$50 Million Dollar Mortgage Fraud
Posted on December 13, 2006
Filed Under Mortgage Updates
Officials are accusing Charles Elliott Fitzgerald in a scheme so complex that its at first hard to understand. The scam took money from banks and lenders at more than $50 million dollars. The scheme includes taking out fraudulent loans in which they bought homes and flipped for millions more than they were worth.
Federal authorities say Fitzgerald and four others bilked federally insured mortgage lenders of millions of dollars using an elaborate house flipping scheme.
The group bought expensive homes in some of California’s most exclusive communities, recruited accomplices to take out inflated loans using bogus appraisals, and then flipped the properties to the accomplices for double or triple their actual values.
Lenders unwittingly funded some 80 inflated loans for more than $50 million over the actual prices of the homes, federal authorities said.
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