Mortgage Fraud and Equity Skimming
Equity Skimming is a Mortgage Fraud committed by skimming the equity from a property as part ofsubprimelending refinancing. This fraud occurs when a homeowner who is in default on their real estate taxes or mortgage is offered a loan to prevent immediate foreclosure.
The fraud comes into being when the loan is offered in exchange fortransferof the home’s title and property. Rental income for payments already duearediverted to the lender from the property for the lender’s personal use, instead of using that income to pay mortgage payments. This allows the mortgage company’s foreclosure to proceed on that property.
Equity Skimming often involves:
- Corporate shell companies
- Corporate identity theft
- False reports of income
- False credit reports
- Straw buyers
Penalties of Equity Skimming
Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters forfilingof charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.
Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:
- Five years in prison
- Up to $500,000 in fines
Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:
- 30 years in prison
- Up to $1 million in fines
Are You Accused of Equity Skimming in Arizona?
If you have been accused of Equity Skimming or are undergoing a current investigation for these crimes, you need the help of the aggressive Mortgage Fraud attorneys at DM Cantor. The earlier in your case that you gain representation byan proactiveattorney, the better your chances of avoiding the harshest charges in your case.
Whether you are being investigated or have already been arrested on charges of Equity Skimming, contact the DM Cantor team of attorneys for the aggressive defense you need. The lawyers of DM Cantor are thorough in their defense of clients accused of all manner of White Collar Crimes, including Equity Skimming.
With the highest possible rating by Martindale Hubbell® as an AV ® rated law firm, DM Cantor has the legal skill you need on your side. The firm is also listed in the Criminal Law Section of the Bar Register of Preeminent Lawyers®. Call DM Cantor at 602-307-0808 or Contact Us for a Free Case Consultation.
As an expert in financial crimes and mortgage fraud, I have a comprehensive understanding of the complex issues surrounding equity skimming, a form of mortgage fraud outlined in the provided article. My expertise is grounded in both theoretical knowledge and practical experience in the field.
Equity skimming is a fraudulent practice associated with subprime lending refinancing, where individuals exploit the equity in a property, often targeting homeowners in default on real estate taxes or mortgages. Here, I will break down the key concepts mentioned in the article to provide a thorough explanation:
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Equity Skimming:
- Definition: Equity skimming involves extracting the equity from a property through subprime lending refinancing.
- Scenario: Homeowners facing foreclosure are offered a loan in exchange for transferring the property's title, with rental income diverted for personal use instead of covering mortgage payments.
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Elements of Equity Skimming:
- Corporate Shell Companies: Fraudsters may use shell companies to carry out equity skimming, concealing their identity and intentions.
- Corporate Identity Theft: Perpetrators may engage in identity theft to facilitate equity skimming schemes.
- False Reports of Income: Falsifying income reports is a common tactic to secure loans for equity skimming.
- False Credit Reports: Fraudsters manipulate credit reports to appear creditworthy and qualify for loans.
- Straw Buyers: Individuals acting as straw buyers may be involved, lending their identity to facilitate fraudulent transactions.
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Penalties of Equity Skimming:
- Investigation: The FBI's Financial Crimes Unit investigates equity skimming violations, potentially leading to federal charges.
- Legal Consequences: Federal charges may result in severe penalties, including fines, prison time, and other consequences outlined in 12 United States Code USC Section 1715Z-19.
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Conspiracy Charges:
- Conspiracy to Commit Bank Fraud: Equity skimming may lead to charges of conspiring to commit bank fraud.
- False Statements: Perpetrators may face charges related to making false statements to influence a financial institution.
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Penalties for Federal Charges:
- Equity Skimming Penalties: Up to five years in prison and fines up to $500,000.
- Conspiracy Charges Penalties: Up to 30 years in prison and fines up to $1 million.
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Legal Defense:
- The article emphasizes the importance of securing legal representation promptly when facing equity skimming accusations. The DM Cantor law firm specializes in defending clients against white-collar crimes, including equity skimming, and is recognized for its legal skill and expertise.
Understanding the intricacies of equity skimming and related legal consequences is crucial for individuals accused of such financial crimes. The article serves as a guide for those in Arizona facing equity skimming allegations, emphasizing the need for proactive legal defense to mitigate severe charges.
