|
 White Plains, NY - Westchester County has some of the most expensive real estate in the country. Although we can all be targeted by individuals committing all kinds of frauds during these tough economic times, the elderly can be particularly susceptible.
Fourteen percent of the county’s nearly 1 million citizens are 65 years of age or older, who are often targeted in crimes such as mortgage fraud, home equity stripping scams and fraudulent appraisal reports.
Prosecution of mortgage fraud is a resource intensive and extremely time consuming. Investigations can take months of intensive forensic accounting and investigative work.
Accordingly, I have taken the following immediate steps to both alert and protect the citizens of this county:
I have formed a task force to actively investigate mortgage fraud. This task force consists of three investigators, including a financial investigator from the New York State Banking Department, a certified public accountant and an experienced white collar prosecutor. Additionally, I have reached out to other agencies on the Federal, State and local level to secure assistance so that we may all work as a collective to combat this new epidemic.
I have requested over 1.1 million dollars over a two year period from the United States Department of Justice – Bureau of Justice Assistance Byrne Grant Program to augment and enhance our ability to continue combating mortgage fraud. This capital grant will allow us to add staff vitally needed in the fight against real estate fraud.
Senator Chuck Schumer has introduced a bill in the Senate – The Fighting Real Estate Fraud Act of 2009 – requesting additional money from the Federal government, specifically for local prosecutors, for specialized staff that again will enhance our ability to investigate and prosecute mortgage fraud.
Awareness is your best defense. Get everything in writing. Do not agree to a deal orally.
Use your common sense; if something looks too good to be true, it probably is.
Don’t fall for some of the most common scams and schemes such as:
Equity Skimming - which generally applies to a con artist purchasing a property when the owner is in default on his mortgage and then the con artist divert the rental income from these properties for personal gain rather than applying the rental income towards mortgage or property tax payments.
Foreclosure Rescue - where con artists often target victims who are in a desperate situation with their property about to be foreclosed upon. They may target their victims by mail, telephone, e-mail or flyers. Be aware if someone claims that they can help you stave off your foreclosure by offering to pay your mortgage and rent your home back to you so that you can remain in the home you’ve perhaps owned for many years. This scam often involves signing over the deed to your home with the option to buy it back in the future. Oftentimes the con artist will then mortgage the home above and beyond what the original homeowner’s financial obligations were thereby making it impossible for the homeowner to ever afford to “buy” back his or her own house. Sometimes the property is even sold to another third party without the homeowner’s knowledge.
Desperate homeowners facing foreclosure may be solicited by con artists who claim that they can help stop or delay an impending foreclosure for an up front fee. Be wary of any of these solicitations. Oftentimes these scammers claim to have a special relationship with your lender thereby making them appear more credible. However, do not fall victim to this as most lenders are willing to work with a homeowner directly so that there is no need to work with an unknown con artist who claims he can save the day.
My office has had success in the prosecution of these types of cases.
In one recent case a disbarred lawyer was sent to state prison for four and one half to nine years for misrepresentations which lead to a two million dollar mortgage fraud perpetrated on two different banks.
In another case a mother and son were sentenced to state prison for stealing the equity of a house left to their disabled cousin.
Additionally, we will continue to educate the public by speaking to community groups, producing a Public Service Announcement and distributing pointed written material about these crimes in an effort to stem the tide of mortgage fraud.
If you or someone you know has been victimized, you can call (914) 995-3303 to file a complaint.
Additional information regarding this topic can be found on out website at www.westchesterda.net.
 |
