Plaintiffs in the $24 billion lawsuit have a powerful argument supported by an expert witness with impeccable credentials. Witness describes ”…premeditated scheme and crime to defraud…”
"These violations rise to the level of an ethics violation under USPAP, which states that an appraiser must not communicate assignment results in a misleading manner. FIRREA appraisal regulations specifically address this issue: ‘This standard is designed to avoid having appraisals prepared using unrealistic assumptions and inappropriate methods.’""Since R41-b was adopted by the Federal Banking Regulatory Agencies in the early 1980s, the Federal Government, in order to protect the public and foster public trust in the banking industry and in the appraisal profession, has regulated appraisal activity so as to specifically exclude the type of analysis which these appraisals provided. These appraisals violated numerous legal standards and ethical principles that the appraisal industry has attempted to adhere to. Considering the monetary figures, and the sophistication of the lenders and appraisal firm involved in these real estate transactions, these appraisals appear to have been part of a broader, pre-meditated scheme.""…In my opinion, the procurement and use of these appraisals was designed to artificially inflate values so as to defraud developers, and other who had, and would, purchase lots or homes or otherwise invest in the resorts. Such parties would not be expected to be aware of the apparent violations of federal and state laws, standards, regulations and guidelines described above. In my view, it appears these appraisals were part of a much broader premeditated scheme and crime to defraud the developers and everyone else that owned, held, or acquired an interest in the developments."
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