That collects and evaluates information about financial purchases in order to combat financial crimes, including home loan fraud, money laundering and terrorist financing. The FinCEN network is a way of bringing people and information with each other to combat complex felony financial transactions such as mortgage fraud and money laundering by implementing information sharing among police force agencies and its other partners in the regulatory and financial communities. South Carolina legal representatives can keep informed of mortgage fraud advancements by visiting the individual websites of the FBI and FinCEN.
In Sc, mortgage fraud is generally prosecuted by federal prosecutors. The United States Attorney’s Office (USAO) and the U. T. Department of Justice’s (DOJ) Criminal Fraud Section deal with the criminal prosecutions of mortgage fraud cases. The USAO in South Carolina has about 50 prosecutors in their state, and has offices in Charleston, Columbia, Florence, and Greenville. In the investigation stage, a person with possible knowledge or involvement in a home loan fraud may be considered a witness, subject or target of the exploration. A subject is generally a person the prosecutor feels may have committed a home loan fraud crime, whereas a target is a person the prosecutor believes has committed a crime such as mortgage fraud and the prosecutor has substantial evidence to support a criminal prosecution. Criminal prosecutions of mortgage fraud crime cases are usually initiated through the federal great jury process. A federal government grand jury involves between 16 and 23 great jurors who are offered evidence of alleged criminal activity by the government prosecutors with the aid of law enforcement agents, usually FBI special brokers. No less than 12 members of the grand jury must vote in favor of an indictment charging home loan fraud https://plus.google.com/109023528654132351817.
In an collateral skimming mortgage fraud structure, an investor often makes use of a straw buyer, false income documents, and fake credit reports to acquire a mortgage loan loan in the straw buyer’s name. After the closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all legal rights to the property and offers no guaranty to title. The investor does not make any mortgage repayments, and rents the property until foreclosure takes place several months later. Equity skimming also occurs when a scam artist purchases a house whose owner is in default on his mortgage and/or his real estate taxes, and then diverts rental income from the property for personal gain and does not apply this rental income toward mortgage payments, the payment of taxes and other property-related expenses.
The number of defendants that a SC criminal legal professional will represent in a typical mortgage fraud case may include straw borrowers or nominee borrowers, realtors, developers, appraisers, mortgage brokers, or even closing attorneys and brokers. Bankers often get involved in mortgage fraud ripoffs because they are obtaining kickbacks from the borrowers or are paid bonus deals for the volume of loans made and therefore ignore proper banking loan requirements and protocols in order to make more money. Close scrutiny should be given to bank loan applications, appraisals, HUD-1 closing claims, borrower’s W-2 and taxes returns when analyzing any mortgage fraud case for any client.
In the silent second mortgage fraud structure, the buyer borrows the down payment for the purchase of the property from the seller through the execution of any second mortgage loan which is not revealed to the lending lender. The lending bank is fraudulently led to assume that the borrower has invested his own money for the down payment, when in fact, it is lent. The second mortgage is generally not recorded to further conceal its status from the primary lending bank.