Solicitation for Fraud and Conspiracy, or Entrapment?

| | Comments (0)

An email I got Tuesday November 28, 2006:

My husband and I are not specifically on the market at the moment for a property but are always on the lookout for a great bargain. We have children, so school district is a big factor, but if the right place for the right price comes around, we'd definitely be interested in potentially buying a house, as we're ready to settle down. We don't mind a fixer-upper, but aren't looking to do any major, "needs a contractor" work. Our price range is under 400K, as we intend to wrap any debt into our mortgage. We both have good jobs — I work for NAME DELETED as a loan specialist and he is a DELETED — but aren't looking to kill ourselves with a mortgage payment, especially once you wrap taxes and insurance into the whole deal.

(emphasis mine)


This person is a loan officer, and they're wanting to do something that is FRAUD. I mean, I know it goes on, but to be propositioned cold, via the first email I got from this person, to commit a felony (or aid in its commission, thereby making me guilty of conspiracy, another felony) just blows my mind. Admittedly, this particular company is one where you don't have to be licensed to work for them, but still, you should know the big issues like this, and perhaps at least pretend to have some respect for the law and good business practice.

My response?

You do realize that lenders don't go along with this, don't you? Purchase money loans if the purchase price is $400k and the seller gives you back 20k to pay off your debts, the effective purchase price is $380,000 - not $400,000. If you don't conceal it the loan doesn't work. If you do conceal it, it's fraud.

I could use the business. But not so badly as to get involved in this.

No thank you.

Her response?

I may have misrepresented myself and my goals to you. Don't be so quick to judge.

Oh, so now instead of soliciting my cooperation in felony fraud, she's committing entrapment. And I'm supposed to think this is better.

Ladies and Gentlemen, I have a firm policy here of not naming specific malefactor companies or individuals (unless they pop up and name themselves!). Telling people how bad any one company in particular may be is beside the point of this website. I'm trying to make a living, and also give people the tools to use to judge as to whether or not they are being lied to, abused, etcetera in their specific instance - what people can do to prevent it, what they can do to improve their situation, what they should do if all the other tools fail and everything falls apart.

However, this one particular company represented by the alleged person in question is one on whom I have extensive amounts of evidence as to how bad their rates are, how misleading their business practices are, how badly they low ball their quotes, and in general, how shoddily they treat the customers that put money in their pocket. If I was going to list the two companies in the mortgage industry that (in my honest opinion) everyone should stay away from, this company would be on that list.

So it is very tempting to name names publicly, just this once. However, the lawyers would then get involved to no particularly good effect for anyone, and this very large company has a lot more resources than I do. Furthermore, I suspect, although I cannot prove, that I might be hurting a very few good loan officers who happen to work for this company in addition to all of the bad ones - and there are a lot of the bad ones working for this company. Finally, as I explained above, the point if this site is not revenge, and it's not punishing evildoers. I am not the Count of Monte Cristo, nor am I a law officer, a prosecutor, or a judge. I'm a loan officer and a Realtor® who is also trying to give people real tools to judge their situations and achieve a better result. So if you are reading this, back off. I will not name names unless you force me to. But solicitations of fraud, and entrapment, from people who should know better and go out of their way to be jerks, really pisses me off, and if you want to force my hand, I really won't regret it very much. I guarantee it will hurt you a lot worse than it will hurt me. Instead of trying to entrap me into a felony, just go away and pretend I don't exist. The type of suckers who are your bread and butter don't read this website anyway, or they sure as heck wouldn't patronize your company!


Delicious Bookmark this on Delicious StumbleUpon Toolbar Stumble It!
Please be civil. Avoid profanity - I will delete the vast majority of it, usually by deleting the entire comment. To avoid comment spam, a comments account is required. They are freely available, and you can post comments immediately. Alternatively, you may use your Type Key registration, or sign up for one (They work at most Movable Type sites). All comments made are licensed to the site, but the fact that a comment has been allowed to remain should not be taken as an endorsement from me or the site. There is no point in attempting to foster discussion if only my own viewpoint is to be permitted. If you believe you see something damaging to you or some third party, I will most likely delete it upon request.
Logical failures (straw man, ad hominem, red herring, etcetera) will be pointed out - and I hope you'll point out any such errors I make as well. If there's something you don't understand, ask.
Nonetheless, the idea of comments should be constructive. Aim them at the issue, not the individual. Consider it a challenge to make your criticism constructive. Try to be respectful. Those who make a habit of trollish behavior will be banned.

Leave a comment

Copyright 2005-2017 Dan Melson. All Rights Reserved


Buy My Science Fiction Novels!
Dan Melson Author Page

The Man From Empire
Man From Empire Cover

A Guardian From Earth
Guardian From Earth Cover

Empire and Earth
Empire and Earth Cover

Working The Trenches
Working The Trenches Cover

Preparing The Ground
Preparing The Ground Cover

The Book on Mortgages Everyone Should Have!
What Consumers Need To Know About Mortgages
What Consumers Need To Know About Mortgages Cover

The Book on Buying Real Estate Everyone Should Have
What Consumers Need To Know About Buying Real Estate
What Consumers Need To Know About Buying Real Estate Cover

Dan Melson's San Diego Real Estate and Mortgage Website

↑ Grab this Headline Animator

About this Entry

This page contains a single entry by Dan Melson published on November 29, 2006 4:09 AM.

Hot Bargain Property November 28th, 2006 was the previous entry in this blog.

Hot Bargain Property November 29th, 2006 is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

What I Do

Read My Promise To All My Clients

My Office Contact Information

There are no better agents in San Diego County!

There are no better loan officers in California!

Ask for your free consultation today!

Favorite Loans Available Now

My Listings

Hot Properties!
Email me! danmelson(at)danmelson(dot)com
I want your business!
Unhappy with your loan?
Can't afford your payments?
I can help!
Want to buy smart?
Want to sell smart?
I can do it!
In Default?
Let Me Help!
Want to buy properties in distress?
(defaults, foreclosures and REOs)
Ask Me How!
Bad Credit?
No Down Payment?
Ask Me What I Can Do!
1031 Exchanges
Forward, Reverse, or Partial
I Get It Done!
Should I Buy Now?
Should I Sell Now?
Would It Help Me to Refinance?
I'll tell you if the answer is "No"
I'll help you if the answer is "Yes"
Contact me:
My Office

Want San Diego MLS?

Here's my office's link to San Diego MLS

Enter your email address:

Delivered by FeedBurner

Subscribe with Bloglines Add to Technorati Favorites

Not in San Diego?

My other site is here
Powered by Movable Type 4.21-en