Foreclosure Frauds and Scams

California Foreclosure Fraudster Nailed

California Foreclosure Fraud Artist Sentenced for Bank Fraud

aahhhhhhhhh, things are heating up for the foreclosure and loan fraud folks.  The Feds and state governments have really been active lately.

This came to me from the Mortgage Fraud Blog.

Christopher Craig, 35, Auburn, California, pled guilty to bank fraud and was sentenced to 60 months imprisonment followed by five years of supervised release and was ordered to pay $975,000 in restitution. 

According to the Indictment, the defendant approached homeowners who were on the verge of having their homes foreclosed on by their mortgage lenders.  Craig promised to loan them money but instead created documents deeding away their residential properties to co-defendants who acted as “straws” and then applied for home equity loans from Washington Mutual Bank claiming falsely that they were the true owners of the properties and that there were no pending mortgages on the properties.  In total, Washington Mutual disbursed $1.2 million which ended up in Craig‘s bank accounts; Craig paid back one of the loans before indictment, but still owed the bank $975,000.  The homes Craig used to perpetuate this scheme were located in Auburn, Lincoln, Stockton, Elk Grove, Sacramento and Manteca, California.

Co-defendants Donald Edgecomb, 35, Trevor, Wisconsin, and Jacob Esteves, 35, Auburn, California, previously pleaded guilty to lesser offenses and will be sentenced next month.

Attention:  State laws can change frequently.  Make sure you check for updates with your state or professional legal counsel.