Federal grand jury indicts pair for mortgage fraud | August 19, 2011 | Palo Alto Weekly | Palo Alto Online |

Palo Alto Weekly

News - August 19, 2011

Federal grand jury indicts pair for mortgage fraud

Local mortgage broker, lender allegedly victimized East Palo Alto residents as part of $40 million financial scheme

by Sue Dremann

A San Jose mortgage broker and a private lender who allegedly gave false information to banks that inflated potential borrowers' incomes, assets and employment in order to qualify them for upwards of $40 million in loans were indicted by a federal grand jury in May, according to court documents.

This story contains 909 words.

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Staff Writer Sue Dremann can be emailed at sdremann@paweekly.com.

Comments

Posted by Steve C, a resident of Menlo Park
on Aug 16, 2011 at 12:31 pm

Sadly, this type of crime is not an extremely rare occurrence. Variations on this scam happened all over the place, to varying degrees, so more commission-seekers could get their piece of the action. It's right down close to the core of why we have the mortgage crisis we a re dealing with today.


Posted by Hmmm, a resident of East Palo Alto
on Aug 16, 2011 at 2:27 pm

[Post removed by Palo Alto Online staff.]


Posted by Sad, a resident of Midtown
on Aug 16, 2011 at 4:47 pm

I work with a man who got a second on his house. The house itself was repossessed. The lender has been contacting our company, faxing us copies of fake W-2's that were provided to them by a mortgage broker to substantiate the guy's income as over $90K per year. This is approximately double what he earns. It appears they took a genuine W-2 from this guy and then changed the figures.

I sincerely hope this Tran person and her accomplice rot in jail. Fraud of any kind is awful, but taking advantage of immigrants whose ability to decipher documents is less than par, deserves a special cell, one of the old fashioned kinds with damp, mold, and a few rats to keep them company.


Posted by musical, a resident of Palo Verde
on Aug 16, 2011 at 4:55 pm

Wow. I wonder whether anyone has optioned the movie rights to this cautionary tale.


Posted by Real-Estate-Fraud-Is-Everywhere, a resident of Another Palo Alto neighborhood
on Aug 16, 2011 at 5:57 pm

The breadth and depth of the fraud in the real estate industry that contributed to the collapse of the so-called "sub-prime" market was/is extremely wide spread. The following web-site carries a list of the indictments/prosecutions that are on-going in California--

California Real Estate Fraud Report:
Web Link

The FBI also issues a yearly report on its activities in trying to stem these abuses--

FBI/Mortgage Fraud:
Web Link

Sadly, the cancer spread years ago, and it's unlikely that very many people will go to jail, because of the vast number of agents/brokers/brokerages that were/are complicit in this fraud and theft.


Posted by Hmmm, a resident of East Palo Alto
on Aug 16, 2011 at 6:00 pm

There is a professional term for these people: scum-sucking parasites.


Posted by Outside Observer, a resident of another community
on Aug 16, 2011 at 9:14 pm

Once again the wisdom of Shakespeare comes through the ages:

"Neither a borrower nor a lender be"

This, along with his advise for the disposition of lawyers is even more relevant in today's society than it was then.

And going back even much further, there is a reason usury is a universal sin.


Posted by WhetherMan, a resident of Mayfield
on Sep 15, 2014 at 11:45 am

Does anyone have descriptive info on Linda Tran in this inditement. Was jail time sentenced? Served?


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