Thirteen individuals and one mortgage origination company were indicted
today in a mortgage fraud scheme involving more than $100 million,
according to a press release from the Manhattan District Attorney’s
office. Twelve other people have already pleaded guilty to felonies in
the case. The defendants include principals and employees of the
mortgage company, AFG Financial Group, bank employees, appraisers and
attorneys. The crimes took place between June 2004 and April 2009, and
the fraudulent closings took place between mid-2005 and the end of
2007, according to the press release. AFG allegedly paid people to find
distressed properties and straw buyers for them. AFG is accused of
failing to make mortgage payments on the properties, ruining the straw
buyers’ credit ratings and sending the sellers’ homes into foreclosure. TRD [more]