Suit alleges large Florida mortgage fraud

ST. PETERSBURG, Fla., Sept. 18 (UPI) -- Florida prosecutors filed suit against 10 companies and 15 people they say were involved in a $37 million real estate straw mortgage scheme.

The scheme, which involved applying for mortgages to purchase homes with inflated prices, also resulted in 50 homes falling into foreclosure, the St. Petersburg, Fla., Times reported Thursday.

Prosecutors say the scam involved former Re/Max International real estate agent Lori Polin, who was honored by the company in 2007 for being one of their top-selling agents with commissions topping $500,000.

Approximately, $167,260 of her commissions were tied to the inflated mortgage scheme, the newspaper said.

Real estate agents, however, are exempt from prosecution under the Florida Deceptive and Unfair Trade Practices Act.

The suit claims attorney Allen Boyarksy and others recruited buyers with good credit records and paid them to apply for mortgages, which they did not pay. The profits from inflating the prices of the homes, however, did not go to the sellers, but to others involved in the scheme, the Times reported.