Criminal Statutes Pertaining to Illegal Activity re: Promissory Notes and Security Instruments related to Property
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Note to persons in other states: States have similar statutes. We recommend to use Google to search the web using wording from the list below. Below state statutes are Federal TILA and United States Code.
Note regarding OCGA 16-8-102, 16-8-104, and 16-8-105: The filing of fraudulent documents in county land and deed records has always been a crime; these statutes, while redundant, are existent nevertheless. Report all crime to law enforcement and elected officials who have taken an oath to uphold the Constitution of your state and the Constitution of the United States.
O.C.G.A. § 16-8-102 Residential mortgage fraud Damages: $100,000
(5) Files or causes to be filed with the official registrar of deeds of any county of this state any document such person knows to contain a deliberate misstatement. misrepresentation, or omission.
OCGA 16-8-104 Criminal investigation and prosecution
District attorneys and the Attorney General shall have the authority to conduct the criminal investigation and prosecution of all cases of residential mortgage fraud under this article or under any other provision of this title. Nothing in this Code section shall be construed to preclude otherwise authorized law enforcement agencies from conducting investigations of offenses related to residential mortgage fraud.
OCGA 16-8-105 Penalties
(a) Any person violating this article shall be guilty of a felony and, upon conviction, shall be punished by imprisonment for not less than one year nor more than ten years, by a fine not to exceed $5,000.00, or both.
(b) If a violation of this article involves engaging or participating in a pattern of residential mortgage fraud or a conspiracy or endeavor to engage or participate in a pattern of residential mortgage fraud, said violation shall be punishable by imprisonment for not less than three years nor more than 20 years, by a fine not to exceed $100,000.00, or both.
O.C.GA. § 16-14-4. Racketeering, Prohibited activities. Statute in its entirety...
It is unlawful for any person, through a pattern of racketeering activity or
proceeds derived there from, to acquire or maintain, directly or indirectly, any
interest in or control of any enterprise, real property, or personal property of any
nature, including money.
It is unlawful for any person employed by or associated with any enterprise to
conduct or participate in. directly or indirectly, such enterprise through a pattern of
O.C.G.A. § 51-6-2. (2010) Fraud and Deceit Damages: $600,000
When misrepresentation of material fact actionable as deceit; effect of mere concealment; knowledge of falsehood essential to deceit; when knowledge implied
Willful misrepresentation of a material fact, made to induce another to act, upon
which such person acts to his injury, will give him a right of action. Mere
concealment of a material fact, unless done in such a manner as to deceive and
mislead, will not support an action.
(a) In all cases of deceit, knowledge of the falsehood constitutes an essential
element of the tort. A fraudulent or reckless representation of facts as true when
they are not, if intended to deceive, is equivalent to a knowledge of their falsehood
even if the party making the representation does not know that such facts are false.
Total of 6 counts:
- Intentional Misrepresentation
- Negligent Misrepresentation
- Fraudulent Concealment
- Breach of Covenant of Good Faith and Fair Dealing
- Unjust Enrichment
- Promissory Estoppel
O.C.G.A. § 16-8-3. Theft by deception. Statute in its entirety... Damages; $100,000
(a) A person commits the offense of theft by deception when he obtains property by any deceitful means or artful practice with the intention of depriving the owner of the property.
O.C.G.A. § 16-8-2 Theft by taking. Statute in its entirety... Damages: $100,000
A person commits the offense of theft by taking when he unlawfully takes or. being in lawful possession thereof, unlawfully appropriates any property of another with the intention of depriving him of the property.
O.C.G.A. § 16-8-4 Theft by conversion. Statute in its entirety... Damages: $100,000
(a) A person commits the offense of theft by conversion when, having lawfully obtained funds or other property of another including, but not limited to, leased or rented personal property, under an agreement or other known legal obligation to make a specified application of such funds or a specified disposition of such property, he knowingly converts the funds or property to his own use in violation of the agreement or legal obligation.
O.C.G.A. § 16-8-16. Theft by extortion Statute in its entirety... Damages: $100,000
(a) A person commits the offense of theft by extortion when he unlawfully obtains property of or from another person by threatening to:
(3) Disseminate any information tending to subject any person to hatred, contempt, or ridicule or to impair his credit or business repute:
(6) Testify or provide information or withhold testimony or information with respect to another's legal claim or defense.
