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by CareyBot

Four mortgage brokers including the president of a New Jersey-based company, American Macro Growth, are accused of helping clients fraudulently obtain more than $20 million in home equity and business lines of credit from at least 16 banks. Mortgage fraud schemes typically rely on inflated appraisals and straw buyers to obtain mortgages that exceed a property's true market value. But prosecutors say AMG employed a different scheme, helping clients use the same properties as collateral for multiple home equity lines of credit, or "HELOCs." One AMG client allegedly obtained $2.14 million in credit from nine banks with less than $300,000 of equity in a Palisades Park, N.J., property. AMG is also accused of advising clients to use proceeds from fraudulently obtained business lines o...