Mortgage fraud is probably the most common type of fraud handled by criminal defense lawyers in Miami, Fort Lauderdale, and Palm Beach. This is due to the huge amount of mortgage fraud committed during the growth, collapse, and post-collapse phase of the housing crisis. As is very well known, Miami, Fort Lauderdale and Palm Beach have been one of the hardest hit areas during this crisis. In fact, some say they have been the epicenter of Florida’s crisis.
In the coming sections we will discuss the prosecution’s legal burden to win the most common types of mortgage fraud cases. We will also discuss the role of search and seizure, the right to remain silent, and the right to counsel. Finally, we will discuss strategies a criminal defense lawyer can use to obtain the best result possible for any client accused of mortgage fraud.
Causes of Mortgage Fraud
Mortgage fraud exploded in Miami, Fort Lauderdale, and Palm Beach because of the huge amount of new construction that was completed between 1998 and 2008. As a Florida native (Miami to be exact), I can tell you that new construction in these areas mushroomed at an unprecedented and seemingly unnatural rate during that time.
New construction consisted of new high rise condominiums in dilapidated neighborhoods, renovations of old buildings in good neighborhoods, construction of brand new gated communities where there used to be swamps or cow pasture. All this not to mention the countless town homes, single family homes, office condos, and other commercial real estate that were built from scratch.
With every new development, new condominium, and new office building came dozens, if not hundreds and thousands, of new mortgages.
In fact, banks were processing loan applications faster than they could sign them.
As one might expect, the combination of a market hungry for real estate, coupled with the willingness of lenders to loan money to just about anybody, created an atmosphere that was ripe for mortgage fraud.
However, as common as mortgage fraud is for criminal defense lawyers in Miami, Fort Lauderdale and Palm Beach, it is also one of the most misunderstood criminal offenses from a client’s perspective. Unlike other offenses, there is no specific Federal offense called “mortgage fraud.” Instead, the term “mortgage fraud” really refers to a broad range of fraudulent conduct.
Mortgage fraud is a general description of conduct that
encompasses a variety of specific criminal offenses.
Some mortgage fraud cases include multiple criminal offenses committed during a period of time. Whereas other cases involving mortgage fraud concern an offender who may have committed only one fraudulent act, such as overstate his/her income on a loan application.
In some mortgage fraud cases, groups of people act in a concerted effort
to defraud banks of millions of dollars in very elaborate schemes.
Over the years, mortgage fraud has evolved into a very complex type of offense that can involve scores of people acting in concert. By its nature, mortgage fraud can be a very sophisticated crime. However in some cases, it can also be as base and simple as the most common criminal offenses.