Palm Desert's Christopher Oetting got involved in just such a mortgage fraud ring:
Police say a Palm Desert businessman who pleaded guilty to taking part in a $150 million mortgage scam has hanged himself.
47-year-old Christopher Oetting was found dead in a home on Sagewood Drive in Palm Desert Tuesday, according to the Riverside County Sheriff's Deparment. He was heading to federal prison in just a few weeks.
Oetting was one of seven co-conspirators who created false companies that officials say led to more than 200 homeowners losing their homes to foreclosure.
The kingpin - James Duncan - even made a Youtube video to lure investors.
More details about the scam here:
An investor would buy two, three or as many as eight houses within days of each other. Stonewood would apply for loans on behalf of the client, typically for two loans totalling 20 percent to 25 percent more than the appraised value of each house. The investor would pay the seller close to the asking price, typically $450,000 to $600,000. Jovane Investments would then pocket the excess cash, often $100,000 to $120,000.
Part of that money would be used to make regular mortgage and tax payments on the houses, the attorneys said. It seemed to be a great deal for the investors, the suit alleges, so they would bring in friends and family members.
[...]Things began to come apart in the fall, Abano said, when Oetting Enterprises simply stopped making payments on most of the loans. One of the families had taken out loans on eight investment properties and refinanced their own house, Abano said. The family received nine notices of default since mid-December, he said.
Scams like that wouldn't have been so easy without skyrocketing home prices and non-existent lending standards thanks to Fed easy money.
Greenspan's Body Count stands at 123.
Christopher Oetting
Neal Jacobson
Franki Jacobson
Eric Jacobson
Joshua Jacobson
Vincenza Garcia
Bill Sparkman
Debra K. Gibbs
Otis Beckford
Carol Kennedy
Diane Ward
Edith Moreno
Diana Moreno
Scott Peters
Tom Blackmore
Kevin Daniel O'Connell
Julie Fay
Wallis Fay
Siu Fong Ng
Ernest Scherer Jr.
Charlene Abendroth
J.D. Wood
Cynthia Wood
Aubrey Wood
Dillon Wood
Betty J. Lipply
Dwight Deely
Linda Patrick
David Kellerman
Christopher Wood
Francie Billotti-Wood
Chandler Wood
Gavin Wood
Fiona Wood
Gil Weber
Gregory Graham
Randolph Graham
David Kelley
Ramona woman
Del Mar man
Wayne "Mike" Anderson
Jeffrey M. Pearson
Ervin Antonio Lupoe
Ana Lupoe
Brittney Lupoe
Jaszmin Lupoe
Jassely Lupoe
Benjamin Lupoe
Christian Lupoe
Steven L. Good
Adolf Merckle
Mike Upham
Randy Motts
Kristy Hunt
Joseph Nesheiwat
Tom Brisch
Alex Widmer
Brian Pugh
Marilyn Lewis
Sid Agrawal
Kirk Stephenson
Barry Fox
Dallas Dwayne Carter
David Hetzel
Sharron Hetzel
Cliff Kendall
Pamela Ross
Roland Gore
Mrs. Gore
Wanda Dunn
Karthik Rajaram
Subasri Rajaram
Krishna Rajaram
Ganesha Rajaram
Arjuna Rajaram
Indra Ramasesham
Joe X
Isabelle Jarka
Robert Wagner
Lt. Michael Howe
John Roberts
Palmer C. White
Dianne Pittman White
Ed Boesen
Edwin F. Rachleff
Carlene Balderrama
Troy VanderStelt
Scott M. Coles
Dawn E. Armstrong
Thomas Lizotte
Jonathon Calvin "40-Cal" Jacques
Salvador X
Lupe X
Jade X
Little Boy X
Little Girl X
Kashmir Billon
Bill McMurtry
Lisa McMurtry
James Hahn
Raymond Donaca
Deanna Donaca
[redacted]
[redacted]
Michel Veillette
Nadya Ferrari-Veillette
Marguerite Veillette
Vincent Veillette
Mia Veillette
Jacob Veillette
Maurice Pereira
Natasha Pereira
Mark Achilli
Raed Al-Farah
Andrew Kissel
Rufus Shaw Jr.
Lynn Flint Shaw
Mr. Pierce
Walter Buczynksi
Marci Buczynski
Jason Washington
