Mortgage Fraud Fugitive Busted

FBI gets big break in mortgage fraud case.

(CBS)  CBS News producer Stephanie Lambidakis wrote this story for cbsnews.com.

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With the FBI drowning in mortgage fraud cases -- more than 1,300 and still climbing -- the Bureau has gotten a big break with the arrest of a New Jersey fugitive who allegedly masterminded a mortgage fraud scheme that defrauded major banks some $20 million.

The suspect, Jacob Kim, of Palisades Park, N.J., was hitting golf balls on a driving range when officers moved in. According to the narrative from the U.S. Attorney's office in Newark, a stunned Kim looked at them "like it was over " while officers confiscated $48 thousand in cash from his pocket.

Kim took elaborate steps to avoid detection, according to U.S. Attorney Christopher Christie, by donning wigs and other disguises, using aliases, and never sleeping in the same place too long. Kim, with the help of a dozen underlings, is accused of fooling 16 different lenders into believing they were doling out home equity and business lines to credit to different homeowners when in fact a single property was being used as collateral over and over again. Kim maneuvered to close the loans in quick succession before they were publicly recorded, which meant the banks could not see that each was making the same fradulent loan. In one instance, a Kim "client" used less than $300 thousand in equity in a Palisades Park property to obtain more than $2 million in credit from nine different banks.

Ten people have already pleaded guilty, and more charges are expected. U.S. Attorney Christie said that despite the complexity of the scheme, the voluminous paper trail eventually led them to Kim and his co-conspirators.

[CraigBerkeley]

Reno, Nevada?s Countrywide Home Loans manager Sue Barry should also be charged with Mortgage Fraud, along with Prudential Nevada Realty former Regional Manager Valerie Mapes, former Prudential Nevada Realty Realtor Keith W. Gledhill, Mortgage Fraudster Reno landlords John and Kay Sickler, Mortgage Fraudster Reno escrow officer Jenna Kay Clark and her company Reno?s First American Title, Reno Realtor Allan Zane and his Broker Magi Bird, and Reno?s First American Title.
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For copies of the supporting documents that have been uploaded, see http://renomortgagefraudexposes.ning.com/