Liability for one-off fraud (2013, appraiser, foreclosed, agent)
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Is a criminal conviction usually pursued for one off isolated fraud? say a person has no other priors, has good reputation in society but engaged in misrepresentation one time (signing or filing a false reconveyence of title, lying on a mortgage application etc.) or are criminal penalties usually pursued for larger cases (multiple counts, large $ amounts etc.)?
Absolutely. I sit on my state's real estate commission board and agents have come before us that have been convicted of fraud (and paid severe fines and done jail time) for a one time occurrence with no other priors.
And some judges will give a harsher sentence for something that might not appear a big deal and another judge a lesser sentence for something that is a big deal. You never know the moods or beliefs or current life events of these people. Idea: Don't commit a crime.
And some states wont extradite. For example, if you committed the crime in Pennsylvania and you move to Arizona, there is almost no chance you will be sent back to Pennsylvania (unless its murder). They simply dont have the money to send you back.
And some states wont extradite. For example, if you committed the crime in Pennsylvania and you move to Arizona, there is almost no chance you will be sent back to Pennsylvania (unless its murder). They simply dont have the money to send you back.
Plus, living free in Arizona is probably worse than our jails.
I have personally reported several instances of various types of fraud - the most recent the first half of 2013. I cannot go into specifics, I can only say I reported on the behalf of others, and only at their request. Not one has worked it's way to the point of prosecution. I know of at least 2 potentially criminal complaints against Realtors, for which they were sanctioned by the BOR, but no criminal charges filed - I can't say why the Ethics Committees didn't assist with charges with the local authorities. The charges where my assistance was requested, they did not occur on my files and they were filed anonymously. One was occupancy fraud that an appraiser and Realtor requested assistance filing. The other was a loan officer (friend) was with another bank/company, she had advised buyer what they were planning wouldn't work unless some information was ommitted. (She didn't put it that way, but that's what they heard). The buyer went to another loan officer at another place. She knew there was no way the loan could possibly be approved, so the evidence was submitted the the complaint.
For whatever reason - reporting someone on a SARs (suspicious activity report) is not actively or overly encouraged in my industry. Sure, we have training that says we must report it......but even when mentioned, "are you certain?" "That's pretty serious, surely you misunderstood." I believe the current environment is keep your mouth shut, don't bring any extra attention to the regulators (everyone dreads contact).
But, the crowning glory along these lines, I know of a convicted pedophile, also a Realtor, with a lockbox key and an entire community in Virginia (this was 10 years ago), unable to do a thing about it. Talk about oversight.
I believe the prosecution of the single man crime is rare....If it's a group, it's a better arrest....But much to my disapointment, the isolated acts of crime don't have a whole lot of attention around here....and until we see employers seriously seek reports of wrongdoings, no one is going to take isolated fraud seriously. I can write here that I see people prosecuted all the time, but it's not true. Until those in the game feel comfortable reporting for themselves, what they see around them that isn't quite right, we aren't going to police the industry as it needs to be. We need to send a clear message to the front lines that fraud is fraud and it can't be tolerated.......not, I can't report it because that agent will never send me another referral.
Going to an industry organization to report a fraud or crime is like reporting a crime to the inmates in a prison. There is a self interest not to make too many waves.
If you are aware of a crime and want to report it, you call either the police if the crime is in progress or the District Attorney after the fact if it involves something like fraud.
In any case, you report crimes to government law enforcement authorities, not industry organizations.
The crime here is misrepresentation. A friend of mine signed a fraudulent reconveyence doc (signed as the rep of the bank holding the lien). This friend just put their signature and they say it was under duress of their relative.
The doc was filed with the county by some agent (not my friend). What is my friends liabilty here?
The current homeowners have filed a civil suit as their home is being foreclosed by the bank despite them buying the home full cash.
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