Indymac Bank claims 41 Ohio residents agreed to be straw buyers of overvalued properties in Florida as part of a $20 million scheme to defraud the bank. California-based Indymac alleges in a lawsuit that VP Equity LLC submitted a series of loan applications to finance the purchase of lots in a Panama City, Fla., development, WatersEdge, that were priced at $350,000 to $590,000. The lawsuit alleges appraisals of the properties were inflated, and that the straw buyers expected to profit from a property-flipping scheme without making loan payments, the Akron, Ohio, Beacon Journal reported. The suit also names Ohio-based companies Ocean Sands Investment Group LLC and East Bay Land Holdings LLC for their alleged involvement in selling the lots, and a Florida appraiser and a Florida law firm s...
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