Jul 30, 2008

Straw buyers, fake rehab jobs and false documents

In 18 months, with 88 houses, three people stole about $7 million, using "straw buyers," fake rehab jobs and falsified documents to drive up property values and bring in mortgage loans.

According to United States Attorney David Nahmias, the large-scale, mortgage-fraud scheme hurt a handful of lending companies and devastated some neighborhoods in Atlanta's West End, unduly inflating area prices until foreclosures brought them back down.

... According to the grand jury indictment, the three "willfully, knowingly and unlawfully" "conspired" and "confederated" "to defraud insured depository financial institutions."

Prosecutors said Kevin G. Wiggins organized the large-scale scam, Lydia Wiggins Christopher managed it and made up paperwork and Frank W. Astwood helped it along.

Read the full story @ the Clayton News Daily:
Three area individuals sentenced for mortgage fraud