Why Is Illegal Flipping A White-Collar Crime?

Real Estate Flipping: Grow Rich Buying and Selling Property Hardly a week passes without more revelations of i[tag]llegal flipping[/tag]. Typical of what you see has been the recent situation in Cincinnati where more than three dozen people have been convicted in a $50 million illegal flipping scam. Timothy Husvar, according to the Cincinnati Enquirer, was involved in illegal flipping worth $2.3 million over a three-year period. The paper says he has “admitted in court papers to serving as a mortgage broker and property seller in a scheme involving low-priced homes, stooge or puppet buyers, [tag]bogus appraisals[/tag], [tag]falsified loan applications[/tag] and, ultimately, loans well in excess of the value of the properties.

Illegal flipping occurs in large measure because we see it as an acceptable white-collar crime. Many of those involved in the Cincinnati scheme received two years in jail for their assorted crimes. If you think that’s tough, consider how much damage was done and how many people were harmed — and then imagine the sentence if someone robs a convenience store of $20.Those who engage in serial illegal flipping should face far tougher sanctions than we now demand.

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