Dec. 1, 2016

South Florida Real Estate Fraud

By Richard L. Petrovich

Real estate fraud can happen to anyone.  Institutional lenders are victims.  Private mortgage lenders are victims. Small businesses and individuals are victims. Through this blog, we attempt to locate articles and press releases and identify the various mechanics and schemes fraudsters use to commit mortgage fraud. 

This November, several individual defendants pled guilty to mortgage fraud in Federal District Court in Miami, stemming from fraud committed against institutional lenders back in 2008.  See Case 1:16-cr-20730-FAM; 1:16-cr-20729-KMW. Specifically, the Defendants were charged with violations of 18 U.S.C. 1344 (Bank and Wire Fraud).  In these cases, it appears as though bad actors recruited straw purchasers and passed these purchasers off to institutional lenders as qualified mortgage loan applicants, and in so doing, induced the purchasers to aid in falsifying mortgage loan applications, falsifying related supporting documentation, and misleading institutional lenders regarding earnest money deposits being held by defendants on the straw purchasers’ behalf.  According to the factual proffers, the straw purchasers were not qualified to obtain the loans and many if not all of the income verification documents were falsified by the closing agencies.  Apparently, these straw purchasers were induced to apply to purchase condominium units by the promise that the units came with paying tenants and were income producing.  Based on the false mortgage applications, various institutional lenders lent money to these otherwise unqualified purchasers and the loans closed.  According to court records, substantial portions of the loans were used to pay various “marketing fees,” which were as nothing more than “kick- backs” which the straw purchasers received.  The remaining proceeds were distributed for the benefit of other defendants who controlled the closing agencies and for the benefit of unnamed co-conspirators.  Nothing seems to have been remitted to the unit’s sellers.  All told, the amount of monies lent by the various institutions via this fraudulent scheme exceeded 1.9 million dollars.  Sentencing for the defendants is currently set for January 19, 2017 and March 28, 2017 respectively. 

Categories


Fresh


Dismissing parents’ role in their children’s education is not a politically savvy move

AS PUBLISHED IN THE MIAMI HERALD

An op-ed by Tripp Scott's Ed Pozzuoli

One lesson that was certainly reinforced in 2021, amid political upsets and COVID wreckage, is that parents will engage to protect their children’s health and education against dictates from out-of-touch politicians and bureaucrats with records of vacillation and failure. The battle has become parental freedom vs. the self-interest of the teachers’ unions.

Urban League research correlates increased parental engagement with improved student academic achievement; better behavioral outcomes, emotional functioning and self-control within the classroom; increased attendance; lower dropout rates; and higher college enrollment.

Tripp Scott Attorney Douglas H. Reynolds Elected Chair of the Board of Directors of Legal Aid of Broward County

FORT LAUDERDALE, Fla., December 16, 2021 - Tripp Scott today announced that Douglas H. Reynolds, a director with the law firm, has been elected the Chair of the Board of Directors for Legal  Aid Service of Broward County, which serves both  Broward and Collier counties.

Not So Much Brotherly Love? Five-Year Dispute Between Two Business Partners Ends With Defense Judgment

These South Florida attorneys have finally put a five-year litigation battle between two brothers to rest.

The lawsuit began with plaintiff Aldo Di Sorbo’s claim that American Van Lines Inc. and defendant Anthony Di Sorbo defrauded the company by using a corporate loan to buy out other shareholders. But Tripp Scott attorneys Paul Lopez and Stephanie Mazzola alleged the plaintiff knew all along about the use of the corporate funds since the company’s lawyer told him about the transaction in various emails.

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