Flipping Frenzy.com is your source for news, information, and commentary on Real Estate and Mortgage Fraud. 
If you believe you have been a victim of real estate or mortgage fraud, start here! Select your state from the pulldown menu below:
Arizona criminals also to blame for housing crisis
A lot of blame for the housing crisis that helped drive our nation into a financial crisis has been heaped on “greedy” bankers and home buyers trying to live beyond their means.
But there was another element that should not be forgotten – and that was outright criminal activity.
A recent Arizona case demonstrates the lengths that were taken by some to cheat bankers and others in order to fill the pockets of criminals with money.
The case involves five Arizona men who were convicted and sentenced for mortgage fraud involving millions of dollars. One of the ringleaders was sentenced to 62 months in prison. Others received lesser sentences based on their degree of involvement and cooperation in the case.
The scheme was rather involved. First, the rights to land was obtained which was then sold to accomplices at highly inflated prices. Fraudulent bank loan applications were then prepared and then cash kickbacks would be given to the buyers after the loans were approved. At each critical stage leading up to the loan, a “player” in the fraud was involved to disguise what was happening.
Eventually, the properties went into foreclosure and the banks lost over $1 million.
This is but one incident among the many shady dealings that went on during the “go-go” years of the housing boom. Only now is some accountability starting to be seen as part of a federal initiative called “Operation Cash Back.”
So far 49 people have been convicted after guilty pleas or trials in federal courts. Unfortunately, that only represents a small part of the fraudulent dealings that went on in the mortgage industry in past years. Unfortunately, these are complicated cases which are difficult to investigate and try.
But whatever the number convicted, there is some satisfaction that justice is finally being done.
Perhaps a more appropriate name for the fraud program might be “Operation Pay Back,” reflecting the prison sentences that are being handed out in repayment for what these individuals did to contribute to the economic collapse that has hurt so many people.
A Ralph Roberts Site, Copyright 2005-2008 |