20 years for $20 million real estate fraud?

by Justin da Rosa22 Sep 2015
Erez Arsoni, who allegedly fled to Spain while being investigated for his part in a $20 million telemarketing ploy, has been extradited to the United States.

“The federal government has the ability to reach defendants who flee to many countries overseas,” U.S. Attorney Barbara McQuade said in a statement Friday. “By using all of the worldwide law enforcement resources available to us, we can bring to justice individuals who commit crimes against victims in Michigan.”

Initially charged late last year, Arsoni and several others are accused of allegedly making unsolicited calls to Americans nationwide and pitching them on single-family Detroit homes. They allegedly lied about the value of the homes – many of which had been purchased for less than $500 and selling them for anywhere between $7,500 and $15,000.

“This nationwide telemarketing fraud not only caused millions of dollars in losses to victims of the scheme, but it also contributed to blight in Detroit neighborhoods,” McQuade said when Arsoni and 15 others were initially charged.

“Thousands of homes were left to fall into decay as a result of these individuals using Detroit real estate as a commodity to accomplish their fraud,” McQuade alleges.

Paul Abbate, special agent in charge of the FBI Detroit field office alleges the accused stole millions of dollars from hundreds of victims.

“However, they did more than steal money—their greed and fraud compounded the proliferation of vacant homes left for ruin in far too many Detroit neighborhoods,” Abbate said when they were charged. “The FBI is committed to rooting out and bringing to justice those who would commit crimes of this nature and act against the interests of our communities.”

COMMENTS

  • by Foys | 9/22/2015 3:59:32 PM

    Only in America is the stupid buyer protected and the entrepreneur charged.

    Buyer beware. Do your do diligence before buying a $15,000 house in Detroit.

    From what the article is saying, I'm not seeing what the Seller did wrong.

  • by | 9/22/2015 10:49:38 PM

    They inflated values. Now in WI I pointed out a FDIC troubled bank dropped values from $2m to $367k to not renew books and get the real estate for their books, used forgery, fraud, and blank guarantees. The FBI looked the other way as did the WDFI, hoping to keep banks and lawyers out of trouble and stealing real estate from business owners. Clearly, they choose selectively who will get prosecuted. If you can afford $15k for a house, get off your rear end and fly there to check it out for $359.--

  • by | 9/22/2015 10:51:13 PM

    Not renew notes or mortgages. Typo.

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