Matthew Cox's Mortgage Swindle: How Did He Do It?

Matthew Cox, a former mortgage broker and admitted mortgage fraudster, managed to swindle millions of dollars by falsifying documents to make it appear that he owned certain properties. He then fraudulently obtained multiple mortgages on these properties for five to six times their actual worth. Cox's scam involved creating synthetic borrowers, faking credit histories, and using false identities to acquire credit cards and rent homes. He was aided by several female accomplices and was eventually arrested and sentenced to prison. Cox is now a true-crime author, podcaster, and keynote speaker.

Falsifying documents to appear as the owner of properties

Matthew Cox, a former mortgage broker, falsified documents to make it appear that he owned properties. He then fraudulently obtained several mortgages on them for five to six times their actual worth, acquiring millions of dollars in the process. Cox's scam began with him faking a good credit history, which he used to buy dozens of homes and properties. All of his documents—references, bank letters, rent receipts, W-2s from non-existent employers—were counterfeit. In one instance, he even used the social security number of a toddler.

To falsify documents and appear as the owner of properties, one must gain access to primary documents or other official records. These can include property tax statements, structural or real property insurance documents, bills or payment records, and court documents. In some cases, church records or letters from mobile home park owners/managers may be used to prove ownership. Once these documents are obtained, they can be altered or forged to show false information.

Another method Cox used was "shotgunning", where he either forged or had accomplices attain inflated appraisals to increase the value of the mortgages. This allowed him to take out mortgages for several hundred thousand dollars on properties he claimed to own. For example, he took out a mortgage under the name of the Simpsons character "C. Montgomery Burns".

By falsifying these documents and appearing as the owner of multiple properties, Cox was able to defraud lenders and obtain large sums of money. This scam ultimately led to him being convicted of mortgage fraud and sentenced to prison time.

Using fake identities to acquire credit cards and rent homes

Matthew Cox, a former mortgage broker, used fake identities to commit mortgage fraud. He travelled across the southern and southwestern United States, assuming different identities and landing himself on the FBI's Most Wanted list.

One of his schemes involved using the identity of a former co-worker to acquire credit cards and rent a home in Mobile, Alabama. He filed false documents claiming ownership of the house and took out mortgages on the property, including one under the name of a character from The Simpsons. Cox and his girlfriend, Rebecca Hauck, then moved to Tallahassee, Florida, where they were eventually discovered by authorities.

Cox also stole the identity of a homeless man, Gary Sullivan, to gain loans on a house. He faked a "Satisfaction of Mortgage" document, claiming that Sullivan had paid off his mortgage. To add a playful touch, he used the name "Montgomery C. Burns", a play on the name of a character from The Simpsons, as the bank's vice president on the document.

Cox's girlfriend, Rebecca Hauck, also assumed fake identities. She used an ID with the name Donna Martin, and later, after Cox began dating Gina Laidlaw, she played the part of a mortgage buyer named Rosita Perez, complete with dyed hair for the fake ID photographs.

Forging documents to obtain mortgages on properties

Matthew Cox was a mortgage broker who became a mortgage fraudster. He falsified documents to make it appear that he owned properties, and then fraudulently obtained several mortgages on them for five to six times their actual worth. Cox's first conviction occurred in 2002 when he was sentenced to probation for mortgage fraud. After this, he began his life as a dedicated criminal, using his skills as a con man to defraud mortgage companies out of millions of dollars.

Cox's modus operandi was to create synthetic borrowers, netting him around $500,000 per person. He stole $11 million while on probation for fraud. He also used the identities of others to acquire credit cards and rent homes. He would then take out mortgages on these properties, using false documents to indicate that he owned them. In one instance, he used the social security number of a toddler, and all of his documents—references, bank letters, rent receipts, and W-2s from non-existent employers—were counterfeit.

Cox also had accomplices, including several women who posed as mortgage buyers and deposited checks. One of these women, Gina Laidlaw, was going through a divorce and having financial issues when Cox offered her a way to make quick money. Another, Rebecca Hauck, fled with Cox when he was on the run from the FBI. She helped him obtain real driver's licenses and passports in other people's names.

Cox's crimes eventually landed him on the United States Secret Service's Most Wanted list, and he was arrested in 2006. He was indicted on 42 counts and originally faced up to 125 years in prison. However, he plea-bargained his sentence down to a maximum of 54 years and was sentenced to 26 years in prison. He was released in July 2019 after serving nearly a decade in federal prison.

Creating synthetic borrowers to net himself around $500,000 each

After his first conviction in 2002, Matt Cox was no longer allowed to own a mortgage company. At the same time, he was going through a divorce, had to pay a large sum to his ex-wife, and had a large monthly child support payment. He needed to make money, so he decided to create synthetic borrowers instead of making fake documents for people. This way, he estimated that he netted around $500,000 per synthetic person. He did this for two years and stole $11 million while on probation for fraud.

One of his accomplices was Gina Laidlaw, a woman who was going through a divorce, raising her two-year-old child, and facing financial issues. Matt offered her a way to make some quick money. Gina played the part of a mortgage buyer named Rosita Perez. She dyed her hair for the fake ID photographs that Matt created. Gina would show up at the closings with her ID and then go to the banks to deposit the checks.

Matt also dated a woman named Rebecca Hauck, who knew about his crimes and decided to go on the run with him. With Matt's talent for false documentation, getting real driver's licenses and even passports in other people's names was never an issue. Rebecca also assumed fake identities.

Cox's crime spree continued across the southern and southwestern United States, eventually landing him on the United States Secret Service's Most Wanted list. He was aided by several female accomplices, some of whom served time in prison for their participation in his fraudulent mortgage practices.

Using accomplices to attain inflated appraisals to increase mortgage values

Matthew Cox, a former mortgage broker, used his accomplices to attain inflated appraisals, which helped him increase the value of the mortgages he fraudulently obtained. Cox falsified documents to make it appear that he owned properties, and then, with the help of his accomplices, obtained several mortgages on them for five to six times their actual worth. This practice, known as "shotgunning" in the real estate community, allowed Cox to acquire millions of dollars, with estimates ranging from $5 million to $55 million.

To attain inflated appraisals, Cox likely took advantage of the subjective nature of property valuations. Appraisers consider various factors, including the size, location, condition, number of rooms, and gross living space of a property. However, the specific comps (comparable properties) used in the appraisal can significantly impact the final valuation. Real estate agents or mortgage brokers may disagree with the comps used, especially if they believe that higher-valued properties should have been included in the appraisal.

In some cases, buyers, sellers, or homeowners may even alter appraisals through digital editing or bribery to achieve a more favourable value. Cox, with his background in insurance and real estate, likely understood this and may have pressured or influenced appraisers to use higher-valued comps or inflate the property's value to match the deal's asking price. This collaboration between the appraiser and the interested party, whether through coercion or bribery, constitutes appraisal fraud.

Cox's accomplices, including several female partners, may have played a role in attaining these inflated appraisals. They could have helped gather information on comparable properties, pressured appraisers, or even directly altered the appraisal reports. By using his charm and criminal allure, Cox likely convinced his accomplices to participate in these fraudulent activities, ultimately leading to their involvement in his criminal enterprise.

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