Leaving a trail of devastation worthy of Godzilla, a mortgage fraud conspiracy of gargantuan proportions has wreaked havoc on the city of Indianapolis as block after block was left in near-apocalyptic ruins.
Although mortgage fraud schemes are sometimes widespread and frequently costing tens of millions of dollars, rarely has so much damage been done in so small an area.
According to authorities, six men were responsible for almost 300 foreclosures on the east and west sides of the city, leaving many of the homes boarded up or burned out.
Authorities say the scheme dramatically brought down the value of neighboring properties and the foreclosed homes that were abandoned have subsequently attracted less “white-collar” criminal activity.
The toll of such fraud is not only financial, but often bears an emotional toll on those living in the neighborhoods as the quality of life diminishes with the deterioration of the community.
Brian Beach, Omar Dillard, Preston Forte III, Patrick Ladarius, Mehran Valiyi and Marcus Ward have each been charged with welfare fraud and felony theft for the alleged scheme.
The ages of all six of the men range from mid-thirties to early forties.
Investigators say the conspirators would fraudulently purchase homes and fail to pay the mortgages while selling some of the homes at inflated prices.
Over five years, the six men allegedly took out almost $38 million in mortgages using non-existent companies they created.
No mortgage payments were made on any of the homes they bought, say investigators, driving many of the properties into foreclosure.
To keep from having to pay the judgment on the foreclosure, the conspirators allegedly filed for bankruptcy to create a seemingly endless circle of fraud.
Investigators claim that the men sold some of the properties to potential investors after misrepresenting the actual value of the homes.
The investors then would borrow money from banks, authorities say, and then purchase the homes at the inflated prices.
Some of investors were unable to keep up with their mortgage payments and found they were unable to sell the homes at anything near the inflated prices they paid.
According to investigators, the fraud scheme primarily took place from 2004 to 2007.
Valiyi and Beach alone stand accused of obtaining 397 fraudulent subprime loans through fraudulent applications.
The six men also are charged with fraudulently obtaining $283,000 in federal rent assistance money for tenants at dilapidated homes below federal quality standards.
Although four of the men have already been arrested, warrants have been issued for the arrest of Ladarius and Forte, who remain at-large.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment