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Lenders See Losses Pile Up in the Wake of Georgia `Straw Buyer' Scam.(Brief Article)(Statistical Data Included)
A U.S. district court here has sentenced a career felon to nine years in Federal prison for directing a fraud scheme that involved purchases of upscale homes in Stone Mountain using "straw" buyers.
Working with two commercial bankers and two loan processors, the felon, Ryan Pendergraft, put together fraudulent loan packages totaling $7.5 million.
Pendergraft, according to prosecutors, actually flipped the properties before gaining title to them. In a 34-month period starting in 1996, Pendergraft completed 50 loan transactions and pocketed $1.7 million of the $7.5 million in loan proceeds.
Pendergraft was out on supervised probation while committing this latest fraud scheme. His criminal activity, according to the Department of Justice, dates back to 1993 and involves both mail and bankruptcy fraud.
"In some cases the ill-gotten profits from the sales exceeded $100,000 per property," according to assistant U.S. Attorney Gale McKenzie.
One lender had a $176,000 loss on a $350,000 loan and another lender had a $87,000 loss on a $200,000 loan, the prosecuting attorney told this newspaper.
She also noted that these loans were readily bought and sold in the secondary market and some even ended up in Fannie Mae and Freddie Mac loan pools.
- STRAW BUYER WHO PARTICIPATED IN FORECLOSURE RESCUE SCHEME ENTERS INTO CONSENT...
- News wire article from: US Fed News Service, Including US State News October 14, 2009 700+ words
...is also prohibited from acting as a straw buyer or otherwise obtaining loans through...Francis is the third defendant and second straw buyer out of the original 19 defendants to...Office reached a similar settlement with straw buyer Marie Betey Mereus. Additionally...
- Strip club operator denies ex-agent was straw buyer.(News)
- Newspaper article from: The Boston Herald Sullivan, Jack December 8, 2000 700+ words
A Norwell man planning to reopen a defunct Chinatown strip joint yesterday denied using a retired FBI agent as a straw to buy an Oxford nightclub, telling Boston licensing officials he did not meet the ex-federal investigator until a month before purchasing the central Massachusetts bar. But the
- Man Gets Nine Years for Bilking Lenders in $7.5 Million Fraud Case.
- Magazine article from: National Mortgage News Collins, Brian February 12, 2001 700+ words
...Investments, and arrange for a straw buyer to purchase the house from UCP...the necessary information for Integrity South, a loan processing company...false qualifying documents, Integrity South owner Nafeesha Muhammed and...
- OCCU Alleges 'Pattern of Racketeering' In Auto Scam.(Orange County's Credit...
- Magazine article from: Credit Union Journal Bartlett, Michael October 20, 2003 700+ words
...defendants allegedly conspired with several "Straw Buyer Defendants"-described as persons...Scam Allegedly Operated To ensure the straw buyer defendants qualified for these loans...In some cases, the salary of the straw buyer loan applicants was exaggerated three...
- OCCU Alleges 'Pattern of Racketeering' In Auto Scam.
- News wire article from: Banking Wire Bartlett, Michael November 4, 2003 700+ words
...defendants allegedly conspired with several "Straw Buyer Defendants"-described as persons...Scam Allegedly Operated To ensure the straw buyer defendants qualified for these loans...In some cases, the salary of the straw buyer loan applicants was exaggerated three...
- Fraudulent flipping: Arizona agency gets extended power to battle mortgage scams
- Newspaper article from: Arizona Capitol Times Bill Coates August 21, 2009 700+ words
...was never any occupant. There was a straw buyer," she says. In many instances of...Institutions investigated one case in which the straw buyer was a minor. It was an elaborate scheme...helped to secure a $112,000 loan. The straw buyer's signature was forged, according...
- The fraud file.
- Magazine article from: Mortgage Banking August 1, 2009 700+ words
...employment/income; identity; occupancy; straw buyer; property valuation; or property flipping...07% 4.45% 9.11% 3.18% State Straw Buyer * Property Valuation Property Flipping...Interthinx * The Interthinx[TM] "straw buyer" flag identifies a subject property...
- Real estate deal sounded too good to be true. It was.: Three charged with...
- Newspaper article from: Saint Paul Pioneer Press (St. Paul, MN) September 21, 2007 700+ words
...person they'd resell it to would be a straw buyer of their choosing, someone with good...complaint, and make the payments. When the straw buyer secured financing for the property...the profit and paid a kickback to the straw buyer. "They were pretty cute, buying a...
Source: HighBeam Research, Lenders See Losses Pile Up in the Wake of Georgia `Straw Buyer'...