Colorado Attorney General John W. Suthers will announce the criminal indictment of ten individuals (a real estate broker, a mortgage broker, a secretary/assistant, a buyer and income property investors) operating as a group to unlawfully take equity cash out of real estate acquisitions.
The members of the enterprise used real estate contract amendments, falsified loan applications and/or falsified invoices to deceive mortgage lenders into paying money to the enterprise. The money was paid through the use of various shell corporations and limited liability companies controlled by enterprise members. The entities were set up at the direction of real estate broker Uto Essien and were conduits to divert the funds to members of the enterprise. Successful indictment is the result of a state grand jury investigation. Ten defendants are facing 29 charges including violations of the Colorado Organized Crime Control Act, theft, forgery, theft by receiving and computer crime.
Attorney General Suthers has made the investigation and prosecution of mortgage fraud a major priority of his administration.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.