Saturday, September 22, 2007

'We're Seeing it More and More Every Day'

From KCRA:

The alleged mortgage fraud exposed by KCRA 3 is having a direct effect on property values in Elk Grove. All of the homes at the center of our investigation are now in foreclosure, and property values are plummeting.
[Jim] Martin said he wasn't trying to hurt the investors in any way, and he admits there was illegal activity...By lying on the loan applications and inflating the values of every house involved, Martin admits he and his partners made tens of thousands of dollars in just a matter of months. According to the KCRA 3 investigation, that money was made off commissions alone. Martin also admits he was receiving tens of thousands of dollars in kickbacks from every transaction involved.
Despite a cease-and-desist order issued by the state, it appears two of the targets of our investigation are now operating through a loophole in the law that's allowing them to continue processing loans.
Lawmakers said the investigation uncovered a serious flaw -- one that shows the system isn't working. State Sen. Mike Machado said he's ready to introduce legislation as a direct result of our investigation.

From News10 (and video):
An Elk Grove real estate agent who owns two of the 21 pot houses raided by police on Wednesday sold eight of the others during a whirlwind selling spree last year. Vivian Hoang, 34, is being held without bail after Elk Grove police discovered 505 marijuana plants growing in her house on Wyland Drive. Police also seized 329 plants at a house Hoang owns on Hite Circle...Hoang is a licensed real estate salesperson, and records show she sold eight of the other pot houses during a four-month period last year.
"A total surprise," said Gus Chaveste, an agent at Elite Realty Services in Elk Grove where Hoang worked. Chaveste told News10 Hoang left the real estate brokerage a few months ago to take a job as a loan officer at Wells Fargo Bank.
From the Modesto Bee:
Three Modesto real estate agents were arraigned in Stanislaus County Superior Court on Thursday afternoon on a host of criminal charges stemming from an alleged mortgage lending scheme that may have netted more than $2 million. A 68-count criminal complaint filed by the district attorney's office alleges that Eric Braun, Noah Adam Yates, Douglas Eugene Wallick and seven accomplices created false documents indicating that loans to three properties had been paid so "straw buyers" could get new loans and pocket the proceeds.

Deputy District Attorney Marlisa Ferreira said authorities made arrests in the past three days at the close of a yearlong investigation. She said such schemes take place nationwide and are increasingly common in today's troubled real estate market. "We're seeing it more and more every day," she said.


Sunho said...

Wow, this Jim Martin admits to the crime on camera. Shouldn't he have consulted with an attorney before he did this? He's gonna fry!

SacramentoCrash said...

To the US Attorney;

Wipe that smirk of Jim Martin's face.

Hope you can lock him up for a long time.

He and his fellow "loan consultants", developers and real estate "sales consultants" are responsible for all the newer Elk Grove neighborhoods going into the tank.

The Elk Grove market won't recover until 2012 or later due to the impact of bubblicious prices charged by the developers, bought by the flippers and financed by the unscrupulous.

I hated how smug he was in Josh Bernstein's report.

Sunho said...

Well those indictments should wipe the smug look off of all their faces. Party's OVER.