CBS 2 - Search Results

The following is an archived video story. The text content of that video story is available below for reference. The original video has been deleted and is no longer available.

5 Charged in Short Sales Scheme

IOWA CITY, IA (AP) - A Des Moines attorney and four businessmen are charged with fraud for allegedly deceiving banks into approving short sales on homes that were purchased at steep discounts and immediately resold for profit.

The charges are filed against attorney Jason Springer, business partners Nathan Smith and Patrick Steven, real estate agent Rick Makohoniuk and mortgage broker Jerod Hogan.

A federal indictment says the scheme involved 19 Des Moines-area homes.

Struggling homeowners contacted a company owned by Smith and Steven for help negotiating short sales in which homes would be sold for less than what was owed.

Smith and Steven then used another company to purchase them below market value. They would resell the homes the same day, without banks' knowledge, for a higher price.

Springer conducted the closings and received commissions.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
Advertise with us!
Brought to you by:
Brought to you by:

Washington Times

Sponsored content