Idaho/Brooklyn Mortgage Scam Accusations

From Reuters: SALMON, Idaho (Reuters) – An Idaho bank officer and four others accused of masterminding a mortgage scam were indicted in Boise on Wednesday on charges of defrauding an Idaho bank of $20 million, according to federal prosecutors. Authorities say the accused, including two building contractors, a mortgage broker and a Realtor, all from the Boise, Idaho area, provided false financial data and fraudulently fronted applicants — known as straw buyers — in attempt to obtain 49 house loans. A report in March by the Mortgage Asset Research Institute examining residential mortgage fraud and misrepresentation in the United States found Florida ranked No. 1 in 2007, followed by Nevada, Michigan, California and Utah.

From Reuters: Eleven people accused of participating in a $14 million mortgage fraud scheme were indicted in Federal court in Brooklyn on Wednesday, the U.S. attorney's office said. The defendants, who include mortgage brokers, attorneys and a realtor, were accused of recruiting "straw buyers" with good credit ratings to secure fraudulent mortgages on run-down residential properties in the New York City boroughs of Queens, Brooklyn and the Bronx, prosecutors said in a statement. At least 24 mortgages worth more than $14 million were secured by the group, generating up to $600,000 in fees for those involved in the scheme, prosecutors claim. The mortgages were also inflated to cover both the sale price of the homes and fees that were not disclosed to banks, prosecutors said in the indictment.