TICK TOCK: Michigan Continuing Education due by October 31

TICK TOCK: Michigan Continuing

Education due by October 31!

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DON'T FORGET: You need 18 credit hours by October 31!

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Fair Housing Lawsuit Filed Alleging Racial Discrimination at Apartment Complex

Here is another example of a recent Fair Housing Act lawsuit brought by the United States Department of Justice (“DOJ”). I try to post case summaries in order to provide timely updates to real estate professionals about the "dos and don'ts" under the Fair Housing Act, since fair housing is such an important issue.

This afternoon (July 21, 2009), the DOJ filed a lawsuit against the owner and employees of Rolling Oaks Apartments, a 72-unit complex in Clanton, Alabama, for violating the Fair Housing Act by discriminating on the basis of race or color in the rental of apartments.

The lawsuit alleges that the employees told white testers that a selling point of Rolling Oaks Apartments was the lack of African American tenants and that they had adopted rental policies intended to discourage African American rental applicants. The lawsuit is based on evidence generated by the DOJ’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices. The complaint also named the owner of the apartment complex.

The lawsuit seeks monetary damages for those harmed by the defendants’ actions, civil penalties and a court order barring future discrimination. The lawsuit is an allegation of unlawful conduct. The allegations must still be proven in court. I will try to follow this case and provide an update when the case is resolved.

Source: U.S. Department of Justice

It is important for all real estate professionals to remember that the federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are a leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Fair Housing Lawsuit Filed Against Mobile Home Park

Here is another example of a recent Fair Housing Act lawsuit brought by the United States Department of Justice (“DOJ”). I try to post case summaries in order to provide timely updates to real estate professionals about the "dos and don'ts" under the Fair Housing Act, since fair housing is such an important issue.

On Friday, June 19, 2009, the DOJ filed a lawsuit against the former owner and managers of Homestead Mobile Home Village, a mobile home park in Gulfport, Mississippi, for violating the Fair Housing Act by discriminating against black tenants on the basis of race or color. The lawsuit also names as a defendant Indigo Investments LLC, the owner of Homestead Mobile Home Park at the time of the alleged discrimination.

The lawsuit alleges that Edward and Barbara Hamilton, the former managers of the mobile home park, unjustly sought to evict a black couple and their five minor children who had moved there after being displaced by Hurricane Katrina. According to the lawsuit, the Hamiltons attempted to evict the family and other black residents for allegedly violating the rules of the park, but did not attempt to evict white residents for as many or more violations. The lawsuit also alleges the Hamiltons harassed and intimidated black tenants and that the defendants’ conduct constituted a pattern or practice of discrimination or a denial of rights to a group of persons.

The lawsuit arose from a complaint filed with HUD by two black residents of Homestead Mobile Home Village. The complainants also sought assistance from the Gulf Coast Fair Housing Center, a private, non-profit fair housing organization which provided additional information to HUD. After investigating the complaint, HUD issued a charge of discrimination and after one of the respondents named in HUD’s charge elected to have the case heard in federal court, the case was referred to the DOJ.

The lawsuit seeks monetary damages for those harmed by the defendants’ actions, civil penalties and a court order barring future discrimination. The lawsuit is an allegation of unlawful conduct. The allegations must still be proven in federal court.

Source: U.S. Department of Justice

I will try to follow this case and provide an update when the case is resolved.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are a leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Real Estate Professionals Arrested in Mortgage Fraud Scheme

Here is another example of a recent legal case involving mortgage fraud. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On June 3, 2009, five people were arrested for their roles in a mortgage fraud scheme in the Washington State that bilked banks and property sellers out of more than $18 million. The arrests came as a result of an extensive investigation by United States Immigration and Customs Enforcement (“ICE”).

Humerto A. Reyes-Rodriguez, Alexis Ikilikyan, Micki S. Thompson, Mario Marroquin, and William S. Poff were indicted by a federal grand jury last month on charges of money laundering and conspiracy to commit bank and wire fraud (they were arrested on June 3, 2009). The indictment alleges that over a three-year period starting in 2004, they were responsible for 80 fraudulent loan transactions in communities throughout King County and Pierce County, Washington.

