FBI announces mortgage fraud arrests
Five dozen suspects rounded up in one day
By Inman News, Thursday, June 19, 2008.Bookmarking Sites
In an acknowledged bid for publicity to deter future crimes, the FBI today announced it had charged 406 people involved in 144 unrelated mortgage fraud cases since March 1 as part of an effort dubbed "Operation Malicious Mortgage."
The FBI said most of the cases involved lending fraud, foreclosure rescue scams or mortgage-related bankruptcy schemes, causing about $1 billion in losses. Five dozen people were arrested in 15 judicial districts on Wednesday alone.
Banks and other financial institutions filed 52,868 suspicious activity reports involving suspected mortgage fraud in 2007, an increase of 42 percent over the year before, the Financial Crimes Enforcement Network reported in April (see story).
The industry-financed Mortgage Asset Research Institute (MARI) says it may be three to five years before many instances of fraud and misrepresentation in loans made in 2007 are discovered. Many adjustable-rate mortgage (ARM) loans will be refinanced, "potentially blocking discovery of some of these issues," MARI concluded (see story).
FBI Director Robert Mueller said today that the bureau obtained 321 mortgage fraud indictments and 260 convictions in 2007. The bureau has increased the number of agents devoted to mortgage fraud investigations from 120 in 2007 to 180, he said.
Asked whether the 1,400 mortgage fraud cases the FBI currently has open represents only a fraction of the problem, Mueller said it was a "substantial number of investigations," and, from his perspective, "not a small number."
But he acknowledged that the bureau has "always had to prioritize" resources, "particularly in the wake of (the) Sept. 11" attacks, after which the FBI diverted many agents from white-collar crime investigations into counter-terrorism efforts.
Mueller acknowledged that one reason several months of statistics on mortgage fraud arrests were released at today's press conference was "the deterrent factor," and the desire to let criminals know "we will follow up (on suspicious activity reports), we will investigate, and justice will be done."
The FBI identified builder-bailouts, seller assistance, short sales, foreclosure rescue and identity theft exploiting home equity lines of credit as among the most prevalent mortgage fraud schemes in 2007 (see story).
In an unrelated action, the U.S. Attorney's Office for the Eastern District of New York announced indictments of two senior managers of two failed Bear Stearns hedge funds. Ralph Cioffi and Matthew Tannin were charged with conspiracy, securities fraud and wire fraud in connection with alleged misrepresentations made to investors before the funds collapsed in the summer of 2007 at a $1.4 billion loss. Attorneys for the men maintain they are innocent.
Mueller said the bureau continues an investigation of 19 companies involved in the origination and securitization of subprime mortgage loans for possible accounting fraud, insider trading, and the failure to disclose the valuations of securitized loans and derivatives.
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Submitted by Jack W. Dopp on June 19, 2008 - 3:18pm.
Jack W. Dopp At 81 I see a terrible situation--probable anarchy facing our wonderful country. I'm sure global warming holds its perils, but I'm warning about the unalterable consequences of the pusuit of "drug" crimes. As mentioned above, the FBI does not have enough resources to follow up on white collar crimes. Over the years I have had thousands of $$ in construction tools stolen at work sites--the police spend an hour or so explaining why they can't do anything-and then they, in effect, vanish. My oldest son is a 20 year member of the CHP, and his wife is with our local County Sheriff's Dept. Imagine if I didn't have those contacts. We can't stop-or slow down drugs--the VA see's to it that I have 12-15 prescriptions for my cancer problems--drugs are everywhere. I'm afraid they are so ingrained, and so profitable that those outside of its "legal benefit circle" [Police Depts., lawyers, judges, banks, prison officials, probably politicions donations, etc] will be unable to get any protective services in the future. In my area-Riverside County, California-there is a 2-3 year wait to get civil cases to court. I'm told that 80% of all criminal cases here are drug related. We have a tremendous foreclosure problem, and a huge theft problem of stolen copper and other metals from empty houses. Those of us who buy "fixers" have enough problems with mold and unpermitted additions. We can hardly cope with the breakins and breakups organized by trained criminals being spawned by our prison populations. It appears that the only solution is to decriminalize drugs, so the profit is taken out. We have a marvelous example in the controlling of alcohol problem of the thirties--it couldn't be done. But even at its worst that problem pales significantly with the world wide costs of "fighting" the drug problem. If the $$ are taken out of drugs-by decriminalization--the FBI and others can do their real job of protecting us all. They would have plenty of funding! Grampa Jack
Submitted by Gloria de Gaston Boone on June 19, 2008 - 5:52pm.
