Brooklyn, NY - Spitzer Targets Mortgage Fraud Ring
Brooklyn, NY - A mortgage fraud ring duped home buyers and lenders by falsifying documents and overstating property values, ruining the credit of many people who bought homes in minority neighborhoods, New York Attorney General Eliot Spitzer said.
Spitzer sued 11 people, four defendants agreed to settle by paying nearly $1.8 million to help compensate victims, and accepting increased oversight of, or restrictions on, their activities. Spitzer is seeking fines, restitution and other penalties from the other defendants.
According they bought properties at foreclosure sales or "distressed" prices in Brooklyn's Bedford-Stuyvesant, Bushwick, Crown Heights, East Flatbush and East New York neighborhoods, hoping to "flip" them to make quick profits.
Spitzer said the scheme artificially raised home prices in the area, making it harder to buy and sell, and defrauded lenders who made the bad loans.
posted by VOS IZ NEIAS @ 11/29/2006 04:44:00 PM
32 Comments:
At 4:55 PM,
Anonymous said…
...the Chillul Hashem du Jour, unfortunately....
At 4:59 PM,
Anonymous said…
Chillul Hashem
At 5:15 PM,
Anonymous said…
dont rush to judgement nobody was convicted only charged lets be 'daan lkaf zechus'
At 5:46 PM,
Anonymous said…
first its not haimsha it was bhamisa
At 5:47 PM,
Anonymous said…
How come the attorney general is bringing this suit and not the "BUYERS" - sounds like the buyers were pretty happy themselves!
At 5:49 PM,
Anonymous said…
if you would know how many mitzvahs they did with the money i can understand.
At 5:58 PM,
Anonymous said…
i heard that this "Alleyne" kept on telling them that he will help his family later if any problem will accrue, most of the buyers tried to sell it forward for other stupid family...
At 6:34 PM,
Anonymous said…
I thought that's how every sale is done nowadays - and you call this news?!
At 7:35 PM,
Anonymous said…
there is a halucha that tells you how much you can markup and what profit factor to have. high markup and high profit is highway robbery and against halucha
At 8:20 PM,
Anonymous said…
The problem was not the high markpup. The problem was that they inflated the prices on the legal documents.
At 8:32 PM,
Anonymous said…
Give yourself a turnaround in ANY shul, 60 percent people did this kind of thing or will do this tomorrow
At 8:34 PM,
Anonymous said…
great job! I hope Spitzer won't come after me too
At 9:05 PM,
Shtender Bender said…
Where is that Halachah you claim, that caps a profit one is allowed to make? Can a bunch of Kollel families that bought houses, let's say in Lakewood, and paid fair prices, can they take the builder to Din Torah to claim he made too much money? Nonsense, of course not. No one FORCED you to buy. What if that builder is known as a major Baal Tzedokah, does that make him less righteous if he didn't give away the houses at cost price (or just above cost price by say $10,000.00). Ridiculous. One is Tzedokah and the other is business. You don't walk into a Silver Store whom you know gives generous Tzedokah and say to him I want that 10-branch leichter, here's $500.00 deduct the rest from Tzedokah!!!
The person in Real Estate is in business to buy low and sell high, period. If the market continues to rise over time, you'd feel good. But if the market has a downturn, will you say the seller cheated you? No one forced you to buy. he made it look better that it really was? Then he was a good salesman and you were the poor consumer (uneducated).
At 9:14 PM,
Anonymous said…
To Anon 7:35, or better yet to Am Haaretz- "Ain Onah Be'Karkoas."
At 9:30 PM,
Anonymous said…
but you got to understand that dinah dmolchisa dinah
At 9:37 PM,
Anonymous said…
but aseh dochah lo saish as someone said before that they did a lot of mitzvahs with the money ,
At 1:04 AM,
Anonymous said…
all i can say to this, i can't judge them
At 1:19 AM,
Anonymous said…
were these misheluni?
At 8:18 AM,
Anonymous said…
1:19 AM not misheluni. a banda loi lunis
At 9:35 AM,
Anonymous said…
Jewboy chilul hashem.
My meter is ringing off the hook.
chilul hashem meter, that is.
