Converted from an office building to apartments in 2004 by NBC Holdings’ Tracy Suttles and The Randall Davis Company, the Kirby Lofts at 917 Main Downtown went condo a little later. How did that ball get rolling? The federal government’s Financial Fraud Enforcement Task Force suggests one answer: a few “sham sales” from January to October 2006. Indictments charging Veronica Frazier, Robert Veazie, and Felton Greer with several counts of conspiracy and wire fraud were unsealed Friday.
Frazier, 42, of Pearland, allegedly recruited buyers with good credit in 2006 to act as straw borrowers and use false information to apply for home loans, according to the U.S. attorney’s office. She and other unnamed co-conspirators then allegedly used the loan proceeds for themselves and to pay kickbacks to the fake borrowers.
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The indictment charges Veazie and Greer with acting as straw borrowers for units in the Kirby Lofts as well as other properties. Arrests of all 3 were made last week.
Pete Patterson, an attorney for Suttles, said Suttles has no ownership interest in the building.
“Tracey lost every dime he put into that project,” he said.
- 3 area residents charged in mortgage case [Houston Chronicle]
- Three Texas residents indicted for mortgage fraud and Houston: three indicted for mortgage fraud [Wire Update]
Photos of Kirby Lofts: HAR, Flickr user housrem, and Steven Teoh
I’m curious: Are “sham sales” such as these used as comparables when determining the value of a particular residence?
I’m curious: Are “sham sales†such as these used as comparables when determining the value of a particular residence?
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Of course. And of course in a new building, the first units justify the sales price for the other units.
This is the second prosecution over “mortgage fraud” involving downtown lofts so maybe it just takes a little “easy sell,” illegally, to get the buildings moving?
The first one curiously was prosecuted by the state rather than the federal government.
In that case a realtor was involved. Not sure if one was involved in this case. The court pulled that realtor’s license. Then gave the license back so she could pay the judgement.
Crime pays. Until you get caught.
Of course I guess it depends on how much commission, plus kickbacks, you made versus how much the judgement may be and of course whether you go off to prison or just get the proverbial slap on the hand. And get your license back of course.
There are so many cases of developer fraud in this city. The biggest losers have been residents who have bought in to these investor heavy buildings only to find them empty. It is pretty easy to spot the sales offices who lie about occupancy, just drive by these towers at night. If a building is 90% sold and is only 20% bright at night there is something up.
i want to know if stewart title frauded anybody at closing. please e-mail me asap.
oops