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Foreclosure Fraud In Pennsylvania: Are Your Documents Legal?

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If you are contending with a notice of foreclosure it is important to first determine if your mortgage documents are legitimate. Since the housing market collapse in 2009, it has been become public knowledge that many mortgage lenders cut corners and even broke the law in the rush to cash in during the home buying boom.

Banks And Lenders Created Fraudulent Documents

In many cases, banks were doing business at such break neck speeds that there were serious process mistakes made that resulted in incorrect and technically invalid documents being created and issued to consumers and other lenders. This could have happened in a variety of ways and can have a serious impact on consumer’s ability to fight a foreclosure case. Some examples of lender misconduct include robo-signing, defective transfers, and inaccurate documentation to the extent that it renders the documents in question invalid.

Robo-Signing

Robo-signing is the practice of having documents signed and notarized by a computer. It may sound harmless, but in the case of mortgage documents this practice is actually illegal. By law mortgage documents are required to be signed by an actual person, not a computer program, and to witnessed and signed in front of a notary.

MERS

MERS is an acronym for the Mortgage Electronic Registration System. This is an electronic tracking system that resulted in a great deal of confusion as to who actually owned the loans that were being tracked and transferred via MERS.

There was such an enormous amount of activity, first during the boom when the loans were created and again during the bust as loans were re-sold and transferred, that many loans were not transferred correctly or were improperly securitized. Many banks and lenders cut corners and failed to obtain the proper paperwork when they initiated the transfer.

No Legal Standing To Foreclose

In many instances where the loan transfer was not legal; the wrong party is attempting to foreclose. Such parties who bring suits find out that they do not have legal standing and must drop the case. In other cases, the bank may not actually possess the physical documents of your loan and mortgage and as such, they have no legal standing to foreclose on the property in question. Some courts have invalidated the mortgage and dismissed the bank’s claim entirely.

Predatory Lending

Predatory lending is the act of giving loans to borrowers under false pretenses; knowing that borrower would never be able to repay. Some potentially illegal actions that lenders were known to engage in include:

  • Artificially increasing the value of the home
  • Submitting altered docs to misrepresent down payments
  • Taking actions to secure loans for people under circumstances that were less than honest

In such cases, the loans that were originated might have been invalid from inception.

 

At DRK law offices we have experienced attorneys available to consult with you about your foreclosure proceedings. There is no time to waste when you are fighting a foreclosure notice, please contact our team today.

Understanding Tax Fraud & The Possible Criminal Charges That May Result

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The U.S. Tax Code is notoriously confusing and is amended every year. Many taxpayers are not entirely clear on what would exactly constitute tax fraud or evasion. Unless you are trained as an accountant or other kind of tax professional, it is highly likely that mistakes could be made on your tax return. It is not uncommon for these kind of mistakes to result in an underpayment of taxes due.

What Is Tax Fraud Or Tax Evasion?

A simple mistake or mistakes on a tax return does not automatically equate to tax fraud. If the mistakes are discovered, the result is generally that the tax paying entity must the difference in tax owed and may also be required to pay a fine.

Tax Fraud Or Evasion: What The IRS Is Looking For

Tax fraud or tax evasion is the practice of purposefully underpaying taxes owed. Either may be committed by individuals or companies. When examining tax filings for cases of fraud, IRS agents are looking to prove that there was a deliberate attempt made by the filer to under represent and subsequently underpay taxes owed to the government.

Tax fraud or evasion can take many forms. Some of the common red flags that IRS investigators are looking for are:

  •  Underreported Income
  •  Inflated Expenses
  •  Offshore Or Undeclared Foreign Bank Accounts
  •  Questionable or Excessive Deductions
  •  Questionable Charitable Donations

 The Government Is A Serious Opponent In Tax Fraud Cases

If the IRS makes a determination of tax fraud or evasion, the resulting charges and penalties can be significant. Both are serious federal offenses that the government generally approaches with a special prosecutorial zeal. A conviction in a tax fraud or evasion case can often result in expensive fines and a potentially lengthy prison term.

Don’t Delay In Speaking With Legal Counsel

The government brings an almost unlimited amount of resources to bear in fraud investigations. If you are contending with an IRS or tax-related in investigation it is prudent to speak with legal representation as soon as possible.

All of the attorneys at DRK Lawyers are former assistant district attorneys. We use our trial experience and knowledge of the government’s tactics to help defend our clients every day in the state of Pennsylvania. If you are facing tax fraud charges or an investigation, please contact our team today. There is no charge for your initial consultation.

IRS Investigators Watch Reality TV Too

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The Reality of Federal Fraud Charges

Federal fraud charges are some of the most serious allegations that can be leveled against an individual or group of individuals. Being found guilty of committing or of conspiracy to commit any of the following charges can lead to severe criminal penalties including jail time, fines and orders of restitution:

  • Mortgage fraud
  • Tax fraud/evasion
  • Mail & wire fraud
  • Medicare/Medicaid fraud
  • Bank fraud
  • Securities fraud

Real Housewives of New Jersey Stars Convicted in Federal Fraud Case

The Giudices of Real Housewives of New Jersey fame found out the hard way that IRS agents watch reality television just like the rest of America. As the couple flaunted their wealth and assets on one of cable TV’s hit shows, federal agents took notice of the couple’s 2009 filing for bankruptcy and began an investigation into the couple’s documents and declarations stemming from mortgage applications and their bankruptcy filing and income tax filings.

The government uses the cases of celebrities caught in these types of situations as a high profile warning to all American taxpayers. Ultimately, the Giudices were both convicted of several charges that stemmed from a 39 count indictment including alleged mortgage fraud, bankruptcy fraud, and conspiracy to commit mail and wire fraud, among other charges.

When the indictment was handed down by the Grand Jury U.S. Attorney Paul Fishman noted in a statement that, “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.”

Serving Staggered Prison Sentences

Depending on the severity of the crimes you are charged with, if convicted, you could be mandated to a federal corrections facility for a period of anywhere from 6 months to 30 years. Additionally, any prior criminal record will be taken into consideration and could potentially impact the severity of the sentence.

The Giudices will be allowed to serve staggered sentences so that one parent may remain with the couple’s four children while the other is incarcerated. Mrs. Giudice will serve her 15 month sentence first, beginning in early 2015. Mr. Giudice will begin his 41 month sentence once his wife has completed her prison time, which is expected to be in 2016.

Paying Fines and Restitution

Fines, like prison sentences, vary based on the nature of the crime(s) in question. However, the government does not generally err on the side of leniency with regard to fines so most defendants who are convicted are burdened with heavy judgements. In the case of the Giudices they were ordered to pay tens of thousands of dollars in fines.

Additionally, if you are convicted of a charge such as tax fraud, the court can order you to pay restitution to your victim. In the case of income tax fraud, you will be paying compensation to the IRS as the Giudices were ordered to do to the tune of almost half a million dollars.

Limitations on Future Opportunities

In the case of the Giudices, Mrs. Giudice claims to earn income via various revenue streams from the lifestyle brand and products she developed as she appeared on television. Mrs. Giudice has by her own admission apparently lost various endorsement and product distribution deals due to her indictment on federal fraud charges and her resulting conviction and impending 15 month prison sentence.

This is a typical result in federal fraud cases regardless of if the defendant is a celebrity or not. A conviction in a federal fraud case generally leads to extreme hardship in terms of one’s ability to secure employment, obtain housing or obtain approval for loans.

Federal fraud charges are some of the most serious allegations a person can face in the United States of America. We are former prosecutors who know how the system works and will work to defend you every step of the way. If you are facing federal fraud charges, please don’t delay in contacting us.

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