Thsi spitzer who has been in bed with all the heimishe will be under pressure to sweep under the carpet all the shenanigans and chilul hashems made daily by those claiming to be frum (HA)
Interesting to see how many chilul hashems are corrected under the corruput Spitzer-in-the-bed-with-frum-jews administration.
Some of his lieutenants are frum.
At 9:44 AM,
Anonymous said…
there is a halucha that tells you how much you can markup and what profit factor to have. high markup and high profit is highway robbery and against halucha
----
Really? What Yeshiva did you go to? Does this rule apply to selling stock in a company?
At 10:27 AM,
Anonymous said…
You do not need to be an attorney or talmud chocham to know that it is illegal, fraudulent and theivery to misrepresent the income, purchase price and other financial information (and put false numbers on the loan and transfer documents) to lenders to get a mortgage and close a deal.
Assuming the profit earned is irrelevant, if there was an admission and settlement reached, each of the members acted collusively and in concert to decieve the buyers and lenders (which is illegal, fraudulent and stealing).
At 2:04 PM,
Anonymous said…
lets be honest here , who ever knows about any real estate transaction know's that they didt steal and didt do anything crazy ,
At 2:38 PM,
Anonymous said…
The problems is not about the type of transactions they did because everybody else does it, the problem lays with the people involved whoever knows this kats guy knows what I am talking about.
At 3:24 PM,
Anonymous said…
nothing wrong with does guys at all nice gentelman good hearted and all ,,,
if because of that, you dont know how many guys can be in the same shoe , and we all know it , lets just hope that it ends with nothing,
At 5:27 PM,
Anonymous said…
What has happened to us "frum" yiddin?
When has it become acceptable and okay to steal?
Yes, steal! - when a bank is told in applications, HUDs, loan documents etc. that the property is being sold for and is worth $400,000 and the bank makes a loan of $340,000 (based on the lies provided) only to have to foreclose on the property and recoup only $300,000 (real market value) = $40,000 plus costs and expenses were stolen from that bank and its (at least some Jewish) shareholders!!!)
At 5:29 PM,
Anonymous said…
because of these shwindlers we all pay more for our apartments, and because of the comps in the areas we all pay higher real estate taxes,
what a ripoff
shame on them
At 5:44 PM,
Anonymous said…
it sounds that all the wrong doing is on the buyers side ,
At 6:00 PM,
Anonymous said…
lets be realistic here , what they did isn't stealing or swindle everyone is entitle to make money and they did not cause you to pay higher taxes ,
and to anon 5;29 I bet if spitzer take your cards on the table he will be able to find worse things then that to call swindle . and shame on you to judge guys on your low knowledge.
At 12:21 AM,
Anonymous said…
Misrepresenting the financial data on loan applications is a FEDERAL CRIME. It's a felony, not a misdemeanour. It's called bank fraud. People convicted of this kind of crime usually sit for 5 - 10 YEARS. So think twice or three or four hundred times before you try and pull this shtick that is so "ragil" by unzere chevereh.
The fact that a person gave so much money to tzeddokah is irrelevant because botze'ah berach nietz Hashem. The Eibishter doesn't want anybody to buy his way into gan eden. The first question a person is asked in the beis din shel maa'lah is nosasa venosata b'emunah. Not how much money did you give.
The question here is not about profits or ona'ah it is bank fraud. In relation to bank fraud there is no question that it is assur. Because even if you would find a heichi timtzeh according to Choshen Mishpat (which is highly unlikely) Dina D'malchusa Dina applies. Any so-called heter for "shtik" applies only to programs where you are getting stuff from the malchus. Not individual banks which are owned by shareholders
Ich hob moyreh az di neyah governor vais tzu fil fun unzere shtik.
At 12:44 AM,
Anonymous said…
If one really has emunah and bitachon that all his parnasah is what was meant for him, that on Rosh Hashana it was decided, he would understand that if G-d intended for u to have it it will come your way, and "He" definitely doesn"t want u 2 earn it dishonestly. This said; Let's all be "Dan L'kaf Z'chus" at least some of the parties involved may not have been
"in on it" and let's hope and pray for a yeshua!
At 12:47 AM,
Anonymous said…
Shame on everyone in this blog who's writing bad things without knowing the full, true story. Either way, the situation is unfortunate, and no-one can judge.
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