Feds Charge 7 In $50M Mortgage Fraud Scheme

Law360, Miami (January 10, 2014, 8:09 PM EST) -- Federal prosecutors in Miami have charged seven defendants in a $50 million mortgage fraud scheme in which they had straw buyers file fraudulent applications for mortgage and construction loans to buy multiple vacant lots in a North Carolina development, according to an indictment unsealed Thursday.

The U.S. Attorney's Office for the Southern District of Florida said the seven co-conspirators ripped off lenders — including Bank of America NA, Regions Bank, SunTrust Mortgage Inc. and Wachovia Mortgage Corp. — to the tune of $49.6 million between 2003...
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