Appraiser Soon to be Jailbird for Fraud
In a million dollar mortgage fraud scheme
An appraiser in NY state has been convicted of a FELONY for incorrectly reporting the last sale date of a subject property in an appraisal report, which was used to defraud a lender in a million dollar mortgage fraud scheme.
You can read the full story here.
Per the info in the story:
“Essig is the owner and operator of Essig Appraisals, an appraisal company that specialized in residential appraisals. According to statements made in Court today during Essig’s plea, Essig admitted that he made a false entry in an appraisal that he completed for 225 Hazelhurst Avenue in the City of Syracuse on July 7, 2008 by stating that the property had been transferred on November 19, 2007 for $84,000. In truth, the most recent transfer of that property had occurred on July 8, 2005 for $37,800. Essig’s appraisal of 225 Hazelhurst Avenue, which he valued at $85,000, was subsequently used by the ring to obtain a refinance mortgage in the amount of $61,257 from AmTrust Bank. Essig admitted that he made the false entry in the appraisal report with intent to defraud and intent to aid and conceal the commission of another crime.
While this was a situation involving fraud, any and all data in our reports is easily discovered and analyzed years after reports have been submitted. All reports involved with property foreclosures, etc., are being given proctological exams these days. And with the Collateral Underwriter and the Appraisal Quality, CU + AQM, processes, incorrect data is found much earlier in the mortgage lending activity.
Appraiser convicted of felony for fraud: making false entry in an appraisal report. This is just another reason why demands for quick turn times need to be challenged by appraisers. Rapid report delivery without doing proper research can lead to errors, which in time could seriously affect the appraiser involved.
“Let’s be careful out there.”