Tuesday, April 29, 2008
Forbes Magazine had an interesting article on how Lehman Brothers was swindled out of $50 million.
This article is about two developers and a real estate broker to movie stars, who pulled off a real estate scam in the overheated real estate market of a few years ago.
They are accused of buying Beverly Hills real estate at fair prices, getting phony, inflated appraisals, and then using the appraisals to get big loans from Lehman Brothers and pocketing the cash.
The article gets into some of the juicy details of their lives: vacation homes, Ferrari's, Mercedes', Gulfstream Jets, etc.
One of them even had 2 wives! His regular wife referred to her as "his weekend wife" ;-0
The article goes on about how many lenders turned a blind eye to overinflated appraisals.
Now that the real-estate market is down, more scams might come to light.
Labels: Real Estate