State shuts down $2 million property flipping scheme
IDFPR highlights warning signs for Illinois homeowners with troubled loans and provides tips to avoid mortgage scams
CHICAGO – The Illinois Department of Financial and Professional Regulation (IDFPR) recently shut down a scheme that involved nearly $2 million in fraudulently obtained loans. IDFPR charged that Pablo E. Pabon of Chicago, in his capacity as a loan originator, was a key participant in at least two mortgage fraud conspiracies and was paid a percentage of the value of each loan. IDFPR is advising homeowners to be wary of such mortgage scams, especially if they already are in foreclosure or behind in payments.
“With the unfortunate and unprecedented increase in mortgage foreclosures, we also are concerned about an increase in mortgage fraud. Homeowners confronting financial challenges should first talk and try to work with their mortgage lender,” said Michael T. McRaith, Acting Secretary of IDFPR. “The Department’s recent enforcement action should remind unscrupulous brokers that we remain vigilant in our efforts to protect consumers. We simply will not tolerate fraudulent or abusive activity in real estate transactions or mortgage schemes.”
“The state of the economy is one opportunity for criminals to take advantage of individuals with deceptive schemes,” said Thomas Byrne, Chief of Detectives for the Chicago Police Department. “The Chicago Police Department needs cooperation from people and organizations to help protect the public from these fraudulent acts.”