Wednesday, March 7, 2007

Grand jury indicts Plano man with mail fraud and making false statements in used car sales

A federal grand jury in Dallas indicted Massoud Mortazavi-Koupai of Plano with six counts of mail fraud and three counts of making a false statement on transfer of a used motor vehicle, related to a fraudulent scheme which included concealing structural damage and odometer discrepancies. It is anticipated that Mortazavi-Koupai, 46, will surrender to federal authorities and then appear before a U.S. magistrate judge.

Arthur J. Prieston, chairman of fraud specialist Prieston Group, recently bid up the mortgage fraud estimate to $4.4 billion a year. And, he told the Regional Conference of MBAs conference in Atlantic City, NJ, that number is only going to continue to rise.

Training/Best Practice is six times more effective than technology, he said. According to the Prieston Group’s calculations, technology has helped lenders avoid $7.8 million in fraud losses. But best practices training has saved $44.4 million.

The Prieston Group keeps a close eye on fraud data since it sells reps and warranties insurance, meaning it is on the hook for fraud losses. Currently it has $90 billion of insurance in force, covering 650,000 loans and more than 800 lenders.

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Best Practices Best Cure for Fraud

Grand jury indicts Plano man with mail fraud and making false statements in used car sales