a écrit le 18 septembre 2012 à 11h52 investors†with good FICO scores, which the “credit investors†would use to provisionally purchase the properties for one year, thereby avoiding foreclosure on the properties. During this period, the distressed homeowners could remain in their homes and repair their credit and, at the end of the 12-month period, they could repurchase their homes at a lower interest rate, according to promises allegedly made by DMS. The distressed homeowners were told that, because they had equity in their homes, DMS would be able to draw down on the equity and make monthly mortgage payments on behalf of the homeowners during the one-year period in which they were to repair their credit.
In fact, according to the indictment, DMS took title to more than four dozen properties belonging to the distressed homeowners it targeted and simultaneously misappropriated the existing equity in their homes. Using “straw borrowers†as the “credit investors,†DMS orchestrated loan transactions that allowed DMS to obtain access to the distressed homeowners’ equity. As alleged in the indictment, DMS and its principals falsified the employment, bank account and income information of the straw borrowers on the loan applications. DMS also allegedly fabricated fictitious bank statements to support this false information on the loan applications in order to facilitate the approval of these fraudulent loans.
At the conclusion of these transactions, DMS usually ended up with approximately $100,000 equity per transaction, plus around $35,000 in fees and commissions associated with each loan. In the meantime, each of the straw borrowers ended up owing approximately $300,000 or more on loans that went into default because DMS did not make the 12 months of mortgage payments as promised.
As a consequence of this scheme, the mortgage lenders lost more than $7 million on approximately 50 different fraudulent loans.
Singui and Meghji were arraigned on the indictment on Tuesday afternoon. They both entered not guilty pleas, and a federal magistrate judge ordered them held without bond. Meghji asked for a bond hearing that is scheduled for Tuesday afternoon.
Truong was arraigned yesterday afternoon. He pleaded not guilty and was released on a $100,000 bond.
This case has been assigned to United States District Judge Christina A. Snyder. A trial has been scheduled for November 6.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
In fact, according to the indictment, DMS took title to more than four dozen properties belonging to the distressed homeowners it targeted and simultaneously misappropriated the existing equity in their homes. Using “straw borrowers†as the “credit investors,†DMS orchestrated loan transactions that allowed DMS to obtain access to the distressed homeowners’ equity. As alleged in the indictment, DMS and its principals falsified the employment, bank account and income information of the straw borrowers on the loan applications. DMS also allegedly fabricated fictitious bank statements to support this false information on the loan applications in order to facilitate the approval of these fraudulent loans.
At the conclusion of these transactions, DMS usually ended up with approximately $100,000 equity per transaction, plus around $35,000 in fees and commissions associated with each loan. In the meantime, each of the straw borrowers ended up owing approximately $300,000 or more on loans that went into default because DMS did not make the 12 months of mortgage payments as promised.
As a consequence of this scheme, the mortgage lenders lost more than $7 million on approximately 50 different fraudulent loans.
Singui and Meghji were arraigned on the indictment on Tuesday afternoon. They both entered not guilty pleas, and a federal magistrate judge ordered them held without bond. Meghji asked for a bond hearing that is scheduled for Tuesday afternoon.
Truong was arraigned yesterday afternoon. He pleaded not guilty and was released on a $100,000 bond.
This case has been assigned to United States District Judge Christina A. Snyder. A trial has been scheduled for November 6.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
