2 Sentenced for Inflating Purchase Prices

Allison Tussey —  April 28, 2011 — 5 Comments

Richard Alvarez, Medina, Ohio, was sentenced to 4 years of probation, a special assessment of $100.00, and restitution in the amount of $102,452.81, for his role in a mortgage fraud scheme.

Marcus Adkins, Lorain, Ohio, was sentenced to a 4 year term of probation (during 4 year term of probation, 6 months shall be with the Location Monitoring System) as to Count 11, a special assessment of $100.00, and restitution in the amount of $85,011.66.

On April 29, 2008, a federal grand jury in Cleveland, Ohio, returned a fourteen count indictment against Alvarez and Adkins.  The Indictment charged Alvarez with one count of conspiracy to commit wire fraud and seven additional counts of wire fraud. Marcus Adkins was charged with one count of conspiracy to commit wire fraud and six additional counts of wire fraud. Alvarez pleaded guilty to count 6. Adkins pleaded guilty to count 11.

The indictment alleges that during the period from about February 2005 through June 2006, Richard Alvarez and Marcus Adkins partnered in approximately thirteen (13) real estate transactions involving properties located in and around Cleveland and Toledo, Ohio.

The indictment further alleges that as part of their agreement and conspiracy defendants purchased these properties from the sellers at market value, but inflated the purchase price for each of the properties on the loan applications to the mortgage companies. The indictment alleges that the defendants claimed the additional money was for repairs and/or improvements to the properties, but these repairs were never completed. In addition to inflating the purchase prices and fraudulently retaining the excess money, the indictment also alleges that defendants Alvarez and Adkins further falsified the mortgage applications by fraudulently stating the source of the down payment funds and closing costs, submitting false appraisals which inflated the true value of the properties, claiming false second mortgages by which the defendants obtained additional funds from the properties, false leases and rental agreements which concealed their true income, and falsely verifying of existing of deposited funds had not actually been deposited in escrow. The indictment alleges that Adkins and Alvarez did all of this in order to deceive and defraud mortgage lenders, title companies and others.

This case was prosecuted by Assistant United States Attorneys Mark S. Bennett and John D. Sammon, following an investigation by the Cleveland offices of the Federal Bureau of Investigation, and the U.S. Department of Housing and Urban Development.

William J. Edwards, Acting United States Attorney for the Northern District of Ohio, announced the indictment.

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Allison Tussey

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5 responses to 2 Sentenced for Inflating Purchase Prices

  1. Can an individual sue or file a whistle blower (FCA) against a corporation that has done this same thing, probably throughout the US?

  2. I live in Monroe County Pennsylvania.In my area foreclosed homes are inflated prices.And in reality they were sold to the forecloser in over valued market and were sold to people that were victims of Predatory lending and mislead by their Real Estate Agents.You don’t hear about it,cause it is cover up by some of the County Employees that is related or in favouritism contributes.For years i’ve seen it for myself and heard done to others.The housing market crash and our recession comes from people like this.But what are we to do,when it falls on deaf ears and blinded by personal gain ? I’ve been asking myself this since August 2007 when i’ve became one of their victims.

  3. Notice that the appraiser(s) providing the inflated appraisals were not mentioned and apparently not prosecuted. Without the crooked appraiser, these crimes cannot be consummated. Why is the appraiser not prosecuted?

  4. Vanessa Jeffries May 1, 2011 at 6:58 am

    I have read somewhere that certain states in the US are ACTUALLY planning to inflate the prices of their vacant properties to prevent the continuing decrease in home prices. Wow! Has things gone really this bad?

  5. PROPERTY FLIPING AND FALSE APPRASIALS ARE WHAT CAUSED THE PROBLEMS AT PINE VILLAGE NORTH T/H IN HOUSTON.A PERSON SAT IN THE OFFICE OF A TEXAS LAWER AND FLIPED PROPERTIES AND INFLATED VALUES,WHEN THE INFLATED AMMOUNTS WERE POSTED BY HARRIS COUNTY APPRAISAL DEPT. THIS WONDER FROM PERU THEN BORROWED MONEY BASED ON THE INFLATED FASE SALES,THESE LOANS WERE SOLD OFF BY MISSION MORTGAGE OF LA.TO CITI CORP WHO HAD ABOUT 40 OF THESE AND LOST ABOUT (ONLY ABOUT 1.5 MILLION ) NOW THIS PERSON AND OTHERS ARE STILL WALKING AROUND.NOW WE HAVE PEOPLE FROM ORANGE COUNTY CA. WHO PICKED UP 113 T/H FOR 7,000 EACH FROM THE BRADY BANK IN BRADY TX. G.UBER USN RET

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