Was it a scheme to defraud or was it merely bad loans?
Only time will tell.
A mortgage broker and a real estate broker pleaded not guilty Tuesday to charges that they were involved in a $2 million mortgage-fraud scheme.
FBI agents allege real estate broker Darnell Mason and mortgage broker Justin Zhu recruited “straw” borrowers for homes Mason wanted to acquire throughout San Antonio. The borrowers were to be paid kickbacks for lending their personal information for the scheme, which allegedly exploited lax lending rules.
The government claims the swindle lasted between June 2006 and January 2007 and contributed to the country's financial meltdown. The initial lenders sold the bad mortgages to other lenders, the indictment said.
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