~ Bankers and Brokers and Inside Traders Arrested

Latest 34 Additions:

  1. 9/18/12: Wellington Title Agent Accused of Using Money From Closings to Gamble Faces 30 Years in Prison, $5 Million In Fines– Wellington title agent faces up to 30 years in prison and $5 million in fines from federal charges filed last week that allege she diverted money from closings to gamble and pay personal expenses. The complaint says the 46-year-old obtained more than $3.3 million of mortgage monies by falsyfing HUD-1 settlement statements in 32 separate sale closings that occurred between December 2009 and December 2010.
  2. 9/18/12: Mortgage Fraudster Gets More Prison Time –  Ian Streadwick turned to Tashia Lynn Winstanley in a effort save his home, a place with a value far greater than dollars and cents. Winstanley, through her Holly-based business, promised to help dozens of people modify their mortgages. Instead she stole nearly $250,000 from about 60 people across the state, largely by keeping payments she was supposed to make to banks.
  3. 9/19/12: Former Bank Exec Pleads Guilty in Mortgage Frauds –  Shawn Portmann, a former Pierce Commercial Bank mortgage executive, pleaded guilty Tuesday in federal court to his leading role in a mortgage-fraud scheme that generated at least $45 million in tainted loans and brought down the bank.
  4. 9/19/12: Former VP and Loan Officer at Pierce Commercial Bank Pleads Guilty to Mortgage Fraud – (Source: FBI) – TACOMA, WA—A former senior vice president and loan officer at Pierce Commercial Bank pleaded guilty late today to a mortgage fraud scheme that resulted in the collapse of the bank, announced U.S. Attorney Jenny A. Durkan. Shawn L. Portmann, 40, pleaded guilty to conspiracy to make false statements in loan applications and to make false statements to the Department of Housing and Urban Development (HUD), and one count of making a false statement in loan applications. According to records in the case, between 2004 and 2008, Portmann and the other defendants conspired to submit false documents within various loan documents and applications. They falsified information about the borrowers’ qualifications as well as their intention to reside in the homes being financed. Based on a review of a sample of loans, the co-conspirators caused more than 270 loans that contained false and fraudulent documents and information to be funded by Pierce Commercial Bank representing in excess of $45 million in loan proceeds. More than 100 of these loan files have defaulted, causing in excess of $10 million in loss to Pierce Commercial Bank, secondary investors and HUD. The indictment details multiple false statements included in loan documents regarding an applicant’s employment, income, and intention to reside in the property.
  5. 9/19/12: Convicted Puyallup banker kept reserves in stacks of $100 bills– For most of us, our folded up money fortunes consist of a few greenbacks stashed in our wallet or purse. But for convicted Puyallup mortgage banker Shawn Portmann, his cash reserves consisted of thousands of dollars in neatly packaged bundles of $100 bills stored in a home safe. Portmann, one of the nation’s highest-flying home loan originators during the middle of the last decade, Tuesday pleaded guilty to two federal fraud charges. Portmann admitted to falsifying loan documents regarding borrowers employment, income and debts in order to generate loans for Pierce Commercial Bank.
  6. 9/24/12: Real Estate Professionals Taken Down in “Operation Wax House” Mortgage Fraud Investigation – (Source: FBI) – CHARLOTTE, NC—Nine defendants have been charged in the latest takedown in the Operation Wax House mortgage fraud investigation. A second superseding indictment in the Western District of North Carolina charging six defendants with federal offenses including mortgage fraud conspiracy, bank bribery conspiracy, money laundering conspiracy, and wire fraud was returned by a federal grand jury sitting in Charlotte on September 19, 2012, and was unsealed today in U.S. District Court. Three additional defendants were charged separately by criminal bills of information accompanied by plea agreements.
  7. 9/24/12: Former President of Pinehurst Bank in St. Paul Sentenced to Almost 4-Years for Check-Kiting Scheme– (Source: FBI) – MINNEAPOLIS—Today in federal court, the former president of Pinehurst Bank in St. Paul was sentenced for his involvement in a multi-million-dollar scheme to defraud Pinehurst Bank. United States District Judge Ann D. Montgomery sentenced John Anthony Markert, age 58, of Mendota Heights, to 42 months in prison on five counts of misapplication of bank funds. Evidence presented at the 12-day trial showed that Markert helped put in place a series of fraudulent loans to conceal Wintz’s check-kiting scheme. The five loans, totaling $1.9 million, were issued to straw borrowers for the purpose of covering $1.85 million in anticipated overdrafts resulting from bad checks written by Wintz.
