Civil Mortgage Fraud Case- Man pays $5

million to resolve.
http://www.preventmortgagefraud.com/Cons
ulting_and_Litigatio.html
Mortgage fraud and abuse
August 3, 2012
By: Michael Richardson

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“Our objective is to ensure that the public is not taken advantage of when they have fallen on
hard financial times. Distressed homeowners are particularly vulnerable to this type of fraud. An
important message has been sent today to those who prey on upon homeowners who are seeking
financial assistance with their mortgage. This type of fraud not only affects individual families, it
also affects the housing market.” Stated James Todak, the Special Agent in Charge of HUD-
OIG.

Terrill Meisinger agreed to the penalty to resolve a June 2011 federal civil lawsuit accusing him
of orchestrating a foreclosure rescue scheme that bilked homeowners and lenders, that is said to
be among the largest such civil actions undertaken by authorities.

He will pay $5 million in civil penalties to resolve allegations by federal authorities that he took
control of hundreds of homes that were in default and then rented them out without paying
anything toward their mortgages.

U.S. District Court Judge Virginia A. Phillips on Tuesday signed an order giving final approval
to the deal, which also prohibits Meisinger from participating in the home finance or real estate
industries for 10 years, federal authorities said.
"This is one of the largest civil mortgage fraud cases ever brought against an individual," U.S.
Atty. André Birotte said. "The $5-million judgment and injunction against Meisinger
demonstrate our commitment to using civil remedies ... to protect everyone, including vulnerable
victims like those seen in this case."

Meisinger allegedly contacted homeowners facing imminent foreclosure and promised that he
could help them avoid foreclosure and save their credit, according to the suit.

He allegedly told distressed homeowners that if they deeded their houses to him and immediately
moved out, they would receive a small cash payment, typically from $500 to $1,000, with the
promise that Meisinger would bring their mortgage payments current and pay them an additional
$5,000 to $10,000 when he eventually sold their properties.

But instead Meisinger allegedly transferred the properties to third parties whose identities he had
stolen, and then fraudulently filed bankruptcy petitions in these names, the suit stated. Those
petitions would trigger successive automatic stays that prevented lenders from foreclosing.

The move allowed Meisinger to rent the properties out for up to three years as he allegedly
transferred the properties.

Federal authorities allege that between 2000 and 2004, Meisinger collected more than $1.5
million in rent from more than 100 properties -- most of which were in the Inland Empire --
without paying the mortgages.

During this five-year period, authorities estimate that he caused more than 300 bogus bankruptcy
petitions to be filed in the names of numerous individuals who had no knowledge their identity
was being used. When the lenders finally got control of the properties, some renters were evicted
and left homeless, officials said.

As part of the agreement, Meisinger is barred from filing any bankruptcy petitions for himself,
any other person or entity without prior court approval, according to the news release.

The suit was the result of an investigation conducted by special agents and auditors from the
Housing and Urban Development's Office of the Inspector General.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud
Enforcement Task Force, please visit www.stopfraud.gov.

By Michael S. Richardson

Author of “An American Epidemic, Mortgage Fraud… a Serious Business

www.preventmortgagefraud.com

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Michael Richardson, Mortgage Examiner

Mr. Richardson is a seasoned professional with more than 28 years in the mortgage, financial
services and real estate industries. His service has been nationally recognized in the crucial area
of valuations, quality control, compliance, due diligence, risk management and mortgage fraud...

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Civil Mortgage Fraud Case- Man pays $5

million to resolve.
Mortgage fraud and abuse
August 3, 2012
By: Michael Richardson

Get Personal Finance alerts!

Related topics
Mortgage fraud and abuse
 mortgage fraud
real estate fraud

Advertisement

“Our objective is to ensure that the public is not taken advantage of when they have fallen on
hard financial times. Distressed homeowners are particularly vulnerable to this type of fraud. An
important message has been sent today to those who prey on upon homeowners who are seeking
financial assistance with their mortgage. This type of fraud not only affects individual families, it
also affects the housing market.” Stated James Todak, the Special Agent in Charge of HUD-
OIG.

Terrill Meisinger agreed to the penalty to resolve a June 2011 federal civil lawsuit accusing him
of orchestrating a foreclosure rescue scheme that bilked homeowners and lenders, that is said to
be among the largest such civil actions undertaken by authorities.

He will pay $5 million in civil penalties to resolve allegations by federal authorities that he took
control of hundreds of homes that were in default and then rented them out without paying
anything toward their mortgages.

U.S. District Court Judge Virginia A. Phillips on Tuesday signed an order giving final approval
to the deal, which also prohibits Meisinger from participating in the home finance or real estate
industries for 10 years, federal authorities said.

"This is one of the largest civil mortgage fraud cases ever brought against an individual," U.S.
Atty. André Birotte said. "The $5-million judgment and injunction against Meisinger
demonstrate our commitment to using civil remedies ... to protect everyone, including vulnerable
victims like those seen in this case."

Meisinger allegedly contacted homeowners facing imminent foreclosure and promised that he
could help them avoid foreclosure and save their credit, according to the suit.

He allegedly told distressed homeowners that if they deeded their houses to him and immediately
moved out, they would receive a small cash payment, typically from $500 to $1,000, with the
promise that Meisinger would bring their mortgage payments current and pay them an additional
$5,000 to $10,000 when he eventually sold their properties.

But instead Meisinger allegedly transferred the properties to third parties whose identities he had
stolen, and then fraudulently filed bankruptcy petitions in these names, the suit stated. Those
petitions would trigger successive automatic stays that prevented lenders from foreclosing.

The move allowed Meisinger to rent the properties out for up to three years as he allegedly
transferred the properties.
Federal authorities allege that between 2000 and 2004, Meisinger collected more than $1.5
million in rent from more than 100 properties -- most of which were in the Inland Empire --
without paying the mortgages.

During this five-year period, authorities estimate that he caused more than 300 bogus bankruptcy
petitions to be filed in the names of numerous individuals who had no knowledge their identity
was being used. When the lenders finally got control of the properties, some renters were evicted
and left homeless, officials said.

As part of the agreement, Meisinger is barred from filing any bankruptcy petitions for himself,
any other person or entity without prior court approval, according to the news release.

The suit was the result of an investigation conducted by special agents and auditors from the
Housing and Urban Development's Office of the Inspector General.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud
Enforcement Task Force, please visit www.stopfraud.gov.

By Michael S. Richardson

Author of “An American Epidemic, Mortgage Fraud… a Serious Business

www.preventmortgagefraud.com

Featured Videos

From the sexy to the silly, check out today's top videos.

See what Kate could get an Olympic medal for

Former athletes: Where are they now?
Fun tool finds your Olympic body double
Winners must pay taxes on gold medals
More exclusive Olympics coverage
Michael Richardson, Mortgage Examiner

Mr. Richardson is a seasoned professional with more than 28 years in the mortgage, financial
services and real estate industries. His service has been nationally recognized in the crucial area
of valuations, quality control, compliance, due diligence, risk management and mortgage fraud...

Subscribe
Follow me on Twitter
RSS Feed
Become an Examiner

Comments
Next article »

Is this justice for anyone?

Advertisement

2012 Olympics

The latest results, videos, and news from the Olympics in London.

Team USA!

Music news
The latest from Lollapalooza, and who was just released from a Czech jail.

Read more

Hot videos

Today's hottest videos from celebs, funnies, sports and more.

Check them out

Advertisement

Don't miss...

Slideshow: The latest Disney Dream portraits have been revealed.

The work of Annie Leibovitz

Video: See what Kate should get an Olympic medal for doing.
Wacky celebrity honors