"Based on the bogus information, the buyers obtained loans that were sometimes twice as much as McLaren had paid for the houses, investigators said. McLaren and Hickey shared the profits from the transactions, authorities alleged, and paid King a fee for his appraisals"
Let's see ... the guys who split the profits and the guy who got $250 per appraisal face the same charges.
I bet you they promised the appraiser all of their work.
One of the things that really bothers me is "Indiana has the highest foreclosure rate in the country"!
That appraiser has had a license for a LONG time! He should have known better! And probably does, but when you have tons of business coming in.....well, need I say more! Sooner or later - it catches up with you! I'm glad Indiana is CRACKING down on these people - it is about time! Just looked up this guys license though - and it is still listed as ACTIVE! Says alot for the License Commission!
My business has been slow this year, and I've had brokers actually tell me it is because I am honest! Maybe now that this story has broke, my business will pick up - if there is need for an honest appraiser!
I don't think you can equate "That appraiser has had a license for a LONG time! He should have known bet
ter!" with the outright fraud that he was involved in.
This latter is way outside of lobbing a few "hit-the-number" appraisals over the fence to a client.
The appraisals that made the fraud scheme work were of his own doing and so completely out of bounds. Remember, every fraud trick that happens is in the end caused by an appraiser who has gone wrong!
And, like the Forum says every 2 or 3 days: 'Appraisers perform these services for a pittance (read standard fee).'
I too will perform these fraudulent appraisals for a 40% split of the net proceeds. But I'll only do it for three months and then be gone -- having a face lift and shoe lifts with space for my DF scramblers.
The game is simple. It hasn't changed in the years I've been in business. It's not a shell game. It's very straight foward. It depends on the right documents, the intent to deceive and a matching support system.