Williams stated on VICTIM J.E’s mortgage application for purchase of a unit in the Yosemite Street Condominium complex, $5,000 monthly income which was a gross exaggeration, thousands of dollars higher than actual.
“Gross Rental Income” listed as a combined $2,000 for the two previous condo units sold to VICTIM J.E by Williams in the Yosemite Street Condominium complex, whereas these distressed properties had no tenants, and therefore no rent fees at all had been collected.
VICTIM J.E on the mortgage application for the a Yosemite Street Condominium unit“Is any part amount of the down payment borrowed?”
Williams check marked: “No.” However, he architected this and the previous deals, and knew that the entire down payment was borrowed via fraudulent “cash back” schemes and would need to be repaid.
In assembling the buyer’s (VICTIM J.E) mortgage application, Williams knowingly misrepresented buyer’s assets. Williams indicated Net Worth (“a” minus “b”) assets of $46,978, which amount did not represent assets, but actually, the liability of funds borrowed in “cash back” schemes of two previous condo units at the Yosemite Street Condominium complex.
On the same page of the same form, Total Liabilities list the buyer’s combined three mortgages as $303,757, which is about $20,000 less than they actually total.
On the application filled out by Williams for the sale of a unit in the Yosemite Street Condominium complex: “Line 8. Is this transaction among related parties? Indicate whether the buyer or seller are related.”
Williams falsely checked the box that indicates “No.”
Williams committed this fraud to conceal existing and planned extensive fraud that he had devised, using his ignorant cousins VICTIM J.E & VICTIM B.J, who now admit partial complicity, to quickly create hundreds of thousands of dollars of “profit” on distressed, long-vacant buildings.
In order to encourage the buyer (VICTIM J.E) to purchase additional units at the Yosemite Street Condominium complex, in addition to the enticement of $30,000 cash back, Williams offered to manage the rental of purchased units. However, in violation of the owner’s insistence on obtaining a security deposit, Williams moved renters into his client’s unit, without obtaining a security deposit, without collecting any rent at all, and without even getting a lease signed. This made it less likely that Williams would ever complete the promised renovations, and further, Williams told the renters to do the painting which he had promised to do, in exchange for two weeks free rent, none of which he was authorized to do.
Williams was assembling the buyer’s mortgage application, and urged the buyer to make a five percent down payment, however buyer insisted on putting ten percent down to get a better mortgage rate. At closing, the buyer found out that Williams had instructed the mortgage broker, Andy Inhelder, to prepare the loan with the five percent down payment that Williams had insisted upon, against the buyer’s direct instruction. Williams explained that his motivation was to get more cash back to the buyer, to use those funds to apply for additional units, as he repeatedly claimed, he was putting his clients on “the fast track,” to make them rich quickly.
After closing, Williams retained the buyer’s ““cash back”” toward future transactions. The buyer later learned that his “cash back” had been disguised on the closing documents as an HOA Assessment Fee.
This incident perpetrated for the purchase of a unit in the Yosemite Street Condominium complex with VICTIM B.J, Williams added his client’s name to William’s own business checking account, and then included statements from that account with the mortgage application to mislead the lender into believing that the deposits in William’s own checking account actually represented the buyer’s income.
Also, months after the closing, the buyer learned from the Uniform Underwriting and Transmittal Summary, Section III, Underwriting Information, that his income was falsely indicated, “Stable Monthly Income,” Base Income $10,000 for the buyer.
Disclosure to Buyer Documents regarding receipt of HOA Bylaws were signed by the buyer at the direction of Williams, even though no such bylaws were given to the buyer, and over the ensuing months, the buyer repeatedly requested his Realtor, who was also claiming to be the president of the HOA, to provide a copy of the bylaws.