Federal charges allege Miami real estate investment fraud in bank foreclosure scheme

A 37-year-old man has pleaded guilt to federal wire fraud charges as part of a Miami foreclosure fraud scheme, the South Florida Business Journal reported.

The glut of foreclosures has lead to an increasing number of fraud allegations. If you have been victimized by real estate fraud or charged with a crime in connection with a property transaction, an experienced Miami foreclosure fraud attorney should be contacted to help protect your rights.
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In this case, authorities say the defendant made $3.6 million as part of a foreclosure investment fraud scheme in Miami; he sold “reservations” on property he said would soon be in foreclosure, according to court records. The defendant told investors he had inside information from a bank employee and that he could arrange purchases at a discount rate.

Investors meant to get the first crack at purchasing the discounted properties, which would then be resold at a profit. However, the properties never entered foreclosure.

The case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office of the Southern District of Florida, the Sun-Sentinel reported.

The defendant pleaded guilty to wire fraud charges and faces up to 20 years in prison at his upcoming sentencing. Sentencing is scheduled for July 30, Wire Update reported.

Real estate fraud is a growing concern in South Florida. As we reported earlier this year on our Miami Criminal Attorney Blog, a federal task force held the first Mortgage Fraud Summit in Miami. Variations of real estate and property investment schemes like this one continue to play out, while mortgage fraud and bank fraud remain a primary focus of investigators.

The Miami-Fort Lauderdale-Pompano Beach metro area ranks first in the nation for the number of Suspicious Activity Reports filed by financial institutions that suspect mortgage fraud.