Former Police Officers in Group of 26 Pleading Guilty in Fraud Scheme

By Mike Colpitts Four retired Las Vegas police officers and two real estate agents are among a group of 26 people who have pled guilty to federal charges related to a major fraud scheme involving a dozen Nevada condominium complexes. Federal prosecutors say the conspiracy was bank rolled with more than $8 million funneled through a series of secret accounts the conspirators set up in an elaborate scheme over more than seven years. The … [Read more...]

States Rip Off Foreclosure Victims

By Mike Colpitts Almost $1-billion targeted to victims of banking foreclosure fraud is being ripped off from foreclosure victims to be used to pay for other programs for states facing serious financial deficits. The nation’s largest five banks agreed to pay a $25 billion settlement as part of their agreement to settle allegations of illegal forgeries and other frauds in the robo-signing scandal. However, only $2.5 billion is dedicated to … [Read more...]

Former SEC Prosecutor Opens Investigation on REITs

By Mike Colpitts A former Security and Exchange Commission (SEC) prosecutor is launching an aggressive investigation into Real Estate Investment Trusts to recoup millions of dollars in losses for investors, who say they have been misled by investment brokers. Fort Lauderdale attorney David R. Chase has launched inquiries on behalf of investors in REITs throughout the U.S. and his office telephone is “constantly ringing” with inquiries from … [Read more...]

Homeowner Foreclosure Scams Spike

By Mike Colpitts Homeowner foreclosure rescue scams surged nearly 60% in the first three months of the year following the introduction of new federal foreclosure prevention programs, according to a national non- profit group working to help homeowners at risk of losing their homes. The Homeownership Preservation Foundation says fraudsters are busier than ever in the current depressed economy to take advantage of homeowners in default of … [Read more...]

$25 Billion Bank Monitor Hires Accountants

By Ryan Jackson The monitor appointed to oversee the banks $25 billion settlement with 49 state attorney generals in the robo-signing scandal has hired six accounting firms to help monitor the agreement. Forty-nine states reached an agreement with the nation’s five largest banks in February over the forged signings of millions of foreclosure documents involved in the robo signing scandal. The lenders agreed to the settlement without … [Read more...]

Court Orders $4 Million Mortgage Scam Fine

By Ryan Jackson A federal judge has ordered the ring-leader of a group and six defendants accused of defrauding homeowners to pay nearly $4-million for running a mortgage modification scam that promised to provide homeowners at risk of losing their homes foreclosure relief. The order was issued in U.S. District Court in the Central District of California against Samuel P. Bain and his co-workers under three companies for their roles in a … [Read more...]

Bank CEO Admits to Robo-Signing Scandal

By Mike Colpitts Rising pressure on banks and mortgage firms are forcing lenders to merge, go out of business and make massive cuts to trim their bottom lines. The U.S. foreclosure crisis is making an ugly display of many banks balance sheets, and at least one major bank CEO is admitting to errors made during the robo-signing scandal. Freddie Mac and Fannie Mae have more than 1.4 million homes in their REO inventories or shadow inventories … [Read more...]

Former Bank CFO Pleads Guilty to Fraud

By Mike Colpitts The former chief financial officer of one of the U.S. largest mortgage banking operations has plead guilty to committing bank fraud and lying to federal investigators in a $2.9 billion scheme that drove Taylor, Bean & Whitaker and Colonial Bank out of business. Delton de Armas may receive up to 10 years in prison for his part in the conspiracy, which included the mortgage company’s CEO and seven other employees. De … [Read more...]

Attorney General Appoints Monitor in Bank Settlement

By Mike Colpitts In an effort to protect consumers from additional fraudulent behavior by banks, the California attorney general has appointed an independent monitor to oversee the nation’s five largest banks performance in $18 billion worth of benefits that will be split up between homeowners. Attorney General Kamala Harris announced the appointment of University of California Irvine School of Law professor Katherine Porter to the post. … [Read more...]

Mortgage Executives to Plead Not Guilty

By Mike Colpitts Three top executives formerly with the second largest U.S. mortgage company charged by the SEC with hiding their company’s deteriorating financial condition from investors as the firm was failing will plead not guilty to federal charges, according to an attorney for one of the accused executives. The SEC charged Thornburg Mortgage Inc. CEO Larry Goldstone, chief financial officer Clarence Simmons and accountant Jane … [Read more...]