O.C.G.A. 10-1-372 (2010) Uniform Deceptive Practices Act Damages: Treble (3x)
When trade practices are deceptive; common-law and other remedies unaffected
(a) A person engages in a deceptive trade practice when, in the course of his business, vocation, or occupation, he:
(1) Passes off goods or services as those of another;
(2) Causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(3) Causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with or certification by another;
(4) Uses deceptive representations or designations of geographic origin in connection with goods or services;
(5) Represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have;
(6) Represents that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand;
(7) Represents that goods or services are of a particular standard, quality, or grade or that goods are of a particular style or model, if they are of another;
(8) Disparages the goods, services, or business of another by false or misleading representation of fact;
(9) Advertises goods or services with intent not to sell them as advertised;
(10) Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(11) Makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions; or
(12) Engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.
O.C.G.A. § 16-10-20. False statements and writings, concealment of facts, and fraudulent documents in matters within jurisdiction of state or political subdivisions Statute in its entirety... Damages: $100,000
A person who knowingly and willfully falsifies, conceals, or covers up by an trick, scheme, or device a material fact; makes a false, fictitious, or fraudulent statement or representation; or makes or uses any false writing or document, knowing the same to contain any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of state government or of the government of any county, city, or other political subdivision of this state.
O.C.G.A. § 16-10-71. False swearing. Damages: $100,000
(a) A person to whom a lawful oath or affirmation has been administered or who executes a document knowing that it purports to be an acknowledgment of a lawful oath or affirmation commits the offense of false swearing when, in an matter or thing other than a judicial proceeding, he knowingly and willfully makes a false statement.
O.C.G.A. § 16-9-1. Forgery in the first degree. Statute in its entirety...
(a) A person commits the offense of forgery in the first degree when with intent to defraud he knowingly makes, alters, or possesses any writing in a fictitious name or in such manner that the writing as made or altered purports to have been made by another person, at another time, with different provisions, or by authority of one who did not give such authority and utters or delivers such writing.
O.C.G.A. § 16-9-121. Elements of offense Statute in its entirety... Damages: $100,000
(5) Without authorization or consent, creates, uses, or possesses with intent to fraudulently use any counterfeit or fictitious identifying information concerning a real person with intent to use such counterfeit or fictitious identification information for the purpose of committing or facilitating the commission of a crime or fraud on another person.
O.C.G.A. § 16-4-1. Criminal attempt. Statute in its entirety... Damages: $100,000
A person commits the offense of criminal attempt when, with intent to commit a specific crime, he performs any act which constitutes a substantial step toward the commission of that crime.
O.C.GA. § 11-3-307. Notice of Breach of Fiduciary Duty Damages: $100,000
"Fiduciary" means an agent, trustee, partner, corporate officer or director, or other
representative owing a fiduciary duty with respect to an instrument; and
(2) "Represented person" means the principal, beneficiary, partnership, corporation, or
other person to whom the duty stated in paragraph (1) of subsection (a) of this Code
section is owed.
(b) If an instrument is taken from a fiduciary for payment or collection or for value, the taker has knowledge of the fiduciary status of the fiduciary, and the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach of fiduciary duty, the following rules apply:
(1) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the
represented person; and
(2) In the case of an instrument payable to the represented person or the fiduciary as such, the taker has notice of the breach of fiduciary duty if the instrument is:
(i) Taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary;
(ii) Taken in a transaction known by the taker to be for the personal benefit of the fiduciary.
18 USC §1346: Scheme or artifice to defraud Damages: $100,000
Prohibits schemes to defraud or deprive another of the intangible right of honest services
18 USC §1503: Obstruction of justice Damages: $100,000
Whoever corruptly ... influences, obstructs, or impedes, or endeavors to influence, obstruct, or impede, the due process administration of justice, shall be fined not more than $5,000 or imprisoned not more than five years, or both.
18 USC §1512 (c): Obstruction of justice by destruction of evidence
(c) Whoever corruptly—
(1) alters, destroys, mutilates, or conceals a record, document, or other object, or attempts to do so, with the intent to impair the object’s integrity or availability for use in an official proceeding; or
(2) otherwise obstructs, influences, or impedes any official proceeding, or attempts to do so, shall be fined under this title or imprisoned not more than 20 years, or both.
18 USC §1519: Destruction, alteration, falsification Damages: $100,000
of records in federal investigations and bankruptcy
Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.
