David Saks: July 2012

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

FORECLOSURE RESCUE SWINDLER PLEADS GUILTY - VICTIM HOMEOWNERS EVICTED

Business Owner Pleads Guilty in Mortgage Fraud Scheme That Cost Lenders More Than $1 Million
Homeowners Turned to Her to Avoid Foreclosure, Wound up Evicted

U.S. Attorney’s Office July 26, 2012
  • District of Columbia (202) 514-7566
 
 

WASHINGTON—Carline M. Charles, 41, who operated a business that supposedly would rescue distressed homeowners from foreclosure, pled guilty today to conspiracy to commit bank fraud for her role in a mortgage fraud scheme that cost lenders at least $1 million, announced U.S. Attorney Ronald C. Machen, Jr. and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

Charles, of Silver Spring, Maryland, pled guilty in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled her sentencing for October 24, 2012. Charles faces a statutory maximum of five years in prison as well as fines and other penalties. As part of her plea agreement, she agreed to the forfeiture of a money judgment of $838,978, representing her share of proceeds of the crime.

According to a statement of offense, signed by the defendant as well as the government, Charles represented herself as the owner of C&O Property Solutions LLC, a company that offered refinancing options to homeowners in the District of Columbia and Maryland whose properties were facing imminent foreclosure. In fact, she was operating a scheme that ultimately involved 12 homes along with fraudulently obtained mortgages, financial losses for lenders, and evictions for many of the people who turned to her for help.

Charles and others contacted homeowners through solicitation postcards or by telephone, using foreclosure and land records to identify people who were in financial distress. Charles told the homeowners that they could refinance their mortgage loans with the assistance of financial partners or investors so they could buy time to repair their credit. She assured them that their names would remain on the property deeds after this “refinancing.” Later, after a period of about six months, according to Charles, the homeowners could refinance the mortgages and remove the partners or investors from the property deeds.

While the homeowners believed they were refinancing their mortgage loans, in actuality, they were selling outright their properties to straw purchasers recruited by Charles. Charles and others paid the straw purchasers fees of up to $10,000 per transaction in return for use of their personal information to purchase properties. All told, these actions led to mortgage lenders issuing loans of approximately $4 million. Charles arranged to siphon out roughly $1 million of this money from the properties for herself or her company. She used the money to pay her own personal expenses and to continue perpetuating the scheme.

In addition, Charles required many of the distressed homeowners to pay a monthly “mortgage” payment, which she claimed would be forwarded to the lenders or placed in escrow. Many homeowners paid her, as required, providing a total of about $114,000. Charles forwarded the mortgage payments for a period of time but eventually stopped doing so. This led to the foreclosure of 12 properties that had the fraudulently obtained mortgages, the evictions of most of the homeowners, and a loss to the lenders of between $1 million and $2.5 million.

In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge McJunkin commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Zia Faruqui, who assisted with the forfeiture aspects of the case, Assistant U.S. Attorney Daniel Butler, and former Paralegal Specialist Sarah Reis. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.

source: FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • July 27 2012 09:59AM
FORECLOSURE RESCUE SWINDLER PLEADS GUILTY - VICTIM HOMEOWNERS EVICTED
share
Business Owner Pleads Guilty in Mortgage Fraud Scheme That Cost Lenders More Than $1 Million Homeowners Turned to Her to Avoid Foreclosure, Wound up Evicted U. S. Attorney’s Office July 26, 2012 &… more
YET ANOTHER MORTGAGE BROKER TURNS OUT TO BE A GUILTY SWINDLER
share
Mortgage Broker Pleads Guilty in Fraud Scheme He and Others Used “Straw Buyers” to Cash in on Proceeds of Loans U. S. Attorney’s Office July 25, 2012 District of Columbia (202) 514-7566 … more
REAL ESTATE DEVELOPER GUILTY - $16 MILLION DOLLAR GOLF COURSE SWINDLE
share
Former Carmel Real Estate Developer Pleads Guilty to $16 Million Golf Course Investment Fraud Scheme Defendant Defrauded Investors in Unsuccessful Attempt to Complete Jack Nicklaus-Designed Golf Course That was Scheduled to Host PGA Tour Event… more
REAL ESTATE INVESTOR GUILTY OF BID RIGGING AT FORECLOSURE AUCTIONS
share
Alabama Real Estate Investor Pleads Guilty to Conspiracies to Rig Bids and Commit Mail Fraud for the Purchase of Real Estate at Public Foreclosure Auctions U. S. Department of Justice July 24, 2012 … more
Real Estate Practice : Lesson 1760
share
#1760 When we consider the distance between the east and west boundary lines of any township the distance between the boundary lines is six miles. Is this true or false Please… more
Real Estate Practice : Lesson 1759
share
#1759 When we speak of a township a township contains 36 sections that are numbered 1 through 36. In each instance, the last township will be located in the northeast corner. … more
Real Estate Practice : Lesson 1758
share
#1758 The most important thing one should consider when trying to determine whether or not an iten is a fixture of personal property is how the item is being used in relation to the property… more
Real Estate Practice : Lesson 1757
share
#1757 Nearly every real estate brokerage has an obligation to pay for a salesperson's cell phone bill, continuing education and gasoline. Is this true or false Take your time on… more
Real Estate Practice : Lesson 1756
share
#1756 When a salesperson has to pay a desk fee the desk fee is used to pay for meals and never used to pay for the office facilities or as a substitute for the agent's commission. … more
Real Estate Practice : Lesson 1755
share
#1755 When a real estate agent considers himself an employee or an independent contractor the consideration will have an impact on whether or not the broker will have to pay social security… more