An Atlanta real estate practitioner was sentenced Friday to 14 years in federal prison for mortgage fraud.
Joseph Sterling Jetton, the 61-year-old owner of Precision Construction Co. in Woodstock, Ga., was ordered to pay $11.2 million in restitution on charges of conspiracy, bank fraud, wire fraud, and money laundering.
According to the Department of Justice, Jetton orchestrated a mortgage fraud scheme that involved millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw borrowers from late 2004 through early 2006. The straw borrowers were paid through shell companies as much as $600,000 per property from the loan proceeds.
Jetton was accused of writing sales contracts for inflated sales prices, then he and 10 others implicated in the scheme skimmed hundreds of thousands of dollars out of the loan proceeds. According to court documents, Jetton personally derived more than a $1 million in commissions from the mortgage fraud.
Source: U.S. Department of Justice
Presidential contender Sen. John McCain stepped into a political hornet’s nest Tuesday night when he proposed that the U.S. Treasury department “buy up the bad home-loan mortgages in America and renegotiate at the new value of those homes at the diminished value of those homes.”
In subsequent explanations, McCain’s economic adviser Douglas Holtz-Eakin said McCain is proposing that the government would buy mortgages from banks and investors at the original value of loan, no matter how inflated that it now appears to be, and then give the home owner a new mortgage at current value at a more affordable interest rate. “Obviously, the taxpayer is on the hook for the difference,” Holtz-Eakin said.
Barack Obama’s top economic advisor Austan Goolsbee was among those highly critical of the idea. “This proposal, if enacted, would be a massive government subsidy from taxpayers to the most irresponsible banks, including the ones that committed fraud,” Goolsbee said, adding, “This proposal would give the taxpayer all the risk, with no gain.”
Source: BusinessWeek.com, Jane Sasseen
Fully renovated, move in condition homes! Awaiting your inspection. View the links below to see these great deals! These homes will pass FHA inspection. Beltline Community- speak with your mortgage officer about city funds for down payments!
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413 Karli Court, McDonough, GA 4bed/3baths Traditional $139K http://www.postlets.com/res/4354275
1556 South Gordon St, Westview-in town Atlanta 3bed/2bath Restoration + attic $169K http://www.postlets.com/res/4225188
Home Tour: http://www.flyinside.com/tour.php?id=44365 (SOLD)
626 Willard Ave, Westview Atlanta 3bed, 2baths Renovation $120.9K http://www.postlets.com/res/4289274 (New Price)
Home Tour: http://www.flyinside.com/tour.php?id=44629
1184 Eggleston Ave Historic West End 3bed/2bath renovated with Loft 135K
1790 Laurelwood Drive -Adams Park- on Golf Course.. Investor Special 45K
1498 Westwood Ave (Westview) & Rogers; exquisite rehabs by J.W. Kelly Properties, Grady Place.
I received this email today:
My name is David Hill. My mothers name is Gwenetta Hill. I was raised in the West End at 986 Oglethorpe Ave, We’ve long since moved from that house back in the late 80s.Im bumping 30 now and can remember Andrew Youngcampaigning for mayor right on that very street back in the days, Ive had quite a few friends who also lived on that street as well who have moved on. If at all possible, can you send a picture of my old home, despite the fact that I always thought the place was haunted?lol(if available of course).I was actually “tripping” over the fact that a lot of those homes have come a long way since then. My friend Albert Duncan lived in that very home that was featured on your home tour review and I was veeery impressed with it. Hard times affected a lot of families back then, so when I see pictures of the homes now, I’m very impressed. I can remember the days when people would actually physically work on their own homes to try and maintain them the best they could despite being financially strapped. Anyways, I’d appreciate the favor. I’m actually overseas right now on a port-of-call in Sydney and for some reason that house popped back into my mind. Respectfully, -David
I was very touched by this message today. It’s not out of the ordinary though- while at the Home Show, many who now live in Virginia Highlands, Inman Park,Grant Park etc.. would come up to our booth with a sense of longing remembering a time when the West End was shining. I listened to a number of stories from Seniors, of when they visited the Wrens Nest as a child.
We’re not far from regaining our status.
Thank you residents of West End. Thank you for holding on, working HARDER, and continuing the fight. We are remembered, we are cherished, we are cheered for….