For Real Estate Professionals
KUTV Dave Fox - Victim or Con-Man?
October 12th, 2007
Is Dave Fox a SportsCaster or Real Estate Con-Man?
Last night KUTV aired an interview with Dave Fox discussing his recent guilty plea for participating in Mortgage fraud. Dave appeared contrite and about his participation in the real estate scam. KUTV put Dave on “administrative leave” after he was charged. However, with the “plea and abeyance” settlement and his cooperation with state investigators, KUTV is allowing Dave to return to “the aire”. KUTV stated, “Though the ordeal has brought a level of embarrassment to Fox and KUTV, station managers — KUTV General Manager David Phillips and News Director Tanya Vea — ultimately decided to allow Fox to return to his position as sports anchor, something he says he has been “desperate” to do.”
So what did Dave Fox do? Was he a conspirator or a victim? Was there a Fox in the hen-house?
According to Dave Fox and other news articles Dave signed closing documents provided by his lender stating he intended to occupy the home he was purchasing as his principal residence. By signing that document he was qualified for a lower interest rate, by about .5%. He lied! He fraudulently misled the lender who gave him a reduced interest rate based on his signed occupancy statement.
It doesn’t excuse Dave’s actions, but this kind of fraud goes on consistently in investment loans. Yes, I’d even say it has been common place. Investors, flipping or holding their real estate investment, want to keep mortgage payments as low as possible. That 1/2% interest rate savings can mean $125 less in interest each month on a little $300k mortgage.
This is classic Utah Mortgage Fraud. Check-out our post last June on Utah Real Estate Fraud. Red flags should have been flying everywhere for Dave!
Dave would not have been caught or charged with any crime if there had not been some deeper scheme going /on that imploded and brought his actions to the surface. He was likely caught as the lender started investigating the mortgage, which was likely in default, and discovered that Dave lied about his intended occupancy. Check these reports in the “Daily Herald” and you’ll see that Dave was involved in a much larger Real Estate Valuation scam in the River Bottoms in Provo. The Utah County Attorney felt Dave was not apart of the larger scheme stating, “Mr. Fox has taken what we feel is appropriate action for his responsibility in this, and we are perfectly satisfied with this resolution,” said Mariane O’Bryant, deputy Utah County attorney.”
So, Dave goes back on the aire. He learned his lesson, and the public has learned from his lesson.
Promoters and con-men don’t usually use their own money in their scams. They look for reputable, financially strong friends, associates, and anyone who will listen to their pitch, to finance their scams. In real estate these are called “straw-buyers”. People putting up their credit and signatures to get loans to purchase the target properties. Dave appears to simply been a straw-buyer promised great rewards for the use of his credit and purchasing power.
Be careful whenever asked to put your credit and net-worth at stake for a promoter of any sort. And never lie to try and get a better deal. It’s just not worth it! Dave Fox put his job and his family in jeopardy and he compromised his personal integrity for the sake of a 1/2% higher interest rate?
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