Posted by 101livescan on 11/6/13 9:44am
Msg #491536

Food for thought re. ID fraud and forgery and loan fraud

Sometime in 2004, I signed a couple, he is a SB City Fire Chief. It was a CitiMortgage $100K line of credit to invest in Tamarack, a high level ski resort development in ID.

Before they even had a chance to draw down on it, someone on the inside of the bank make two withdrawals in one month, $10K and $20K, by forging the borrower's signature digitally.

About six months later, I went out to their home again, with a new line of credit loan package and resigned them. They were very skeptical of me...alluding that perhaps I had something to do with their ID fraud and loan fraud on this HELOC, since I had their social security numbers and drivers licenses.

Well, I set them straight. I turned out an employee of the bank thought this might be a great way to get their hands on some extra cash. Now, what do you do with sums of cash that huge? How do you disguise it? Not very easily. That employee was rapidly discharged, the cash was recovered by the legal arm of CM and the borrower's credit was cleansed of these transactions.

I hope never to have to apply for another RE loan in my life. I can see how easy it is to defraud unsuspecting, hardworking citizens. But no where to run you thieves, it's only a matter of time before the FBI steps in. Lenders are audited all the time. I have more stories about theft from inside the walls of banks. I worked for a bank in the 80s and I can't tell you how many VPs thought this was an easy way to "advance" themselves cash. Once an employee has been convicted of these crimes, there is no way to be hired again in a position of trust and fiduciary responsibility. Not even Taco Bell wants them.