Tuesday, July 20, 2010

Fraud, fraud, fraud! Why so quick to scream fraud?!

What's up with that?  Why is everyone investigating these mortgage fraud cases so quick to conclude there was fraud without properly investigating?  We've been told by several of our readers that the banks own investigators are so overwhelmed with mortgage fraud cases that they don't have time to properly investigate the cases the way they should be.  We've seen first hand that the cops running mortgage fraud cases can't even grasp the fundamentals of the real estate and mortgage business, yet they're the first ones to slam together a case and start cuffing people.  Why?  What's the rush to classify these cases as "fraud"?


Let's look at it from the banks point of view, why would they rush to claim there was fraud?  One hypothesis that we presented earlier in our blog was that the banks had some way of getting reimbursed if they classified these mortgages that had gone bad as fraud.  That certainly sounds plausible doesn't it?  Isn't that type of business that brought AIG and Lehman Brothers down?




Why are the cops so eager to conclude there was fraud and slam together a case?  Our guess at least with the Bernardo Barrera case was that the Miami Dade County Mortgage Fraud task force needed a case to mark the one year anniversary of their first arrests.  Was it a coincidence that the arrests in the Barrera case were made on October 3, 2008 and the task forces inaugural arrests were made on October 3, 2007?  Prosecutor Kostrzewski later confessed that "he was under a lot of pressure" to put the case together, why?  Look at that October 3 date from the perspective of the money hungry Chairman of the mortgage fraud task force that was desperate for federal funding, is it just a coincidence that the arrests were made two days after the beginning of the fiscal year?  Check out Prosecutor Kostrzewski's handy work with the plea agreement for Michael Martinez...

Martinez Plea

Check this bit...
"As a special condition of Community Control and probation, defendant shall make payments of not less than five hundred dollars ($500.00) per month to victim Citi Mortgage, Inc., or to its successor(s), or, in the event that Citi Mortgage, Inc., is reimbursed for its loss by title insurance, to its insurer of title."
Boy, it sure is nice to know that the prosecutor is so concerned about Citi Mortgage or its insurer to get their money back.  In fact this very plea agreement is going to come back and bite the prosecutor in the ass, the testimony that Mr. Martinez gave the prosecutor was pure bullshit.  The fact of the matter is the prosecutor wanted so desperately to have some sort of testimony against the attorney that he charged, that he bought whatever came out of the guys mouth hook line and sinker.  I can't discuss details right now, but let's just say that there is irrefutable evidence to completely disprove nearly everything the witness said regarding his interaction with the attorney, but the prosecutor wasn't going to hear it.  Not only did he believe everything the guy said, but as evidenced by the plea agreement, he gave him a sweetheart deal and sent him on his way without ever investigating any of his claims.  Nice work Bill!


How the hell can everything get so ass backwards?  We proved beyond a reasonable doubt (at least in our opinion) that the man who claimed his identity was stolen, Bernardo Barrera, was completely full of shit, yet he got away scott free.  While the mortgage brokers and their associates got arrested in the Plantation cops case, the mortgage brokers in the Barrera case got away without even being questioned!  What about the appraiser that appraised the Oak Avenue home that was at the center the Barrera fraud for three times more than it was appraised for just one month earlier?  Why wasn't he never questioned?  WTF?!


This brings me back to the Plantation cops case.  Somehow I can't reconcile that mess, wtf happened there?  What kind of trouble were the mortgage brokers in that led them to cut deals and help build the case against the cops?  Were any of the homes that were at the center of that case even in foreclosure?  As far was we can tell from the indictment, the homes were rented, mortgages being paid and everything seemed on the up an up?!  What gives?  We're going to have take a closer look at that case.

While we're here trying to decipher this nonsense, look what the Talibans been up to, TRAINING MONKEYS TO BE TERRORISTS!





YIKES!  Maybe the Miami Dade County police department might want to think about training monkeys to investigate mortgage fraud, they couldn't do any worse than Detective Baluja!

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