Yosemite Street Condominiums

Williams purchased long-vacant condominium units, some for less than $20,000, and resold them for $74,950 and $79,950 with up to $30,000 “cash back” enticements to unqualified buyers (which included closing costs), which were transacted through grossly falsified mortgage applications assembled by Williams himself. Williams also arranged a net listing to sell a long-vacant unit for an inflated price of $79,950 through falsified mortgage applications that were assembled by Williams, to a buyer who fraudulently received about $30,000 cash back (which included closing costs). Williams told buyers that it was legal for them to bill themselves $1,000 per hour or more, for their own “time,” to justify the cash back that they would receive, in case Williams decided to falsely report that cash on the HUD-1 form as payments to a transient contracting firm (to be set up by the buyer at the instruction of Williams). The buyers were told by Williams that such practices were completely legal. Others in the real estate industry also misled the buyers, including a mortgage broker, Javier Sandoval with Equity Financial Resources, 7900 E Union Ave, #1100 Denver CO 80237, (or 390 Union Blvd, 270 Lakewood 80228 303 954-0496). At a November meeting at 2900 Downing in Denver, with three of William’s buyers and many other attendees, Sandoval and Williams repeatedly claimed that the practice of falsifying Verification of Deposits on a mortgage application was legal and common, and that lenders actually approved of the practice in order to facilitate the deals. According to documents from at least one closing, Williams disguised the buyer’s “cash back” as HOA Assessment Fees (See attached.) Williams either was, or simply posed as, the HOA president, and Williams has since admitted to the newly organized permanent Yosemite Street Condominium Association, that he commingled HOA funds with his private business account, and to the date of this complaint, Williams has refused to provide the board with checking account statements of HOA deposits and disbursements. Significant amounts of the “cash back” enticements represent funds, some of which were owed to the HOA. These funds could have been used for many vitally important repairs including the boilers which have not worked since 2005. Williams systematically misrepresented the value of the units to his own clients, and instructed gullible and trusting clients not to seek other advice from appraisers, relatives, etc. Rather than disclosing severe problems with the properties at closing, Williams as the buyer’s realtor (and sometimes as the seller also), marked as “Unknown” the known serious problems with properties including that the heating system had been in serious disrepair since 2005 knowing that 1) the boilers in both buildings were broken so that the buildings had no central heat; (2) units were heated with free-standing electrical space heaters which amounted to a fire hazard; 3) extensive leaks from frozen pipes, including sewage leakage inside a unit; 4) mold problems; 5) roof leaks; 6) and an Excel Energy lien of $10,700; among many other serious problems never disclosed to the lender at closing. 
At the sale of William’s last two units in December 2006 to VICTIM 7, the closing documents did not disclose to the lender that those two units (along with eight others) were currently tagged as uninhabitable by the Denver Health Inspector. Williams put mechanics liens on many units for a total of tens of thousands of dollars of unpaid HOA dues, making the liens payable to himself disguised as the HOA, defrauding the HOA. Williams himself never paid HOA dues on the five units he owned. Williams told buyers that they would have to pay taxes on the money they had just borrowed and received as “cash back” in order to make the transactions look legitimate as though they had received the funds as ordinary income as contractors (even though in reality the funds had just been borrowed and must be repaid). Williams consistently misrepresented these and other transactions to buyers and prospective clients claiming that previous buyers made “profits” of tens of thousands of dollars in a matter of weeks.

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