  8. 9/24/12: Pasadena-Based “Premier One Lending” CEO Sentenced for $30M Mortgage Fraud Scheme – (Source: FBI) – SANTA ANA, CA—The owner of a Pasadena mortgage brokerage firm was sentenced today to 108 months in federal prison for participating in a mortgage fraud scheme that obtained more than $30 million in loans. As part of the scheme, Ruiz and his employees prepared mortgage loan applications that inflated borrowers’ income—often by as much as 10 times over their true income. Ruiz and other Premier One employees also obtained phony bank statements and CPA letters, which they provided to the lenders in support of the bogus income figures.
  9. 9/24/12: Owner of Mortgage Company From Pasadena Sentenced to 9 Years in Federal Prison for Mortgage Fraud– (Source: FBI) –  The owner of a Pasadena mortgage brokerage firm was sentenced today to 108 months in federal prison for participating in a mortgage fraud scheme that obtained more than $30 million in loans. Eduardo Ruiz, 33, of Santa Ana, was sentenced this morning by United States District Judge David O. Carter. In addition to the prison term, Judge Carter ordered him to pay $5.7 million restitution. Ruiz has been in custody since March, when a federal jury found him guilty of conspiracy and mail fraud related to his operation of Premier One Lending, a mortgage brokerage firm. The evidence presented during a three-day trial showed that while operating Premier One Lending in 2005 and 2006, Ruiz and other Premier One employees fraudulently obtained more than 100 loans from lenders in Los Angeles and Orange Counties. As part of the scheme, Ruiz and his employees prepared mortgage loan applications that inflated borrowers’ income—often by as much as 10 times over their true income.
  10. 9/24/12: Murrieta Couple Sentenced for Mortgage Fraud – A Murrieta husband and wife were sentenced to prison terms this week for their role in a mortgage fraud scheme that saw them take equity out of Inland homeowners’ property and bilk victims out of more than $1 million. Joe Daniel Cody, 43, was sentenced to 63 months in prison and three years of supervised release. His wife, Angela Lynette Cody, 43, received a 48-month sentence, three years supervised release and was ordered to pay more than $1 million in restitution. According to the statement, the couple was employed by a Tacoma, Wash.-based operation called All Fund Mortgage and operated out of their Murrieta home.
  11. 9/26/12: Rhode Island Investment Manager Charged for Providing Luxuries to Union Official – (Source: FBI) – A criminal information was filed charging Nicholas Delbrocco with two counts related to providing things of value to a person affiliated with the Ohio and Vicinity Regional Council of Carpenters in an effort to obtain business regarding the union’s pension and annuity fund, federal law enforcement officials announced today. He was charged with offering, accepting, or soliciting to influence operations of an employee benefits plan; and conspiracy to commit mail fraud and honest services mail fraud. Delbrocco was employed by and had an ownership interest in several investment advisory firms, according to the information.
  12. 9/26/12: Sioux Falls Bank Employee Pleads Guilty to 2-Year Embezzlement Scheme– (Source: FBI) – U.S. Attorney Brendan V. Johnson announced that Lona Mahon, age 61, of Sioux Falls, appeared before Chief U.S. District Judge Karen E. Schreier on September 21, 2012, and pled guilty to an indictment that charged her with embezzlement. The maximum penalty upon conviction is 30 years in prison and/or a $1 million fine, plus restitution. Mahon, who was employed at a Sioux Falls bank, embezzled approximately $23,000 during a two-year period.
  13. 9/26/12: Former Fifth Third Bank Employee Indicted in $12 Million Fraud Scheme– (Source: FBI) – A 44-count indictment was filed against Paulette Roberts related to a scheme that resulted in the loss of $12 million while she was employed at Fifth Third Bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, Cleveland Field Office. Roberts, a loan officer and vice president at Fifth Third Bank in Toledo, falsified documents and submitted them to bank officials to obtain credit approval for large commercial loans which would have otherwise been declined, according to the indictment.
