Bureau investigates fraud case

by Justin da Rosa20 Oct 2015
The FBI is investigating a mortgage scam that defrauded almost a dozen people, and the man at the middle of the investigation has already faced a hefty fine.

A federal bankruptcy judge has ordered Henry Malinay to also pay $74,000 in restitution to a number of victims.

"Because his conduct was considered so egregious, so outrageous, the bankruptcy court awarded the state $200,000 in penalties," said Stephen Levins, executive director of the state Office of Consumer Protection, according to Hawaii News Now.

According to Hawaii News Now, Malinay and other partners in crime promised to halve a number of homeowners’ mortgage payments.

One alleged victim, Hilaria Taborada, told the publication: "After two months, (the banks) sent their letter that they're going to foreclose on my house. And I don't want to lose my house. I had to borrow money from my mom."

The most interesting aspect of the case, however, is that Malinay’s lawyer says the real culprits are still at large.

"He was clearly a victim in this case. He was drawn in by a couple of sharp businessmen," Malinay’s lawyer, Peter Hsieh, told Hawaii News Now. "The real culprits are still out there. The main guy made him a patsy."

Not much is currently known about the FBI investigation.


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