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Cuyahoga County Land Bank President Gus Frangos CON ARTIST falsifies documents to obtain a 2nd Mortgage
Submitted by Lily M. on Mon, 06/17/2013 - 22:02.
Cuyahoga County Con Artist Gus Frangos falsified documents to obtain a 2nd mortgage.
Cuyahoga County Land Bank President, Gus Frangos, falsified mortgage documents with Al Daiide in order to obtain a second mortgage for property located at 6311 St Clair and 1188 East 61st Street in Cleveland, Ohio.
On January 1, 2003, Gus Frangos signed promissory notes to purchase the properties. According to the agreement, Frangos was to pay Dailide mortagage payments in the amount of $300 per month for 6311 St Clair and $250 per month for 1188 East 61st Street.
Al Dailide- the former owner and mortgage holder - was deported from the US in 2004 due to Nazi War charges http://www.standard.co.uk/news/war-criminal-who-handed-jews-over-to-nazis-for-extermination-lives-openly-in-germany-6877906.html
Gus Frangos was well aware of Dailide's unfortunate circumstances and chose to take advantage of the elderly Dailide.
On February 8, 2004, Gus Frangos faxed a letter to Dailide in Germany stating his intent on obtaining a second mortgage on the properties. In order for Gus Frangos to obtain a second mortgage from National City Bank, Frangos requested that Dailid submit false documentation to National City Bank releasing the mortgage liens and submitting satisfactions that the mortagages were "Paid in Full". Frangos told the elderly Dailide that after Frangos obtained the mortgage from National City Bank that Dailide could refile his mortgages on the property.
Frangos specifically stated, " I do not want to volunteer to National City Bank that I am going to place your additional separate mortgages on the properties once the refinances are complete. Therefore, I am using Guardian Title Agency c/o Gayle Jones, 1370 Ontario Street, Suite 300, Cleveland, Ohio 44113 to handle your mortgage filings after National City Bank completes its refinancings and files its first mortgage."
Dailide fell for the con:
And Gus Frangos obtained the mortgage from National City Bank:
After Dailide signed the mortgage releases, Frangos failed to pay Dailide the promised mortgage:
Which led to this:
Gus Frangos also failed to pay his mortgage to National City Bank, which led to this:
Gus Frangos incorporated 6311 St Clair LLC and named Ladon Ruffin as his agent.
On September 15, 2011, Pastor Ladon Ruffin appeared in court, raised his right hand to God, and gave sworn testimony that Gus Frangos hired Ruffin to collect rent for 6311 St Clair and that Ruffin last worked collecting rent for Gus Frangos in March 2011:
Despite years of collecting rent and not paying either mortgage, 6311 St Clair LLC also hasn't paid property taxes in years:
6311 St Clair is currently listed for sale with a selling price of $69,000- considerably lower than the $87,612.31 still owed to National City Bank.
According to the real estate records, this property generates approximately $1200 per month in rental income. Despite the rental income collection, no mortgages or property taxes have been paid in years.
Gus Frangos FALSIFIED mortgage documents so that he could obtain a second mortgage which has not been repaid.
Gus Frangos has committed two counts of MORTGAGE FRAUD.
Mortgage fraud definition:
Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.
In United States federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment. As the incidence of mortgage fraud has risen over the past few years, states have also begun to enact their own penalties for mortgage fraud.
Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, to reduce the amount of monthly debt declared on the loan application. This omission of liabilities artificially lowers the debt-to-income ratio, which is a key underwriting criterion used to determine eligibility for most mortgage loans. It is considered fraud because it allows the borrower to qualify for a loan which otherwise would not have been granted, or to qualify for a bigger loan than what would have been granted had the borrower's true debt been disclosed.
Fraud for profit: A complex scheme involving multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. Fraud for profit schemes frequently include a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest settlement agent who might prepare two sets of HUD settlement statements or makes disbursements from loan proceeds which are not disclosed on the settlement statement, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan. The parties involved share the ill-gotten gains and the mortgage eventually goes into default. In other cases, naive "investors" are lured into the scheme with the organizer's promise that the home will be repaired, repairs and/or renovations will be made, tenants will located, rents will be collected, mortgage payments made and profits will be split upon sale of the property, all without the active participation of the straw buyer. Once the loan is closed, the organizer disappears, no repairs are made nor renters found, and the "investor" is liable for paying the mortgage on a property that is not worth what is owed, leaving the "investor" financially ruined. If undetected, a bank may lend hundreds of thousands of dollars against a property that is actually worth far less and in large schemes with multiple transactions, banks may lend millions more than the properties are worth.
Gus Frangos is the PRESIDENT OF THE CUYAHOGA COUNTY LAND BANK and can NOT be trusted.
Gus Frangos salary as president of the land bank is dependent upon the collection of delinquent property taxes.
Gus Frangos is also an attorney and his conduct is highly unethical.
Gus Frangos has a pattern of unethical conduct relative to real estate. READ more on Gus Frangos' numerous scams here http://realneo.us/blogs/lmiller
** My blogs expressing my freedom of speech rights - especially on matters of public concern - are my opinion and not the opinion of my friends, family or employer**
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