The FBI has set up Mortgage Fraud Task Forces throughout the country, including in Charlotte, North Carolina. The latest FBI Mortgage Fraud Report lists North Carolina as one of the top states “significantly affected” by mortgage fraud.
“Mortgage Fraud” has become the general term to describe what is actually a wide spectrum of allegedly fraudulent conduct, including false loan applications, false or inflated appraisals, failure to disclose second mortgages, and false statements on HUD-1 settlement statements.
When the FBI and federal prosecutors begin a mortgage fraud investigation, they put under scrutiny not just the buyer and seller, but also the appraiser, the mortgage broker, the bank lending officer, the builder, the developer, and the lawyer and paralegal who preside over the closing.
We have counseled and represented individuals and companies in all these positions. Effective representation in a mortgage fraud case requires an immediate and probing examination of all the financial and closing documents, as well as a forensic financial investigation that “follows the money trail.” If you have come under scrutiny, by way of a subpoena, a licensing board grievance, or other such contact, we can help guide you through the mortgage fraud minefield, with the goal of reaching a non-criminal resolution.
Collections of some anecdotal reports of recent mortgage fraud prosecutions and sentencings: |
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IRS CID’s input: Real Estate/Mortgage Fraud: Facts, Figures and Closed Cases
(IRS CID statistics for real estate/mortgage fraud cases initiated by IRS and completed thru 5/31/08, including chart reflecting # referred for prosecution by CID, indicted, conviction rate, average sentence = 43 mos for FY2008 as of 5/31/08; summaries of recent mortgage fraud sentencings).
In sum: the fervor accompanying the OMM initiative appears to be reflected in the pleas offered and sentences imposed – see e.g. Snyder Plea (pdf) (cooperation plea agreement providing $15-32M loss; this deft recently got a sentence of 12 years of imprisonment: Pennsylvania Fraudster Gets 12 Years In Prison). |
FBI’s perspective |
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