Prosecutors Say Mortgage Fraud Epidemic Highest In Northern California

CBS Sacramento on October 9, 2012 released the following:

“Reporting Nick Janes

SACRAMENTO (CBS13) – Federal investigators say scammers have been targeting families on the brink of losing their homes.

As prosecutors put it, we’re talking about a tidal wave of crime against vulnerable homeowners. In our area alone, the cases involve thousands of alleged victims and losses exceeding $9 million.

“The sheer impact of foreclosures and the fraud it’s generated in our communities is simply devastating,” FBI Special Agent Herb Brown said.

Prosecutors say foreclosure fraud could be more prevalent in Northern California than anywhere else.

“More defendants were charged with federal mortgage fraud crimes in this district than any other district in the country,” said Benjamin Wagner, the U.S. Attorney for the Eastern District.

That’s saying something when you see the staggering numbers released Tuesday from the year-long “distressed homeowner initiative.” Multiple federal agencies combined efforts.

Nationwide, 530 defendants are charged for alleged schemes involving 73,000 victims defrauded out of more than $1 billion.

“Behind the numbers there are true stories and true victims. They can be your neighbors, they can be your family members, they can be your co-workers,” Brown said.

Locally, one scheme promised to reduce home loans by 75 percent. A Roseville duo is accused of targeting Spanish speakers with TV and radio ads. A statewide scam promised to find investors to buy mortgages at discounts.

The common theme: all demanded money up front but never delivered. Prosecutors promise their crackdown is far from over.

“More investigations are under way and we expect that more prosecutions will arise as a result of the initiative that was started in the past year,” Wagner said.

Unfortunately, as is the case in most fraud cases, even after conviction prosecutors say the chance of victims getting their money back is very small.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Comments are closed.