Excessive Phone Rates is now a discussion of  Mortgage Fraud and the Failure of Law Enforcement to Investigate and Prosecute and the Blue Cross Blue Shield of Michigan Overbillings



Mortgage Fraud in Oakland County, Michigan

Detroit Office of the FBI

Detroit Office of the IRS

Fifth Third Bank Questionable Transactions

Blue Cross Blue Shied of Michigan Overbillings


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I have added separate pages on each.  

As you will see if you read further, I have been trying to get the FBI to investigate numerous cases of suspected mortgage fraud since March, 2008. This includes the Detroit and Troy, Michigan offices.  As local law enforcement is more than willing to pass on any investigations, the failure to investigate and prosecute lies squarely with the FBI and the U.S. Attorney for the Eastern District of Michigan.  

Briefly here's one simple example that I am confident includes numerous violations of the law including tax evasion.  In spite of this, no action to date.  

On the same day in 2005, a home was bought for $1,950,000.00 and then sold for $4,200,000.00.  In between these two transactions, the property was Quit Claimed to a Michigan LLC, that is not registered in Michigan.  Two mortgages were written by the same lender.  One mortgage for over $2.9 million and one for over $400,000.00.  The property was sold in a Sheriff's auction in 2006.  The single individual making the purchase at $4.2 million filed for bankruptcy.  

I am confident that if I could review the closing documents, including the HUD-1 forms and the 1003s, the fraud would be obvious.  I sent detailed information on this to local law enforcement, the Michigan AG as well as the FBI and IRS.  In spite of this, no action to date.  

While I have confident of the massive amount of mortgage fraud, I have seen little response from law enforcement. Some of the fraud is in Macomb County and some by the same individuals I believe responsible for the fraud in Oakland County.  My spreadsheet of suspected fraud now includes over 100 transactions that totals over $100 million at selling price.  

I remain extremely disappointed with the response of law enforcement.   I contacted the United States Secret Service.  It is my understanding that they were part of a mortgage fraud task force with the Michigan State Police.  I faxed over my listing of suspected mortgage frauds only to be told that the list was too extensive and it appeared that I was "police shopping".  

Yet another mortgage fraud task has been formed.  Some call it the President Barack Obama Financial Fraud Enforcement Task Force that was established in November, 2009.  Arising from that task force was an announcement of "Operation Stolen Dreams".  Following is a typical announcement. This one is from a press release in the State of New York: 

 This case was brought in coordination with President BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

This proves once again that it takes a lot more than task forces and press releases to investigate and prosecute mortgage fraud. So many task forces and so few results.  

I use the term mortgage fraud broadly as I do not believe there is a Statute that defines mortgage fraud.  Mortgage fraud could involve a number of illegal activities, an example being falsely inflating the value of a home through a phony appraisal or creating phony documents to support a straw buyer’s income.  

I do not believe there has been any major indictments for mortgage fraud of the transactions I have identified in Oakland County and yet I believe there has been a significant amount of fraud. 

Based on my analysis, I have concluded that law enforcement, particularly the FBI, has failed to take timely and effective action to combat mortgage fraud and thus they have failed to protect the citizens of Oakland County.  Even though the FBI routinely receives reports from lenders identifying suspicious activities, my analysis shows possible fraud as far back as 2005. For now, mortgage fraud appears to be the perfect crime.  If and when the U.S. Attorney indicts those responsible, one can only wonder if there will be anyone left to prosecute and any funds left to recover. 

In a Press Release dated March 17, 2009, the Special Agent in charge of the FBI in Detroit was quoted as saying: "Mortgage fraud is the FBI's highest financial crime priority..."

In a Press Release dated July 8, 2009, the Special Agent was quoted as saying: "Mortgage fraud continues to have significant consequences on the Michigan economy.  We no longer wait for mortgage fraud to come to law enforcement after the crime has occurred..."   In the same PR the Acting U.S. Attorney stated:  "Mortgage fraud has many victims and a host of negative consequences for our community..."   

Tough talk by law enforcement but where are the results in Oakland County?  

On the page entitled Mortgage Fraud in Oakland County , I will address the following questions as well as presenting some examples to support my contention that in spite of the lack of any indictments, a number of fraudulent activities have occurred in Oakland County.  

·        Are lenders the only victims of mortgage fraud?

·        Who is responsible for investigating allegations of mortgage fraud?

·        How many mortgage fraud task forces are operating in the Detroit metropolitan area?

·        Who might be involved in mortgage fraud?

·        What additional criminal activities could be involved?

·        Who should I contact if I suspect mortgage fraud?

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