Jeff Ostrowski
Alexandra Clough
Home > Real Time > Archives > 2008 > May > 07 > Entry
We’re not making this up: Mortgage scam includes huge kickbacks, undercover sting and dopey lenders
You just can’t make this stuff up. Check out the details of a mortgage fraud ring busted by federal and state investigators and tell me which part is the most unbelievable:
(A) Ralph Michel, 35, collected “assignment fees” of $650,000 and $600,000 on side-by-side homes in the Versailles development in Wellington (one of the faux chateaux is pictured above). According to his attorney, the native Haitian can’t read or write well enough to pass a U.S. citizenship test — but he did figure out how to beat huge lenders for millions on these and other deals.
(B) Berry Louidort, also a native of Haiti, describes a scheme to buy 50 condos in Boynton Beach while stealing $4 million from lenders. He thinks he’s talking to a willing accomplice. In fact, he’s laying out the plot to an undercover FBI agent who captures the conversation on videotape.
(C) Michel and Louidort used straw buyers such as a part-time Publix cashier whose income on loan applications was inflated from $13,000 to $344,000 so she could qualify for $1.3 million in loans on a palatial home in a gated community in Boca Raton.
(D) During a meeting with the undercover FBI agent last month, mortgage broker Lauren Jasky of Compass Mortgage Services in Boca Raton said she didn’t want to know the unsavory details of the loans she’s shopping to lenders. Meantime, her mother is acting as the Realtor on some of the deals.
(E) Some of the world’s most sophisticated financial institutions — including JPMorgan Chase and Bank of New York — made loans on these properties for twice what they’re worth. The Wall Street giants approved these mortgages in 2007 for much more than the properties sold for in 2005 and 2006, in spite of the steep downturn in home prices in Palm Beach County.
Attorneys for Louidort, Michel and Jasky say they’re innocent.
This case is just getting started, but it’s already the most comprehensive explanation of Palm Beach County mortgage fraud I’ve seen. See the FBI agent’s affidavit here.
Permalink | Comments (33) | Post your comment | Categories: Jeff Ostrowski
Comments
By as mentioned before
May 7, 2008 9:45 AM | Link to this
In an earlier blog about mortgage scams, I mentioned it was just the tip of the iceberg….keep watching folks as more and more of your friends and neighbors go down for fraud in South Florida.
By as mentioned before
May 7, 2008 9:45 AM | Link to this
In an earlier blog about mortgage scams, I mentioned it was just the tip of the iceberg….keep watching folks as more and more of your friends and neighbors go down for fraud in South Florida.
By Jack McCabe
May 7, 2008 9:50 AM | Link to this
McCabe Research & Consulting has consistently warned for years that S. Florida real estate prices have been artificially inflated due to mortgage and real estate fraud more than any other market in the United States. Greedy thieves, mortgage lenders that “don’t want to know the details” of how illegal the loans they are processing are, real estate brokers huffing and hyping and knowingly processing fraudulent transactions, and the key ingredient, overvalued appraisals by swamped and sometimes “fraud ring involved” appraisers. All due to a lack of oversight, and educational and experience requirements. No background checks to identify felons. No one should be surprised in S. Florida. The onslaught is yet to come. Many, many people will be indicted and receive prison terms of 8-25 years for their greed and illegalities. The players in the ring in this story are a great analogy of a small ring. The large rings with thefts in the tens and hundreds of millions of dollars are yet to be revealed. all this pushed the price of real estate to unaffordable levels. Anyone that still thinks it was due to buyer demand to live in S. Florida is still (sadly) mistaken. The floodgates of foreclosures, litigation and prosecutions is now opening. And prices will continue to fall. Period.
By joe
May 7, 2008 10:21 AM | Link to this
these people are brilliant. They should be on the county commission.
By ChicagoTruth
May 7, 2008 11:13 AM | Link to this
What did anyone expect when virtually 100% of new housing is priced too high for 90% of the population? Despite the delusional claims of the RE brokers and cheerleaders, Florida was, is, and will remain a mostly tourism/service industry based economy, which means LOW WAGES.
Whether the median price is $340,000, or $410,000, its still outlandishly high, and out of range to 90% of the people who live, work, and raise families in Florida. As each month passes by, it becomes more clear that the overwhelming majority of RE transactions from 2003 on were speculation driven. They were all buying to sell, not to live. Few had plans to actually pay off and settle into such exorbitantly priced homes. The funny thing is, cheerleaders used to scoff at the notion that more than 15 or 20% of sales during the frenzy were just spec driven. Today that reality appears to be closer to 80 or 90% spec driven.
