Mortgage Fraud Case Names Daughter of Accused as a Victim

Jun 16, 2011, 08:40 by R.E. Christian

New charges filed against a Washington state resident claim that his daughter is one of his fraud victims.

In 2007, Michael Reeder of Snohomish, Wash., allegedly told his daughter, a college student at the time, that he had cancer and that buying her a home would provide security for her future.

He then created fraudulent papers to buy the house in her name, obtained a $370,500 mortgage and lived in the house for a few months before stopping payments on the loan, reported Monday.

"Semi-dependent on her father for her financial security, and scared for his health, (she) reluctantly agreed to go forward with his plan," an investigator said in court.

Reeder has already been charged with real estate fraud related to $2.6 million in investor losses.

Funds handed to Reeder as investments were spent on a variety of other expenses, including covering huge gambling losses, prosecutors said.

Reeder is charged with 29 fraud-related acts, including the house flipping scheme that has ruined his daughter's credit, the newspaper said.

Source: UPI