Florida Mortgage Fraud: Criminal Defense Lawyer

Florida is a one of the leading states of mortgage fraud investigations by the FBI. The increased reliance by both banks and private mortgage lenders on third-party brokers has created opportunities for organized fraud groups, particularly where mortgage industry professionals are involved. Depending on their level of involvement, it is not uncommon for mortgage executives to pay millions of dollars in fines and serve more than 20 years of jail time.

The Law Offices of Joseph S. Rosenbaum specializes in representing clients accused of mortgage fraud. Those charged in mortgage fraud are generally involved in some type of equity skimming, property flipping, and mortgage-related identity theft.

Equity skimming is characterized by the use of corporate shell companies, corporate identity theft, and the use or threat of bankruptcy/foreclosure to dupe homeowners and investors.

Property flipping is commonly known as purchasing properties and artificially inflating their value through false appraisals. The artificially valued properties are then repurchased several times for a higher price by associates of the "flipper." After three or four sham sales, the properties are foreclosed on by victim lenders. Often flipped properties are ultimately repurchased for 50 - 100 percent of their original value.

Most mortgage fraud schemes contain a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase or insure a loan. If you have been charged with a crime related to mortgage fraud, you may have been included in the FBI's data compilation of mortgage fraud through Suspicious Activity Reports (SARs) filed by federally-insured financial institutions, and reports compiled by the Department of Housing and Urban Development Office of Inspector General.

Prosecution of mortgage fraud was not as prevalent in the past because a significant portion of the mortgage industry does not require mandatory fraud reporting and, as a result, is largely underreported. The mortgage industry itself does not provide estimates on total industry fraud. Based on various industry reports and FBI analysis, mortgage fraud is on the rise.

Based on government investigations, 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders. Borrowers are also being prosecuted for acquiring and maintaining ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan. If you have been involved in the types of mortgage fraud described, or have questions related to a potential mortgage fraud, contact the Law Offices of Joseph S. Rosenbaum to discuss your case at 305-446-6099.