The FBI is assembling a task force to investigate mortgage fraud in Nevada including a growing indication of problems in northern Nevada.
The Federal Bureau of Investigation's field office in Las Vegas plans to unveil a mortgage fraud task force next month, says an FBI spokesman.
"Mortgage fraud is a priority for us in our white collar task force," the agency's spokesman said last week.
The task force will involve agencies including the Reno and Las Vegas police departments, the U.S. Postal Service and the U.S. Department Veterans Affairs, which is focused on fraud involving VA mortgages.
The task force will include the Consumer Affairs Division of the Nevada Department of Business & Industry, which investigated 846 cases in 2006 and 799 cases in 2007, says Elizabeth Shurtleff, public information officer.
Cases ran the gamut, says Deputy Commissioner Nancy Corbin.
"The straw man trend was high when the market was at its peak. Now foreclosure consultant scams are on the rise." And the elderly are targeted for reverse mortgage fraud.
The division will prosecute the more egregious cases, says Commissioner Joe Waltuch, and will work closely with the Las Vegas police because 70 percent of mortgage brokers, agents and bankers are licensed in the south.
In Las Vegas, predators are already preying upon people trapped in mortgages they can't afford, says Jeff Freelove, financial crimes unit supervisor with the Reno Police Department.
"Things happen in Vegas and then trickle up north here," he said. "There could be a whole host of crimes."
The elderly are often a target, says Freelove. And at their age, they will never recover from the financial loss.
In one case, Reno police detectives are seeking other potential victims following the arrest of Amberr Nicholle Paque of Ballistic Solutions LLC this month on a felony warrant alleging she took $30,000 in a fraudulent real estate sale scheme.
The alleged fraud involved Pacque's promise to sell a condo for a fee. Instead of placing the $30,000 security deposit into escrow, prosecutors claim she deposited the check into a business account at a Reno bank.
The condo owner believed the sale was going as planned. Meanwhile, the condo was sold in foreclosure, and the money had been spent.
Detectives said they believe that Paque may have made similar transactions with other people in the Reno area under similar circumstances, and asked them to contact the Financial Crimes Unit at 334-2115.
Widely reported on local television newscasts, Pacque's arrest led to three additional investigations involving the same defendant, one in the jurisdiction of Washoe County Sheriff's Department and two in the jurisdiction of Reno Police Department, says Freelove.
"This is one example of what could become a trend in the future," said Dixon. By mid-year, the area may see a number of real estate scams, he adds and notes that problems can be caused by people who are not licensed real estate professionals.
"People should ask hard questions as investors," adds Freelove. "Are they licensed by the state? What is their reputation within the community?" And, get it in writing. Say, 'I'll have my attorney review it.'"
Nationwide, the FBI is working with the Mortgage Bankers Association, which estimates fraud cost the industry between $946 million and $4.2 billion last year.
Federal investigators say they're looking at two kinds of mortgage fraud.
Fraud for property arises when a homebuyer lies about income, debt, or other information in order to buy a home. This type of fraud accounts for about 20 percent of mortgage fraud cases, FBI officials say.
Then there's fraud for profit, which often involves industry insiders and multiple loans with several financial institutions. Common examples:
* Property flipping, in which a property is purchased, falsely appraised at a higher value and quickly sold, sometimes several times in rapid succession.
* Straw buyers, in which the identity of the borrower is concealed by using the name and credit history of an accomplice.
* Inflated appraisals by an appraiser.
More than half the cases investigated by the FBI so far involved losses of more than $1 million.
Victims included federally insured financial institutions (57 percent), investors (35 percent) and government entities such as the Department of Housing and Urban Development (8 percent).