28 USC § 1746: Unsworn declarations under penalty of perjury Damages: $100,000
Wherever, under any law of the United States or under any rule, regulation, order, or requirement made pursuant to law, any matter is required or permitted to be supported, evidenced, established, or proved by the sworn declaration, verification, certificate, statement, oath, or affidavit, in writing of the person making the same (other than a deposition, or an oath of office, or an oath required to be taken before a specified official other than a notary public), such matter may, with like force and effect, be supported, evidenced, established, or proved by the unsworn declaration, certificate, verification, or statement, in writing of such person which is subscribed by him, as true under penalty of perjury, and dated, in substantially the following form: (1) If executed without the United States: “I declare (or certify, verify, or state) under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on (date). (Signature)”.
18 USC § 1621: Perjury Damages: $100,000
If a person testifies falsely after taking the oath, or writes a false statement on a document supported by affidavit, he can be prosecuted for perjury. The act is a criminal offense where the person knew the testimony or statement was false. Federal perjury charges can result from violations of the tax code. For example, submitting a false tax return can be the basis of a perjury charge under 26 USC 7206. The penalty for filing a perjured tax return is different from the perjury statute. A violation of 26 USC 7206 can be 3 years imprisonment and a fine of $100,000. If the defendant is a corporation, the fine can be $500,000. The offender would also be liable for the costs of prosecution.
18 USC § 1623: False Declarations Damages: $100,000
Federal statutes provide a criminal charge of false declaration where the act occurred before a court or grand jury. Under 18 USC 1623, prosecutors can charge a person with making a false declaration where they can prove:
1. A false statement.
2. On a material issue.
3. Made with knowledge that it was false.
4. Under oath.
5. Made before or in relation to a court or grand jury.
26 USC § 7206 (1) and (2): Fraud and False Statements Damages: $100,000
(1) Declaration under penalties of perjury
Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or
(2) Aid or assistance
Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 3 years, or both, together with the costs of prosecution.
Truth in Lending Damages: $100,000
§ 226.23 Right of rescission.
(a) Consumer's right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, except for transactions described in paragraph (f) of this section.47 (2) Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or property that has been given to anyone in connection with the transaction and shall take any action necessary to reflect the termination of the security interest.
(1) A residential mortgage transaction.
(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation
§ 226.35 Prohibited acts or practices in connection with higher-priced mortgage loans.
(a) Higher-priced mortgage loans--(1) For purposes of this section, except as provided in paragraph (b)(3)(v) of this section, a higher-priced mortgage loan is a consumer credit transaction secured by the consumer's principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points for loans secured by a first lien on a dwelling, or by 3.5 or more percentage points for loans secured by a subordinate lien on a dwelling.
(2) "Average prime offer rate" means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics. The Board publishes average prime offer rates for a broad range of types of transactions in a table updated at least weekly as well as the methodology the Board uses to derive these rates.
(3) Notwithstanding paragraph (a)(1) of this section, the term "higher-priced mortgage loan" does not include a transaction to finance the initial construction of a dwelling, a temporary or "bridge" loan with a term of twelve months or less, such as a loan to purchase a new dwelling where the consumer plans to sell a current dwelling within twelve months, a reverse-mortgage transaction subject to § 226.33, or a home equity line of credit subject to § 226.5b.
(b) Rules for higher-priced mortgage loans. Higher-priced mortgage loans are subject to the following restrictions:
(1) Repayment ability. A creditor shall not extend credit based on the value of the consumer's collateral without regard to the consumer's repayment ability as of consummation as provided in § 226.34(a)(4).
(2) Prepayment penalties. A loan may not include a penalty described by § 226.32(d)(6) unless:
(i) The penalty is otherwise permitted by law, including § 226.32(d)(7) if the loan is a mortgage transaction described in § 226.32(a); and
(ii) Under the terms of the loan--
(A) The penalty will not apply after the two-year period following consummation; (B) The penalty will not apply if the source of the prepayment funds is a refinancing by the creditor or an affiliate of the creditor; and
(C) The amount of the periodic payment of principal or interest or both may not change during the four-year period following consummation.
§ 226.36 Prohibited acts or practices in connection with credit secured by a dwelling.
(a) Loan originator and mortgage broker defined. (1) Loan originator. For purposes of this section, the term "loan originator" means with respect to a particular transaction, a person who for compensation or other monetary gain, or in expectation of compensation or other monetary gain, arranges, negotiates, or otherwise obtains an extension of consumer credit for another person. The term "loan originator" includes an employee of the creditor if the employee meets this definition. The term "loan originator" includes the creditor only if the creditor does not provide the funds for the transaction at consummation out of the creditor's own resources, including drawing on a bona fide warehouse line of credit, or out of deposits held by the creditor.
(2) Mortgage broker. For purposes of this section, a mortgage broker with respect to a particular transaction is any loan originator that is not an employee of the creditor.