Go do a survey of any recent development, such as Olympia in Wellington, or Tradition in Pt St Loser, or any big condo project, like 610 Clematis, or Marina Grande. See if you can find any units that are actually occupied by owners as a full time residence.
What on earth would drive so many developers, and lending institutions to finance such pricey propositions in a state where half of the working adults make less than $30,000/yr??
This is Florida, NOT Connecticut, NOT the Hamptons. Why do so many areas try to present the facade that they are awash in affluence? The reality is, Florida needs to build more trailer parks, and other similar lower cost housing. Why spend the big bucks building luxury condos and McMansions that few can afford, and will only end up being rented and trashed over time?
This is FLORIDA. Land of golfing retirees, trailer parks, and tacky tourist traps. Land of English as a second language, and violent drug gangs from Central and South America. Stop trying to pretend you are something else.
By DetroitCultureandupbringing
May 7, 2008 6:29 PM | Link to this
The previous post is coming from a guy who actually bragged about the fact that he was raised and “educated” in….um, ready for this…..Detroit.
As you say in your own word, you very naive schoolboy,
“…Stop trying to pretend you are something else.”
You are the laughing stock of this blog. Detroit, just too funny.
By REal EXPERT
May 7, 2008 6:32 PM | Link to this
With prices this LOW now is the time to BUY!! Contact your local realtor for help and expert guidance NOW!!
By DetroitCulture
May 7, 2008 8:11 PM | Link to this
Say what you want about Detroit. I know its a dump of a city, and that Michigan has the highest unemployment rates in the country. Which is why I dont live there anymore.
That being said, as economically depressed as Detroit is, it STILL can beat anything Florida has to offer culturally. The Detroit Institute of Arts is far and away superior to any museum in the land of retirement.
How about musical heritage? Musical acts from Detroit alone could fill the rock hall of fame. Just Motown acts deserve their own wing of the hall of fame. And many genres of music began in Detroit. Originators, not imitators. Electronica started in Detroit. Metal began there with the MC-5. Scary make-up circus acts like KISS got their ideas from Michigan boy Alice Cooper. England’s Sex Pistols learned from Ann Arbor’s Iggy Pop.
Down home boy John Cougar Mellencamp took notes from Detroit’s Bob Seger. Need I mention Mitch Ryder, Grand Funk, Ted Nugent, The Knack, The Romantics, etc…?
Lets see, who is from Florida? OK, Gloria Estefan was good, but she wasn’t no Aretha Franklin. Cant forget the purveyors of FREEBIRD, Confederate flag waving redneck rockers Lynard Skynard. OK, ummmm…oh yeh…MARYLIN MANSON! woohoo! Now THATS something to be proud of!
How about white rappers? Detroit has Eminem, while Florida has…chuckle… Vanilla Ice! For you rap/rock fans, Kid Rock was rockin before Lincoln Park’s Korn Bicuits were Limp.
How about sports? I’ll take loyal, passionate Detroit sports fans any day over fair weather Florida fans. A few years ago, the last place Tigers outdrew the World Series winning Marlins during the regular season. That right there says it all.
Slam the auto industry all you want, but go back a few decades and you will find the most desirable collector cars come from Detroit. Florida makes golf carts. Detroit made the ‘57 Chevy, the ‘66 Stingray, the ‘69 GTO, the ‘69 Charger, the Hemi Cuda, the Shelby Mustang, the Lincoln with suicide doors, the sleek mid-60s T-birds, etc…Not to mention other great pre-1974 muscle car classics: Olds 442, Camaro, Firebird, Chevelle, Roadrunner, Challenger, etc…All Detroit iron. I wouldn’t take 100 of those ridiculous, laughable tuner cars that disturb the peace allover South Florida for one classic Detroit muscle car.
Ten years from now that tricked up Dodge Neon or Mitsu Lancer will be worthless, while a classic Detroit-made Mustang, Challenger, or Camaro will keep rising in value.
Yes, Detroit may be suffering heavy economic woes today, but it has produced far more memorable cultural contributions to American society than Florida will ever today, and in the future.
Outside of tourist traps, retirement villages, and drunken Spring Breakers, I can’t think of any real Florida contributions to American culture.
By Observer
May 8, 2008 12:03 PM | Link to this
Let’s back up a bit. Where did the money for the scammers come from? It had to come from the seller, who accepted less than was reported on the Settlement Statement. So the sellers would seem to be in this as deeply as the loan officer and the Haitians. Are they being prosecuted? They are as conspiratorial as anyone. And let’s not even ask what the title companies which closed these transactions ignored. Their hands couldn’t be very clean.
