Real Estate Journal Online

Louis Gendason, John Incadela, Marcos Echaverria and Kimberly Mackey worked together to obtain $2.5 million in reverse mortgage loans from Genworth Financial over a period of two years. Sounds like they were helping a lot of seniors stay in their homes, right? Not in this case. The four are charged with pocketing nearly a million in illegal loan proceeds and failing to pay off the existing loans with the monies, according to U.S. attorney Wilfredo Ferrer[1]. Now, the homeowners are fighting foreclosure while the four conspirators attempt to fend off charges for theft and conspiracy to commit wire fraud.

And it gets more complicated: After seniors filled out applications for reverse mortgages, Incandela and Echeverria inclated the properties’ worth to give the impression of equity before staging a short sale. They falsified everything from closing documents to loan applications and pocketed excess funds anywhere possible. For example, in one instance a property worth $31,000 was inflated to $275,000. Each defendant faces up to 30 years in prison.

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