Friday, March 25, 2016

14 Years In Prison For Setting Up 'Straw' Buyers

I remember when we were buying my current home, there was some questions about a 'Straw' buyer? I said, whoa, I'm not going to do anything fraudulent. So we paid the price of an investment property interest rate (long story) and moved into our current home.

Now, I can't say how many other people did use straw buyers to purchase a home for them when they couldn't do it, for whatever reason, by themselves.

But, some woman, who had her Real Estate license for a period of time, defrauded banks to the tune of 30 million dollars for using straw buyers in the Sacramento area. The article says that 5 other people were arrested for having something to do with this lady and her scheme!

So, I am happy she is about to serve 14 years in jail. She deserves it.

straw buyer is used when the real buyer cannot complete the transaction for some reason. It is not necessarily illegal to use a straw buyer, except where the transaction involves fraud or purchasing goods for someone who is legally barred from making the purchase themselves.

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