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July 9, 2009

Massive Mortgage Fraud Ring Busted

east-new-york-house-0709.jpgA fraud ring involving 13 people and potentially $100 million of losses was charged yesterday by the Manhattan District Attorney. Much of the illegal activity occurred over the past four years in the East New York and Cypress Hills sections of Brooklyn, according to the NY Times. The ringleaders of the scam, which involved targeting troubled homeowners and duping buyers with good credit into purchasing the homes at inflated prices to suck out the largest mortgage possible, were three principals in the Long Island-based AFG Financial Group.




Posted by Brownstoner at 10:15 AM | Comments (19)
Categories: Crime, Cypress Hills, East New York

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Comments

Nooooooooooooooooooo!!!!!!!!!!!!!!!!

The What

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 10:23 AM

You mean your only source of income has been busted?

Posted by: dittoburg at July 9, 2009 10:31 AM

Excellent. These people are evil. And New York has not been doing enough to persecute this kind of fraud.

What, you approve of criminals swindling poor people out of their houses? I don't get it.

Posted by: mopar at July 9, 2009 11:24 AM

"What, you approve of criminals swindling poor people out of their houses? I don't get it."

This was not "Poor people" they was "Greedy little Bastards"!

Everyone was/is a victim of the Mutant Asset Bubble. How do you think we got high valuations? Very soon a House will be something we live in, instead a investment...

It's all over but the crying. Cue the Violins....

The What (Hurts now huh?)

Someday this war is gonna end... <-- Pay attention Stupid!

Posted by: Return of The What at July 9, 2009 11:32 AM

The story says:

"the company would seek out homeowners in trouble with their mortgages, often by finding owners who had missed mortgage payments, and offer to take their homes off their hands."

That's taking advantage of people who don't have enough money to pay their mortgage. How do you know they are "greedy"? Maybe they lost their jobs. Maybe they were little old ladies with health problems and no insurance or whose sons stole all their money.

By your logic, it's OK to scam people because they're "greedy." Classic criminal justification for taking advantage of others.

Posted by: mopar at July 9, 2009 11:38 AM

"That's taking advantage of people who don't have enough money to pay their mortgage. How do you know they are "greedy"? Maybe they lost their jobs. Maybe they were little old ladies with health problems and no insurance or whose sons stole all their money."

Maybe the couldn't afford the house in the first place....

I'm willing to bet a dollar to a donut those houses was brought within the last 7 years!

Why do you think it's very hard for you to "Find a House" now Mopar! Remove your head out of your ass.

"By your logic, it's OK to scam people because they're "greedy." Classic criminal justification for taking advantage of others."

Yep!

The What (Ker-Boom!!!!!!!!!)

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 11:53 AM

"That's taking advantage of people who don't have enough money to pay their mortgage. How do you know they are "greedy"? Maybe they lost their jobs. Maybe they were little old ladies with health problems and no insurance or whose sons stole all their money."

Maybe they couldn't afford the house in the first place....

I'm willing to bet a dollar to a donut those houses was brought within the last 7 years!

Why do you think it's very hard for you to "Find a House" now Mopar! Remove your head out of your ass.

"By your logic, it's OK to scam people because they're "greedy." Classic criminal justification for taking advantage of others."

Yep!

The What (Ker-Boom!!!!!!!!!)

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 11:53 AM

Pay no attention to the babbling man with the flawed logic.


Tell us What.....what is going to happen in 4 months?????

Posted by: daveinbedstuy at July 9, 2009 11:54 AM

Huh? Why is it hard for me to find a house, What? If you mean it's because the housing stock has been run into the ground and ruined by various nefarious forces of the last three years such as flippers, ARMs, fraud, and predatory lending, then I would agree. I occasionally see a house in which a family has lived for a long time, and they are generally in better condition than the others. There isn't much difference between the families of the former and the latter, except the types of loans.

Posted by: mopar at July 9, 2009 12:13 PM

" If you mean it's because the housing stock has been run into the ground and ruined by various nefarious forces of the last three years such as flippers, ARMs, fraud, and predatory lending, then I would agree"

This year's Wake the F****** up Award goes to Mopar!

The What

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 12:19 PM

Thank you for seeing my point, What.

Posted by: mopar at July 9, 2009 12:37 PM

The sellers look like the most sympathetic case here. The buyers--not so much, on the face of it they look like they were trying to make a quick buck and got caught with their pants down. On the bank side, nice to see the rogues' gallery of crappy subprime lenders eating the losses on this scheme.

Posted by: woodys at July 9, 2009 1:05 PM

The start of more serious investigations to come? Or bread and circuses while the the real culprits relax in the Hamptons for the season...?

Posted by: bridges at July 9, 2009 2:20 PM

Yo What, you read Contagion by John Talbot yet? Me thinks you likey.

Posted by: MoneyForNothing at July 9, 2009 3:31 PM

It's hard to find a house because...

We've essentially been in a real estate bubble that started in 1981--right after Reagan rode into town on a deregulatory horse. It then got a hit of the Nitro tank in 1997 when banks started offering exotic loans.

The final straw was kicking the internet bubble can down the road via Greenspan keeping rates at 1% long after the mini recession ended, and then Rubin/Clinton repealing Glass Steagle, allowing the derivitives market to mutate this mass leveraging of our national balance sheet beyond repair.

Or in short, our national ethos of spending beyond our means and chasing the almighty buck have effed us in the A.

We've been in a cyclical bear market since 2000, this sh*t ain't over by a long shot.

Posted by: MoneyForNothing at July 9, 2009 3:37 PM

"Yo What, you read Contagion by John Talbot yet? Me thinks you likey."

I've heard of it but don't have to read it, I see it!

Man it's gonna be fun very soon...

The What

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 3:38 PM

I've heard of it but don't have to read it, I see it!

Man it's gonna be fun very soon...

The What

Someday this war is gonna end...

Posted by: Return of The What at July 9, 2009 3:38 PM

Why is that, What???? Please, tell us.

Posted by: daveinbedstuy at July 9, 2009 3:47 PM

Asking What a question and expecting a response. Maybe we should all know better by now. At least everyone in my neighborhood responds when you greet them. Don't know where What was raised.

Posted by: daveinbedstuy at July 9, 2009 4:10 PM

Pretentious cognizant mannerism's suffice our palate for entertainment.

Greed was detrimental and felonious in this matter, no question.

But when observing becomes 'seeing-all with disregard to opposing views and or facts, i'd petition this year's "wake the fok up award" to shared rather than singled out.

Step away from the keyboard- it's just the internet.

Posted by: Brooklynchimp at July 9, 2009 7:50 PM

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