Cuyahoga County Land Bank President Gus Frangos CON ARTIST falsifies documents to obtain a 2nd Mortgage

Submitted by Gone Fishin on Mon, 06/17/2013 - 21:02.

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Cuyahoga County Con Artist Gus Frangos falsified documents to obtain a 2nd mortgage.
 
 
Cuyahoga County Land Bank President, Gus Frangos, falsified mortgage documents with Al Daiide in order to obtain a second mortgage for property located at 6311 St Clair and 1188 East 61st Street in Cleveland, Ohio.
 
 
On January 1, 2003, Gus Frangos signed promissory notes to purchase the properties.  According to the agreement,  Frangos was to pay Dailide mortagage payments in the amount of $300 per month for 6311 St Clair and $250 per month for 1188 East 61st Street.
 
 
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Al Dailide- the former owner and mortgage holder - was deported from the US in 2004 due to Nazi War charges http://www.standard.co.uk/news/war-criminal-who-handed-jews-over-to-nazis-for-extermination-lives-openly-in-germany-6877906.html
 
Gus Frangos was well aware of Dailide's unfortunate circumstances and chose to take advantage of the elderly Dailide.
 
 
On February 8, 2004, Gus Frangos faxed a letter to Dailide in Germany stating his intent on obtaining a second mortgage on the properties.  In order for Gus Frangos to obtain a second mortgage from National City Bank, Frangos requested that Dailid submit false documentation to National City Bank releasing the mortgage liens and submitting satisfactions that the mortagages were "Paid in Full".   Frangos told the elderly Dailide that after Frangos obtained the mortgage from National City Bank that Dailide could refile his mortgages on the property.  
 
 
Frangos specifically stated, " I do not want to volunteer to National City Bank that I am going to place your additional separate mortgages on the properties once the refinances are complete.  Therefore, I am using Guardian Title Agency c/o Gayle Jones, 1370 Ontario Street, Suite 300, Cleveland, Ohio 44113 to handle your mortgage filings after National City Bank completes its refinancings and files its first mortgage."
 
 
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Dailide fell for the con:
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And Gus Frangos obtained the mortgage from National City Bank:
 
 
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After Dailide signed the mortgage releases, Frangos failed to pay Dailide the promised mortgage: 
 
 
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Which led to this:
 
Case Number: CV-08-661718
Case Title: AL DAILIDE ET AL vs. GUS FRANGOS ET AL
Case Designation: CONTRACT - OTHER
Filing Date: 06/09/2008
Judge: JOAN SYNENBERG
Magistrate N/A
Room: N/A
Next Action: N/A
File Location: DF-ROOM 45
Last Status: INACTIVE
Last Status Date: 12/04/2008
Last Disposition: DIS. W/ PREJ
Last Disposition Date: 12/03/2008
Prayer Amount: $17,913.85

 

Gus Frangos also failed to pay his mortgage to National City Bank, which led to this:

 

Case Number: CV-12-780529
Case Title: PNC BANK, NATIONAL ASSOCIATION vs. GUS FRANGOS
Case Designation: CONTRACT - BUSINESS
Filing Date: 04/16/2012
Judge: DANIEL GAUL
Magistrate N/A
Room: N/A
Next Action: N/A
File Location: DF-ROOM 45
Last Status: INACTIVE
Last Status Date: 02/07/2013
Last Disposition: DISP.OTHER
Last Disposition Date: 02/07/2013
Prayer Amount: $87,612.31

 

Gus Frangos incorporated 6311 St Clair LLC and named Ladon Ruffin as his agent.

On September 15, 2011,  Pastor Ladon Ruffin appeared in court, raised his right hand to God, and gave sworn testimony that Gus Frangos hired Ruffin to collect rent for 6311 St Clair and that Ruffin last worked collecting rent for Gus Frangos in March 2011:

 

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Despite years of collecting rent and not paying either mortgage, 6311 St Clair LLC also hasn't paid property taxes in years:

 

PRIMARY OWNER 6311 ST CLAIR LLC  
PROPERTY ADDRESS 6311 St Clair AVE, Cleveland, OH 44103
 
