Forty-One Defendants Named In Mortgage Fraud Cases In Chicago

Posted by Orb Staff on June 24, 2009 No Comments
Categories : Residential Mortgage

l of 37 individuals and four businesses, including a title company that closed on allegedly fraudulent loans, are facing new federal charges relating to mortgage fraud in five separate cases in Chicago, federal law enforcement officials have announced. Among the cases made public this week, 19 defendants, including LaSalle Title Co. and three other businesses, allegedly schemed to fraudulently obtain loans totaling more than $10 million on 70 residential properties in Chicago, including many blighted homes on the city's South Side, resulting in losses totaling approximately $5.8 million to various mortgage lenders. Ten defendants are accused of scheming to fraudulently obtain loans totaling more than $17.2 million on various multimillion-dollar condominiums and penthouses located in Chicago's Millennium Centre. Six defendants are accused of fraud and using stolen or fictitious identities to fraudulently obtain approximately $3 million in home loans from various lenders by submitting false applications for loans, and Lawrence A. Luckett, the former CEO of Burr Ridge lender Home Mortgage Inc., is accused of defrauding GMAC Bank out of approximately $15 million in funding more than 450 fictitious residential loans. ‘Mortgage fraud is a serious issue that affects not just financial institutions, but ordinary citizens who may have invested in such financial institutions or who hope to purchase, sell or refinance a home by honestly setting forth their finances," says Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois. All of the charges announced are felonies and carry various maximum penalties, including 30 years in prison and a $1 million fine on each count of mail and wire fraud if a financial institution was affected, or 20 years in prison and $250,000 fine if there was no financial institution impact. SOURCE: Office of Patrick Fit

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