Matthew Cox

The real estate itself does not have sufficient equity to cover these loans, right?

So foreclosing, but the bank's foreclosing the properties anyway.

So the banks then sell the property on a foreclosure sale and all that.

The net loss to the bank, including accrued interest, is $580,000.

Okay.

The FBI investigates this thing along with the U.S.

Federal Housing Finance Agency, opposite the Inspector General.

It's also important to know, for context, that these three guys were part of a much larger shotgunning scheme with $3.5 million in fraudulent HELOCs in New Jersey and New York, all orchestrated by the Simon character.

But the two transactions that I just told you about were the only ones that they ended up pleading guilty to.

Okay, what happened to the other ones?

I think the evidence, it just wasn't there for, the evidence just wasn't as clear.

Okay.

For whatever reason.

This was the strongest case that they brought forth.

And my guess is that it probably had to do with the plea negotiations because all three of these guys pled guilty.

Okay.

And so, you know, sometimes during the plea negotiations, you say, all right, we're going to focus on these transactions, the ones that the evidence, the best that has the best evidence.

We're going to walk away from the other ones.

You want to go to, you want to take it to trial.

We're going to supersede the indictment and charge you with the whole nine yards.