Foreclosure Mortgage Fraud In Hawaii

July 4th, 2008

The number of foreclosure mortgage frauds in Hawaii seems to be increasing – the FBI is investigating 80 and five have been already indicted. About a dozen investigations are on – part of a nation wide clamp down. It is estimated that the victims lost about $1 billion as a result of foreclosure related frauds.

The feds are prosecuting 400 persons. Of these five have been indicted. US attorney Ed Kubo comments that this is just the beginning of the fraud story. Over 80 people are entangled in a dozen separate fraud cases being conducted by FBI. All are related to mortgage matters. Not only in Hawaii – this is part of the operations of FBI to flush out the fraud culprits. From Chicago, Dallas and Miami 300 have been arrested as a result of Operation Malicious Mortgage.

Janet Kamerman is the FBI special agent in charge but she was reluctant to disclose details on the investigations being carried on in Hawaii. The persons hold different posts in the mortgage hierarchy and the mortgage schemes are also varied. She said ‘they range from foreclosure bailout, illegal property flipping to identity theft.” In the fray are old as well as new companies.

FBI feels that the moving force behind these frauds is property flipping. It is illegal to buy a property and then sell it quickly without the lapse of a proper time gap. The price was artificially inflated with hardly any legitimate signs of rehabilitation. However property fraud is not as bad here in Hawaii as it is on the mainland. Hawaii was listed 38th in the national mortgage fraud rankings. However this does not alleviate the reality and hard suffering of those undergoing monetary loss.

The local banks are not under a cloud of suspicion by the Feds. They are regarded as victims of the nasty game plan. The Feds are appealing to the people to contact them if they have any doubts about any person or group. On the other hand if facts are suppressed then they will be held liable for abetment.

The exact number of people who were displaced from their houses because of these fraudulent activities has not yet been detailed. The nature of the fraud was varied – mail fraud and wire fraud as well as submission of false statements. The guilty are accused of making false promises, forging papers and misrepresenting the credit credentials of those who applied for loans.