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Floyd Irons Pleads Guilty


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quite frankly i am curious also.....but this curiosity is why there needs to be 2 threads on this topic?

if floyd did wrong, he has to pay the price

he admitted he did wrong, so now there is a price to pay, but not being a lawyer, i would be surprised if there is jail time, but what does our legal panel say?

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quite frankly i am curious also.....but this curiosity is why there needs to be 2 threads on this topic?

if floyd did wrong, he has to pay the price

he admitted he did wrong, so now there is a price to pay, but not being a lawyer, i would be surprised if there is jail time, but what does our legal panel say?

i am interested to find out the details of the fraud.

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(KSDK) - Former Vashon High School basketball coach Floyd Irons on Thursday pleaded guilty to wire and mail fraud charges in connection with a million dollar mortgage fraud scheme, federal prosecutors said.

Co-defendant John Mineo Jr., 47, a Clayton restaurant owner, also pleaded guilty to one felony count of mail fraud.

In late 2005, Irons, 60, and an unidentified associate met with Mineo to discuss a scheme to purchase residential real estate for investment purposes, United States Attorney Catherine L. Hanaway said.

Irons and his associate told Mineo they would obtain loans for 10 percent more than the sale price of the properties through Midwest Mortgage Consultants, LLC, the firm at which Irons was employed as a mortgage broker. The additional money would be "kicked back" to the men, Hanaway said.

Irons and the associate told Mineo that Irons would be identified as the sole purchaser of the properties.

Irons also told Mineo that he and the associate were in business together and the mortgage loans would actually be paid by the associate, Hanaway said.

"(Irons and Mineo) both allowed greed to tarnish successful and noteworthy careers. Now they are facing lengthy prison sentences and the prospect of spending many years paying back this ill gotten money," said Hanaway in a prepared statement.

****As part of Irons' plea agreement, he agreed to provide complete and truthful information and assistance to the Missouri State High School Activities Association regarding alleged rule violations, including those related to recruiting, Hanaway said.*****

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I don't think anyone outside of PVHFKA is surprised at this situation, or the fact that Floyd would rather plead guilty in an effort to gain a more favorable sentencing. It also shows the moral field he was operating on, with him being a mortgage officer, and yet still willing to blatantly commit multiple felonies to achieve personal benefit.

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****As part of Irons' plea agreement, he agreed to provide complete and truthful information and assistance to the Missouri State High School Activities Association regarding alleged rule violations, including those related to recruiting, Hanaway said.*****

this could really be something!!!

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I hope this guy gets nailed to the wall, come sentencing time, and not only for shady dealings in the school side of his life. While jacking with kids' futures is sufficiently effed-up, that mortgage fraud is pretty nasty on its own.

The stuff that scheming brokers and underwriters pushed through is ruining people financially, and will for a long time coming, just so that they could boost their numbers or increase their kickbacks. The debt loads that unwitting homebuyers are now stuck with is out of control; evil brokers used tricks like bait & switch, teaser rates, flat out lies, etc, etc to get bonuses and scheme their way into kickbacks. We've all read about the macro effects in the financial press and normal news media, but I don't know if I've seen enough about the individuals that were completely screwed by d-bags like this guy. Not to mention that giving borrowers loans for greater than 80% of their home's value is so very highly correlated with default and foreclosure that its disgusting to think that this guy did it for "kicks".

And I now feel better for getting that off of my chest.

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Bluecrewfinance is exactly right these types of Fraud Schemes are ruining the housing market. The market is now at it's lowest in 12 years. I'm sure Roy could explain better how these schemes like "ninja" loans work, being a good mortgage broker.

On the legal part he can get up to 30 years but he won't since he plead out. So just a guess here as this all depends on the judge, I'd say 3-5 years. Remember he will have to serve at least 80% of it since this is Federal time. He'll be in a facility were they live in a barracks style and get to spend their days doing lawn work, then he'll be on supervised release for a while. So look for Floyd at Schnuck's with a special anklet in about 3 years.