(c) Servicing practices. (1) In connection with a consumer credit transaction secured by a consumer's principal dwelling, no servicer shall--
(i) Fail to credit a payment to the consumer's loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, or except as provided in paragraph (c)(2) of this section;
(ii) Impose on the consumer any late fee or delinquency charge in connection with a payment, when the only delinquency is attributable to late fees or delinquency charges assessed on an earlier payment, and the payment is otherwise a full payment for the applicable period and is paid on its due date or within any applicable grace period
§ 226.39 Mortgage transfer disclosures.
(a) Scope. The disclosure requirements of this section apply to any covered person except as otherwise provided in this section. For purposes of this section:
(1) A "covered person" means any person, as defined in § 226.2(a)(22), that becomes the owner of an existing mortgage loan by acquiring legal title to the debt obligation, whether through a purchase, assignment or other transfer, and who acquires more than one mortgage loan in any twelve-month period. For purposes of this section, a servicer of a mortgage loan shall not be treated as the owner of the obligation if the servicer holds title to the loan, or title is assigned to the servicer, solely for the administrative convenience of the servicer in servicing the obligation.
(2) A "mortgage loan" means any consumer credit transaction that is secured by the principal dwelling of a consumer.
(b) Disclosure required. Except as provided in paragraph (c) of this section, each covered person is subject to the requirements of this section and shall mail or deliver the disclosures required by this section to the consumer on or before the 30th calendar day following the date of transfer.
§ 226.42 Valuation independence.
(a) Scope. This section applies to any consumer credit transaction secured by the consumer's principal dwelling.
(b) Definitions. For purposes of this section:
(1) "Covered person" means a creditor with respect to a covered transaction or a person that provides "settlement services," as defined in 12 U.S.C. 2602(3) and implementing regulations, in connection with a covered transaction.
(2) "Covered transaction" means an extension of consumer credit that is or will be secured by the consumer's principal dwelling, as defined in § 226.2(a)(19). (3) "Valuation" means an estimate of the value of the consumer's principal dwelling in written or electronic form, other than one produced solely by an automated model or system.
(4) "Valuation management functions" means:
(i) Recruiting, selecting, or retaining a person to prepare a valuation;
(ii) Contracting with or employing a person to prepare a valuation;
(iii) Managing or overseeing the process of preparing a valuation, including by providing administrative services such as receiving orders for and receiving a valuation, submitting a completed valuation to creditors and underwriters, collecting fees from creditors and underwriters for services provided in connection with a valuation, and compensating a person that prepares valuations; or
(iv) Reviewing or verifying the work of a person that prepares valuations.
(c) Valuation of consumer's principal dwelling--(1) Coercion. In connection with a covered transaction, no covered person shall attempt to directly or indirectly cause the value assigned to the consumer's principal dwelling to be based on any factor other than the independent judgment of a person that prepares valuations, through coercion, extortion, inducement, bribery, or intimidation of, compensation or instruction to, or collusion with a person that prepares valuations or performs valuation management functions.
(i) Examples of actions that violate paragraph (c)(1) include:
(A) Seeking to influence a person that prepares a valuation to report a minimum or maximum value for the consumer's principal dwelling;
(B) Withholding or threatening to withhold timely payment to a person that prepares a valuation or performs valuation management functions because the person does not value the consumer's principal dwelling at or above a certain amount;
(C) Implying to a person that prepares valuations that current or future retention of the person depends on the amount at which the person estimates the value of the consumer's principal dwelling;
(D) Excluding a person that prepares a valuation from consideration for future engagement because the person reports a value for the consumer's principal dwelling that does not meet or exceed a predetermined threshold; and
(E) Conditioning the compensation paid to a person that prepares a valuation on consummation of the covered transaction.
(2) Mischaracterization of value--(i) Misrepresentation. In connection with a covered transaction, no person that prepares valuations shall materially misrepresent the value of the consumer's principal dwelling in a valuation. A misrepresentation is material for purposes of this paragraph (c)(2)(i) if it is likely to significantly affect the value assigned to the consumer's principal dwelling. A bona fide error shall not be misrepresentation.
(ii) Falsification or alteration. In connection with a covered transaction, no covered person shall falsify and no covered person other than a person that prepares valuations shall materially alter a valuation. An alteration is material for purposes of this paragraph (c)(2)(ii) if it is likely to significantly affect the value assigned to the consumer's principal dwelling.
(iii) Inducement of mischaracterization. In connection with a covered transaction, no covered person shall induce a person to violate paragraph (c)(2)(i) or (ii) of this section.