David Saks: California Man Confesses to HELOC Scam

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California Man Confesses to HELOC Scam

 

California Man Admits HELOC Scam

Larry P. Corbi Jr., 36, Buellton, California, was sentenced to 21 months in federal prison for defrauding banks by nearly simultaneously seeking home equity lines of credit from four different federally insured financial institutions.

Corbi, who resided in Marina del Rey during the course of the scheme and has since relocated to the Central Coaset, was sentenced by United States District Judge Dale S. Fischer. In addition to the prison term, Judge Fischer ordered Corbi to pay $356,644 in restitution.

Corbi pleaded guilty in November 2010 to one count of bank fraud, admitting that he fraudulently filed four applications for home equity lines of credit (HELOCs) over a two-week period in 2008. According to a plea agreement filed in this case, Corbi bought a $620,000 home in the Granada Hills district of Los Angeles, California, in November 2007. In March 2008, Corbi applied for four HELOCs in amounts ranging from $122,000 to $191,000 from Washington Mutual Bank, GMAC ResCap, Countrywide Bank F.S.B., and Metlife Bank/PHH Mortgage Corporation. Corbi concealed from each financial institution that he was concurrently applying for other HELOCs that would also be secured by the Granada Hills home. Three of the four HELOCs were approved and funded.

In total, Corbi obtained $672,144 in loan proceeds, which included $200,000 he borrowed to purchase the Granada Hills home. When the home went into foreclosure, the banks that had loaned money to Corbi suffered losses totaling $356,644.

The case was investigated by the Federal Bureau of Investigation.

Courtesy Rachel Dollar




David Saks



Time&Temp Memphis

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Comment balloon 6 commentsDavid Saks • May 25 2011 05:16PM

Comments

David,

I commented on this last night, but my comment wasn't here.  Did you delete it?

Posted by Lloyd Binen, Silicon Valley Realtor since 1976; 408-373-4411 (Certified Realty Services) almost 9 years ago

No, might have reposted by accident, Lloyd, from the draft queue. I do that occasionally. Sorry about the mixup. I don't post these articles for points, by the way. Just a community service for AR readers. Thanks for commenting.

Posted by David Saks ((retired)) almost 9 years ago

When Borrowers sign a loan application it states something like: "Under penalty of perjury the information contained in the loan application is true and correct, and giving false information is fraud."  Something like that.  (I don't do loans and never have so I'm not positive of the verbiage.)  When I started selling RE in 1976 borrowers took that warning seriously, and there was very little fraud.  Over the years mortgage fraud slowly became commonplace and even the norm in some parts of this county.  One reason is there was never any enforcement of mortgage fraud violations.  Lenders weren't losing money so they didn't care. 

Personally, I like seeing some enforcement although it's closing the barn door after the cows or horses left the barn.  And I can't imagine this guy paying restitution.

Posted by Lloyd Binen, Silicon Valley Realtor since 1976; 408-373-4411 (Certified Realty Services) almost 9 years ago

He put the cap back on the empty bottle and resold the same bottle to four buyers, Lloyd. There's an abundance of vigilance today and the prosecution is abrasive, as it it should be in a case like this. I absolutely agree with you that enforcement, social control and carefully observant, attentive, watchful eyes must on the lookout for any possible danger within the lending sphere.  It also appears that the prosecution took three years to obtain the verdict and sentence.

Posted by David Saks ((retired)) almost 9 years ago

Just incredible that these issues continue to surface.  What happened to working with intergrity, respect, and credibility.

Posted by Michele Peterson, Sellstate Realty First (Sellstate Realty First) over 6 years ago

If I offered you a dollar for every ounce of integrity, respect and credibilty in today's real estate business you'd end up with 65 cents, Michelle.

Posted by David Saks ((retired)) over 6 years ago

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