  14. 9/27/12: Man With Hazleton Ties Pleads Guilty to Fraud in Alabama– A man with ties to the Hazleton area who stole more than $2.3 million in hedge fund investments will spend five years in prison, according to court documents. Anthony J. Klatch II, whose family lives in Sugarloaf, pleaded guilty in October 2011 to conspiracy to defraud the United States, securities fraud, wire fraud and money laundering in United States District Court Southern District of Alabama. He was sentenced Aug. 24 to concurrent, five-year sentences in federal prison for each plea, court papers state. Klatch must pay $2.3 million restitution to his victims and a $400 court assessment. The judgment, signed Sept. 14 by U.S. District Judge William H. Steele, was based on the amount of money Klatch received from the hedge fund conspiracy he orchestrated.
  15. 9/27/12: Developer Gets 11 1/2 Years in Bank, Tax Fraud Scheme– Eric Menden, was sentenced Wednesday to 11-1/2 years in federal prison after admitting to his role in two fraud schemes that grossed more than $40 million. Menden began to weep as he asked for forgiveness from “God, my family and my friends” while speaking before U.S. District Judge Raymond A. Jackson. “I’m sorry,” he said. Menden, 53, pleaded guilty to charges of bank and wire fraud and making false statements. He admitted his role in scamming the state and federal government’s historic tax credit program and to defrauding Bank of the Commonwealth out of tens of millions in a loan scheme. Menden has been cooperating with the government in its pending criminal case against top bank officials.
  16. 9/27/12: Ex-Credit Suisse manager held for subprime fraud – A former senior Credit Suisse trader has been arrested in London and faces extradition to the United States on fraud charges involving subprime mortgage bonds worth $3 billion (SFr2.82 billion). The arrest of the banking group’s former global head of structure credit trading marks an apparent victory for US prosecutors, who earlier this year won convictions against two of the his former colleagues. The prosecutors have been waiting for nearly eight months for the 39-year-old man, an American and British citizen, to return to the US to face charges. Prosecutors said the former Credit Suisse employee was the most senior banker charged in a scandal dating back to 2007, in which mortgage-backed securities traders were caught trying to cover up $540 million in losses on their books.
  17. 9/27/12: Vietnam probes ex-minister as banking scandal grows – Police are probing a former minister and ex-chairman of Vietnam’s Asia Commercial Bank, state media said Thursday, as a scandal sparked by the arrest of the bank’s multi-millionaire founder grows.  Tran Xuan Gia, who was minister for planning and investment from 1996 to 2002 and the ACB’s chairman from 2008 until he resigned last Wednesday, is being kept under house arrest, Lao Dong newspaper said on its website. The 73-year-old is being investigated alongside three other deputy chairman at ACB for their alleged involvement in illegally approving the deposit of $34 million into other banks, the report added. The $34 million was then reportedly stolen by other bankers, at least two of whom have also been arrested on suspicion of banking fraud, the report said without giving further details.
  18. 9/27/12: Former CEO of Osiris Partners LLC Pleads Guilty to $12M Investment Fraud Scheme–  (Source: FBI) – CAMDEN, NJ—The former CEO of the hedge fund management company Osiris Partners LLC admitted today to conspiring with others to defraud investors of more than $4 million. Michael J. Spak, 44, of Chesterfield, New Jersey, pleaded guilty in Camden federal court to an information charging him with conspiracy to commit wire fraud. Spak and his co-conspirators solicited investors to invest in the Osiris Fund, which they pitched to prospective investors as a hedge fund for the “little guys” and “moms and pops.” Over time, more than 75 people invested $12 million in the Osiris Fund. Beginning in January 2010, however, Spak and his co-conspirators at the Osiris Fund began improperly diverting investors’ funds for their own use. Spak and his co-conspirators spent $300,000 of investors’ money to purchase a luxury sport-fishing boat called the “Fintastic.” 
  19. 9/27/12: – Hampton Roads Developer Sentenced for Bank Fraud and Historic Tax Credit Fraud Scheme – (Source: FBI) – NORFOLK, VA—Eric H. Menden, 53, of Chesapeake, Virginia, was sentenced today to 138 months in prison, followed by three years of supervised release, for engaging in a $41 million bank fraud scheme that contributed to the failure of the Bank of the Commonwealth and a separate historic-tax-credit fraud scheme that cost state and federal governments over $12 million and investors more than $8 million. “Menden received $35 million in bank loans with such preferential treatment that bank employees referred to the bank as ‘the Bank of Eric and George.’ In return, he conspired with bank insiders to extend-out non-performing loans, masking their past-due status through tricks such as fraudulent construction draws and Menden’s purchase of bank-owned property at inflated prices.  