I couldn't agree with you more, Grampa Jack. The money, time, manpower, resources are being wasted chasing drugs.
Gloria
Submitted by Ed Zoeler on June 19, 2008 - 10:05pm.
Hello There,
I have been covering this from Costa Rica. I have information about this group or "cyndicate " that had a house flip scheme to rip people off.
I have been covering this from Costa Rica were they have been wiring money to a Project with a fake identity called Corazon De la Tierra owned and operated by Chris Canzano owner of the US based company ran from right here in Cape Coral fl called Villa Realty. I had a Friend just email me with the same thing happening with a Samir Cabrera. "Villa Homes" and "Villa Homes Of SWFL" have been doing the same thing back in 2006 and floating the market with the investors money mind you he has all the money stored in a Real Estate Scam in Esterillos Costa Rica , where they are planning to do this again with US investors trying to hide the money they made with the market in SWFL housing. There is a person who's name is Evonne Eckenroth whos started this whole ring. I can give you information if i can be anonymous because i used to work for them.
Chris Canzano : Owner of "Villa Homes Of SWFL " and "Villa Realty" being investigated at this time by SEC
Chris Also Runs VLS.com a Copy of MLS.com Listing that Real Estate Agents Use for Listing .... Listed 30% higher then MLS Listing
Evonne Eckenroth: Silent owner of Villa homes of SWFl Cape coral based Home Builder in the Scam With Villa Realty
Evonne is being watched by the SEC for Securities Fraud . Evonne owns 6 in Cape Coral being in Foreclosure .... Over Appraised and Sucked the Funds from the homes with Chris Canzano in Costa Rica, Under a company called MONTE DE PIEDRA S.A. This is a Real Estate Scam overseas
that has Alot of people asking for the Funds back a 600 acre Comunity with the same people wiring funds to a undisclosed account number in Costa Rica. Here is some info you can find on google about it . Just broke ground in May 6th 2008.
I have been tracking this for 2 years now . Lots of info on these characters.
Look This Up 30 people already in Cape Coral Alone .... Leepa.org Each one and they Own 3 homes each ... Part of The Membership Elite Group to Store the funds in Costa Rica ,,,, but not investors ...Chris and Evonne Pocketed 7.8 Million From all this. Property was Bought For 7 Million from Evonne and Cris Canzano Owner Of villa Realty and Villa Homes Of SWFL "CASH Money" Under a Name Called Monte De Piedra S.A. Corporation
http://dockets.justia.com/docket/court-flmdce/case_no-2:2008cv00359/case...
Submitted by Lonny Coffey on June 20, 2008 - 6:46am.
We are now living with the results of an attitude displayed by HUD and the FBI in regards to mortgage fraud. The FBI and HUD both told me at least two years back they did not have time to prosecute or pursue any fraudster that was not involved in at least $500,000 in combined fraud offenses. $500,000 became (as I recall) $1,500,000 more recently. Local DAs did not want to prosecute because it was not a high profile crime then. Fraudsters get the money cop a plea get probation and live happily ever after with the money. If the criminals know all the reasons they can get away with the crime then should we be surprised when they do?
Submitted by Joe Cline on June 20, 2008 - 10:44pm.
hmmm. 60 people down.. 20,000 to go.
Joe
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