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Mortgage Fraud and Equity Skimming

Mortgage Fraud and Equity Skimming

Equity Skimming is a Mortgage Fraud committed by skimming the equity from a property as part of subprime lending refinancing. This fraud occurs when a homeowner who is in default on their real estate taxes or mortgage is offered a loan to prevent immediate foreclosure.

The fraud comes into being when the loan is offered in exchange for transfer of the home’s title and property. Rental income for payments already due are diverted to the lender from the property for the lender’s personal use, instead of using that income to pay mortgage payments. This allows the mortgage company’s foreclosure to proceed on that property.

Equity Skimming often involves:

  • Corporate shell companies
  • Corporate identity theft
  • False reports of income
  • False credit reports
  • Straw buyers

Penalties of Equity Skimming

Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.

Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:

  • Five years in prison
  • Up to $500,000 in fines

Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:

  • 30 years in prison
  • Up to $1 million in fines

Are You Accused of Equity Skimming in Arizona?

If you have been accused of Equity Skimming or are undergoing a current investigation for these crimes, you need the help of the aggressive Mortgage Fraud attorneys at DM Cantor. The earlier in your case that you gain representation by an proactive attorney, the better your chances of avoiding the harshest charges in your case.

Whether you are being investigated or have already been arrested on charges of Equity Skimming, contact the DM Cantor team of attorneys for the aggressive defense you need. The lawyers of DM Cantor are thorough in their defense of clients accused of all manner of White Collar Crimes, including Equity Skimming.

With the highest possible rating by Martindale Hubbell® as an AV ® rated law firm, DM Cantor has the legal skill you need on your side. The firm is also listed in the Criminal Law Section of the Bar Register of Preeminent Lawyers®. Call DM Cantor at 602-307-0808 or Contact Us for a Free Case Consultation.

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