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I hope this guy gets nailed to the wall, come sentencing time, and not only for shady dealings in the school side of his life. While jacking with kids' futures is sufficiently effed-up, that mortgage fraud is pretty nasty on its own.

The stuff that scheming brokers and underwriters pushed through is ruining people financially, and will for a long time coming, just so that they could boost their numbers or increase their kickbacks. The debt loads that unwitting homebuyers are now stuck with is out of control; evil brokers used tricks like bait & switch, teaser rates, flat out lies, etc, etc to get bonuses and scheme their way into kickbacks. We've all read about the macro effects in the financial press and normal news media, but I don't know if I've seen enough about the individuals that were completely screwed by d-bags like this guy. Not to mention that giving borrowers loans for greater than 80% of their home's value is so very highly correlated with default and foreclosure that its disgusting to think that this guy did it for "kicks".

And I now feel better for getting that off of my chest.

Blue. I don't have the details but I don't think Irons was the evil broker - at least not in the 3 property deals on which he plead guilty. Instead, I believe he was the evil investor who defrauded lenders, not individual and homeowners. From what I understand, sounds like he bought 3 homes paying a price of $1.6 million (even though were worth much less - $1 million for example), took out loans worth $1.6 million, paid $160,000 (10%) to his broker friend and then most likely shared a portion of the inflated sale prices (difference between $1.6 millin and $1 million) with the sellers and/or agents. Apparently, he never made any/many mortgage payments, then let the lenders foreclose and get these properties back at their real value - $1 million for a loss of $600,000 to the lenders. Equally bad IMO.

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Blue. I don't have the details but I don't think Irons was the evil broker - at least not in the 3 property deals on which he plead guilty. Instead, I believe he was the evil investor who defrauded lenders, not individual and homeowners. From what I understand, sounds like he bought 3 homes paying a price of $1.6 million (even though were worth much less - $1 million for example), took out loans worth $1.6 million, paid $160,000 (10%) to his broker friend and then most likely shared a portion of the inflated sale prices (difference between $1.6 millin and $1 million) with the sellers and/or agents. Apparently, he never made any/many mortgage payments, then let the lenders foreclose and get these properties back at their real value - $1 million for a loss of $600,000 to the lenders. Equally bad IMO.

Fair enough. That sort of fraud, however, is part of the catalyst for the above described individual borrower fallout. He may not have been the broker, but in that example, he was the incentive. Evil still.

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I hope this guy gets nailed to the wall, come sentencing time, and not only for shady dealings in the school side of his life. While jacking with kids' futures is sufficiently effed-up, that mortgage fraud is pretty nasty on its own.

The stuff that scheming brokers and underwriters pushed through is ruining people financially, and will for a long time coming, just so that they could boost their numbers or increase their kickbacks. The debt loads that unwitting homebuyers are now stuck with is out of control; evil brokers used tricks like bait & switch, teaser rates, flat out lies, etc, etc to get bonuses and scheme their way into kickbacks. We've all read about the macro effects in the financial press and normal news media, but I don't know if I've seen enough about the individuals that were completely screwed by d-bags like this guy. Not to mention that giving borrowers loans for greater than 80% of their home's value is so very highly correlated with default and foreclosure that its disgusting to think that this guy did it for "kicks".

And I now feel better for getting that off of my chest.

I agree that brokers who are untruthful are a problem. A bigger problem is that many in this country are afflicted with the need to live above their means. Raise your hand if you know someone driving a beamer AND living paycheck to paycheck trying to afford it. THERE IS NOTHING WRONG WITH A BANK LENDING A BORROWER NEARLY 100% OF A HOMES VALUE!!!!!!! That is how I bought my first home. The key is a payment you can afford. Many of you know my first home was located in Barnhart, MO. It wasn't in Clayton or Kirkwood. It wasn't even in freaking Shrewsbury but by design, not chance, it was well within the means of my young family. We also never screwed around with home equity loans (unlike most of our neighbors who had boats and horrifically large SUVs)

It seems most everyone wants everything right freaking now! Quite frankly, most mortgage bankers try to make that happen. If they aren't lying to their clients or defrauding them, the clients have no one to blame but themselves. Listening to the Democrats trying to turn these folks into victims is ridiculous. Anyone who believes the dems deserves to have them in power..........

