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The Real Price Of Housing Fraud; As Speculators Turned Quick Profits, Longtime Tenants Lost Their Homes Series: THE MANIPULATORS: HOW FRAUD DESPOILED A NEIGHBORHOOD Series Number: 1/3
[FINAL Edition]
The Washington Post (pre-1997 Fulltext) - Washington, D.C.
Author: Downey, Kirstin
Date: Sep 2, 1990
Start Page: a.01
Section: A SECTION

In her case, according to court documents, the deal was rigged by real estate investor Ndide Obaze, who since has admitted that he submitted falsified documents to HUD officials in connection with the sale. Obaze participated in nine such deals, earning $140,000 in profits, according to court documents related to his guilty plea to felony counts of conspiracy and making false statements to HUD. Last summer, Obaze was sentenced to one year in prison.

The pace of evictions was accelerated by HUD's involvement. When the owners defaulted on their mortgages, the lenders foreclosed on the properties. Then, because the loans were insured through the FHA program, the lenders would contact HUD to be reimbursed for their losses and convey title to the properties to HUD.

PHOTO,,[Harry A. Horstman III];PHOTO,,Dudley M. Brooks; Map,,Larry Fogel CAPTION: This 1987 photograph of 1114 Queen Street NE, submitted as evidence in one of the housing fraud cases, shows a property that had been described in a 1983 appraisal as being in good condition. The appraiser is among those who has been convicted of fraud. CAPTION: [Korea Strowder], 70, a 40-year resident of Trinidad.

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