  20. 9/27/12: Orange County Couple Sentenced in Multi-Million Dollar Mortgage Fraud Scheme – (Source: FBI) – Gergawattie “Kamla” Seecharan, 49, and Bhardwaaj “Deo” Seecharan, 52, both of Orange County, were sentenced in federal court yesterday for their participation in an extensive mortgage fraud scheme. The Seecharans and two others were indicted on bank fraud, conspiracy, money laundering, and related mortgage fraud charges. They conspired to solicit mainly Guyanese residents of Florida and other states to act as straw buyers on fraudulent applications for more than $50 million worth of mortgage loans in connection with the purchase of more than 150 homes in Indian River County, Miami-Dade County, and elsewhere. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The proceeds were then used to buy more properties, sustain the deception and service preexisting mortgage loans in the scheme, and pay kickbacks to the straw buyers.
  21. 9/28/12: Trial Begins In $3.5M Mortgage Fraud – Seconds intoWilliam Trudeau‘s $3.5 million mortgage fraud trial, a retired Westport assistant fire chief added his name to the list of alleged victims. Christopher Coyle testified before U.S. District Judge Janet C. Hall and a 16-member jury that he never received payment on a $257,500 mortgage he gave Trudeau for the purchase of a two-family Coyle owned in Westport. Coyle was the first witness called Thursday as Trudeau’s trial on nine federal charges stemming from a mortgage fraud involving several Westport properties began in the New Haven federal courthouse.  Trudeau is accused of conspiring in a complex scheme with his paralegal wife, two lawyers, a mortgage broker and an appraiser to obtain loans based on fraudulent statements to build expensive Westport homes. He faces charges of conspiracy, bank, wire and mail fraud.
  22. 10/1/12: Ex-Deutsche Bank Broker Among Four Charged in Insider Case – Former Deutsche Bank AG managing director Martyn Dodgson was among four people charged with insider trading by U.K. authorities after an investigation spanning two-and-a-half years. Dodgson, who was employed by Deutsche Bank at the time of his arrest in March 2010, as well as Andrew HindBenjamin Anderson and Iraj Parvizi were charged with “conspiracy to insider deal” between Nov. 1, 2006, and March 23, 2010, the Financial Services Authority said today in an e-mailed statement. The agency alleges the men made more than 3 million pounds ($4.8 million) on improper trades.
  23. 10/1/12: Kentucky man arrested in NY bailout fraud probe – NEW YORK (AP) — A Kentucky businessman was arrested Monday in a $100 million scheme that contributed to the collapse of a bank and tried to drain money from the federal bank bailout program before some funds were used to pay his mortgages and to buy designer clothing, jewelry and luxury cars, authorities said. Wilbur Anthony Huff, 51, who has addresses in both Caneyville and Louisville, was released on $100,000 unsecured bond after a brief court appearance in federal court in Louisville in which prosecutors portrayed him as a flight risk. Along with two alleged accomplices arrested in New York, Huff faces various charges, including conspiracy to commit bank bribery, bank and insurance fraud, and tax evasion. 
  24. 10/1/12: Brentwood Man Charged in Over $3 Million Foreclosure Prevention Scandal– (Source: SigTARP) – Alan David Tikal, of Brentwood, California, was charged on Friday with mail fraud for masterminding a multistate scam that defrauded distressed homeowners, announced the Office of the Special Inspector General for the Troubled Asset Relief Program. According to the complaint filed in federal court in Sacramento, Tikal has victimized more than 1,000 homeowners who have paid in excess of $3.1 million to his operation.
  25. 10/1/12: Pamela Kay Cobb, Former Bank Of America Employee, Sentenced To Prison For Stealing Millions– Pamela Kay Cobb, 30, a former Bank of America branch manager, was sentenced on Wednesday to five and a quarter years in prison for stealing more than $2 million from customers. Cobb also was ordered to pay more than $1.1 million back to her victims.Bank of America’s branch in River Oaks, Tex., which Cobb managed, lost more than $1 million to her nine-year scheme. Cobb used the money to pay for vacations, clothes, jewelry and land purchases.According to the press release, Cobb filed fraudulent withdrawal slips and forged customers’ signatures; she also withdrew cash through her tellers. She never stole more than $10,000, in order to avoid federal reporting requirements.Cobb pleaded guilty to the federal government’s charges in March of 2012.In order to maintain her customers’ trust, Cobb targeted customers that she had known for a while; if a customer complained about a fraudulent transaction, she refunded the money immediately with money stolen from other customers’ accounts.
