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Insights Into Mortgage

Fraud

500 Pearl Street


A Continuing Education Class For
P.O. Box 146
Real Estate Professionals
Manchester, MA 01944
Insights Into Mortgage Fraud

BRINGING REAL CASES TO


TRAINING A WINNING REALTOR AND A
TOP TITLE INSURANCE 500
Joseph Petrucelli brings extensive
LAWYER PEARL STREET
research and 30 years of experience
to the development of this interactive Holly Pasut was a million-dollar and
case study based on mortgage fraud. award winning real estate agent in
As a former member of the NJ Real Charlotte, NC. What she did not
Estate commissioner, he was amazed realize was that one of her business
at how many people had not realized associates would become deeply
they had even perpetrated a fraud. involved in mortgage fraud. She
Upon digging deeper, he found that would become a co-conspirator in
good smart and well intentioned one of the largest mortgage fraud
people were putting themselves in investigations in the U.S., Operation
bad ethical/legal situations. It is Wax House. Holly was indicted in
through those insights that we have 2012, pleaded guilty and was
created this class. The purpose of sentenced to 21 months in federal
this case study is to create an prison. Her talks provide insights into
awareness of fraud so that how she trusted someone without fully
professionals are aware of the traits of understanding her role in his real
mortgage fraud and speak when they estate transactions.
see them.
Rashmi Airan was named Kent Joseph Petrucelli
MORTGAGE FRAUD Scholar for achieving highest CPA, CFE
academic honors at Columbia Law Co-Author of
We do not have to go far back in
School. After working on Wall Street Preventing Fraud
history to understand mortgage fraud
at Morgan Stanley, she ran a and Mismanagement
beyond the financial crisis of 2008. At
successful title insurance firm in in Government
its epicenter were mortgage
Miami, FL. She too partnered with (Wiley 2016)
transactions that were overvalued,
misrepresented and fraudulently associates who were breaking the
obtained. It was a virtual Wild West law, leading to her own indictment on
mortgage fraud. Rashmi would plead What we are doing
of loan products fueled by aggressive
guilty, cooperate against others by here is taking
sales and little oversight by regulatory
testifying in federal court and was presentations to a
bodies. However, as the crisis
sentenced to a year in prison. new level by showing
reached its peak, authorities looked
audiences real
back through documents and what
In two unrelated cases, these two people and real
they found would lead to the
women would spend time in prison situations involving
indictment of thousands of individuals
and now are sharing their story with fraud.
across the country.
other professionals through our case
We have developed a case study that study approach. With Joe acting as
sheds some light on the aftermath of moderator, we bring these stories to
mortgage fraud and what it was like life and put you in the front row so that
from the perspective of two people you can see how cases like this are
who got caught up in a federal prosecuted.
criminal case.
Insights Into Mortgage Fraud

500
PEARL STREET
DESCRIPTION
This 3-hour ethics-driven class presents two separate cases
involving bank/mortgage fraud charges. One is a successful real
estate agent and the other a top-rated real estate attorney. Both
would end up pleading guilty to federal crimes and, as you will
see, both suffered consequences due to the risks they were
taking, largely due to mounting pressures around them, and by
associating with people who were bent on financial mischief.

CORE OBJECTIVES

1) Understand the importance of Professional Skepticism


2) Understand different levels of Knowing and how willful
blindness can lead to corruption
3) Understand responsibilities of those involved in real estate
transactions Rashmi Airan
4) Understand the role of the real estate agent and title insurance Former Title
lawyer Insurance Attorney
5) Understanding the Importance of Trust and its role in enabling
fraud
6) Understand the distractions that allow fraudulent schemes to When that one big
occur deal came my way, it
7) Understand the opportunities and environments that exist that closed my eyes to
allow fraud to occur despite existing controls the bigger picture of
8) Understand how fraudsters use deception and separation to what was really
perpetrate their acts happening.
9) Understand how fraudsters gain access to value and convert
it into a personal monetary gain.
10) Understand how to conduct adequate follow-up on important
issues
11) Understand the behaviors surrounding fraudulent schemes
Course Outline

500
PEARL STREET
DEFINITION OF FRAUD

ELEMENTS OF FRAUD

TYPES OF FRAUD INVOLVING REAL ESTATE

CASE STUDY KEY ELEMENTS

CASE STUDY PRESENTATION (HOLLY)


A Successful Real Estate Agent
The Hot Market In North Carolina
An Opportunity and Referral Fee
As The Bubble Bursts - Feeling Something Was Wrong
Trying To Do The Right Thing
Up To My Neck In Trouble
Critical Thinking Errors
Conspiracy vs Intent

CASE STUDY KEY ELEMENT REVIEW


Holly Pasut
CASE STUDY PRESENTATION (RASHMI) Former Real Estate
Accomplished Real Estate Attorney Agent

Meeting With Developer - That Client You Wish For
Not Wanting To Ask Tough Questions
The FBI And Prosecutors Get Involved
The Painful Decision If I would have

Pleading Guilty And Cooperation understood the

risks I faced, I
would have turned
CASE STUDY KEY ELEMENT REVIEW the other way.
Things would have
PROFESSIONAL SKEPTICISM turned out so much
Due Care different.
Lack of Sufficient Evidence
Mindset
Illusion of Objectivity and Transparency
Attribute Trust
Rational v Irrational Behavior
500
PEARL STREET

Contact information Bringing real cases


to life for audiences
that are engaging,
WE WANT TO HEAR FROM YOU fun and
memorable.
If you have question about this presentations or one of
the many others that we have in our library, please send
us an email at info@500PearlStreet.com or call us at
617-858-5008.

Visit our website at www.500PearlStreet.com

500 Pearl Street


P.O. Box 146
Manchester, MA 01944

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