American held for extradition over alleged subprime fraud

BrisbaneTimes.com.au on April 13, 2012 released the following:

“Leonie Lamont

THE fallout from the US subprime crisis has washed up on Australian shores – the Gold Coast – with US authorities seeking to extradite an American accused of money laundering and wire and bank fraud.

The US proceedings came to light after James Scott Taylor, 51, who is described as a real estate consultant and property developer on the Gold Coast, made an unsuccessful application to the Federal Court to release him on bail after he was taken into custody last week.

In court documents, the US Government alleges that during 2001- 2002 Mr Taylor ”knowingly executed and attempted to execute a scheme to defraud issuers of residential home loans” in Colorado, and named eight banks in the indictment.

It claimed he prepared home loan applications in the names of people that contained ”materially false and fraudulent representations,” including representations about the applicants’ employment, income and intention to use the homes as their primary residences.

Many of the applications were to so-called low-doc lenders – those willing to issue loans without extensive documentary evidence of income and employment. However, it alleged that in some cases Mr Taylor prepared documents to support the fraudulent representations.

The indictment further claims that, while it was put to the lenders that many of the applicants were using their own funds to pay deposits, ”in most instances Taylor or his associates provided the funds used to make down-payments,” through his company Dingo Trading Ltd.

It claims the funds were returned to Mr Taylor through disbursements when the loans were released to the borrowers. Finally, it alleges it was part of Mr Taylor’s scheme that the applicants used the loans to buy properties owned by his company JJReal Estate Investments Inc.

Mr Taylor told the court his wife and adult children were Australian, that he lived at Mermaid Beach and had substantial business, commercial and property interests in Australia. This was both through his private company 3JL Pty Ltd and as a consultant to other property developments on the Gold Coast. BusinessDay understands he did some work for Colliers on the Gold Coast.

He said he had migrated to Australia before he received any notice of the charges against him. There had been a four-year delay between the grand jury indictment in 2007, and he said he had co-operated with the authorities in the US during their investigations. He denied he was a flight risk.

Mr Taylor was originally arrested last October, but was on bail pending the outcome of an extradition hearing heard by Magistrate Duroux in the Southport Magistrate’s Court.

The magistrate determined last week that Mr Taylor was eligible to be surrendered to the United States, and cancelled bail.

While Mr Taylor had originally sought a review of the magistrate’s decision, lawyers acting for Mr Taylor yesterday filed a notice of discontinuance.”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

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We previously discussed the extradition treaty between the United States and Australia here.

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Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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