Monday, July 20, 2009
Florida Mortgage Broker Responsible for $30 Million In Defaults
In an article in the Sarasota Herald Tribune they discuss the case of mortgage broker Mark P. Riley of the Sarasota, Florida area who is being blamed for more than $30 million in defaults using a get rich quick scheme probably perpetrated many times over throughout the country. The basics of the technique were that Riley would partner up at least two people to agree to flip a property between each other multiple times, the price of the home rocketing in value with each new purchase with Riley receiving a commission on each sale. The problem with this type of scam is that it didn't just injure those trying to make a quick buck, it also artificially inflated the price of real estate in the surrounding areas, helping to inflate the Florida housing bubble.