Industry News

South Florida mortgage fraud scheme uncovered

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A mortgage fraud ring that allegedly obtained more than $10 million in loans on 30 properties in Broward County, Fla., has led to the indictment of 11 people accused of using straw buyers and stolen identities to defraud lenders. Authorities are seeking the extradition of the alleged mastermind of the scheme, Yvette Scott Patterson, from Jamaica, along with her husband, Delroy. Patterson, 40, allegedly used her mortgage business, Khadmilroy Inc., to carry out the scheme, taking in approximately $300,000 in loan closing fees, mortgage broker fees and yield premiums in connection with fraudulently procured mortgages. Patterson, her husband and nine other defendants are accused of obtaining mortgages from lenders using straw purchasers and through the submission of false documentation, including false loan applications, false employment verification forms, false salary statements, and false bank account statements reflecting high account balances. The defendants also allegedly used fals...