Another Mortgage Scam Foiled
Posted: Tuesday, May 6th, 2008 at 1:15 pm
Following a recent incident in which eleven people were charged by Brooklyn prosecutors after being found to be involved in a mortgage scam that took fourteen million dollars from banks and lenders, another similar scam has been uncovered in the Idaho area.
The FBI has already stated that the ongoing housing slump has created the ideal conditions for mortgage fraudsters, and this has been reflected in the rising number of mortgage scams that are being uncovered. In this latest scam five people, including one bank officer, were indicted on charges of defrauding an Idaho bank of twenty million dollars.
Those indicted included a bank officer, a realtor, and two building contractors, who were accused of using straw buyers to provide fraudulent data and applications in order to obtain funds. This was done in an attempt to buy forty nine houses.
The mortgage scam netted the group of fraudsters over two hundred and forty thousand dollars according to reports. The false applications included overstated income and credit data, with claims that the funds would be used to build owner occupied homes.
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