• Posted by Peter Smythe
  • On 19 June 2008

  • Filed under Federal Crimes

  • No Comments

Dallas: Arrests in Mortgage Fraud Case

The Fort Worth Star-Telegram reports that the FBI has arrested at least 8 people in connection with what it calls a conspiracy to commit wire fraud relating to mortgages.

According to court documents, the defendants sought out single-family homes for sale, including distressed and foreclosed properties.  After negotiating a price, they created surplus loan proceeds by inflating the sale price or creating a fake outstanding mortgage lien to be discharged.

Eric Rulack Farrington who conducts wealth-building seminars and is a self-professed homeless man turned millionaire is the lead defendant.

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