 
PARCEL NUMBER 105-10-014
 
 
Cleveland Prior year penalty - 2011 293.88 0.00 293.88
  Prior year penalty - 2010 294.56 0.00 294.56
  Delq Interest - 2012 186.20 0.00 186.20
  Prior year August interest - 2012 182.60 0.00 182.60
  Prior year interest - 2011 87.80 0.00 87.80
  Prior year tax - 2011 1,895.92 0.00 1,895.92
  Prior year tax - 2010 1,900.30 0.00 1,900.30
  DELQ BALANCE 4,841.26 0.00 4,841.26
  1st half penalty 96.86 0.00 96.86
  1st half tax 968.55 0.00 968.55
  1ST HALF BALANCE 1,065.41 0.00 1,065.41
  2nd half tax 968.55 0.00 968.55
  2ND HALF BALANCE 968.55 0.00 968.55
TOTAL BALANCE   6,875.22 0.00 6,875.22
 

 

6311 St Clair is currently listed for sale with a selling price of $69,000- considerably lower than the $87,612.31 still owed to National City Bank.

 According to the real estate records, this property generates approximately $1200 per month in rental income.  Despite the rental income collection, no mortgages or property taxes have been paid in years.

 

http://www.russellrealty.com/p/259/3262329

  

Gus Frangos FALSIFIED mortgage documents so that he could obtain a second mortgage which has not been repaid.

Gus Frangos has committed two counts of  MORTGAGE FRAUD.

 

Mortgage fraud definition:
 
 
Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.
In United States federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment.[1] As the incidence of mortgage fraud has risen over the past few years,[2] states have also begun to enact their own penalties for mortgage fraud.[3]
 
Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, to reduce the amount of monthly debt declared on the loan application. This omission of liabilities artificially lowers the debt-to-income ratio, which is a key underwriting criterion used to determine eligibility for most mortgage loans. It is considered fraud because it allows the borrower to qualify for a loan which otherwise would not have been granted, or to qualify for a bigger loan than what would have been granted had the borrower's true debt been disclosed.
 
Fraud for profit: A complex scheme involving multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. Fraud for profit schemes frequently include a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest settlement agent who might prepare two sets of HUD settlement statements or makes disbursements from loan proceeds which are not disclosed on the settlement statement, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan. The parties involved share the ill-gotten gains and the mortgage eventually goes into default. In other cases, naive "investors" are lured into the scheme with the organizer's promise that the home will be repaired, repairs and/or renovations will be made, tenants will located, rents will be collected, mortgage payments made and profits will be split upon sale of the property, all without the active participation of the straw buyer. Once the loan is closed, the organizer disappears, no repairs are made nor renters found, and the "investor" is liable for paying the mortgage on a property that is not worth what is owed, leaving the "investor" financially ruined. If undetected, a bank may lend hundreds of thousands of dollars against a property that is actually worth far less and in large schemes with multiple transactions, banks may lend millions more than the properties are worth.
 

 

 

 

 

Gus Frangos is the PRESIDENT OF THE CUYAHOGA COUNTY LAND BANK and can NOT be trusted.

Gus Frangos salary as president of the land bank is dependent upon the collection of delinquent property taxes.

Gus Frangos is also an attorney and his conduct is highly unethical.

Gus Frangos has a pattern of unethical conduct relative to real estate.  READ more on Gus Frangos' numerous scams here http://realneo.us/blogs/lmiller

 

** My blogs expressing my freedom of speech rights - especially on matters of public concern - are my opinion and not the opinion of my friends, family or employer**

‹ Cuyahoga County Land Bank - has their 'EYE' on flippers - Land Bank Complaints Scams Fraud FlippersupCuyahoga County Land Bank- Gus Frangos President Con Artist? JESUS!!!! ›
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1188 East 61st Street - Gus Frangos' CON JOB

Submitted by Gone Fishin on Tue, 06/18/2013 - 08:27.

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1188 East 61st Street - a vacant and boarded-up apartment building left to rot- contributing to the foreclosure crisis.

 

Gus Frangos also was able to obtain the $100,000 open end mortgage from National City Bank on this property:

 

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I searched county records and found NO release that the $100,000 mortgage was ever repaid by Gus Frangos despite selling the property on 6/15/2007 for $169,000.

