Palm Desert's Christopher Oetting got involved in just such a mortgage fraud ring:
Police say a Palm Desert businessman who pleaded guilty to taking part in a $150 million mortgage scam has hanged himself.
47-year-old Christopher Oetting was found dead in a home on Sagewood Drive in Palm Desert Tuesday, according to the Riverside County Sheriff's Deparment. He was heading to federal prison in just a few weeks.
Oetting was one of seven co-conspirators who created false companies that officials say led to more than 200 homeowners losing their homes to foreclosure.
The kingpin - James Duncan - even made a Youtube video to lure investors.
More details about the scam here:
An investor would buy two, three or as many as eight houses within days of each other. Stonewood would apply for loans on behalf of the client, typically for two loans totalling 20 percent to 25 percent more than the appraised value of each house. The investor would pay the seller close to the asking price, typically $450,000 to $600,000. Jovane Investments would then pocket the excess cash, often $100,000 to $120,000.
Part of that money would be used to make regular mortgage and tax payments on the houses, the attorneys said. It seemed to be a great deal for the investors, the suit alleges, so they would bring in friends and family members.
[...]Things began to come apart in the fall, Abano said, when Oetting Enterprises simply stopped making payments on most of the loans. One of the families had taken out loans on eight investment properties and refinanced their own house, Abano said. The family received nine notices of default since mid-December, he said.
Scams like that wouldn't have been so easy without skyrocketing home prices and non-existent lending standards thanks to Fed easy money.
Greenspan's Body Count stands at 123.
Debra K. Gibbs
Kevin Daniel O'Connell
Siu Fong Ng
Ernest Scherer Jr.
Betty J. Lipply
Del Mar man
Wayne "Mike" Anderson
Jeffrey M. Pearson
Ervin Antonio Lupoe
Steven L. Good
Dallas Dwayne Carter
Lt. Michael Howe
Palmer C. White
Dianne Pittman White
Edwin F. Rachleff
Scott M. Coles
Dawn E. Armstrong
Jonathon Calvin "40-Cal" Jacques
Little Boy X
Little Girl X
Rufus Shaw Jr.
Lynn Flint Shaw