Brooklyn, NY - A mortgage fraud ring duped home buyers and lenders by falsifying documents and overstating property values, ruining the credit of many people who bought homes in minority neighborhoods, New York Attorney General Eliot Spitzer said.
Spitzer sued 11 people, four defendants agreed to settle by paying nearly $1.8 million to help compensate victims, and accepting increased oversight of, or restrictions on, their activities. Spitzer is seeking fines, restitution and other penalties from the other defendants.
According they bought properties at foreclosure sales or "distressed" prices in Brooklyn's Bedford-Stuyvesant, Bushwick, Crown Heights, East Flatbush and East New York neighborhoods, hoping to "flip" them to make quick profits.
Spitzer said the scheme artificially raised home prices in the area, making it harder to buy and sell, and defrauded lenders who made the bad loans.
Wednesday, November 29, 2006
Brooklyn, NY - Spitzer Targets Mortgage Fraud Ring
Posted on 1:44 PM by ram
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