Mr. Ostrowski, I think your article only touched the surface of this situation. You need to finish your work on this story by following through on the logical issues not mentioned in your article.
By To Observer
May 8, 2008 4:34 PM | Link to this
There are many on-going investigations. It’s just the very smallest tip of the iceberg…TRUST ME on this…..there are many more agencies involved, and a whole lot more entities involved in the scamming. There are many lenders and their staff being looked at, as well as developers, realtors, brokers, title companies, lawyers….you name the entity, and someone is looking at them….wait a few months…..and come back to this topic, and see how many people you’ve heard about by then, who are either in jail, under indictment, or fled the country or state. IT’S ABOUT TIME!
By Nicole
May 12, 2008 9:44 AM | Link to this
Why is the wife still driving in the luxuries car’s are the not part of the investigation I thought the would be taking away by now.
By Nicole
May 12, 2008 9:45 AM | Link to this
Why is the wife still driving in the luxuries car’s are the not part of the investigation I thought the would be taking away by now.
By karen
May 15, 2008 8:06 PM | Link to this
This situation seems very unfortunate. despite what is written one should not judge, it seems like this nicole person is attacking the wife instead of paying attention to what the article says. as i recall the article never mentioned a cadillac. unless this nicole person is a investigator, she should mind her own business. the problem with todays world is that we focus so much on the gossip aspect of issues and we lose sight of whats at steak. what happened to innocent until proven guilty. and how does this nicole person know that the cadillac has yet to be taken. to this nicole person if your not going to speak from a professional stand point .keep your comments to your self.
By karen
May 15, 2008 8:06 PM | Link to this
This situation seems very unfortunate. despite what is written one should not judge, it seems like this nicole person is attacking the wife instead of paying attention to what the article says. as i recall the article never mentioned a cadillac. unless this nicole person is a investigator, she should mind her own business. the problem with todays world is that we focus so much on the gossip aspect of issues and we lose sight of whats at steak. what happened to innocent until proven guilty. and how does this nicole person know that the cadillac has yet to be taken. to this nicole person if your not going to speak from a professional stand point .keep your comments to your self.
By karen
May 15, 2008 8:09 PM | Link to this
This situation seems very unfortunate. despite what is written one should not judge, it seems like this nicole person is attacking the wife instead of paying attention to what the article says. as i recall the article never mentioned a cadillac. unless this nicole person is a investigator, she should mind her own business. the problem with todays world is that we focus so much on the gossip aspect of issues and we lose sight of whats at steak. what happened to innocent until proven guilty. and how does this nicole person know that the cadillac has yet to be taken. to this nicole person if your not going to speak from a professional stand point .keep your comments to your self.
By Josie
May 19, 2008 7:04 PM | Link to this
Everyone has their eyes on the little guys (Haitians). Obviously these two guys got used big time although they must have been trying to make easy money. What about the loan processors, mother Jasky and everyone else that got a cut as well, I mean are they not as guilty, especially ms. Jasky who got released on bond the next day after the arrest but they kept those two guys in; could racism be a part of all that? Nicole, you need to stop being a hater-leave the wife alone as well as her car. Actually, you could be trying to make easy money just as those two did. Stop hating and mind your own business. Another thing, the government is big on judging superficially and simultaneously before they have a clue about a scenario like this one.
By Phara
May 20, 2008 5:00 PM | Link to this
I strongly agree with Karen and Josie especially on the aspect of INNOCENT until PROVEN GUILTY. I honestly think no one on this earth is capable to past judgments on anyones action or behavior; for the simple fact that EVERYONE makes mistakes. In addition our legal system can sometimes be unjust and irrational. As for Nicole I think you dont have s**t better to do then to be envious towards other peoples possessions, so really get a life!!!
By karen
May 21, 2008 9:37 AM | Link to this
it seems to me taht injsutice is what the justice systrm is all about. this is suppose to be tha land of the free, and it seems as if, if your skin is dark your still a prisoner, face it our world today is full of racism. everyone in that company should be in jail. because at the end of the day. the two gentleman were employees following orders.
By karen
May 21, 2008 9:39 AM | Link to this
it seems to me that injutice is what the justice system is all about. this is suppose to be tha land of the free, and it seems as if, if your skin is dark your still a prisoner, face it our world today is full of racism. everyone in that company should be in jail. because at the end of the day. the two gentleman were employees following orders.
By karen
May 21, 2008 9:40 AM | Link to this
it seems to me that injutice is what the justice system is all about. this is suppose to be tha land of the free, and it seems as if, if your skin is dark your still a prisoner, face it our world today is full of racism. everyone in that company should be in jail. because at the end of the day. the two gentleman were employees following orders.
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