Charlotte area mortgage fraud "kickback" scheme hits the newstands this week. According to The Charlotte Observer, six different defendants were accused of working with the home building company Tara Properties to offer kickbacks to straw buyers which were never disclosed to the lenders involved.
During the height of activity that lead to the mortgage meltdown, between January of 2055 and February of 2008, this scheme resulted in more than $42 million in lending dollars and $5 million in kickbacks. Tara Properties offered kickbacks to the straw buyers at 15 percent of the homes sales price. Due to falsified documentation and unqualified straw borrowers, most of the purchased properties ended in foreclosure.
The defendants are being charged with mortgage fraud conspiracy and money laundring conspiracy. Some of the defendants include a licensed loan officer, a licensed real estate agent and a certified public accountant.
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