In Alaska, an employee of Alyeska Title Guaranty Inc. issued a worthless title policy to a lender. The borrower defaulted and undisclosed prior liens on the property took out the lenders equity position. The agency and underwriter are disputing responsibility for the policy, taking the position that the employee was not authorized to write the policy. The agency has been fined $400,000 in the meantime. The lender is out $750,000 for the loan and is suing both the agency and the employee. No criminal charges have been filed.
In New Jersey, escrow agencies are being sued for marking up recording fees. It is alleged that title agencies charged more on the HUD statements for document recording than the actual land records office fees. The suit names several national underwriters, and their settlement agencies. The class-action lawsuit is described at http://www.njtitlelawsuit.com/.
Christopher Warren, from Sacramento was arrested crossing the Canadian border with $70,000 cash and precious metal stashed in his shoes. He had been the target of an investigation into mortgage and real estate fraud, and fled the US in his private jet two weeks ago. He was also carrying $1 million in bank certificates. A partner in the enterprise is still a fugitive.
A real estate agent in Utah admitted to helping to inflate property valuations for mortgage fraud. In once instance, the property value was artificially raised over $1,000,000. “On January 11, 2006, I changed the list price from $1,750,000 to $2,900,000 knowing this new figure was false and overstate the fair market value of 4311 by over $1,000,000,” Ron Clarke admitted in relation to one of several homes. “I entered this false information because I desired to close the sale from the owner of 4311 and collect my sales commission.” He was fined $22,000 and forfeited his real estate license.
A deed theft ring in Philadelphia was charged this week, after it was discovered they illegally transferred at least 82 properties, and possibly hundreds. The group would scout out vacant properties, and record fraudulent deeds into themselves using complicit notaries. They would then resell the properties to unwitting buyers or investors. D.A. Lynne Abraham said “These 82 individuals or couples thought they were paying for the title to a home. They never knew until it was too late that what they bought was nothing.”
Abraham said a state law requires deeds to be filed immediately in the county courthouse and accepted at face value. Although officials are supposed to verify the information later, Abraham said large counties such as Philadelphia – with 250 property sales recorded daily – do not have the staff to do the verifications.
The US Attorney’s office in Miami announced the sentencing of Evelyn Rivera, title agent and owner of Asset Title, LLC. Rivera had previously pled guilty to participating in a scheme intended to result in the issuance of $18,500,000 in fraudulent mortgages on 55 condominium units. She was sentenced to 5 years in prison.