 

No property taxes paid for many years.  Current tax bill $ 8,952.15

 

 

 

* My blogs expressing my Freedom of Speech Rights, especially on matters of public concern, are my opinion and not the opinion of my friends, family or employer*

Guardian Title

Submitted by Gone Fishin on Wed, 06/19/2013 - 07:47.
Frangos specifically stated, " I do not want to volunteer to National City Bank that I am going to place your additional separate mortgages on the properties once the refinances are complete.  Therefore, I am using Guardian Title Agency c/o Gayle Jones, 1370 Ontario Street, Suite 300, Cleveland, Ohio 44113 to handle your mortgage filings after National City Bank completes its refinancings and files its first mortgage."
 
 
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COMMISSIONERS
Jane L. Campbell
Jimmy Dimora
Tim McCormack AGENDA

 

REGULAR MEETING • TUESDAY, JULY 24, 2001 • 10:00 A.M.

 

 

8. County Recorder, submitting leases with various title agencies for rental of space in the County Administration Building, with staggered effective dates all beginning 7/1/2001:
 
a) Guardian Title & Guaranty Agency $ 5,376.00

 

bocc.cuyahogacounty.us/ViewFile.aspx?Type=File&File=1056‎
 

Jul 24, 2001 – County Engineer, submitting a contract with Solar Testing Laboratories, Inc. in the ... County Recorder, submitting leases with various title agencies for rental of space in the County ... a) Guardian Title & Guaranty Agency.

 

 

* My blogs expressing my Freedom of Speech Rights, especially on matters of public concern, are my opinion and not the opinion of my friends, family or employer*

Examples of MORTGAGE FRAUD

Submitted by Gone Fishin on Fri, 06/21/2013 - 20:46.

Gus Frangos 2 counts of mortgage fraud are text book examples- written on Gus Frangos' " Attorney at Law" stationery.

 

On February 8, 2004, Gus Frangos faxed a letter to Dailide in Germany stating his intent on obtaining a second mortgage on the properties.  In order for Gus Frangos to obtain a second mortgage from National City Bank, Frangos requested that Dailid submit false documentation to National City Bank releasing the mortgage liens and submitting satisfactions that the mortagages were "Paid in Full".   Frangos told the elderly Dailide that after Frangos obtained the mortgage from National City Bank that Dailide could refile his mortgages on the property.  
 
 
Frangos specifically stated, " I do not want to volunteer to National City Bank that I am going to place your additional separate mortgages on the properties once the refinances are complete.  Therefore, I am using Guardian Title Agency c/o Gayle Jones, 1370 Ontario Street, Suite 300, Cleveland, Ohio 44113 to handle your mortgage filings after National City Bank completes its refinancings and files its first mortgage."

 

Mortgage Fruad:

 

What Constitutes Mortgage Loan Fraud

 

The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."

 

 A silent second mortgage, which is unrecorded (or records after closing) and hidden from the lender.

 

The defendants submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties. The defendants then prepared and submitted to the lenders, false HUD-1 statements. The defendants created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units.

 

FBI

Mortgage fraud schemes employ some type of material misstatement, misrepresentation, or omission relating to a real estate transaction which is relied on by one or more parties to the transaction  These schemes include:
  • Foreclosure rescue schemes
  • Loan modification schemes
  • Illegal property flipping
  • Builder bailout/condo conversion
  • Equity skimming
  • Silent second
  • Home equity conversion mortgage
  • Commercial real estate loans

 

Mortgage fraud is a part of the FIF subprogram within the FBI’s WCCP. The FBI investigates mortgage fraud in two distinct areas: fraud for profit and fraud for housing. Those who commit mortgage fraud for profit are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry. Fraud for housing typically represents illegal actions conducted solely by the borrower, who is motivated to acquire and maintain ownership of a house under false pretenses such as misrepresented income and asset information on a loan application.

Illegal Property Flipping: Property is purchased, falsely appraised at a higher value, and then quickly sold. What makes property flipping illegal is that the appraisal information is fraudulent. The schemes typically involve one or more of the following: fraudulent appraisals; falsified loan documentation; inflated buyer income; or kickbacks to buyers, investors, property/loan brokers, appraisers, and title company employees.

