Charges: Mortgage Fraud Ring Takes $8M

Florida officials have arrested 10 members of a mortgage fraud and identity theft ring that allegedly defrauded banks out of more than $8 million.

Florida law enforcement officials allege that the schemers recruited “straw” buyers of Florida properties, who were provided with Florida and New Jersey drivers license and personal identification information of unsuspecting people. Using those identities, the straw buyers obtained credit and purchased properties for which they never intended to make mortgage payments, authorities said. The same properties were resold numerous times, often using the same scheme.

In a July 2 announcement, officials also said that several times, the scheme involved stealing the property from legitimate owners by forging a “quit claim deed” or “warranty deed,” and then transferring ownership of the property to one of the co-conspirators. Overall, the scheme was used to obtain mortgages on 14 properties in Miami-Dade and Broward counties, authorities said. The majority of these properties are currently in foreclosure as a result of the nonpayment of the mortgage loans.

Law enforcement officials nationwide are making similar arrests after similar mortgage fraud and identity theft schemes.  The Florida arrests occurred after a four-year investigation by state law enforcement authorities.