For the third time in a matter of days a person who worked in the mortgage industry has been murdered. But a history of mortgage fraud and a choice to turn against other members in a fraud ring provide possible clues to the motive in this case.
In the latest killing, the body of Thomas Fazy was discovered Wednesday night in a suburban mortgage office south of Chicago. Fazy, 49, served 30 days in prison last year after being convicted of mortgage fraud, Melissa Merz, spokeswoman for the Illinois Attorney General’s office, told MortgageDaily.com.
It is not clear if Fazy’s past problems have any connection with his killing. Police in suburban Midlothian are saying very little about the case.
It is not even clear if Fazy worked at Allied Mortgage, where his body was discovered, or even if he was still in the mortgage industry.
Repeated calls made Thursday to Allied’s office were not answered. A police spokeswoman told MortgageDaily.com it was likely the office was closed while police investigated.
The police spokeswoman confirmed that Fazy was “shot several times” and that his body was discovered Wednesday evening.
Police did not have a motive for the killing, but Fazy had turned over evidence against others who were with him in the mortgage ring scam that Illinois authorities busted in early 2002, Merz said.
Witnesses were still being interviewed Thursday, police said. No arrests had been made, no one was in custody and no suspects have been publicly identified.
According to the Illinois Attorney General’s office, Fazy was convicted of conspiracy to submit fraudulent mortgage loan applications to mortgage lenders in an effort to illegally obtain federally insured mortgage loans.
Authorities said Fazy and three other people, including his wife, Julie Fazy, defrauded three mortgage brokers and the federal government out of more than $1 million in a scheme that involved the flipping of properties controlled by the U.S. Department of Housing and Urban Development, or HUD.
Flipping is the quick buying and selling of property. While it can be a legitimate way to invest in property it is also often used as a vehicle to commit mortgage fraud.
Fazy’s wasn’t the only Chicago-area mortgage-related killing.
On Nov. 30, a boater in south Florida discovered the body of Keith Johnson, 37, near the entrance to a park in Fort Myers Beach.
Johnson died from stab wounds, police said.
Johnson, the owner of a Chicago mortgage brokerage, was also a fashion model. Friends said he was in south Florida on business.
No arrests have been made. Robbery may have been a motive. Police have not said if Johnson’s money and credit cards were missing.
And in New York last week Long Island mortgage broker Robert Calabrese was shot near his car, according to published reports.
Again, no arrests have been made and police have not discussed any possible motive for the killing.