Mr. Reyes-Rodriguez and Ms. Ikilikyan were licensed real estate agents and mortgage loan originators. Mr. Poff is Ms. Ikilikyan's ex-husband and was a licensed notary and loan originator. Mr. Thompson was employed by Great American Escrow and acted as the closing officer for many of the fraudulent sales. Mr. Marroquin acted as a straw buyer and oversaw fictitious home repair companies.

According to court documents, the five defendants worked together to obtain financing from banks to purchase homes. At the same time, they convinced innocent home sellers to extend private loans to the buyer of the home to cover a portion of the purchase price.

The sellers did not know that the conspirators had already obtained financing from commercial lenders to cover the full cost of the home. When payments were not made, the properties fell into foreclosure. The homes were then sold for less than the total of all loans secured for the property. The sellers who had extended private loans to the buyers were left with nothing.

The conspirators also used straw buyers to purchase and resell properties and then submitted false information to the banks such as employment, income, citizenship status, assets and liabilities. They submitted bogus appraisals and hired fictitious home repair companies to do repair work on the properties. Proceeds from the home sales would go to the fake companies that had, in fact, done no work.

This case uncovered a group of real estate professionals who manipulated home sales for pure profit while some of the properties went into foreclosure and innocent private citizens were defrauded.

The conspiracy and money laundering charges are punishable by up to 20 years in prison and a $1 million fine. An indictment is merely a formal charge by the grand jury. Each defendant is presumed innocent unless and until proven guilty in court.

I will try to keep following this case and post an update when the case is ultimately resolved, hopefully with all of the defendants getting long prison sentences.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Lawsuit Filed Against Mortgage Lender Under False Claims Act

Here is another example of a recent legal case involving a fraudulent real estate scheme, this time committed by a mortgage lender. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On June 9, 2009, the United States Department of Justice ("DOJ") filed a lawsuit against California mortgage lender Capmark Finance Inc., charging that Capmark violated the federal False Claims Act by making false statements on applications for federal mortgage insurance covering residential nursing homes. The lawsuit relates to a federal program under which the United States Department of Housing and Urban Development (“HUD”) guarantees mortgage loans used to acquire healthcare facilities such as hospitals and nursing homes.

The lawsuit alleges that Capmark made false statements in HUD applications to guarantee mortgage loans made to acquire the Canoga Care Center, a residential nursing home facility in California, and the Hudson Valley Care Center, located in New York. After accepting Capmark’s applications for mortgage insurance, HUD was forced to pay $25,895,701.21 when both the Canoga Care Center and Hudson Valley Care Center defaulted on their loans. Pursuant to the False Claims Act, the DOJ is seeking treble (triple) damages and penalties.

The lawsuit is an allegation of unlawful conduct. The allegations must still be proven in federal court. I will try to follow this case and provide an update when the case is resolved.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Have You Heard the Story of Stanley Watras?

Stanley J. Watras was a construction engineer at the Limerick nuclear power plant in Pottstown, Pennsylvania. A monitor was installed at the plant to check workers to make sure they did not accidentally accumulate an unsafe dose of radiation at work.

One day, on his way to work, Mr. Watras entered the plant and set off the radiation monitor alarms that help protect workers by detecting exposure to radiation. Safety personnel checked him out, but could not find the source of the radiation. Interestingly, because the plant was under construction at the time, there was no nuclear fuel at the plant, so there was no way for Mr. Watras to have been exposed to any radiation at work.

Eventually, they discovered that Mr. Watras was not picking up the radiation at work, but rather was bringing it to work from home! A team of specialists was sent to the Mr. Watras' home to investigate. There, they measured radiation levels about 700 times higher than the maximum level considered safe for human exposure (the home tested at 2,700 pCi/L and a safe level is at or below 4 pCi/L). The source of this enormous amount of radiation turned out to be radon, a naturally-occurring gas that made its way into the Watras home from underground. It had nothing to do with Mr. Watras’ job. The entire family was living in an environment roughly equivalent to smoking a couple of hundred packs of cigarettes per day. They moved out of the house immediately, while the problem was being fixed.

