By Marsha Thompson
This week real estate appraiser Edward Young was sentenced to 42 months in Federal prison for his role in a multi- million dollar mortgage fraud scheme. He was an appraiser who inflated the cost of a Madison home.
Wednesday, concerned home buyers, real estate agents and bankers packed a seminar on these fraudulent schemes.
Phil Hull, a Special Investigator with the IRS told the audience nearly 40 people have been convicted in this state. 40 more are under investigation. Hull said mortgage flipping is a widespread problem. Most of those caught and convicted are serving time in federal prison. "The two justifications I heard most on why they did what they did, everyone else is doing it and the lenders all know. I tell you if the fraudsters want to take the risk of convincing 12 jurors they are innocent based on that defense, good luck," said Hull.
Bobby Fisher of Greenwood is a former closing attorney who pled guilty to mortgage fraud. He has teamed up with the Government to warn people how the elaborate white collar crimes are carried out.
The city of Madison has declared war on this consumer rip-off saying mortgage flipping can cripple a community.