As dozens of people have been arrested in a $14 million real estate scam that involved properties in Southwest Florida, authorities say the scam hurt an already fragile real estate market.
The general allegations are that defendants recruited straw buyers who furnished fraudulent information when applying for loans. Then appraisers would overstate the true selling price of their properties.
Authorities say at the closing table, the title company would approve loans under the names of the straw buyers. The defendants would then pocket the extra cash. "Our indictment charges individuals in almost every part of the mortgage business, brokers, bank employees, title agents, appraisers, straw buyers and even buyer recruiters," said State Attorney Alexander Acosta.
A total of 31 people were arrested. Acosta says there were 28 properties involved valued at $14 million. Most of them were on Marco Island. Marco resident Bruce Marchette lives next to one of the houses. He says his so-called neighbors never lived here and no one has been in the home for five months.
"They only rented it out. I don't think anyone ever lived here," said Marchette. "We were definitely surprised." The question now is how did these houses on Marco Island ever get involved in this operation? Marco Island Police Chief Roger Reinke says there is one reason - price values.
"The prices of homes on Marco Island are high so they probably can maximize their money," said Reinke. The investigation began after state law enforcement officials announced a federal-state mortgage fraud initiative three months ago.
Vanessa Arellano Doctor
http://miamirealestateinc.com
