Reverse-Mortgage Fraud Suspects Worked at Firm in Boca and Fort Lauderdale

Categories: Crime, Economy
U.S. Attorney Wilfredo Ferrer brings the charges.
The three Florida men charged with reverse-mortgage fraud on Wednesday were Palm Beach County residents who worked for 1st Continental Mortgage, with offices in Boca Raton and Fort Lauderdale.

A reverse mortgage allows a bank to purchase the homes of seniors 62 and above, then provide monthly mortgage payments to the residents. The theory is that the occupants will get steady income until they die or move out, at which point the house belongs to the bank. But Louis Gendason, John Incadela, and Marcos Echevarria would appraise the homes for more than they were worth, and, according to the Herald,

After receiving the inflated loan proceeds from Genworth, closing agent Mackey would divert a substantial portion of the money into a personal account managed by Incandela, rather than paying off the existing mortgages.

A title agent in Pittsburgh was also charged this week.

"These defendants preyed on senior citizens on fixed and modest incomes," said U.S. Attorney Wilfredo Ferrer. "While legitimate loan modifications and reverse mortgages are useful tools to help those who need it, we will remain vigilant to make sure these tools are not misused by those who seek to line their own pockets."

But those defendants aren't the only 1st Continental associates to face accusations of wrongdoing.

A quick Google search reveals a complaints forum in which someone claiming to be a customer calls out Raymond L. Moatz, an official with the company. "I have been waiting since April 2010 to get paid miserable 3700.00 dollars for a reverse Mortgage deal I closed," says the complainant.

The defendants heard charges on Wednesday, and prosecution is moving forward.

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james moylan
james moylan

I have a website  where I give advise on penny stocks and stocks under five dollars. I have many many years of experience with these type of stocks.  I would like to comment about the current condition of the american economy. This is one of the hardest periods in the countries history. Their does not seem to be any consensus about the trends for the economy one week the economic news is good the next week its bad. Their seems to be no consistency what so ever when it comes to economic matters. Mcdonald  recently hired fifty or sixty thousand people out of one million that applied. Maybe mcdonalds should change their saying you deserve a break today at mcdonalds to you deserve a job today at mcdonalds I do not believe we will see an improvement in the housing market until the unemployment rate declines under 7% or less.

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