Monday, August 2, 2010

Boston Feds Pinch Mortgage Broker In Fraudulent Sale Leaseback Foreclosure Rescue Scam; Suspect Stripped Home Equity, Leaving Owner With More Debt

In Boston, Massachusetts, The Herald News reports:

  • A North Dartmouth mortgage broker was charged Monday with defrauding mortgage lenders in connection with a mortgage rescue scheme in Wareham and Tiverton. Ryan Lazar, 31, of Tiverton, has been charged in a written allegation, called an “information,” with three counts of wire fraud, according to a press release issued by United States Attorney Carmen Ortiz, Robert Bethel, Inspector in Charge of the United States Postal Service and Jon Rymer, Inspector General of the Federal Deposit Insurance Corporation.

  • The information alleges that in 2005, Lazar schemed with others to defraud mortgage lenders in connection with the purchases and/or refinancing of properties located in Wareham and Tiverton. For each property, Lazar allegedly submitted false mortgage loan applications, which fraudulently concealed his prior indebtedness and falsely represented that he intended to reside in the property.

  • It is alleged that the Wareham transaction involved a mortgage “rescue” scheme, whereby homeowners who were on the brink of foreclosure purported to sell their home to Lazar. According to the information, in the course of the transaction, Lazar pocketed loan proceeds and ultimately caused the homeowners to incur significantly higher mortgage debt.

Source: Police: 'Rescue' scheme defrauded lenders.

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