Scam of the Day: Orange County Attorney Indicted for Purchasing Homes at Inflated Prices

A California lawyer and his friends worked together with 30 sellers to net over $2 million sales on 30 homes in Orange and Riverside counties in California. On the loan applications for the mortgages on the properties, the lawyer and his cohorts created “straw buyer” persona that appeared to be living in the properties. Once the loans were approved for inflated values, the sellers had to return the inflated portion of the sales price to the conspirators, who then split the extra money[1].

The lawyer who headed the scheme, Gerald L. Wolfe, was originally a registered real estate broker in California. He now faces up to 20 years in a federal prison, and will appear in court for the first time today.

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[1] http://nationalmortgageprofessional.com/news21065/california-attorney-indicted-fraud-scam-purchase-homes-inflated-prices