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So you’re probably sitting there with this Civil Investigative Demand from DOJ or HUD about mortgage fraud and your entire real estate business is crumbling. Maybe you inflated appraisals on FHA loans. Maybe there’s issues with borrower qualifications. Or maybe you’re just caught up in their latest foreclosure fraud sweep. Look, we get it. You’re ABSOLUTELY TERRIFIED. And you should be! Because mortgage fraud under 18 USC 1014 carries 30 YEARS in federal prison and $1 MILLION fines!
Let me explain the mortgage nightmare you’re facing. DOJ uses the False Claims Act to destroy FHA lenders who submitted ANY loans that didn’t meet requirements! The FHA insures MILLIONS of mortgages – and every single certification becomes a potential false claim! Borrower’s income slightly overstated? FRAUD! Didn’t verify employment properly? False claim! Appraiser missed something? YOUR LIABLE! We’ve seen legitimate mortgage brokers imprisoned for paperwork errors!
Here’s what’s really scary – short sale fraud schemes are being prosecuted aggressively! Manipulating property values, straw buyers, hidden agreements – they’re calling everything fraud! One realtor faces decades for deals they thought were legitimate!
Hold onto your broker’s license because these numbers will destroy everything you’ve built! Criminal penalties under 18 USC 1014 are CATASTROPHIC – 30 years prison and $1 million fine! Each loan application is a separate count! 10 fraudulent loans? That’s 300 years potential prison time! We’ve seen loan officers face life sentences!
Civil penalties under False Claims Act are equally devastating – TREBLE DAMAGES plus up to $27,000 per loan! Had $10 million in FHA loans? That’s $30 million in damages! Plus penalties for each loan! Missouri lender just paid $2.4 million for underwriting violations!
FHA fraud prosecutions are EXPLODING! Every aspect of FHA lending is under scrutiny! Didn’t properly verify income? Material defect! Used temp staff for underwriting? VIOLATION! Borrower defaulted within first year? Evidence of fraud! We’ve seen lenders destroyed for loans that performed perfectly!
The worst part – strict liability for quality control! Your loan officer made mistake? Company pays! Third-party broker submitted bad info? YOUR responsible! Can’t find documentation from 5 years ago? Assumed fraud!
You’re probably wondering “Who turned me in?” Let me tell you what puts real estate professionals in DOJ’s crosshairs: Whistleblowers got $4 MILLION for reporting mortgage fraud! Former employees know your processes! Competing brokers report suspicious deals! Even borrowers who defaulted claim they were defrauded!
HUD data mining catches patterns! High default rates trigger investigation! Geographic concentrations flagged! Rapid appreciation suspicious! We’ve seen successful brokers destroyed because their loans performed TOO WELL!
Wire fraud charges make everything WORSE! Every email and wire transfer becomes potential crime! Sent loan docs by email? Wire fraud! Wired closing funds? Another count! Each communication is 20 years prison! We’ve seen agents face centuries in prison for routine real estate transactions!
The conspiracy net catches EVERYONE – realtors, brokers, appraisers, title companies, even notaries! All facing federal charges! One straw buyer scheme led to 15 people indicted!
ABSOLUTELY! And it’s happening to legitimate professionals! Real estate professional pled guilty to $55 million conspiracy! Recent prosecutions are terrifying! August 2024 – loan officer admits to 102 fraudulent loans! September 2024 – lender pays millions for underwriting violations! These aren’t criminals – they’re licensed professionals who made mistakes!
The “knowingly” standard is shockingly low – you just need to know loan application existed! Didn’t review every document? Willful blindness! Trusted your processor? No defense! Made honest mistake? STILL GUILTY!
The scope is absolutely overwhelming! DOJ demands EVERYTHING about your real estate operations: Every loan file and application, all communications with borrowers, emails about property values, appraisal management records, commission statements, bank records, even text messages about deals!
For FHA loans it’s worse – quality control reviews, underwriting checklists, default servicing records, early payment default analyses, certifications and audits! How do you prove compliance on thousands of loans? You can’t!
Prepare for YEARS of business paralysis! Real estate fraud investigations are incredibly complex: Initial CID response (60-90 days of document production), HUD/DOJ review and analysis (12-18 months), borrower interviews and loan sampling (6-12 months), damage calculations (6-12 months), settlement or prosecution (12-24 months)!
You’re looking at 3-5 years MINIMUM! During this time, can’t originate FHA loans, title companies won’t work with you, realtors avoid you, and business evaporates! Legal fees? Expect $750,000 to $2 million! We’ve seen thriving brokerages close within months!
Foreclosure fraud prosecutions are VICIOUS! States and feds coordinate to destroy “rescue” companies! Loan modification services? Often illegal! Upfront fees? CRIMINAL! Promised to save homes? Fraud if any fail! We’ve seen legitimate loss mitigation companies imprisoned for trying to help homeowners!
The MARS Rule makes almost everything illegal! Can’t charge before completion! Can’t guarantee results! Even successful modifications trigger investigations! One company saved 500 homes but got prosecuted for the 50 that failed!
Self-reporting is DANGEROUS with criminal exposure! FHA self-reporting doesn’t prevent criminal prosecution! You admit material defects in writing! Becomes evidence! Still face False Claims Act! Only get credit IF government agrees! We’ve seen lenders self-report minor issues only to face criminal charges!
But not reporting when required? Worse! Continuing to certify loans? Each one is new crime! Enhanced penalties! You’re damned either way!
Real estate fraud pierces ALL protections! Personal liability for owners and officers is standard! LLC protection? Meaningless! Corporate veil? Pierced! Personal assets seized! Homes, cars, retirement accounts – everything at risk! We’ve seen brokers lose generational wealth!
Restitution orders are CRUSHING! Must repay all losses! Can’t discharge in bankruptcy! Wage garnishment for life! One loan officer pays 25% of salary forever!
Look, we’re not your typical real estate lawyers who just handle closings. We’re federal criminal defense attorneys who specialize in keeping real estate professionals out of federal prison when mortgage issues become criminal! We understand FHA requirements and common underwriting mistakes. We know how DOJ calculates damages and applies False Claims Act. We can demonstrate good faith efforts even with technical violations. Most importantly, we prevent civil investigations from becoming criminal prosecutions!
Other firms tell you to cooperate with HUD and fix problems. That’s EXACTLY how real estate professionals end up in federal prison! The government doesn’t care about homeownership – they want False Claims Act recoveries and criminal convictions. We fight strategically, protecting your freedom and license!
Real estate fraud investigations destroy businesses overnight! Former DOJ prosecutors – Mortgage fraud defense experts – Available 24/7! Call us RIGHT NOW at 212-300-5196.
Don’t wait another second! HUD is reviewing your loans! DOJ is calculating False Claims Act damages! Borrowers are being interviewed! Your loan files are being analyzed! Every day increases liability!
Remember – mortgage fraud isn’t about bad loans anymore. It’s about federal prison and financial ruin. One inflated income, one missed verification, one documentation error can trigger criminal prosecution and bankruptcy. You need someone who understands real estate complexity AND federal criminal defense. Call us NOW before that CID becomes handcuffs!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS