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Realtor accused of $50 million fraud scheme, own parents allegedly victims

In a widespread fraud scheme, Eric and Charmagne Elegado who are well known in California, have been accused of getting rich fraudulently.

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Multi-million dollar mortgage fraud scheme

The U.S. Attorney General’s office has arrested well known San Diego Realtor, Eric Elegado, his wife Charmagne Elegado and seven employees for allegedly defrauding banks and buyers of over $50 million, ultimately costing banks $15 million, according to Fox 5 San Diego. All nine defendants have plead not guilty.

UPDATE: March 2014, the couple is sentenced to over three years in jail each, apologize in court, and next up, restitution hearings will take place in May 2014.

The federal prosecutors unsealed the indictment today, alleging the couple used fraudulent documents to satisfy mortgage underwriting to falsely obtain home loans for buyers that could not actually afford the loans being secured.

The indictment says 100 buyers between 2002 and 2007 were unqualified and the team at E Real Estate and Loans, Inc. owned by Eric Elegado knowingly filed falsified documents, mostly for poor immigrants, a scheme the prosecutors call predatory. The scheme was allegedly masterminded by Charmagne Elegado who worked at New Century Mortgage and made sure the loans were approved.

Defrauding their own parents

Indictment papers claim that almost all of the loans generated through the conspirators have defaulted, including Charmagne Elegado’s parents who Fox 5 says lost $75,000. The couple and their co-defendants are charged with conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering and four counts of money laundering which defendants could face up to 17 years in prison each while Charmagne may face over 20 years in prison.

“Mr. and Mrs. Elegato have strictly denied any participation in any criminal behavior,” said Paul Pfingst, who is representing Eric Elegato, “(They) are not rich people. The prosecution would have you believe they made millions of dollars.” Pfingst takes issue with the prosecutors not pursuing charges until just before the statute of limitations ended, but the rush could be to pursue the case prior to that time.

Sources tell AGBeat that the couple is well known for taking expensive trips, a luxury home, hundreds of thousands of dollars of jewelry and matching Rolls Royce Phantom cars which if true conflicts with Pfingst’s assertions to the Fox News cameras.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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