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Outcome Of A HUD Scandal

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aprazer

Junior Member
Joined
Feb 27, 2002
Professional Status
Certified Residential Appraiser
State
New York
This is just pathetic. This developer was convicted of multiple charges of fraud in one of the largest scams in the area. Involves hundreds of homeowners-one law firm alone represents 250 buyers. He falsified hundreds of loan docs submitted to HUD, so people who couldn't afford the homes could qualify. About 60% of them are in foreclosure or on the way. The homes by the way were of poor quality and sold at inflated prices to mostly minority buyers. HUD estimated the cost to them at 6 million. They estimated the developer made 20 million.

The outcome? 5 months in jail, 5 months home detention. No restitution. The government dropped the demands for payback as many docs were destroyed in the WTC disaster.

The guys attorney said "we won. We're not paying any money".

This lawyer has previously represented John Gotti and other high caliber individuals.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Now I know. I'm in the wrong business.
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
Thats just unreal......And we wonder why the federal goverment runs at a deficeit every year......I can't help but wonder how in the HELL a judge/jury justified that kind of a settlement - I wonder how often this can be used as a precident for future lawsuits against Developers/number hitters!!!!
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
They estimated the developer made 20 million.

The outcome? 5 months in jail, 5 months home detention. No restitution.

KaChing. They won. ;) They should give him a longer sentence and take everything he's got for restitution. :twisted:
 

wade3333

Senior Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Georgia
AS I heard my dad say "the rich get richer and the po get chullun.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
ya'll know why they call it HUD :question: :question:


DUH - :unsure: :rolleyes: :rofl: :rofl: :rofl:


:ph34r:
 

Dick Hemry GAA

Sophomore Member
Joined
Jan 18, 2002
And i'll bet the overpriced crap properties were appraised by one of the local "lender select" approved FHA *****s. They seem to do the majority of FHA appraisals. Good ole HUD. It's a joke--a big hole to toss taxpayers money into. Bad politics! :beer:
 
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