  26. 10/1/12: Former Branch Manager of Lynchburg Bank Sentenced for Embezzlement– (Source: FBI) – LYNCHBURG, VA—A former branch manager of a local bank who pleaded guilty in June was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg to a charge of embezzlement. Sheila Marie Wright, 50, of Forest, Virginia, previously waived her right to be indicted and pled guilty to one count of obtaining monies under the custody and control of financialinstitutions by means of false and fraudulent pretenses.
  27. 10/2/12: UT Boss To Be Arrested – The Chief Executive Officer (CEO) of UT Bank and Financial Holdings, Captain (rtd) Prince Kofi Amoabeng, who is at the centre of a property fraud, pending before an Accra Circuit Court, is expected in court tomorrow or risk a bench warrant being issued for his arrest. The ex-accountant of the Ghana Armed Forces has proved very evasive in answering the criminal charges including forgery of documents brought against him by a 53-year-old queenmother of Akropong in the Eastern Region, Nana Otua Owusua I, for illegal disposing off her property, called “Naa Otua Plaza” at Osu-Accra.
  28. 10/2/12: Ex-SAC Capital Manager Tells FBI Fund Used Insider Information – A former SAC Capital Advisors LP portfolio manager told the FBI it was “understood” that those assigned to give their best trading ideas to founder Steven A. Cohen would provide him with insider information, according to an agent’s notes of the conversation. Michael Steinberg, a portfolio manager at SAC’s Sigma Capital Management unit implicated in insider trading, has been placed on leave by SAC, a person familiar with the matter said. He is an unindicted co-conspirator related to the case against Jon Horvath, a former SAC analyst he supervised, people familiar with the case said last week. Horvath pleaded guilty Sept. 28 to being part of a “criminal club” of fund managers and analysts who made $62 million by swapping nonpublic information about technology companies. Steinberg hasn’t been charged with a crime. Freeman and another SAC fund manager, Donald Longueuil, were accused last year by prosecutors in the office of Manhattan U.S. Attorney Preet Bharara with being part of an insider- trading scheme while at SAC.
  29. 10/2/12: Former Wachovia Banker Sentenced in $11 Million Mortgage Fraud Case – A former banker was sentenced today for her role an $11 million mortgage fraud scheme involving homes on Smith Mountain Lake, Va. Mary Novak Thompson, who worked as a financial specialist at the former Wachovia Bank, was sentenced in Lynchburg’s federal court to one day in prison and three months of house arrest, according to the U.S. Attorney’s Office. Thompson, 44, of Bedford County, pleaded guilty earlier to making a false statement for the purpose of influencing a mortgage lender. ”Ms. Thompson used her position at Wachovia Bank to facilitate a substantial mortgage fraud scheme,” U.S. Attorney Timothy Heaphy said in a news release.
  30. 10/2/12: Wilmington Man Sentenced to 210 Months for Securities and Investment Fraud Schemes – (Source: FBI) – RALEIGH—United States Attorney Thomas G. Walker announced that in federal court today Joseph A. Leonard, 44, was sentenced by United State District Judge Earl Britt to 210 months’ imprisonment; three years’ supervised release; and was ordered to pay a $100 special assessment and $996,984.80 in restitution. On May 7, 2012, Leonard pled guilty to securities fraud. Leonard, a former resident of Southport, North Carolina, was a financial advisor who owned and operated Coastal Investment Advisors and Leonard Capital Management. Additionally, he was the author of “Your Money, Your Rights, Your Retirement,” published in 2006, and the “Retirement Vault,” published in 2008.
