Finally some arrest according to the Palm Beach Post: 3 charged in mortgage scam called 'economic parasites'. As reported by Jeff Ostrowski:
In a wide-ranging mortgage scam, two real estate investors and a mortgage broker used inflated appraisals, straw borrowers and phony loan applications to fleece big-name lenders of millions, federal prosecutors say.
The collateral for the ambitious fraud? McMansions throughout Palm Beach County, including several in posh gated communities in Wellington and Boca Raton.
An assistant U.S. attorney calls the alleged scammers "economic parasites" whose ilk have played a little-noticed role in the mortgage meltdown that has roiled financial markets worldwide.
I like this part:
Louidort and Michel used straw borrowers to qualify for the fraudulent loans, federal officials say. The bogus borrowers purported to make big salaries from Florida All Insurance in Delray Beach.
There was the Publix cashier whose $13,000 paycheck ballooned to $344,000. In another instance, a borrower making $25,000 a year as a hotel worker claimed to make $594,120 a year at Florida All Insurance. That borrower, identified as "W.M." in court records and as William J. Muller in property records, landed $1.8 million in loans for a home at 10581 Versailles Blvd. in Wellington.
In the article it says about one of the scammers:
There's Michel - a native of Haiti who, according to his attorney, can't read or write well enough to pass a U.S. citizenship test - collecting "assignment fees" of $650,000 and $600,000 on side-by-side homes in the Versailles development in Wellington.
What the hell is wrong with the banks that they would take these loans. Thanks reader, Woof, for the article.
1 comment:
We have a very serious problem: I will explain what the problem is.
Many years ago, we the people understood that the secret of success was Education.
Nothing else can take it's place!
Business acumen is a lost Art because the idea that a "Smart Deal" used to fool the dumb uneducated public, (Sorry public but it is the truth.)
Is the method to make some people be convinced to purchase wanted dreams. How could you all fall for a stupid scam! IF YOUR TRUE INCOME IS 1 DOLLAR PER HOUR, YOU CANNOT, YOU CANNOT BUY A HOUSE!
The "Smart Dealers" know that.They do not care about your coming dilemma when the third week comes, and your salary cannot pay the due mortgage.
The solution is night school,for your sake, day school for the children's sake, let the teachers do their job. If the teachers cannot properly educate your children because of interference, the children will be placed in a higher grade that they get lost in, because they are promoted in order to prevent Interference.
Wake up South Florida, before your children fall for the next scam when they graduate, join the work force, and wish to purchase their Home.
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