CENTRAL FLORIDA — Four people are on the run after, detectives say, they were involved in a mortgage fraud ring that spanned three Central Florida counties. The Florida Department of Law Enforcement (FDLE) said it has already arrested 11 people involved in the ring.
Gus Grizzard has worked in Lake County real estate for 18 years. He told WFTV on Tuesday that he wasn't surprised to hear 15 people were charged with running a mortgage scheme that defrauded banks out of $9 million.
"There's always people out there trying to find a loophole to make a quick buck," Grizzard said.
The Florida Department of Law Enforcement said licensed realtors, appraisers and mortgage brokers were involved in the scam. Agents said they would have a buyer purchase a home in Volusia, Lake or Flagler County, inflate the price with a bogus appraisal, then at closing take money out for phony renovations.
The group would rake in between $25,000 to more than $300,000 per house. Then, they'd let the house go into foreclosure.
Grizzard said this wasn't a difficult scam to pull.
"Back in the day during the boom, if you could fog a mirror and you have a job, you could get financed," Grizzard said.
Investigators said the mortgage fraud ring stole from at least 23 properties across Central Florida, but Grizzard said it's not just the banks that are losing out, it's also home-buyers who are trying to get a loan.
"It's going to put up roadblocks for those creditors, and first-time home-buyers that really deserve and need the money to buy a home," he said.
If banks are skeptical about loaning money, it could continue to slow home sales and delay the recovery.
The Attorney General's Office has charged the suspects with one count of criminal racketeering and one count of conspiracy to commit racketeering, which are both first-degree felonies.
WFTV
