Mortgage Fraud Accusations for Nationwide Investment

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Nationwide Investment Firm, a Palm Beach County foreclosure rescue firm, is the target of increasing homeowner complaints.

Clients allege that Nationwide promises to arrange short sales, negotiate loan modifications, or work with lenders to delay homeowner foreclosures, according to a lawsuit filed in Palm Beach County. Rather than getting help, however, unsuspecting victims actually sign over the deed to their home to Nationwide.

Seven lawsuits charging fraudulent business practices have been filed against the company in the past year, according to the Palm Beach Post. Nationwide Investment now has title to 65 homes in Palm Beach, Broward, Miami-Dade, St. Lucie and Lee counties, according to the article.

The Florida Office of Financial Regulation confirmed last week that it is conducting an investigation into the firm.

Watch a Channel 5 News video about the mortgage fraud allegations involving Nationwide Investment Firm.

Contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik or Howard Kahn to discuss how you can defend your legal rights in a foreclosure. You can contact them online or call her at 954-321-0176.

South Florida Men Sentenced in $9 Million Mortgage Fraud Scheme

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An elaborate mortgage fraud scheme ended with defendants Oscar Bravo, 58 of Port St. Lucie, Jorge Bravo, 57 of Miami, and Sean Dickens, 44, of West Melbourne, Florida being sentenced to thirty-seven (37) months in prison on charges of conspiracy to commit mail and wire fraud.

According to a press release issued by the U.S. Attorney’s Office for the Southern District of Florida, a co-conspirator located residential properties for sale. The defendants then purchased the properties, with a plan to flip them for a profit after some property enhancements. The properties were 100% lender financed. The price of the properties was falsely inflated in their mortgage applications with the difference between the actual price and the inflated mortgage loan used to make payments on the mortgage loan and to pay for repairs to the properties.

In total, this mortgage scheme involved approximately $9 million in fraudulent mortgage loans. Click on the link to read the full press release.

Contact Fort Lauderdale mortgage fraud attorney Howard N. Kahn, Esq., if you or someone you know has been the victim of commercial mortgage fraud. Mr. Kahn is an experienced mortgage fraud and litigation attorney. He works with commercial lenders or borrowers in cases involving mortgage fraud or other distressed properties. You can him at 954-321-0176 or online.

Brokerage Account Statements: Investor Alert

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The Financial Industry Regulatory Authority (FINRA) has issued an Investor Alert called “It Pays to Understand Your Brokerage Account Statements and Trade Confirmations.”

Investors are advised to carefully review their brokerage account statements every month, not just to confirm the balance but to also look for errors or signs of unauthorized trading or overcharges. 

Signs of Brokerage Account Fraud

FINRA warns investors to be aware of statements that appear unprofessional or altered in any way, since this may be a red flag for fraud. In some cases, according to FINRA, fraudsters simply cut and paste the logo of a legitimate firm onto their own bogus statement.

Other signs of fraud mentioned by FINRA include:

  • No specified end date or statement period on your statement.
  • End dates or statement periods that don’t follow a consistent pattern (such as the last day, last business day or last Friday of each month).
  • Account number that doesn’t match previous statements.
  • Wrong or outdated address, which could hamper delivery of account information.
  • Incorrect or outdated account ownership information.
  • The financial professional’s name is unfamiliar to you.
  • A phone number that is out of service or always busy or not answered.

Read more from FINRA’s guide, “It Pays to Understand Your Brokerage Account Statements and Trade Confirmations.”

Contact Fort Lauderdale securities attorney Howard N. Kahn, Esq., if you or someone you know has been the victim of fraud or unauthorized trading in regard to an investment or brokerage account. Mr. Kahn is an experienced securities attorney and FINRA arbitrator. You can him at 954-321-0176 or online.

George Elia Ponzi Scheme Trial Scheduled for This Week

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The $11 million Ponzi scheme perpetrated on members of the Wilton Manors, Florida gay community from March 2005 to January 2012 is headed for trial this week in a Miami federal court.

