Schemes, Scams, Frauds.

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Putting Stock In Home Ownership

Is the following scenario fraudulent?

I have knowledge of a couple who sold their home last August for $2M.

They then bought a home for $700,000 making a down-payment of $215,000.00 (info taken from our County's Assessor's web-page -- public info). They apparently did not make a mortgage payment after that.

On April 15th, 2003, a Notice of Trustee's Sale was recorded with the County Recorder's Office. The notice indicated that this couple's home would be publicly auctioned off on 7/28/03 at 11:30 a.m. at the steps of our courthouse downtown.

I suspect that what the couple is doing is placing any and all cash earned into some sort of stock option or savings account during the months that transpired between the initial down payment and the resolution of the pending foreclosure of their residence. This would give the impression, to any lending entity, that the couple is worth more than what they really are.

They are then (I am again guessing) pulling the funds out of their account at the last minute after approval has been made for more loans and/or cash advancements. Is this legal? 

They resolved the current pending foreclosure of their home on July 18th, 2003. The Cancellation  Notice of Sale was recorded on July 24, 2003.

What seems even more suspicious to me is that this will be the 2nd time facing the possible foreclosure of a home for the woman and the 4th for her husband.

It certainly sounds fishy, especially as a result of the frequency of it. The thing is, I don't have a clue regarding the process or objective. I would like to post the query and see if any viewer can shed some light on it.

I am curious as to how it came to your notice or why you researched it further. It has my interest tweaked as well and may warrant a whole new section.

Les

The truth be known, the woman is my husband's ex-wife.

I researched the information because I noticed a pattern in her behavior. Every time she initiated conflict - for example the need for her to take my husband back to court to re-instate child support - she was undergoing some sort of financial crunch.

The Judge has denied her request to re-instate child support as a result of the current 50-50% joint custody arrangement.

In fact, their "scheme" has worked against her in this arena, and, as it turns out our attorney has demonstrated, and the judge has agreed, that it would be she, not my husband, who would be responsible for making child support payments.

During the last court battle, May of 2002, she was claiming a monthly mortgage obligation of $12,000.00 --- imagine that for the mortgage alone!

Once again she has proven my theory right, upon the recording of the Notice of Trustee Sale, my husband began receiving almost daily e-mails complaining about this and/or that. Her e-mails have stopped upon the resolution of this matter.

Over the years, she has indicated that she and her husband pay cash for their brand new vehicles (50K per automobile) and she purchases a brand new car every 2 or 3 years.

She is an at-home-mom, and in the summer of 2000, her husband's employer indicated that he (the ex's husband) was a part-time employee with the Air National Guard. Now I am sure that our country's servicemen make a good living, but certainly not enough to be the owner/seller of a $2M home.

She has further indicated that her husband is a "consultant" of some sort. He "helps" IPO's get "started", or "listed". He has been listed as the CEO, CFO, President, Secretary, etc. of several (at least 90) Corporations. The value of the shares of these corporations are listed as $0.01/share. Each of these corporations indicate that he has 800,000 shares.

Last year the State filed a lien against this man for not having paid his taxes for about 3 years. We tried to contact the IRS before this (about two years before, because the ex would not provide tax returns --claiming she was an at-home-mom, and therefore, no income, but lots of debt on her financial affidavit ). Upon the sale of the $2M home, the lien of $50K+ was paid in full and released.

There you go... there is the motivation behind my interest in this investigation. We are just tired of having to pay court costs and attorney fees every time she decides to take us to court because her life is a roller coaster ride. Both my husband and I work hard for the life that we live. We pay our taxes, abide by the law, and try to provide the best we can for our kids. 07/03

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