New York Repo Homes Fraudster Arrested
May 28th, 2009 by 
Joseph Smith
New York’s repo homes fraud prevention effort has made progress with the arrest of Anita Bareja, a former loan officer at EFI Capital Corp., a mortgage brokerage firm. She is charged with grand larceny, first-degree business record falsification, defrauding scheme and possession of forged instruments.
According to the office of Nassau District Attorney Kathleen Rice, Bareja approved three loan applications that used forged bank and employment documents. Bareja and her co-conspirators allegedly approved mortgage applications based on falsified appraisals that ballooned the loan cost and allowed them to gain huge profits.
One of the loans approved by Bareja was made purportedly by a sales manager who had a monthly income of $15,000. Upon investigation, it was learned that the borrower was in reality a welder who earned $11 per hour. The welder is one of the partners of Bareja in her fraudulent repo homes scheme.
According to the investigation, Bareja and her partners started their fraudulent activity in May 2006. They allegedly used forged financial appraisals and information and employment records to obtain over $1.5 million in mortgage loans.
The scheme involves Bareja’s partners finding new, existing or foreclosed properties to buy. They would then get a false appraisal or increase or falsified assessment on the loan application. The fraudsters would support their loan application with forged personal financial information.
Once the loan with an inflated price has been approved by Bareja, she and her partners would gain profit from the difference between the real and inflated price of the property.
Rice said that the fraudulent activity not only affected lending institutions but also potential homebuyers and Bareja’s employer. She added that fraudulent activities such as the one perpetrated by Bareja and her partners may result on an increase in foreclosure proceedings and affect neighborhoods with abandoned and vacant foreclosed homes.
Meanwhile, investigators found various falsified appraisal and financial documents in Bareja’s e-mail account. Investigators estimate the total amount illegally pocketed by Bareja and her partners to be more than $500,000.
Rice pointed out that her office is currently investigating individuals believed to be involved with Bareja’s fraudulent activity. Superintendent for Banks Richard H. Neiman said that the New York State Banking Department, being the major regulator for brokers and mortgage bankers in the state, will not tolerate fraudulent lending practices. He added that the department will continue to work with law enforcement authorities to aggressively pursue and stop repo homes fraudulent activities.
