According to federal officials, a man from Wake Forest generated over $1 million in fraudulent profits while purchasing foreclosed homes. The accused man allegedly bought the foreclosed homes illegally.
The man’s actions first fell under scrutiny when neighbors observed him drilling through the locks of a foreclosed home in their neighborhood. Police came out to investigate, arrested him, but then dropped the charges after the man showed that he was the owner of the property, valued at over $300,000. He bought the property after the homeowners’ association foreclosed on the home due to nonpayment of dues. The man successfully showed that his actions relating to the property were lawful.
However, federal officials were still curious about the man’s real estate transactions, so they started to investigate. Officials allege that the man procured seven properties illegally via homeowners’ association foreclosures. Allegedly, he used false identities to bid on properties, and he funneled the money involved via offshore holding companies.
The alleged fraud was complicated and difficult to fully understand. Federal authorities have accused the man of using his fraudulent scheme to take approximately $920,000 from banks in fraudulent loans and transactions. Nevertheless, he will still be entitled to his day in court, and he will still be permitted to defend himself against the allegations.
No person accused of a federal crime — no matter how clear the evidence against him or her appears to be — will be convicted until, and only if, the prosecution proves the individual to be guilty beyond a reasonable doubt. Until then, courts will not punish the accused person and he or she will be viewed as innocent.
Source: wral.com, “Man who bought HOA-foreclosed homes faces federal fraud charges,” Aug. 02, 2017