Money Laundering
The DOJ defines money laundering in the following manner:
“Money laundering is the process by which criminals conceal or disguise the proceeds of their crimes or convert those proceeds into goods and services. It allows criminals to infuse their illegal money into the stream of commerce, thus corrupting financial institutions and the money supply, thereby giving criminals unwarranted economic power.”
 
 
 
 

$$$ more for demo

Submitted by lmcshane on Wed, 06/19/2013 - 07:59.

Money that was to keep folks in their homes will instead be directed to demo contractors...

http://www.chillicothegazette.com/article/20130611/NEWS01/306110019/Officials-not-sold-proposal-demolition-funds

Mortgage Fraud definition

Submitted by Gone Fishin on Wed, 06/19/2013 - 08:13.

Legal definition of Mortgage Fraud in case Attorney Gus Frangos - PRESIDENT of the Cuyahoga County Land Bank - needs a legal refresher:

 

Gus Frangos has committed MORTGAGE FRAUD!

 

Mortgage fraud

 

 

Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.
In United States federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment.[1] As the incidence of mortgage fraud has risen over the past few years,[2] states have also begun to enact their own penalties for mortgage fraud.[3]

 

Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, to reduce the amount of monthly debt declared on the loan application. This omission of liabilities artificially lowers the debt-to-income ratio, which is a key underwriting criterion used to determine eligibility for most mortgage loans. It is considered fraud because it allows the borrower to qualify for a loan which otherwise would not have been granted, or to qualify for a bigger loan than what would have been granted had the borrower's true debt been disclosed.

 

Fraud for profit: A complex scheme involving multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. Fraud for profit schemes frequently include a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest settlement agent who might prepare two sets of HUD settlement statements or makes disbursements from loan proceeds which are not disclosed on the settlement statement, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan. The parties involved share the ill-gotten gains and the mortgage eventually goes into default. In other cases, naive "investors" are lured into the scheme with the organizer's promise that the home will be repaired, repairs and/or renovations will be made, tenants will located, rents will be collected, mortgage payments made and profits will be split upon sale of the property, all without the active participation of the straw buyer. Once the loan is closed, the organizer disappears, no repairs are made nor renters found, and the "investor" is liable for paying the mortgage on a property that is not worth what is owed, leaving the "investor" financially ruined. If undetected, a bank may lend hundreds of thousands of dollars against a property that is actually worth far less and in large schemes with multiple transactions, banks may lend millions more than the properties are worth.

 

http://en.wikipedia.org/wiki/Mortgage_fraud

 

 

 

 

* My blogs expressing my Freedom of Speech Rights, especially on matters of public concern, are my opinion and not the opinion of my friends, family or employer*

And National City must know what you posted but, despite

Submitted by Oldroser on Mon, 06/24/2013 - 13:25.

losing money, isn't doing anything, letting him get away with it.

It is so tempting to make a citizens arrest:

You can also make a citizen’s arrest if the person admits to the felony or misdemeanor in your presence or if you have undeniable proof he committed the crime. For example, if you engraved your name and identification information on the back of your television and found it in some thug’s apartment, then you’d have grounds for a citizen’s arrest.

Some are trying, but, of course, as things are, it isn't a good thing.

www.infowars.com/lets-march-into-washington-and-place-the-politicians-under-citizens-arrest/

More suspected MORTGAGE FRAUD committed by Gus Frangos

Submitted by Gone Fishin on Mon, 06/24/2013 - 21:55.

The property located at 1154 East 61st Street and 1158 East 61st Street has nearly the exact same circumstances as above.

Obtaining a new mortgage for more than the value of the property,  refiling the first mortgage one day after the second mortgage was granted, collecting rent, not paying property taxes, and not paying the mortgages.

 

 

1154  & 1158 East 61st Street have not paid property taxes for years.

 

One property was recently foreclosed upon for delinquent property taxes and will soon default to the county land bank- back in the control of con artist Gus Frangos.

Gus Frangos - President of the Cuyahoga County Land Bank - whose six figure salary is paid by the collection of delinquent property taxes:

The same GUS FRANGOS that incorporated 1158 East 61 St LLC, the same GUS FRANGOS that signed for the mortgages, the same GUS FRANGOS who hired Ladon Ruffin to collect rent, and the same GUS FRANGOS who I strongly suspect has commited more counts of MORTGAGE FRAUD.

