Two Property Developers and Lawyer Among Six Defendants Charged with Mortgage Fraud

(Source: FBI) CHICAGO—A federal grand jury returned a 25-count indictment yesterday charging six defendants with devising and participating in a mortgage fraud scheme which caused more than $16 million in losses to banks, mortgage lenders, Fannie Mae, and Freddie Mac. Among those named as defendants are two real estate developers—VINCE MANGLARDI, 59, of Long Grove, and THEODORE “TJ” WOJTAS, JR., 43, of Glenview—who are accused of committing fraud in connection with the marketing and sale of condominiums at a 50-acre development in Palatine known as “The Woods at Countryside.” (more…)

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Statement from NAHB Chairman Tom Woods on Filing Suit Against EPA, Corps on Waters of the U.S. Rule

(Source: NAHB) – Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo., issued the following statement on the association’s lawsuit filed today in the U.S. District Court, Southern District of Texas against the Environmental Protection Agency and the U.S. Army Corps of Engineers seeking to overturn the “waters of the United States” rule that defines the jurisdictional scope of the Clean Water Act: (more…)

Fannie & Freddie CEOs Get Huge Pay Raise of $3,400,000

The United States government sponsored mortgage giants, Fannie Mae and Freddie Mac are in the media spotlight this week. The Federal Housing Finance Agency (FHFA) approved huge pay hikes for the CEOs of Fannie and Freddie, from $600,000 to $4 million.

That is an incredible $3.4 million raise that is almost seven times the salary they were receiving before this announcement.

Originally the Fannie Mae CEO Timothy J. Mayopoulos and Freddie Mac chief Don Layton’s salaries were capped at $600,000 a year. Both Mayopoulos and Layton will get annual salaries of $750,000 each, $2.1 million in fixed deferred compensation, and $1.2 million in at-risk deferred salary. That does not even include any bonuses they might earn throughout the year. (more…)

Maryland Law Office of Daniel M. Radebaugh Charged in Alleged Illegal Loan Modification Scam

Maryland Attorney General Brian E. Frosh announced this past week that the Consumer Protection Division filed charges against a Maryland law firm and its founding lawyer for allegedly charging illegal up-front loan modification fees to approximately 400 consumers, and for not refunding money as promised to clients after failing to negotiate successful loan modifications.

The law firm that was targeted by law enforcement was the Law Office of Daniel M. Radebaugh, LLC, and its founder Daniel M. Radebaugh. (more…)

New Jersey Contractor Admits Attempting to Bribe City Official to Eliminate Millions of Dollars in Fire Code Violations

A North Bergen, New Jersey contractor, Victor Coca, 48, admitted paying cash bribes to a West New York, New Jersey fire official to eliminate millions of dollars in outstanding fines and penalties on buildings with fire code violations, according to a press release today from the FBI

United States Attorney Paul J. Fishman announced that Coca pleaded guilty before U.S. District Judge Esther Salas to Count One and Count Two of an indictment charging him with paying bribes to a local government employee. (more…)

Citi Fails Loan Modification Compliance Test for the National Mortgage Settlement

A new report by an independent monitor of the National Mortgage settlement shows that the mortgage servicing giant, Citi, has failed a compliance test in regards to loan modification metrics.

The mortgage settlement was the largest consumer financial protection settlement in US history and has provided over $50 billion in assistance to distressed borrowers, and direct payments to signing states and the federal government. The agreement settled state and federal investigations finding that the country’s five largest mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. Both of these practices violate the law. (more…)

U.S. Supreme Court Ruling Upholds the Fair Housing Act

This past week the U.S. Supreme Court had ruled in favor 5 to 4 that housing discrimination is illegal, even if it is not intentional. The court held that disparate impact claims are recognizable under the Fair Housing Act. In the case Texas Department of Housing and Community Affairs vs. the Inclusive Communities Project, the Justices ruled 5-4 to uphold the use of disparate impact to help prove claims of housing discrimination.

This case was being watched by several real estate and mortgage industry participants such as mortgage lenders, real estate agents, home builders, and insurers who some consumer advocates said were trying to reduce the the effectiveness of the law and its ability to protect consumers from discriminatory practices. (more…)

Another California Real Estate Investor Indicted for Bid-Rigging and Fraud at Public Foreclosure Auctions

Another individual involved in a massive Northern California real estate bid rigging and fraud conspiracy at public foreclosure auctions was indicted last Friday by a Federal grand jury, according to the U.S. Department of Justice.

54 people have already pleaded guilty, and another 21 real estate investors have also been charged for their roles in this massive fraud.

Ramin Rad “Ray” Yeganeh of San Mateo, California was charged with two counts in an indictment for participating to rig bids and defraud mortgage holders and others in Alameda County, California. (more…)

Three South Florida Defendants Charged in $10 Million Government Fraud Involving Six Miami Low-Income Housing Developments

(Source: FBI) Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced the filing of charges against three defendants in a joint investigation of individuals who fraudulently obtained federal money and property in connection with the construction of low-income housing developments in Miami-Dade County. (more…)

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