Mortgage Fraud Charged in Denver & Cleveland

Dozens have recently been indicted in mortgage fraud cases in Denver and Cleveland, where foreclosure rates are among the highest in the nation.

A Denver grand jury has indicted Jorge Castan Camacho for forging personal identification so he could fraudulently buy and sell homes.

Camacho, who owned and controlled USA Mortgage Lending Capital Corp., is accused of using his victims’ identities to purchase properties and then failing to make the mortgage payments.

Officials are still unsure how much victims in the fraud cases have lost beyond their good credit histories. A spokeswoman for the Denver district attorney’s office says the monetary loss exceeds $100,000 and will grow as mortgage companies foreclose on the properties and resell them.

In another unrelated mortgage fraud case in Cleveland, a grand jury indicted 59 companies and individuals on 269 charges of using false information to obtain $2.85 million in home loans. Eleven more defendants are expected to be indicted today.

The buyers and sellers are accused of using false information to obtain loans for at least 38 properties.

Source: The Denver Post, Howard Pankratz, and The Associated Press