Tuesday, April 12, 2011

The unindicted co-conspirators in the Plantation cops mortgage fraud case...


That term "unindicted co-conspirator" has a pretty nice ring to it doesn't it?  By definition the term refers to a person or entity that is alleged in an indictment to have engaged in conspiracy, but who is not charged in the same indictment.  So who could we be referring to?  Who are these co-conspirators that are suspiciously absent from these prosecutions?  After spending nearly a year going through the Plantation Cops mortgage fraud indictment backwards and forwards it seems that the government had indicted almost everyone that had ever had anything to do with the case including but not limited to buyers, mortgage brokers, title agents, closing agents, etc.  So who could have been left out?

Throughout the last few weeks of testimony from the Plantation cops federal mortgage fraud trail we've learned that there was another group of conspirators in the alleged fraud that knew everything that was going on, conspirators that knew about the exorbitant seller contributions, the excessive escrow amounts, earnest monies coming from third parties, borrowers closing on two "primary residences" withing the same months (in some cases the same day), borrowers whose credit reports showed multiple inquiries from mortgage brokers and lenders within days of the transaction they were about to close, etc...  So who were these "unindicted co-conspirators" involved in the Plantation cops case and just about every other case we've written about?  Here's a small listing of this usual suspects...

These lenders were at the center of each and every mortgage fraud case I've written about, none of the frauds we've discussed could have been possible without these guys.  They all knew what was going on, the paperwork proves it.  Even worse, the entire real estate bubble happened because of their lax lending standards and the fact that they looked the other way while their pockets were getting full as a result of them bundling the garbage loans that they wrote into worthless triple A rated mortgage backed securities.  

Haven't we had enough of street level mortgage fraudsters getting racked over the coals during these nonsensical mortgage fraud trials?  When is a prosecutor going to have enough balls to go after the real criminals that got us to where we are today?


  1. Although there is some truth to your comments against the lenders it's not entirely true. That is like saying all gun manufacturers are responsible for every murder, needle supply company for overdoses and GM for car crashes. The end user has to accept responsibility and know what lines not to cross.

    But the banks have listened to you now because the trust is no longer there. I'm sure your other blogs talk about how tough it is to get a loan these days. You can't have it both ways.

  2. You omitted the two parents of the whole mess - Fannie Mae and Freddie Mac.

    Quasi-government intervention at trillions of dollars fueled the greed.

    As soon as Fannie and Freddie loosened underwriting standards, the ball started rolling.