Fraud Seen as a Driver In Wave of Foreclosures

Discussion in 'Economics' started by ASusilovic, Dec 21, 2007.

  1. ATLANTA -- Skyrocketing foreclosures are a testament to how easy it was to borrow from mortgage lenders in recent years.

    It may also have been easy to steal from them, to judge from a multimillion-dollar fraud scheme that federal prosecutors unraveled here in Atlanta. The criminals obtained $6.8 million in mortgages from Bear Stearns Cos., including a $1.8 million mortgage to Calvin Wright, a New Yorker who told the investment bank that he and his wife earned more than $50,000 a month as the top officers of a marketing firm. Mr. Wright submitted statements showing assets of $3 million, a federal indictment alleged.

    In fact, Mr. Wright was a phone technician earning only $105,000 a year, with assets of only $35,000, and his wife was a homemaker. The palm-tree-lined mansion they purchased with Bear Stearns's $1.8 million recently sold out of foreclosure for just $1.1 million. Bear Stearns, meanwhile, posted the first quarterly loss in its 84-year history as it wrote down $1.9 billion of mortgage assets yesterday
  2. ..."Since federal authorities issued an indictment in April 2006, Mr. Wings, Mr. Smith, Mr. Wright and about 10 others have pleaded guilty to various counts, including bank fraud, and are awaiting sentencing. Another ringleader was convicted in federal court last month. Their sentences could be lengthy: In an unrelated case, an Atlanta attorney with no prior criminal record was sentenced in August 2005 to 30 years in federal prison on a mortgage-fraud conviction"....
  3. See?

    There is a REAL opportunity cost to those that hope to trade for a living.
  4. A phone tech makes $105k a year?
  5. It was perpetrated in large part by a 23-year-old college dropout named Gregory Jerome Wings Jr., aka G-Money

    LMAO, classic!
  6. A Vegas blackjack dealer makes $205K a year.

    A person would have to be NUTS...
    To take a big paycut and trade for Bright.
  7. there is a guy here who goes by jrlvnv or something like that, he is a blackjack dealer for the Wynn casino and only makes about $50,000 a year; he made a big thread about it in the general section last year and about the pay cuts he's facing.
  8. This story makes me think I missed out on something.
  9. Isn't there a G-Money registered at ET?
  10. CFC had some TV ad running that pitched rolling 1st, 2nd mortgages, CC debt and home equity credit debt...

    into a loan with "one low monthly payment"

    this crisis aint over yet...
    #10     Dec 22, 2007