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AG McCollum sues 25 defendants for fraud: maybe the largest fraud case ever

by Mike on September 20, 2008

Attorney General Bill McCollum is at it again, targeting perpetrators of mortgage fraud. This time, McCollum has sued some twenty-five defendants who allegedly skimmed over $6 million out of approximately 60 home loan transactions. Here’s some of how they did it:

Starting in July 2005 and continuing through at least January 2007, three of the ring’s leaders allegedly defrauded lenders by recruiting “straw buyers” with good credit and using them to create false applications to buy homes throughout Central Florida.

The lawsuit, filed by the Attorney General’s Mortgage Fraud Task Force, claims the ring conspired with Realtors to artificially inflate purchase prices, thus enabling them to obtain larger mortgage loans.

One potential defendant was actually left out, because “real estate agents are exempted from the Deceptive and Unfair Trade Practices Act under which the others are being sued.” However, she and the others may be subject to criminal charges beyond the civil suit.

Of the 60 homes, about 50 are now in foreclosure.

Want to know more? Contact us at Ricardo & Wasylik, PL.

{ 1 comment… read it below or add one }

ferienhaus November 3, 2008 at 5:21 am

50 is really very high 🙁

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