Nineteen real estate fraudsters wreak havoc on Kansas City, Mo., neighborhood

Well it is good to be back to Lake Kansas City from Maui, now onward to Big Bear…..When people try to pull off scams and cheat and break the law to make easy money, I often wonder how their minds work. Do they think this sort of thing is normal and most people never get caught? Did they have super permissive parents who never held them to account for anything? Are they sociopaths who just have no capacity to care about others, no conscience? My friend who runs a Kansas City irs audit attorney firm and does specialized law in both Kansas City (especially irs tax and audit related, etc.) with Lakefront real estate would probably concure here….Are they actually just plain stupid?
Forty-two year old Angela R. Clark masterminded a scam, according to prosecutors, wherein 15 buyers received mortgage loans for far more than the sale price of the home. They pocketed the extra money.
Bill Draper wrote the story that appeared on the Bloomberg Business Week website, Octber 3, 2011, under the title, “Real estate agent gets 20 months for mortgage scam.” Also be aware of various tax, irs, audit plus levy situations overall.
Draper reports that title companies were given false invoices for payment due to phony business entities that were created to enable the fraudsters to get cash back from inflated loans.
Apparently there were 19 defendants who were sentenced for their parts in the $12.6 million plot that went on from February 2005 to May 2007. I wonder if any of this involved some Big Bear real estate at all.
The result was that homes sat vacant for long periods of time. The impact of the scheme on nearby neighborhoods, writes Draper, was devastating, according to prosecutors, because the homes sat empty without being maintained for long periods.
Prosecutors were quoted from a news release as saying, “Lawns were not mowed and property values deteriorated. There were multiple foreclosures in the neighborhoods, and legitimate homeowners were unable to sell their properties, while at the same time property tax assessments increased because of the inflated sales prices. The properties were eventually sold post-foreclosure to third parties, with a net loss of more than $5.6 million.”
The scam left banks holding bad loans and caused property values to plummet.
Draper noted U.S. Attorney Beth Phillips as saying last year when discussing the credit fraud facet of the scheme, “Local FBI agents dug deeper into a mortgage fraud scheme……” All in all, I hope that the Big Bear, Lake Tahoe and also the Maui real estate markets are safe from this kind of thing, although I thought I heard of it going on in Lake Tahoe at one time, not sure about Maui.
Federal prosecutors, Draper added, explained that Clark sold new homes for Raymore builder Jerry R. Emerick, 41, at inflated prices, and assisted the buyers to procure mortgages that far exceeded the value of the 25 upscale homes involved. Buyers collected kickbacks of about $100,000 on each home. Clark took in more than $400,000 in commissions and other payments.