Randez Long, Milwaukee, Wisconsin, has been indicted for his participation in an alleged mortgage fraud scheme, which included short sale fraud.
In 2005 until approximately April 2008, Long allegedly devised and carried out a scheme to defraud lenders by obtaining loans via false and fraudulent loan applications.
According to the indictment, Long operated several businesses in the Milwaukee area, including LM Management, LLC; RL & DL Properties, LLC; RA & BB Properties, LLC; SC & Long Properties, LLC; R & B Mortgage, LLC; Long and Reed Property Management, LLC; and Long Management, LLC.
Long allegedly recruited individuals, including his mother and sister, to purchase real estate in the City of Milwaukee. To finance the purchase of property, Long and others worked in concert to fraudulently apply for and obtain loans from various lenders, including Countrywide Bank, Southport Bank, and others. To obtain the loans, Long and others provided lenders with false and fraudulent information concerning the borrower’s employment, income, assets and provided purported documents verifying that information.
After purchasing the properties, Long received a substantial portion of the proceeds from the purchase. The borrowers made few if any payments resulting in default. Thereafter, Long allegedly orchestrated a short sale of the properties.
The short sales were approved by the lenders, but in actuality the short sales never occurred. At the same time, Long fraudulently arranged to sell the property to a third party for an amount substantially greater than the amount represented to the lender. To finance this second sale, Long and others fraudulently applied for and obtained new loans from other lenders based on false and fraudulent information.
As a result of the scheme, Long allegedly obtained more than $1 million.
The properties involved in the scheme include:
3132 North 25th Street, Milwaukee, Wisconsin;
3442 North 12th Street, Milwaukee, Wisconsin; and
2310 West Keefe Avenue, Milwaukee, Wisconsin.