The only difference in this case and the reason I am referring to this as 'suspected ' mortgage fraud is that I do not have written documentation - on attorney letter stationery - to the original owner John Stover requesting that he remove the first mortage.  Although I am confident that is what happened.

 

 

V-12-773022 TREASURER OF CUYAHOGA COUNTY, OHIO vs. 1158 E. 61ST, LLC, ET AL

 

04/26/2013 N/A CS ORDER OF SALE Parcel Number: 104-13-070 ORDER OF SALE, WITH REPORT OF SALE ATTACHED, RETURNED 04/10/2013. "OTHER LAND-NO BID" - FORFEITED TO THE STATE.. NO SALE FORECLOSURE CLERK FEE - $5.00 LEGAL NEWS ABSTRACT $ 5.00 *****SHERIFF FEES***** NOTICE TO PRINTER 3.00 SERVICE & RETURN 9.00 POUNDAGE(*) 0.00 COST OF DEED PREPERATION 0.00 LEGAL NEWS 123.00 =======TOTAL OF FEES $135.00 .

 

 

 

Transfer Date: 09-JAN-03 AFN Number: Receipt:
Parcel Deed Type Vol / Page Sales Amt Convey. Fee Convey. No Multiple Sale / No. of Parcels
104-13-070 Warranty Deed / $125,000 $500 141772 0 / 1
  
Grantee(s) Grantor(s)
 
1158 E. 61ST, LLC
 
Stover, John R. Trs
Of The John T. Stover
Revocable Trust

NO PROPERTY TAXES PAID IN YEARS .  Taxes owed $ 17,220.04

 

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Gus Frangos incorporated 1158 East 61 Street LLC

 

 

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On January 9, 2003, the deed transfered from John Stover Trust to 1158 East 61st LLC aka GUS FRANGOS - whose Hudson address is visible on the deed 

 

 
DEED STOVER JOHN T 1158 EAST 61ST LLC 1/9/2003

 

 

On January 9, 2003 - the same date the deed transferred from Stover to 1158 East 61st Street- an $87,500 mortgage was filed by Republic Bank:

 

MORT 1158 EAST 61ST LLC REPUBLIC BK 1/9/2003

 

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On January 10, 2003 - one day after the $87,500 mortgage was granted and filed by Republic Bank - the original owner John Stover filed his $27,000 mortgage deed
 
 
MORT 1158 E 61ST LLC STOVER JOHN 1/10/2003
 
 
 
 
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Although county records reflect that NO mortage releases were ever filed relative to the two mortgages that totaled $114.500:
 
1 00919615 DEED JERKOVIC STIPO STOVER JOHN T 12/1/1994   104-13-069 11308 / 44
2 199905130849 DEQC STOVER JOHN T STOVER JOHN T 5/13/1999   104-13-069 /
3 200301090977 DEED STOVER JOHN T 1158 EAST 61ST LLC 1/9/2003   104-13-069 /
4 200301090978 MORT 1158 EAST 61ST LLC REPUBLIC BK 1/9/2003 200504060145 104-13-069 /
5 200301090979 MORT 1158 EAST 61ST LLC REPUBLIC BK 1/9/2003   104-13-069 /
6 200301101319 MORT 1158 E 61ST LLC STOVER JOHN 1/10/2003 200504040350 104-13-069 /
7 200504040348 MORT 1158 EAST 61ST LLC NATIONAL CITY BK 4/4/2005   104-13-069 /
8 200812010879 MORT 1158 E 61 ST LLC DAILIDE ALGIMANTAS M 12/1/2008   104-13-069 /
 
 
 
 
On April 4, 2005, Gus Frangos signed for and received a THIRD mortgage from National City Bank for $175,000:
 
 
AFN: 200504040348 Type: MORT - MORTGAGE
Date Recorded: 04/04/2005 Number of Pages: 8
Book: Page: Amount: $175,000.00

Grantor
Type Last Name First Name M. Name Detail
R 1158 EAST 61ST LLC