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Tag Archives: Fraud

Aloha State Residents Allegedly Lost Millions in Foreclosure Sales

Hawaii is seeing a number of lawsuits against banks related to allegedly unfair foreclosure sales practices, The Honolulu Star-Advertiser reported Tuesday. Lawsuits have been brought against Deutsche Bank National Trust Co., Bank of America, U.S. Bank N.A., and Wells Fargo. In addition, a suit has also been filed against Routh Crabtree Olsen, a Washington firm with offices in Hawaii, for its alleged involvement.

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Riskiest Places for Mortgage Fraud: Interthinx

After remaining steady in the first quarter of the year, the Interthinx Mortgage Fraud Risk Index rose again in the second quarter, climbing about 7 percent over the three-month period. Nevada and Arizona are the riskiest two states, followed by Florida, New Jersey, and Georgia, which made its way to the top five list for the first time since Interthinx began tracking mortgage fraud in 2009. Georgia took the place of California, which has been on the top five list since the inception of the index, according to Interthinx.

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Jury Convicts Two Attorneys Over $25M Mortgage Fraud Scheme

Two New York attorneys were convicted of 10 felony counts for their roles in a $25 million mortgage fraud scheme, the U.S. Attorney's Office for the Eastern District of New York announced in a statement Monday. Matthew Burstein, 40, and Aaron Rabinowitz, 40, of the law firm Burstein & Rabinowitz were allegedly involved in a scheme that resulted in over $25 million in fraudulently-obtained loans from Countrywide Financial, Fremont Investment and Loan, IndyMac Bank, Sun Trust Mortgage, Inc., Wells Fargo & Company, and New Century Mortgage Corporation. The defendants could face up to 30 years in prison.

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Amherst Voices Concerns Over Potential HAMP 2.0 Abuses

Amherst Securities Group expressed in a Mortgage Insight release worries about loopholes in eligibility requirements under the expanded HAMP program. The release specifically points to a rule that requires investors to pledge that they actually intend to rent the home; the requirement has no provisions about reporting on the investor's actual efforts to rent or on the income collected.

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U.S. Attorney Charges 11 for Mortgage Fraud, One for Attempted Murder

United States Attorney for the District of New Jersey Paul J. Fishman announced Thursday that 11 people are charged for their alleged roles in a mortgage fraud scheme, including one defendant who attempted to murder a witness. The 11 individuals include seven from New Jersey and others from Pennsylvania, Massachusetts, Georgia, and Alabama. According to a report on NJ.com, the New Jersey defendants include Seth Fuscellaro, a public defender in Lower Township. The defendants are charged for their roles in a $15 million mortgage fraud scam that used phony documents and straw buyers to make illegal profits on overvalued condos.

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Mizuho Securities Pays $127.5M in Ratings Scam Case

The SEC announced Wednesday that the U.S. investment banking subsidiary of Mizuho Financial Group agreed to pay $127.5 million to settle charges of misleading investors. The accused are charged with using dummy assets to inflate credit ratings in order to execute a collateralized debt obligation (CDO) deal. The SEC also charged the firm that served as the deal's collateral manager and the portfolio manager.

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Poll: Voters Overwhemingly Favor Financial Reform Laws

Lake Research Partners released the results of an opinion poll showing that financial reforms enacted in recent years remain popular with potential voters. In light of events leading to 2008's financial meltdown, potential voters seem to overwhelmingly favor financial reform laws designed to prevent abuse. Nearly three-quarters (73 percent) of respondents favor the Dodd-Frank financial reforms, while only 20 percent expressed disagreement.

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Bank Executives Indicted for Massive Fraud Leading to Collapse

Top executives and favored borrowers faced indictment by a federal grand jury on Wednesday for their role in a massive fraud that led to the biggest Virginia bank collapse since 2008. According to a release on Thursday from SIGTARP, the accused are charged with masking non-performing assets at the Bank of the Commonwealth in Norfolk, Virginia.

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