Appraiser Soon to be Jailbird for Fraud

Dave Towne

Dave Towne

Certified Residential RE Appraiser at Towne Appraisals
AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003.
Dave Towne on e-AppraisersDirectory.com
Dave Towne

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Appraiser soon to be jailbird - mortgage fraud scheme

In a million dollar mortgage fraud scheme

Appraisers,

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.”

Dave Towne

Dave Towne

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003. Dave Towne on e-AppraisersDirectory.com

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4 Responses

  1. Retired Appraiser Retired Appraiser says:

    That poor old boy must have been practicing for over 100 years.  Appraisers can get away with murder for the first century of their careers and never be prosecuted.  Either that or he screwed someone’s wife on the appraisal board.

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    • Retired Appraiser Retired Appraiser says:

      Here’s why I made that statement.  Everyone in Lexington, KY knows of one specific appraiser who has either committed fraud every day of his life for over 20 years while appraising and trained countless appraisers to do the same.  I heard rumors about the guy for the first ten years of my career and had the pleasure of reviewing one his incredible reports as well as one of his many flunkies.  Yes…they did indeed fabricate comparable sales out of thin air (the addresses existed but they never sold).  The man was never touched by the appraiser’s board other than a few warnings here and there.  He made an absolute killing in the appraisal business and imagine that he still does.  Hint: MM

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  2. bubba jay bubba jay says:

    where do i begin?

    first of all, lets re-read the line “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.”

    that makes the bolded comment ” . . . . . incorrectly reporting the last sale date of a subject property in an appraisal report . . . . .”, inaccurate.

    that comment should read ” . . . . . intentionally didnt report the last sale date of a subject property in an appraisal report . . . . .”

    if someone intentionally commits fraud, then they SHOULD BE prosecuted and suffer the punishment. they made that bed, now they need to lie in it. but there is a huge difference between an honest mistake and fraud. it sounds like this person intended to commit fraud, and now will be lying on a metal bed because of it. this kind of person makes a bad name for every appraiser, and i say good riddance. no sympathy here.

    “Lets be careful out there” needs to be changed to “Dont be stupid.”

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  3. Baggins Baggins says:

    The appraiser makes an easier target to prosecute than say, one of the never ending stream of upper level criminals.  Here is yet another story of multi billion dollar fraud, and nobody goes to jail;  Latest news, fresh off the presses;  http://www.cryptogon.com/?p=46645

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Appraiser Soon to be Jailbird for Fraud

by Dave Towne time to read: 1 min
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