  31. 10/2/12: North County Attorney Indicted for Running a $11M Loan Modification Scandal – (Source: FBI) – United States Attorney Laura E. Duffy announced that Oceanside attorney Dean G. Chandler and telemarketing salesman Shelveen Singh were arraigned today in federal court in San Diego on a 50-count indictment charging them with defrauding thousands of homeowners in an $11 million “loan modification” fraud scheme. According to the indictment, these defendants (and two others previously arraigned) used Chandler’s Oceanside-based law firm, 1st American Law Center (1ALC), to persuade victims to pay thousands of dollars each by deceptively touting 1ALC’s purported success and legal resources and falsely promising that 1ALC would successfully modify their residential mortgage loans. As alleged in the indictment, the defendants and their co-conspirators used high-pressure sales tactics and outright lies to prey on homeowners located across the country who were struggling to make their monthly mortgage payments and were at risk of losing their homes to foreclosure. Among other alleged lies, the conspirators falsely promised to have a team of attorneys pre-screen client applications—claiming that these attorneys only approved 30 percent of those seeking to use 1ALC’s services—and boasted of having a 98 percent success rate in obtaining loan modifications. 1st American Law Center’s telemarketers were encouraged (using call “scripts” and other training) to say virtually anything to customers in order to close the deal. The indictment alleges that among other ruses, employees pretended that that they had helped “thousands” of happy homeowners save their homes, that 1ALC had been in business for 20 years, that clients’ fees would be deposited into a client-trust account and remain untouched until the client was satisfied, and that there was a money-back guarantee. Conspirators even persuaded financially strapped homeowners to pay 1ALC’s fees instead of the clients’ monthly mortgage payment.
  32. 10/2/12: FOREX Trader Sentenced for Defrauding Almost Fifty Investors of $2.3M– (Source: FBI) – CHICAGO—A former floor trader at the Chicago Mercantile Exchange who later conducted spot foreign exchange trading in Florida was sentenced today to three years in federal prison for a fraud scheme in which he concealed trading losses and inflated investment returns that caused 47 investors to lose approximately $2.3 million. The defendant, Mark Adrian, was employed as a consultant at the bankrupt Avidus Trading Inc. in Boca Raton, which conducted foreign exchange (FOREX) trading at its discretion for investors. Adrian was responsible for communicating with an investment group in Chicago that solicited and pooled individuals’ investment funds for Avidus. These investors and others lost savings, retirement, and other funds as a result of the fraud scheme. 
  33. 10/2/12: LA County Man Sentenced for Mortgage Scam that Resulted in More Than $1M in Losses – (Source: FBI) – LOS ANGELES—A 50-year-old resident of Tujunga was sentenced this morning to 37 months in federal prison for his participation in a home equity line of credit (HELOC) scheme that resulted in losses of more than $1 million. David Han was sentenced by United States District Judge Manuel L. Real, who also ordered the defendant to pay $1,065,000 in restitution. Han pleaded guilty in May to four counts of bank fraud based on his submission of home equity loan applications to four different banks. The HELOC applications were all submitted under the alias “Young He Kim” and were all to be secured by the same property. Han submitted the HELOC applications in a “shotgun” approach in order to obtain approval and funding before any of the banks recorded liens on the property. In addition to concealing his true identity, Han made false representations on his loan applications about his employer, his employment status, and his income.
  34. 10/2/12: 25-Year Prison Term for Foreclosure-Rescue Scammer– (Source: Harold Brubaker The Philadelphia Inquirer (MCT) — For Karlene Cheesman, Raymond Oesterle, Kevin Michael, and Cynthia Thorne, the 25-year prison term given Monday to Anthony J. DeMarco 3d for massive mortgage fraud was almost meaningless next to their losses. At DeMarco’s sentencing hearing in federal court in Philadelphia, each attributed the death of a parent to the devastation their families felt after losing their houses to DeMarco’s scam, which was sold to victims as a foreclosure-rescue program. DeMarco REI Inc., a Center City company that offered to buy the houses of people facing foreclosure, allowing victims to stay in the houses and pay rent until they could afford to buy the houses back, according to a 15-count indictment filed in December 2010. In reality, DeMarco lined up straw buyers for the houses, used fraudulent documents to obtain mortgages, and stole $11 million of the homeowners’ equity. Eventually, the new lenders, who lost $6 million in the fraud, foreclosed on the houses.
  35. http://joy2theworld2012.wordpress.com/2012/10/04/1042012-recently-updated-mass-arrest-list-hits-214-bankers-and-brokers-and-inside-traders-arrested-oh-my/