Tuesday, October 02, 2007

Florida Real Estate Developer Pleads Guilty to Bank Fraud

Richard Layfield pled guilty on June 11, 2007 to bank fraud.  Layfield, a local real estate developer, is scheduled to be sentenced on October 29, 2007 for obtaining just under $24,000,000 in fraudulent mortgages. 

According to the indictment and other court records, in April 1999, Layfield applied for a loan from Fremont Investment & Loan.  Funds from the loan were to be used for the purchase and renovation/reconstruction of properties at 1024, 1036, 1042, 1052 and 1060 Ocean Drive, Miami Beach, Florida.  As a part of the application process, Layfield was required to complete a borrower’s questionnaire and provide information regarding his financial background.  In response to two questions asking about outstanding judgments in the past 10 years, Layfield knowingly failed to disclose four outstanding judgments, totaling $17,000,000, all of which had been entered within ten (10) years of the application.  As a result of this fraudulent omission, Layfield and his limited partnership, Shops At Ocean Court, were approved for a loan of $23,700,000.  Layfield faces a maximum statutory term of imprisonment of thirty (30) years.

United States Attorney Acosta stated, “The American dream of home ownership is under attack by mortgage fraudsters.  Mortgage fraud puts lenders at risk and confronts homeowners with the possibility of foreclosures and the loss of their homes.  As our prosecutions reflect, the perpetrators of mortgage fraud range from straw buyers posing as legitimate purchasers, to dirty mortgage brokers and appraisers, to complicit title agents, attorneys and bank loan officers.  Through our Federal-State Mortgage Fraud Initiative, the United States Attorney’s Office and our partner agencies will make criminal mortgage fraud prosecutions a top priority. ”

Jonathan I. Solomon, Special Agent in Charge of the FBI’s Miami Office, noted “The FBI views mortgage fraud as a significant and growing crime problem.  The mortgage lending and housing market have a considerable overall effect on the nation’s economy and combating mortgage fraud will remain a top priority for the FBI. ”

IRS Special Agent in Charge Michael Yasofsky added, “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.”
John Large, Acting Special Agent in Charge of the U.S. Secret Service, noted, “The Secret Service Miami Field Office embraces this new initiative to address the full scope of mortgage fraud schemes that continue to emerge and victimize South Florida.  We will bring to bear our expertise and that of law enforcement partners from our Electronic Crimes Task Force and Financial Crimes Task Force to assist in these significant investigations.”

FDIC-OIG Assistant Inspector General Sara Gibson stated, “The FDIC-OIG is proud to participate in the U.S. Attorney’s Office for the Southern District of Florida’s mortgage fraud task force to help combat crimes that affect the nation’s banks and public confidence in our financial system.  We applaud the efforts of the U.S. Attorney’s Office and our law enforcement partners in this endeavor.”

HUD Inspector General Kenneth Donohue added, “Financial crimes involving the housing market undermine the economic infrastructure of our country.  We will continue to investigate these cases to stop these destructive practices, deter these pernicious activities, and defend the American system of home ownership.”

mortgage fraud

1. wow i wonder what he did with all that money!

   Posted by  on  10/09  at  08:50 AM