Lisa Chow
Lisa Chow is the economics reporter at WNYC. She tries to explore in her stories surprising aspects of New York’s many economies—in plain view or hidden, in neighborhoods or sectors.
13 People Charged in $100 Million Mortgage Fraud Case
Thursday, July 09, 2009
New York, NY –
Manhattan prosecutors have charged 13 people in a $100 million mortgage fraud case. WNYC's Lisa Chow reports.
REPORTER: This is how the scheme allegedly worked, according to the indictment. Prosecutors say the mortgage company, AFG Financial Group, targeted homeowners at risk of foreclosure.
The company recruited so-called "straw buyers" - people with good credit scores to buy the target property. Then the company paid off appraisers, to inflate the value of the property. And it paid off lawyers to represent the seller, the buyer, and the bank - at the closing.
The indictment says the group fraudulently obtained more than $100 million in mortgage loans. Prosecutors say 25 people were involved, and 12 have already pleaded guilty. For WNYC, I'm Lisa Chow.
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