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Indictments issued in HUD scam

Sunday, April 18, 2004 @ 05:26 PM EDT Printer Friendly Page  Printer Friendly Page
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Contributed by: Michael Chandler

Michael Chandler Properties

Read more archived articles about Selling

A Florida man was indicted Thursday of defrauding the U.S. Department of Housing and Urban development through his real estate company after 4 of his employees pleaded guilty. Eugene McReath of Panama City,Fl. owns Southern Construction and Investments, a Birmingham,Al. based company that buys,renovates and sales houses for a profit. According to the indictment. Many of the houses that McReath sold were financed with HUD loans. McReath is accused of paying his buyers down payments,then falsely telling HUD that the down payments came from relatives of the home buyers. The prosecutors say McReath lied to HUD to get around the department's policy of not insuring home loans when a seller make a down payment.
 
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department defrauding relatives seller were buyers. thursday around many after came owns when with financed insuring scam through telling southern employees houses guilty. city,fl. construction loans. indictment. buys,renovates sold sales mcreath loans profit. according panama birmingham,al. based buyers urban investments, home eugene lied company pleaded indicted payments,then make accused paying indictments down u.s. policy estate prosecutors housing real florida development falsely issued payments payment. department's

 
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Re: Indictments issued in HUD scam (Score: 1)
by MrREI on Wednesday, April 21, 2004 @ 01:39 PM EDT

IOW why would they not want to insure it if the seller made the down payment? That's the part I don't understand[ No Comments Allowed for Anonymous, please register ]



  • Re: Indictments issued in HUD scam by coz on Thursday, April 22, 2004 @ 01:19 PM EDT



  • Re: Indictments issued in HUD scam (Score: 1)
    by MrREI on Wednesday, April 21, 2004 @ 01:37 PM EDT

    "The prosecutors say McReath lied to HUD to get around the department's policy of not insuring home loans when a seller make a down payment"

    Am I misreading this? should it read when a seller DOES not make a down payment?[ No Comments Allowed for Anonymous, please register ]



  • Re: Indictments issued in HUD scam by MichaelChandler on Wednesday, April 21, 2004 @ 09:25 PM EDT



  • Source? (Score: 1)
    by hibby76 on Tuesday, April 20, 2004 @ 05:14 PM EDT

    Could you post a source for this news article?[ No Comments Allowed for Anonymous, please register ]




    Downpayment or Charitable gift? (Score: 1)
    by KeithBender on Tuesday, April 20, 2004 @ 11:51 PM EDT

    I am amazed that one would have to falsify those DP's as a gift when all you got to do is look at the Governments web site to learn how to do the exact same thing legally!!!!

    YES!! Legal 100%, maybe some regulation prohibits repeated Donations that further a business enterprise's use of this technique,but they recognize the use of a 501 c3 tax exempt charitable organization to act as a conduit that gets around their very own regulations.

    Thats the other half of this story . And once again we have proof that ignorance costs dearly. Proves the worth of this web site for learning purposes alone.

    Wannabe's will focus on the negatives, thinking that investing has its shadow world of criminal activity, fraud and deception.

    When it's really a perfect example of Dumb and Dumber trying figure out how to get on the bus.Stubborn hard heads should not be confused with persistance and determination that are essential components of a serious entreprenuer's character.

    Invest in yourself first and live your return on investment. Education is not optional, if you stick around long enough, you pay for it anyway, but we call it growth.

    Okay, I'm off my soap box, thanks.[ No Comments Allowed for Anonymous, please register ]



  • Re: Downpayment or Charitable gift? by joel on Thursday, April 22, 2004 @ 08:47 AM EDT


  • Re: Downpayment or Charitable gift? by CaseyEllsworth on Friday, April 23, 2004 @ 10:44 PM EDT


  • Re: Downpayment or Charitable gift? by charles88 on Thursday, April 22, 2004 @ 07:43 PM EDT



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