   Posted by  on  07/30  at  08:07 PM

6. I am a Colorado PI and a NYS real estate broker who specializes in stopping mortgage fraud and cash back deals. Need help proving this, please contact Eagle Eye Investigation at eeipi1@aol.com. We want to help stop this!

   Posted by  on  09/25  at  06:21 AM

7. It’s really amazing what people will do for money. I can’t imagine that a little commission would be worth all the hassle. They should confiscate the realtor remax business cards for this. They should be permanently banned from the association of Realtors.

   Posted by  on  11/10  at  10:51 PM