Defendants George Elia and his company, International Consultants & Investment Group Ltd. Corp., orchestrated a Ponzi scheme in which Elia raised approximately $11 million from approximately 25 investors, according to an SEC complaint. Elia allegedly lied to investors by claiming to generate returns as high as 26% through day trading stocks and exchange-traded funds.

Elia allegedly transferred the funds to entities he controlled, including Relief Defendants 212 Entertainment Club, Inc., and Elia Realty, Inc. He also used some of the funds to pay personal expenses such as mortgage and car payments, and to pay an associate to introduce him to potential investors to sustain his Ponzi scheme.

George Elia, 69, faces 10 fraud-related charges, according to the Sun-Sentinel. Co-defendant James F. “Jim” Ellis, who recruited investors using his connections in the gay community, pleaded guilty last month to a single count of conspiracy to commit mail and wire fraud.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

Unauthorized Trading Target of SEC Risk Alert

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Helping broker-dealers and investment advisers prevent and detect unauthorized trading in brokerage and advisory accounts is the subject of a new Securities and Exchange Commission risk alert.

According to the SEC, “unauthorized trading can include rogue trades in customer, client, or proprietary accounts or trades that exceed firm limits on position exposures, risk tolerances, and losses. Unauthorized trading can be done by traders, assistants on trading desks, portfolio managers, brokers, risk managers, or other personnel, including those in administrative positions in a firm’s back office.”

Red flags for unauthorized trading include changes in trading patterns, a high volume of trade cancellations or corrections, manual trade adjustments, or unexplained profits for a particular trader or client may warrant additional scrutiny.

Contact Fort Lauderdale securities attorney Howard N. Kahn, Esq., if you or someone you know has been the victim of unauthorized trading in regard to an investment or brokerage account. Mr. Kahn is an experienced securities attorney and FINRA arbitrator. You can him at 954-321-0176 or online.

Click on the link to read the SEC’s release on unauthorized trading.

Miami-Dade Homestead Exemptions Due March 1st

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Miami-Dade County homeowners who intend to file a homestead exemption had better act quickly. Friday, March 1, 2013 is this year’s deadline to file a property tax exemption application.

Homeowners can now complete the entire application process for Florida’s Homestead Exemption and for the Homestead Assessment Difference (commonly referred to as Portability) online at the Miami-Dade County Office of the Property Appraiser website, and submit their application directly to the Property Appraiser’s Office.

Click on the link to start your Homestead Exemption Application Online Filing.

Florida  residents as of January 1 will need the following documentation:

  • A valid Florida driver’s license or ID card
  • Florida vehicle registration
  • Florida voter’s registration
  • Prior year’s IRS return or current W2 form
  • Bank statements and checking account registered at the property
  • Proof of payments for utilities at the property

For more information, click on the link for full details about Miami-Dade Homestead Exemption categories.

A Public Service Announcement from the Fort Lauderdale Law Firm of
Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.

SEC Proposes Identity Theft Rules

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The Securities and Exchange Commission yesterday proposed a rule designed to protect investors from identity theft. Broker-dealers, mutual funds, and other SEC-regulated entities are being asked to implement identity theft safety programs that will establish and detect appropriate “red flags.”

Risk factors that a financial institution or creditor would be required to consider as a red flag for covered accounts include:

(1) the types of covered accounts it offers or maintains;
(2) the methods it provides to open its covered accounts;
(3) the methods it provides to access its covered accounts; and
(4) its previous experiences with identity theft.

Risk factors are likely to vary across account types. For example, margin accounts will differ from advisory accounts, and red flags for business accounts will be different than consumer accounts.

The SEC proposal was issued jointly with the Commodity Futures Trading Commission (CFTC) under Section 1088 of the Dodd-Frank Act. The proposed rules are substantially similar to rules adopted in 2007 by the FTC.

Click on the link for a full copy of the SEC/CFTC identity theft proposal.

