JPMorgan Chase Not Pursuing Charges Against Sheriff Deputy For Mortgage Fraud
Collier County Sheriff Deputy Michael Kovar was terminated for lying about his income on a mortgage application. He filled out the application in 2007 for a house he wanted to buy and flip. He claimed his income from his side business of flipping homes was an additional $510,000 a year. However, in reality it was really $88,000. The house later went into default with a $500,000 deficiency. After the foreclosure process was completed, JPMorgan Chase stated they were not going to pursue the deficiency.
However, the Collier County Sheriff’s Department began digging through Michael Kovar’s finances. They soon discovered his mortgage application. As a result, in March of this year they fired Kovarfor “unlawful or improper conduct” and “failing to pay just debts.”
Is Kovar Getting Special Treatment For Being A Cop?
I’m not condoning Michael Kovar for lying about his income on his mortgage application. Yes, he should be punished. However, unlike most cases where homeowners get caught misrepresenting their income, lenders are more than eager to convict but in this case especially on a loan this size but JPMorgan Chase refuses to. Why?
According to WINK News, JPMorgan Chase took a $500,000 loss on the property but did they? It may appear that way on the public record but as anyone who follows my blogs knows, looks can be deceiving. JPMorgan Chases says they’re not pursuing Michael Kovar for the deficiency. Did they really take a $500,000 loss on the file? Probably not. There are two probable reasons why Chase isn’t pursuing this. The loan was insured and JPMorgan Chase got paid off by the insurance policy or they felt that if the matter was litigated they couldn’t prove enough of an ownership interest in the note and/or mortgage under Florida law to legally foreclose. So that begs the question, is this debt legitimate?
The Collier County Sheriff’s office is sophisticated enough to know this. Michael Kovar’s termination sounds more like a case of the department wanting to terminate his employment using this as an excuse.
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