REAL ESTATE FRAUD CHARGES
Recently, there has been a rise in real estate fraud. Consequently, the federal government has begun actively investigating and prosecuting alleged real estate and mortgage fraud schemes involving investors, brokers and straw buyers. Because the consequences of conviction are so severe, it is important that you hire an experienced and knowledgeable federal criminal defense attorney who can provide you with proper representation in mortgage fraud or real estate fraud cases. At Kestenbaum, Eisner, & Gorin, LLP, our attorneys have over 50 years combined experience in criminal defense and will help to provide you the best defense available.
Real estate fraud as defined involves a number of schemes to defraud a federally insured lending institution (a bank). There are various mortgage fraud schemes, ranging from silent second schemes and foreclosure schemes to schemes involving inflated appraisals and air loans. Most mortgage fraud or real estate fraud cases involve one of the following:
- Nominee/straw buyer loans to purchase property: A straw buyer is used to purchase property for an investor who may not otherwise have qualified for the loan due to multiple other property loans. While the investor had the intention to resell the property within months for profit, the sudden drop in the market causes the investor to default and get caught in the property flipping scheme. While the property flipping scheme had legitimate and legal intentions, the investor faces fraud charges for the deception used to purchase the real estate.
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Inflated appraisals: Straw buyers are used to purchase property on behalf of an investor. The property is sold and repurchased several times, each time at a higher price through the use of corrupt appraisers, title companies, and other individuals. Proceeds are often pocketed by the investor, appraiser, broker or other interested party.
Real estate fraud charges are very serious. Defendants may be prosecuted not only on the actual loss caused by the mortgage fraud scheme, but also on the intended loss. While prosecutors will try to use every tactic available to inflate the intended loss in federal mortgage fraud cases, at Kestenbaum, Eisner, & Gorin, LLP we have the experience and knowledge to effectively challenge the valuations and minimize the intended loss, thus reducing the potential consequences you may face.
If you have been accused of real estate fraud, contact us at Kestenbaum, Eisner, & Gorin, LLP, to discuss your case today.