Real estate brokers Hervin Henry and John Star, along with mortgage brokers Moises and Jose Vasquez and three real property lawyers were charged for an alleged conspiracy to put into motion a mortgage scheme that allowed them to get mortgages that are worth more than the properties involved.
Other individuals who were charged by the courts were Max Shima, a paralegal, and Marisol Vasquez, a title closer. The mortgage scheme is estimated to be worth $10 million and was conducted in several areas of New York, including Long Island and Brooklyn.
Lawyers Anthony Onua, Umana Oton and Akin Ayorinde handled closings on several homes purchased and sold by several straw buyers, authorities have reported. They were charged for the fraudulent activity along with the other defendants.
According to reports, the brokers and their associates took mortgages that were way higher than the real value of the homes. They reportedly convinced a number of lenders under the scheme to provide the mortgages, including a Lehman Bros. subsidiary, only to run off with the money.
Authorities have stated that as lawyers and real estate brokers, the individuals involved in the case should have been honest and should have served their clients as they were expected to do; but in the case of the nine individuals, they actually did the opposite.
An indictment filed in the Brooklyn Federal Court revealed that federal authorities who were involved in the case investigation were checking out million of dollars of possible illicit proceeds covering the period 2005 to 2007.
Federal prosecutors have stated that the New York case is not unique and that other cases of fraudulent schemes in the mortgage market have been happening all around the country. In response to the growing problem, President Barack Obama launched the Financial Fraud Enforcement Task Force to combat mortgage fraud.
The task force is reportedly comprised of state, local and federal law enforcement groups who will collaborate in investigating and prosecuting financial wrongdoings, particularly in the mortgage industry.
The indictment of the New York real estate brokers and their colleagues is being seen as just a single example of a nationwide problem that has grown during the housing market crisis and is expected to continue to happen while the real estate problem exists.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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