After Mr. Watras and his family evacuated their house, the United States Environmental Protection Agency (EPA) and Pennsylvania officials turned it into a laboratory for long-term measurement of radon and radon decay products and evaluation of radon mitigation techniques. After many months, they reduced the radon concentration to an acceptable level, and the family was able to return. After installing a radon-reduction system, radon levels in the home tested below 4 pCi/L.

Although this case occurred in 1984, residential indoor radon exposure as a health hazard flies below the radar of many real estate professionals. Radon is a Class A carcinogen, which means it is known to cause cancer in humans. Most people do not know that radon is the second leading cause of lung cancer in the United States, resulting in approximately 21,000 lung cancer deaths each year. Only smoking causes more lung cancers.

The U.S. Surgeon General and the EPA recommend that all homes in the United States be tested for radon. In fact, in May 1993, the National Association of Realtors (NAR) joined the EPA in urging all Americans to test their homes for radon. The NAR encouraged state associations to develop and support legislation or regulation requiring mandatory property condition disclosure, including radon, by the seller.

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123 ConEd LLC offers online real estate continuing education to Michigan agents and brokers. We offer numerous different course titles on our easy to use and easy to navigate website (www.123ConEd.com). All of our courses have been approved and certified by the State of Michigan.

Copyright © 123 ConEd LLC 2009. All rights reserved.

10% Discount on Michigan Real Estate Continuing Education

We are offering a 10% discount on the purchase of all of our online Michigan real estate continuing education courses. Simply type blogger10 in the "Discount Code" field at the top of the checkout page. You must purchase your courses by June 30, 2009 to take advantage of this offer. Even though you need to purchase the courses by that date to take advantage of the discount, you can take the courses for up to one year after the purchase date. Please feel free to share that discount code with your friends and colleagues.

ACT NOW!! Don't forget that all licensed Michigan real estate professionals must complete 18 credit hours of continuing education by October 31, 2009, in order to renew their licenses. Don't wait to the last minute to get this done. All of our courses are fully approved and certified by the State of Michigan, and we offer one of the cheapest prices out there. Even without the 10% discount, we offer 6 credits for only $35!

Try online continuing education!

You won't go back! It's convenient, economical, and fast!

It's Continuing Education as Easy as 1-2-3!™

www.123ConEd.com offers a simple, convenient and easy way to get your credits.

• Classes are 100% online, so take classes wherever there is an Internet connection
• Work at your own pace (start/stop whenever you want)
• Complete a few hours or all of your required hours at once
• We offer courses in 2, 3, 4 and 6 hour increments, so you can pick topics that interest you
• Our online courses are a fraction of the cost of a live class
• All courses are fully approved and certified by the State of Michigan
• Completion Certificate automatically generated as soon as you complete course

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Attorney Sentenced to 5 Years in Prison in Mortgage Loan Fraud Scheme

Here is another example of a recent legal case involving a fraudulent real estate scheme committed by a real estate agent. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On May 11, 2009, John A. Yanchek was sentenced to 60 months in prison and ordered to forfeit $7.6 million for conspiracy to commit loan fraud, bank fraud, and money laundering.

According to court documents, Mr. Yanchek was a licensed Florida attorney who did business as the law firm of John A. Yanchek, P.A., in Sarasota, Florida. Mr. Yanchek represented G & T Land Development LLC and Steeplechase Properties LLC, legal entities owned and/or controlled by his co-conspirators, that purchased and developed commercial real estate in the Sarasota area. Mr. Yanchek also functioned as a closing agent.

According to the plea agreement, Mr. Yanchek entered into a conspiracy to make false statements to federally-insured banks in connection with applications for commercial loans used to purchase vacant land for development. The object of the conspiracy was to obtain enough loan money to allow the conspirators to purchase the property without contributing any equity of their own and to receive excess loan proceeds for their personal use. Mr. Yanchek, as the closing attorney for the loans, made false statements to the banks regarding: (1) the financial resources of the borrower, (2) the amount and source of equity contributed by the borrower, (3) compliance with the seller's obligation to provide marketable title to the property, and (4) distribution of the loan proceeds.

