Mortgage fraud case update - the St. Louis basketball coach, the straw buyers and a case of obvious mortgage fraud

Back in December of 2006, we came across this innocent little article in the St. Louis Post Dispatch about an obvious case of mortgage fraud by a popular high school basketball coach Floyd Irons. Obvious to us, but not to the St. Louis Post Dispatch.

So we emailed the reporter with how the scam works, and HP'ers also sent it in to the FBI. But then time went by, nothing happened, the reporter didn't understand mortgage fraud and wouldn't follow up, and just like Casey Serin and the other million mortgage fraudsters, we figured this would just be another case where crime did pay.

Well, for the first time in the history of this blog, we've got some good news on that front - we got our man, and the guilty are on their way to federal prison, with some hefty fines too. And the FBI in St. Louis should be commended for DOING THEIR F*CKING JOB.

Glad we could help.

One down. Millions to go.

St. Louis Post Dispatch reporter stumbles onto classic mortgage fraud and doesn't realize it

Floyd Irons sentenced to year in prison in mortgage scheme

St. Louis Post Dispatch reporter stumbles onto classic mortgage fraud and doesn't realize it

Such a classic fraud - find someone with no morals down on his luck who serves as the straw man, buying up houses for prices waaaaaaaaaaaayyy beyond what they're worth.

The sellers are in on the deal, giving most of the extra proceeds to the corrupt syndicate, which includes the mortgage broker, the appraiser and the buyer. The buyer (after getting a suitcase of cash) then declares bankruptcy, which they were going to do anyway, and nobody knows any better.

Well, HP knows. Unfortunately this naive reporter didn't even though he got close.

The straw man in this case was a popular St. Louis coach who was recently fired by his school (hmmm...), down on his luck and in need of a big score.

He'll be in jail soon, if HP'ers or the St. Louis Post Dispatch do the right thing.

I emailed the reporter, and you can email the FBI too here. HP is on the case.

They're a little slow in St. Louis, so cut the guy some slack, but it looks like LA/Phoenix-style mortgage fraud has spread nationwide based on this story, even if they don't know it (yet)...

Winning coach loses in real estate

Ten months ago, one of Missouri's most successful basketball coaches tried his hand at real estate.

Floyd Irons, the architect of a string of high school championships, bought three houses over five days in January. Total cost: About $1.5 million.But the purchases have puzzled real estate agents and neighbors alike.

Why did the homes cost so much? And how could a public school coach making $90,000 a year afford roughly $120,000 in yearly mortgage payments?

It turns out he can't. All three houses have gone into foreclosure.

Irons says the bank has taken them back. Two sit vacant. Weeds sprout, railings rust and leaves pile high. Residents of the third are preparing to be evicted but say they have no where to go. Irons initially said little to explain the spending spree and instead expressed outrage at the inquiry.

"I smell a rat," he said. "Somebody's trying to find something out that isn't there."