Mortgage fraud is a complex white collar crime and can involve obtaining mortgage loan proceeds by perpetrating such crimes as identity theft, forgeries, bank fraud, wire fraud, theft by swindle and racketeering. Oftentimes, fake identity documents are created for a straw buyer who is paid for his role in the scheme. The documents may falsely state his identity, income and liabilities in order to qualify for a mortgage loan. False identity documents are then passed along to a co-conspirator at a realty company and submitted to a lender in order to obtain financing to fraudulently purchase properties. The purchase price of the home if often inflated through the use of a false appraisal completed by a co-conspirator to obtain more money from the lender at closing then the property is worth. The loan proceeds from the sale of the home can then be used to pay off fake second and third mortgages held in the names of other participants to the mortgage fraud scheme. The straw buyer then fails to make any mortgage payments to the lender but the participants continue to make money by leasing the property out to tenants. The home is eventually foreclosed upon by the bank and the participants are long gone. But not always. The police are notified and there is a long paper trail left behind for the prosecution to use against you in a criminal prosecution.
If you have any concerns, needs, or questions regarding mortgage fraud charge defense, please seek the advice of an experienced Minneapolis mortgage fraud defense attorney. Call criminal defense attorney Robert J. Shane now for a free phone consultation at (612) 339-1024.