Contact Fort Lauderdale securities attorney Howard N. Kahn, Esq., if you or someone you know has been the victim of identity theft in regard to an investment or brokerage account. Mr. Kahn is an experienced securities attorney and FINRA arbitrator. Contact him at 954-321-0176 or online.

Mutual Benefits Corp. Ponzi Scheme Back in the News

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Steven Steiner, a former vice president of Mutual Benefits Corp., and his partner Henry Fecker III are waiting for a Miami jury to decide their fate. The two are charged with laundering millions of dollars through residential real estate, hiding assets from authorities, and lying to a court-appointed receiver, according to a Miami Herald article titled “Jurors deliberating in money-laundering trial linked to South Florida ‘Ponzi scheme’.”

Mutual Benefits Corp. (“MBC”) was the viatical and life settlement company that raised more $1.25 billion from over 30,000 investors worldwide from October 1994 through May 2004. A viatical or life settlement is an investment in which the investor purchases a right to receive the proceeds on a terminally ill or elderly person’s insurance policy when the insured dies.

A 2005 SEC indictment alleged that Steiner and others participated in a wide-scale fraud involving the sale of investments, falsely promising investors “safe” and “secure” investments when they knew that MBC had, among other things, improperly acquired policies, pressured doctors to rubber-stamp false life expectancy figures, and mismanaged escrowed premium funds in a “Ponzi” scheme fashion.

During a month-long February trial that just ended, Steiner denied allegations of fraud and insisted that he complied with the SEC settlement. He has been in jail since August 2011, and faces a 54-count indictment that could result in significant additional prison time.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

Help for Homeowners Events: Miami, Feb 27-28

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Miami area homeowners who are struggling with mortgage foreclosure may find some free help from the federal “Making Home Affordable” assistance program. Mortgage servicers, ​​HUD-approved housing counselors, and other local non-profit organizations will have counselors on site to explain homeowner options in regard to foreclosure avoidance.

Dates and Times

Wednesday, February 27, 2013, 1:00 p.m. – 8:00 p.m.
Thursday, February 28, 2013, 9:00 a.m. – 3:00 p.m.
James L. Knight Center
400 SE Second Avenue | Miami, FL 33131
Complimentary Self‐Parking in the Convention Center Garage on 100 SE 2nd Street

Attendance is free. The program is designed for Miami homeowners who are:

  • Behind on mortgage payments
  • Unemployed or underemployed
  • Facing a short sale or deed‐in‐lieu of foreclosure
  • Having trouble refinancing

Attendees are encouraged to bring the following documentation to the event:

  • Request for Mortgage Assistance Form (available at MakingHomeAffordable.gov)
  • IRS Form 4506T‐EZ (available at MakingHomeAffordable.gov)
  • Monthly mortgage statement
  • Information about any other mortgages
  • Two most recent pay stubs
  • If self‐employed, the most recent quarterly or year‐to‐date Profit and Loss Statement
  • Documentation of income from all sources
  • Two most recent bank statements
  • Unemployment insurance letter, if applicable

The Making Home Affordable ® Program (MHA) ® is a federal program designed to help homeowners get mortgage relief and avoid foreclosure.

Visit www.makinghomeaffordable.gov or click on the link for more details about the free Miami Homeowner Mortgage Foreclosure seminars.

Fort Lauderdale Foreclosure Defense Attorney

Choosing the best approach to protecting yourself and your family from a mortgage foreclosure involves many legal considerations. Contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik to discuss how you can defend your legal rights in a foreclosure. You can contact Ms. Resnik online or call her at 954-321-0176.

Mortgage Foreclosure Can Mean Deficiency Judgment

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Many Florida homeowners facing foreclosure do not realize that they might still owe money to the mortgage lender long after a foreclosed property has been sold.

Lenders can obtain a “deficiency judgment” against a homeowner, which is the difference between the homeowner’s outstanding mortgage balance and the value that a bank receives after a foreclosure or short sale.

News Channel 10 has an interesting video about Florida homeowners and deficiency judgments.

If you have questions about a mortgage foreclosure or deficiency judgment, contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik. You can contact her online or call her at 954-321-0176.