And yes, I too feel better for getting that off my chest.........

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Agreed.

from what i have been able to piece together from the very sketchy reports thus far, it sounds like they really want this third party that is currently be labeled john doe. and my guess is irons and the mortgage guy cut a deal. it seems there has to be a fourth guy yet. an appraiser to make the whole scheme work.

what i am guessing they did is john doe offers to sell his properties to irons for an inflated price. the broker, irons and an appraiser all in on it. they agree to split proceeds up front on the inflated sales price. irons in turn probably planned to do cosmetic work to the properties and then flip asap for a price at least equal to the mortgage amounts. a couple of years ago, when properties were escalating at abnormal pace, that was probably a strong possibility.

what they likely didnt count on was the market falling apart on them. and then irons couldnt sell and come out whole and he definitely couldnt make the payments.

irons fraud likely came in the form of lying about his income and providing false income documentation which the loan broker likely helped make up.

like i said, there has to be an appraiser involved as well it would seem to me. but i am betting they are trying to pin the biggest part on the john doe guy and irons and the broker have likely cut a deal to testify against him.

this is a good example why you deal with a bank or a very reputable mortgage banker. the only good thing about this whole real estate market collapse is a lot of these johnny come lately crook/inexperienced idiots are going to go away from both a mortgage and realtor standpoint.

banks are far far more regulated than the brokers. in fact in missouri just about anyone can be a mortgage broker. in illinois there is some higher level of licensing and annual auditing and continuing education, but nothing to the extent that a bank would go through.

true some of the programs you are hearing about were not good, but the bigger reason for the collapse imo is the unethical brokers that really didnt have the best interests of the borrowers at heart. those borrowers dont have the knowledge to come close to dealing with those guys on the up and up.

the whole thing is sad and imo it hasnt even come close to bottoming out yet. at least another year. all these forclosures have to run their course first. once delinquencies and forclosures are back under control and all of that property has been liquidated, only then can the market rebound. how long will that take? your guess is as good as mine but all those new subdivisions that have a jillion spec homes that havent sold yet, when those are all gone, then that is a good sign.

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C'mon, guys ... this was only Mr. Irons personal life. We all know that when that part of his day was done, he would jump into the phone booth on the corner of North Grand and MLK Bouldevard, take off his evil personal life costume, and don the real, true, tattereed rags symbolic of his inner self ---- guardian angel/rock of ages/paternal father figure/basketball guru to the kids of the near North Side and others who falsified addresses only so they could follow him. And I feel way down in my bones that all this ill-booten gotty or ill-gotten booty was summarily directed to those poor boys to ease their advancement in life making up for the short-sighted folks at places like the St. Louis School Board who didn't see enough of the forest for the trees to give it to them straight up.

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Guest BillikenReport

Fox-2's report on this subject was much better.

Part of their story said that Irons has agreed to tell everything he knows about OTHER schools' recruiting.

That should be interesting. I wonder how many other schools Irons will try to take down.

- Nate

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taj - thanks for the M*A*S*H reference there, nicely played and one of my favorites

this is some crap if floyd is ratting out OTHER schools but not having to say what happened while he was at the v

maybe the rft will get into this somemore and keep us updated

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Why would the Feds care about any MSHAA infractions? - that seems odd to me. John Mineo parents had and I think still have a place at Mason and Clayton - been there for years. Yes I do believe we would be better off with the Dems - how could we be worse! I feel better for now getting that off my chest. Lets just stay on topic.

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