Unlike a fraudulent transfer, which is conducted before the debtor files for bankruptcy, a post-petition transfer is conducted after the debtor files for bankruptcy but before the trustee can acquire custody of the property. It is simply the debtor selling or transferring his/her assets without court approval.

Post-petition transfers are generally not illegal in itself; it is more of a misconduct, but law enforcement often uses post-petition transfers as a leeway to further investigate the fraudulent acts of equity skimming and property title skimming.

How does this work?

The perpetrator usually acquires a partnership title to the property but does not assume the mortgages to the property. The management company is then appointed to only collect the rent. The perpetrator conspires with the lender to falsely buy out the mortgage holder’s interest. When the lender files for foreclosure on the property, the transfer of title is repeated several times through straw buyers while using bankruptcies to cover its fraudulent transfers.

In some of the mortgage and bankruptcy fraud cases that we saw, the defendants are often alleged of equity skimming following several acts of post-petition transfers.

In such cases, investigators often begin their inquiries with the transferees (mostly the straw buyers), because transferees ultimately have a greater liability towards post-petition transfers. Admittance and testimonies made by the transferees are usually used to lead the investigator back to the main conspirator.

When a transferee is faced with criminal charges alleging conspiracy to commit mortgage fraud and bankruptcy fraud, he/she may potentially risk losing more than what they bargain for. In order for the transferee to mitigate the evidence already held against him/her, it is necessary to contact a criminal defense attorney at the onset of a bankruptcy fraud investigation.

If you have been investigated or charged for equity skimming in New York, then call our office at (212) 577-6677 to get professional legal assistance.

While making false statements is a widely prosecuted federal crime in a variety of circumstances, making false statements in connection with a financial transaction with a bank or another financial organization has a separate set of required elements.

In cases where defendants are charged with making false statements in a bank transaction, the government must prove the following:  (1) the defendant made a false statement or willfully overvalued property or security knowing that it was false, (2) that the defendant did it in order to influence a decision (3) of the enumerated agencies and organizations.

It doesn’t really matter whether the plan to defraud succeeded and it doesn’t matter whether the bank suffered any damages. The US Court of Appeals for the Second Circuit in New York held that it was no defense that the false statements inflating the amount of the mortgage claim didn’t help in securing mortgage. The only thing that mattered was that the false statements were made for the purpose of influencing the lending institution’s decision.

If you are investigated for bank fraud or mortgage fraud in Long Island, call our Long Island mortgage fraud federal defense attorneys at (516) 2047611 today to discuss your case.

Mortgage fraud is any material misstatement, misrepresentation or omission relied upon by an underwriter or mortgage lender to fund, purchase or insure a mortgage loan. Therefore, if you lie on your real estate loan application, it is considered to be mortgage fraud.

For some, lying on a mortgage loan application to obtain more loans from the lender, may be considered as a harmless white lie, but for federal authorities, it is a violation of 18 United States Code (USC) § 1014 and it is aggressively prosecuted.

Mortgage fraud cases often involve one or more of the following:

• Inflating an appraisal in order to obtain a mortgage for more than a property is worth

• Overstating income or assets the borrower does not have.
• Posing as a borrower on behalf of another who’s actually making the purchase. (Straw Buyer)
• Pretending to provide financial help to an economically stressed homeowner in order to skim off equity from the home.

Federal and state law enforcement have more than doubled their case load for mortgage fraud after the housing bubble forced more homeowners into possible foreclosures. Investigators scrutinize any discrepancies that they may find between submitted and actual information. They usually find these discrepancies to be intentional  fraud.

Long Island has seen a huge increase in federal mortgage fraud prosecutions in the past few years. It is therefore important to contact a criminal defense attorney at the onset of the investigation. If you are under investigation for mortgage fraud in Long Island, call our Long Island mortgage fraud defense attorneys today at 516.202.7611 to get professional legal assistance.

Loan origination fraud is the most prevalent mortgage fraud scheme in New York and  across the country, according to the FBI. To qualify for a loan, borrowers must disclose their complete financial situation, including income, debts, assets, and employment information. Loan origination schemes occur when mortgage brokers and other participants in the loan process falsify a borrower’s financial documents so that the buyer would qualify for mortgage.

We have represented numerous mortgage brokers in loan origination mortgage fraud cases in New York, where the brokers themselves falsified the buyers’ income and employment information by listing the buyers as the brokers’ employees, for example. Sometimes financial documents such as bank statements, tax returns , and W-2 forms are simply forged and submitted to the bank, often with the bank employee’s knowledge.

Mortgage fraud is one of the most important priorities for federal law enforcement. If you need to speak to a mortgage fraud criminal lawyer in Long Island, call us at (516) 204-7611.

Mortgage fraud can be committed by many ways and by many actors in the real estate industry.

One example of mortgage fraud is condominium conversion bailout by real estate developers. Some developers, in attempts to sell properties, promise buyers to give them cash back at closing, make mortgage payments for them, or give them some other incentives. The mortgage lenders are not aware of these incentives and give buyer mortgages. The buyers are eventually left “holding the bucket” when no mortgage payments are made on their behalf and properties are foreclosed. According to the FBI, the builder bailout scheme is prevalent in states with high foreclosure rates. Lately, several defendants in fraudulent builder bailout cases were indicted in Long Island mortgage fraud prosecutions.

If you have a mortgage fraud or real estate fraud issues in Long Island, call our Long Island mortgage fraud defense attorneys at (516)204-7611 to get professional legal advice.