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Fraud by manipulating Bank's LOI by Broker

Discussion in 'Mortgages & Financing' started by Gary Bahl, Aug 19, 2020.

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  1. Gary Bahl

    Gary Bahl Law Topic Starter New Member

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    Jurisdiction:
    California
    I am working with a broker for a loan on multi-family property. Broker photoshopped the Bank's original LOI to reflect higher origination fee in order to make more commission. Later when he slipped his fee, then he sends me back original Bank LOI.

    Scenarios described below:

    Broker introduced me to a bank that can do deal at my LTV requirement. Before sharing bank lOI with me he did two things.

    1. He made me sign an agreement with him, stating he will cover bank origination costs from the bank and banks is asking for 1%.

    2. He photoshopped the bank LOI to reflect higher bank origination fee i.e. 1%.

    3. Now he shared with me original bank LOI with .25% origination fee that can be waived.

    He is clearly trying to do fraud buyers to earn higher brokerage fee by manipulating bank's LOI document to his advantage. I do not mind paying broker fee but when someone tries to cheat I want to make sure person learns lesson. not sure what are his fiduciary responsibility as a broker.

    Do you see this differently ? If not then, what do you suggest my options are in this situation?

    thanks
     
  2. army judge

    army judge Super Moderator

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    Yes, as a private citizen, it isn't within my purview to prosecute anyone.

    I report all lawbreakers to the appropriate law enforcement agency.

    I'd be very surprised to learn that you aren't aware of what to do when you discover anyone committing a crime.
     
  3. Zigner

    Zigner Well-Known Member

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    The broker will receive a commission based on the final numbers, not the earlier document.
     
  4. Gary Bahl

    Gary Bahl Law Topic Starter New Member

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    I actually do not know who can i report this mis-conduct. By these tactics he made me commit to higher %age than I would have agreed to had i know this story before.
     
  5. Gary Bahl

    Gary Bahl Law Topic Starter New Member

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    do you know who is the governing body to report such issues ?
     
  6. justblue

    justblue Well-Known Member

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    Try the Attorney's Generals office, they will either take the complaint or direct you to the appropriate place.
     
    Zigner and Gary Bahl like this.
  7. Gary Bahl

    Gary Bahl Law Topic Starter New Member

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    super, i called up attorney general office they directed me to Department of real-estate.
    thx !
     
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