Co-defendant Larry P. Nardelli was convicted on February 19, 2009, and is awaiting sentencing. Michael A. Tringali pleaded guilty and received a 41 month prison sentence. The third co-defendant Neil M. Husani remains a fugitive.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Real Estate Agent Sentenced to 46 Months in Prison in Scheme to Defraud Mortgage Lenders

Here is another example of a recent legal case involving a fraudulent real estate scheme committed by a real estate agent. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On May 11, 2009, Oladipo Olafunmiloye, a real estate agent, was sentenced to 46 months in prison, to be followed by five years of supervised release, for bank fraud and money laundering in connection with a scheme to defraud mortgage lenders. At the sentencing, the judge found that Mr. Olafunmiloye’s fraudulent scheme incurred losses of $3 million and ordered him to pay restitution in that amount, as well as forfeit his interest in a Rolls Royce automobile and funds held in four bank accounts.

According to his plea agreement, Mr. Olafunmiloye owned a real estate company known as LAFA. From November 2004 to December 2006, Mr. Olafunmiloye organized a scheme in which co-defendants Sidney Okosun, Oyekunle Ikudayisi, Kolawole Aminu and others sought to fraudulently obtain mortgages and refinance loans to purchase properties for sale in Maryland and the District of Columbia that were owned by Mr. Olafunmiloye or LAFA. The defendants recruited individuals to act as purchasers who became owners of the properties in name only and made almost none of the payments related to the purchase of the properties, including down payments, closing costs and mortgage payments

Mr. Olafunmiloye supervised the submission of false statements on loan applications as to the straw buyers’ incomes and their intent to make the properties their primary residences, in order to induce mortgage lenders to make loans at more favorable rates. Mr. Olafunmiloye also provided capital to the other defendants in order to perpetuate the scheme. Once the purchase of the properties had been funded, Mr. Olafunmiloye defaulted on mortgage payments, which forced the lenders to foreclose, thereby incurring losses.

During the course of the scheme, Mr. Olafunmiloye also provided false information to obtain loans in his own name, including loans on five properties, all of which went into foreclosure, resulting in losses to the mortgage lenders of over $492,767. Finally, Mr. Olafunmiloye laundered money obtained from the fraud scheme, including 12 transactions from August 2005 to September 2006 totaling $308,311.

It’s amazing what some people will do to make money.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

A Few Examples of Illegal Housing Practices Against Persons with Disabilities Under the Fair Housing Act

Here is a little reminder for everyone about their obligations under the Fair Housing act with respect to people with disabilities. The following are a few examples of illegal housing practices against persons with disabilities under the Fair Housing Act:

• Refusing to rent or sell or otherwise making unavailable to an individual with a disability a dwelling unit, because of the buyer’s or renter’s disability;

• Imposing different terms and conditions on the sale or rental of a dwelling unit due to the buyer’s or renter’s disability;

• Coercing, intimidating or threatening a person for exercising his or her rights under the Fair Housing Act;

• Informing an individual with a disability that a dwelling was not available for inspection, when in fact the dwelling was available;

• Discriminating against any person who associates with a person with a disability in the sale or rental of a covered dwelling unit;

• Blockbusting – that is paying someone to rent or sell a dwelling unit to another person, so as to prevent an individual with a disability from moving into a neighborhood;

• Refusing to make reasonable accommodations of rules, policies, practices or services that are needed to accommodate an individual with a disability;

• Refusing to allow a tenant with a disability to undertake reasonable structural modifications to an existing building which may be necessary to accommodate that person’s disability;

• Engaging in any real estate-related transaction that promotes discrimination against an individual with a disability;

• Denying a person with a disability access to a multiple listing service, real estate broker’s organization or other related service based upon his or her disability;

• Asking a prospective tenant/home-buyer about his or her disability;

• Requiring tenants or others living in housing to be able to “live independently”;

• Requiring a person with a disability to pay a higher security deposit than that requested from a tenant without a disability;

• Publishing an advertisement, notice or statement which limits or excludes individuals with disabilities from renting or purchasing a dwelling;

• Denying housing due to a present or past history of a mental illness;

• Asking a prospective tenant about illegal drug use or illegal drug convictions unless those questions are asked of all prospective tenants.

It is important for all real estate professionals to remember that the federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.