The dinner meeting will be held at the Westshore Hotel, located at 1200 N. Westshore Boulevard. The hotel is just north of I-275 and Cypress Avenue on the east side of Westshore (map). Evenings will begin with a social at 6:00 P.M., followed by a buffet dinner at 6:30 and a presentation at 7:00. The cost is $25.00, payable at the door.

To make your reservation, please use the following link Chapter Meeting Reservation and complete the form at the bottom of the page.  You can also make your reservation by emailing Gary Chapman by 1pm September 11, 2009. Reservations will not be accepted after 1:00 PM on Friday. Walk-ups are always welcome, but will only be accommodated if space is available. Please remember that cancellations are accepted up to the afternoon of the meeting. No shows will be billed after the second missed meeting. Please help us keep our costs down by letting us know if you are unable to attend.

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Interthinx Predicts Fraud Index Will Rise Through 2011

Interthinx have released their second quarter 2009 Mortgage Fraud Risk Report and predict that the Fraud Index will continue to rise through 2011.  The Interthinx Fraud Indices act as leading indicators of foreclosure activity.  It is projected that areas with high Fraud Indices in 2009 will experience high foreclosure rates in the future even if overall economic conditions improve.

Mortgage fraud is complex and involves many factors.  Typically mortgage fraud occurs in unstable housing markets, that are fuelled by prices rising or falling.  An area which is booming with new construction and rising property prices is just as likely to fall victim as an area suffering from severe economic depression.

As with any type of fraud, mortgage fraud takes advantage of local conditions.  Shifts in geographical distribution are seen from year to year as real estate market conditions change.  Of the five states with the highest mortgage fraud risk a year ago, only Ohio is still in the top five.

Property valuation fraud often peaks during times when property prices are unstable.  The Property Valuation Fraud Index for the United States increased by 56% over the last year according to Interthinx at the same time property prices continued to fall throughout the country.

Identity fraud is commonly used in mortgage fraud schemes.  Perpetrators hide their true identity in order to obtain a credit profile which meets lenders requirements.  Sometimes  homes are transferred to the thief and sold without the true owners knowledge.  Using identity fraud to obtain a mortgage is also on the rise.

Interthinx predicts that the predominant fraud type will be continue to be related to property valuation.  This will be caused by consumers trying to refinance their properties despite their values declining.  They also expect the Fraud Index to continue to rise through 2011, reflecting ARM interest rate resets which will peak in 2012.

Source
2nd Quarter 2009 Mortgage Fraud Risk Report

FBI 2008 Mortgage Fraud Report "Year in Review"

Mortgage fraud continues to be an escalating problem in the United States and a contributing factor to the billions of dollars in losses in the mortgage industry.  Recent congressional economic stimulus legislation and the proliferation of FHA-insured mortgages are providing funding streams for perpetrators to further exploit this industry.  Multiple fraud schemes are being conducted by industry professionals who are in a position to exploit the current depressed housing market.  Market conditions are also fueling the use of traditional and emerging schemes which have the potential to multiply across jurisdictions as foreclosures increase, the market contracts, access to credit diminishes, and more homeowners are unable to sell or refinance their homes.  Properties affected by these schemes negatively impact neighborhoods; federally insured loan programs; the mortgage, banking, and securities industries; secondary market investors; tax payers; homeowners; and the overall US economy.  To read the full report click here

Source
FBI 2008 Mortgage Fraud Report "Year in Review"

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OIG Releases SEC Madoff Fraud Report

Mary L. Schapiro, US Securities and Exchange Commission, released a statement on September 2, 2009 stating that the agency missed numerous opportunities to detect the Madoff fraud.  She went on to discuss the many reforms the agency has implemented since January 2009 when she took office. Read the press release here and the full OIG report here

Largest Healthcare Fraud Settlement in Dept. of Justice History

According to the FBI Pfizer has agreed to pay $2.3 billion to resolve charges of illegal and fraudulent promotion of its products.  The case was so large it took four years of investigation.  The case primarily involved so-called off-brand promotion of several drugs including Bextra an anti-inflammatory drug. The drugs were pushed by Pfizer's sales force who aggressively promoted off label uses and doses not approved by the Food and Drug Administration according to the FBI this is the largest criminal fine of any kind imposed in the U.S..  Click here for the full article.

