I posted a link at least year ago to a New York Times article about a celebrity athlete that was prosecuted and is serving two years.

This is done without advising the lender of the second transaction at the higher price.Transactions, such as the one described above, are nothing less than lender fraud, and not only will these transactions result in license discipline, but there have been federal criminal prosecutions initiated for defrauding federally insured lending institutions.

. :) You'll also find that under US Code, regulations adopted by fed agencies are inforceable under law, having the full force and effect of law and prosecuted.

In the event that investigation fails to verify occupancy, the participant will be turned over to the Office of Inspector General for further investigation and possible prosecution.

Maybe Ohio will prosecute the lenders, but I think in reality they have a de-facto (and unwritten) new set of 'exemptions' for some cases, like lenders marketing their interest.

If they can't produce the records, they don't get the exemption - which means the syndicator could face potential prosecution by securities agencies (state or federal), a rescission order forcing them to pay everyone back within 30 days, fines, jail, civil judgments, or a possible prohibition against ever doing another offering again.

Understand the basic elements to be criminally prosecuted for "Fraudulent Inducement" (and see if it sounds a lot like "wholesaling" to you a. 

Thieves can walk into stores and steal, if the value is under $950 they aren't even prosecuted.

I know it sucks, but you will come out much further ahead.... and this is probably why they are still runnign the gambit on all other LL's; I would prosecute them to the fullest extent of the law!

Though it may not be prosecuted, that doesn't mean the Feds aren't more than happy to take property but let the other charges go.