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Condo scam's trail begins in Brevard

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Pamela Crowley (Florida)

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Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Condo scam's trail begins in Brevard

http://www.floridatoday.com/apps/pbcs.dll/article?AID=/20080921/NEWS01/809210331
Patrick Newman died two years ago in a Boca Raton hotel room as bankers and the FBI closed in on his condominium-flipping scam.
Without Newman to pursue, the bank has sued the people it claims helped him carry out his scheme: Melbourne law firm Schillinger & Coleman and Satellite Beach-based Southeast Real Property Appraisers. With their help, Newman flipped condos at inflated prices to shell corporations he had set up to hide his involvement, with National City financing the deals and Newman pocketing $12 million to $15 million, according to lawsuits filed by the bank in federal court.
Before Newman's move to South Florida, he bought and sold real estate from about 1999 to 2004 in Brevard, where he met and hired Melbourne lawyers Charles Schillinger and Chris Coleman and Satellite Beach appraiser Mary K. Gibson, owner of the now-defunct Southeast Real Property Appraisers.
Gibson, the appraiser, also responded that her firm conducted the appraisals but had no knowledge of fraud.
At the time of the loans, National City didn't question the loan applications, appraisals or statements of ownership, according to the lawsuits.
I hope many appraisers will post comments there and turn the comments AWAY from politics.
 

Mike Kennedy

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Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
"At the time of the loans, National City didn't question the loan applications, appraisals or statements of ownership, according to the lawsuits."

Let sleeping dogs lie until they rise up and bite you.

Don't ask - Don't Tell, just MAKE THE LOAN .......NOW !!!!!!!!!

We reallllllllllly don't wanna know. Just gimme the damn Numbers and make em Work!!!!
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
It's a sad story for all involved. If such a flipping scheme is well designed, there is little reason for anyone to question anything. Until the straw buyers and the lender get burned, there is nothing to cause a red flag to anyone outside of the straw buyer.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
They need to start looking in Galveston new construction Condos, and the Gulf Coast speculation land developements. Many investor Flippers. This is not the first time I post this.
 

Smokey Bear

Elite Member
Joined
Dec 8, 2004
Professional Status
Certified Residential Appraiser
State
California
I wonder if the guy is really hanging out on the same beach as Kenneth Lay? Wonder who's body they dumped in the hotel room with Newman's ID?
 

Eli Weiss

Senior Member
Joined
Nov 28, 2005
Professional Status
Certified Residential Appraiser
State
New York
There is someone going by the name of FraudFighterAppr who posted this.

Hint: Any buyers that want a relatively honest appraisal should apply for their mortgage at a LOCAL Credit Union or LOCAL Bank - NOT one of the big ones! Please do not use or rely on anyone recommended by someone with a commission riding on your loan closing. Almost all the big banks are now using Appraisal Management Companies (AMCs) that will charge you at or above the 'normal' appraisal fee, but seek out only the appraisers that will do the job for $150+/-, or even less, which typically means the appraiser that will accept that kind of extremely low fee either cut major corners or are simply too dumb to be competent and honest. Typically, the most competent and honest appraisers do not work for these AMCs, which means they do not work for the big lenders. Then again, some will do whatever it takes to keep a lender client just to keep paying orders coming in, even for the local lenders. Again, buyers beware.

Such a comment on a public website is irresponsible, confuses the consumer and develops a distrust in our profession.

It is tough times right now, and many appraisers are struggling to put food on the table, I urge all "AMC appraiser attackers" to show restrained and respect to their peers, you can't generalize a whole hard working population just because they work for AMC's, I know many of them, and they are all highly competent and ethical, and to refer to them as dumb can only a cynical and bitter person, I don't want to offend anybody, and my apology if I did....
What I saw was just the opposite, the fraud appraisers always worked for the comp checking and value pressured MB's, and the honest appraiser who didn't want to do comp checks and and value pressure harassment's worked for the AMC for a lower fee, so he can be ethical and sleep at night....
The war against the AMC's should be directed at them, and not at their hard working Americans, I got more respect for the AMC appraiser, then a Lehman Brothers employee who just lost his job.

Fact: most lawsuits against appraisers, involved appraisals for MB's and not AMC's.

Pam, as always I respect your courage and mission, and thanks for the link.
 
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Marc Lamb

Freshman Member
Joined
Nov 19, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Pam, there is a complex in Merritt Island which might make this look like stealing a piece of gum from a candy store.
 
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