Former Dallas Cowboys Football Player Charged

Eugene Lockhart, Jr, a former Dallas Cowboys player and eight others have been indicted by a federal grand jury on charges relating to a mortgage fraud scheme they allegedly ran in the Dallas area from 2001 through 2005.  The indictment alleges that the scheme located single family residences for sale in the Dallas area, including distressed and pre-foreclosed homes, and negotiated prices with the sellers.  Surplus loan proceeds were created by inflating sales prices to beyond the fair market value of the property.  It is also alleged that the defendants used straw borrowers and loan applications containing false information to obtain mortgages.  Click here to read the Department of Justice Press Release.

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  How to Avoid Employment Scams

In these challenging economic times, some people attempt to capitalize on the strong desire for employment and income in different populations or communities. Victims are targeted at job fairs, online, through telephone solicitations, and through radio, print and television advertisements. Get-rich-quick schemes, work-at-home scams, pyramid schemes, and numerous other approaches promising employment and wealth are used to separate job seekers from their money. The following are tips and suggestions on how to avoid becoming a victim of an employment scam.

• Remember the adage, “If it sounds too good to be true, it probably is.” Many fraudulent job or business offers promise ideal work environments, high pay, and require little or no experience. Most offers promising the best of all worlds turn out to be a waste of time and money.
   

• Be suspicious of employment-service firms that guarantee finding you a job.
   

• Use caution when contacting entities promoting “previouslyundisclosed” federal government jobs. All federal positions are announced to the public.
   

• Avoid high pressure tactics that stress paying immediately or risk missing an employment opportunity. If an employment opportunity is truly valid, it should not require any form of payment and you should be given time to review the offer.
   

• Be aware that some ads may appear to announce a job opportunity, however, it is really an ad selling employment information and services.
   

• Be Wary of Potential Employers who:
  
  Want personal information, such as your Social Security number or financial information,  prior to an interview
  Offer to hire you without an interview or meeting
  Charge up-front placement fees or other charges as a condition of your employment
  Ask you to transfer, receive and/or deposit money or receive/send packages (especially from  outside the United States)
  Do not provide a job description or cannot describe the position for which you are inquiring
   

• Note possible financial repercussions when dialing a toll-free number. Some employment ads require the responder to dial a toll-free number to obtain more information. Once connected, you may be unwittingly switched to a pay-per-call number, or asked to call a 900-number without proper fee disclosures. Both of these practices violate federal law. The Federal Trade (FTC) Commission and the Federal Communications Commission (FCC) both have enforcement power. To file a complaint regarding a 900-number, call 1-877-FTC-HELP,          or 1-888-CALL-FCC.
   

• Cautiously surf the Internet for employment. The Internet can provide numerous avenues for job seekers. It affords the user countless opportunities to view openings on actual company websites, online job sites (such as Carrerbuilder.com and Monstor.com), newspaper classified
  webpages, and social networking sites. Take precautions if you are thinking about applying for jobs that contain the following information and/or requests:
  
  Personal invitations claiming to match your resume skills with a job.Scammers often send mass e-mails in an attempt to gather personal information. If you receive such an e-mail, ask yourself if you sent a resume to this recruiter, or if you applied for a job with the alleged
  company? You should also contact the company directly and inquire about the position and/or e-mail.
  Requests for identity verification. Some scammers will contact a job seeker stating they need identity verification prior to granting an interview. They may ask for information such as a Social Security or drivers license number, mother’s maiden name, etc. These requests
  are aimed at trying to steal your identity.
   

• Use secure and reputable sites to post your resume. You may want to create a dedicated e-mail address to accept replies to your posted career inquiries.
   

• Take time to review contracts from employment firms. Before signing any agreement or contract, make sure you understand the terms to which you are agreeing. Additionally, be aware of what services will be provided by the firm and for what you will be responsible. If oral promises do not appear in the agreement/contract, reconsider doing business with that firm, or have such promises incorporated into the agreement or contract.

Information supplied by the New York State Consumer Protection Board