MONTEREY, Calif. — When it comes to speakers at credit union conferences, Kevin Barnes, ex-Leavenworth con man, was certainly a bit different.
"I have lots of speaking engagements before mortgage brokers and dealers and title and so I was glad to address a credit union group which really doesn't comprehend the scope of fraud occurring at their institutions," declared Barnes, convicted five years ago of conspiracy and filing false statements on mortgage applications and who spent time at Leavenworth Penitentiary on a five-year sentence.
Barnes, now gone legit and who assists law enforcement on mortgage crime, is owner of Mortgage Fraud Awareness LLC of Lawrence, Kan. He was a speaker at a lively breakout session at the California/Nevada Credit Union Leagues annual Big Valley Educational Conference held last week at the Monterey Conference Center.
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Most of the CU directors and CEOs in attendance expressed plenty of "oohs and ahs" as Barnes recounted tales of how he defrauded mortgage firms and now has repented after losing his family and life savings "when I went down the wrong path."
In his remarks, which highlighted "red flags" of would-be members misrepresenting their income, Barnes warned the CU audience to be wary of individuals who "come into your institution and all of a sudden apply for a mortgage when you know they might have gone to a bank."
Credit unions boast they know their members "but do you really?" asked Barnes citing numerous examples of ripoffs and misrepresentations on income statements, tax documents and appraisal records.
He urged CUs to look for the "weak links" on insider fraud involving employees as well as potential members referred by existing members. "You should be alert for the straw buyers, those who may not be seeking a mortgage for themselves but are seeking it for others," he said. Barnes said this was his first appearance before a league group, but he spoke last year to the American Credit Union Mortgage Association and has another speaking date this year before that group. –[email protected]
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