Thirty-one Defendants Charged in Massive Mortgage Fraud Scheme (December 2007, Miami, Florida) – this scheme involved fraudulent mortgage loans obtained for the purchase of 27 properties located throughout southern Florida.
According to the indictment, the scheme involved sellers of residential properties who were willing to overstate the true selling price of their properties, and "straw borrowers" who were paid to participate in the fraudulent purchase of the selected properties. The loan officers involved submitted fraudulent mortgage loan applications, which included false employment verifications, pay stubs, income and funds on deposit, and IRS Forms W-2.
Additionally, to support the overstated sales prices on the properties and the fraudulent mortgage applications for the "straw borrowers," fraudulent appraisals attesting to the inflated property values were prepared. False settlement statements/HUD-1s were created to conceal from the lender the existence of the credit given to the buyer from the seller, and the alleged down payment funds provided by the straw borrower.
(Example taken from mortgagefraudblog.com)
Man sentenced in drug money laundering case involving broker and lawyer. (July 2007, Seattle, Washington)
In this case it was determined that the defendant attempted to launder the proceeds of his drug activity by using cash to invest in real estate. In one instance, he delivered more than $500,000 to a mortgage broker for real estate investments. The defendant was sentenced to six years in prison, and three years of supervised release for conspiracy to distribute drugs and conspiracy to engage in money laundering.
(Example taken from mortgagefraud.org)