David Saks: MAN WILL PAY $5MIL FOR ALLEGEDLY DEFRAUDING HOMEOWNERS, LENDERS

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

MAN WILL PAY $5MIL FOR ALLEGEDLY DEFRAUDING HOMEOWNERS, LENDERS

Man Agrees to $5M Civil Penalty for Allegedly Defrauding Homeowners, Lenders

Terrill “Terry” Meisinger, Seal Beach, California, agreed to a $5 million civil penalty in connection with allegations of a massive fraud targeting homeowners, renters and lenders.

The penalty was part of a settlement agreement to resolve a lawsuit filed by the United States Attorney’s Office in June 2011. United States District Judge Virginia A. Phillips  signed an order concluding the case against Terry Meisinger and prohibiting him from participating in the home finance or real estate industries for a period of 10 years.

In the civil lawsuit, federal authorities accused Meisinger of orchestrating a foreclosure rescue scheme that bilked both homeowners and lenders. The scheme resulted in significant losses to federally insured financial institutions and the U.S. Department of Housing and Urban Development (HUD). The lawsuit was based on an investigation conducted by special agents and auditors from the HUD Office of the Inspector General (HUD-OIG). The complaint alleged that Meisinger’s scheme involved mail fraud, bank fraud and false statements affecting a financial institution, which violated the federal Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The complaint alleged that Meisinger contacted individuals who were facing imminent foreclosure and promised that he could help them avoid foreclosure and save their credit. Meisinger allegedly told distressed homeowners that if they deeded their houses to him and immediately moved out, they would receive a small cash payment, typically from $500 to $1,000, with the promise that Meisinger would bring their mortgage payments current and pay them an additional $5,000 to $10,000 when he eventually sold their properties.

According to the lawsuit, instead of taking action to bring the mortgage payments current, Meisinger immediately transferred the properties into the names of unknowing third parties whose identities he had stolen, and then fraudulently filed sequential bankruptcy petitions in these names. The court filings triggered successive automatic stays that prevented lenders from foreclosing. As alleged in the complaint, these fraudulent tactics in Bankruptcy Court allowed Meisinger to rent the properties for extended periods – up to three years on some properties – by repeating this fraudulent transfer and bankruptcy scheme with scores of stolen identities.

Authorities believe that between 2000 and 2004, Meisinger collected more than $1.5 million in illicit rents from renters in more than 100 properties, most of which were in the Inland Empire, California, and never made any payments on the mortgages. During this five-year period, authorities estimate that Meisinger caused more than 300 bogus bankruptcy petitions to be filed in the names of numerous individuals who had no knowledge their identity was being used. When lenders were finally able to secure dismissal of these fraudulent bankruptcy petitions and complete foreclosure, the renters lost their deposits and rent payments and, in some cases, were evicted and left homeless.

In agreeing to pay the $5 million settlement, Meisinger did not admit to liability or violation of any law. As part of the settlement, Meisinger is also barred from filing any bankruptcy petitions on behalf of himself or any other person or entity without prior court approval.

“This is one of the largest civil mortgage fraud cases ever brought against an individual,” said United States Attorney André Birotte Jr. “The $5 million judgment and injunction against Meisinger demonstrate our commitment to using civil remedies, such as the FIRREA statute, to protect everyone, including vulnerable victims like those seen in this case.”

James Todak, the Special Agent in Charge of HUD-OIG, stated: “Our objective is to ensure that the public is not taken advantage of when they have fallen on hard financial times. Distressed homeowners are particularly vulnerable to this type of fraud. An important message has been sent today to those who prey on upon homeowners who are seeking financial assistance with their mortgage. This type of fraud not only affects individual families, it also affects the housing market.”

source: MFB




David Saks



Time&Temp Memphis

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Comment balloon 3 commentsDavid Saks • August 08 2012 08:44AM

Comments

Thank you for the great education.  I learned so much from your post.
Posted by Lucas Taylor (Keller Williams Miami Beach ) over 7 years ago

I don't understand how someone even comes up with this scheme and then has the nerve to do it.  I frankly think he got off easy on his punishment.

Betty

 

 

 

 

 

 

Posted by Team Honeycutt (Allen Tate) over 7 years ago
David. It's amazing to me what convoluted schemes people get involved in. Your post is very informative and it's encouraging that someone is finally going to pay for the fraud they committed on the homeowners and the unsuspecting individuals of identity theft. Truth is often stranger than fiction.
Posted by Nancy Lamb, & Loving AZ Team-Fountain Hills AZ (Home Smart LifeStyles) over 7 years ago

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