In what scheme are straw buyers involved, often led to believe they are receiving a good deal?

In the context of financial crimes and real estate fraud, the builder bailout scheme involves the use of straw buyers who are often misled into believing that they are getting a favorable deal on a property. In this scheme, developers or builders recruit these individuals, typically by offering them financial incentives or the promise of investment opportunities. The straw buyers, who might not be fully aware of the fraudulent activities occurring, purchase the homes with the intention that the builder will buy them back or help them sell later at inflated prices, creating a façade of legitimate transactions.

The allure of a "good deal" can be very convincing, as these straw buyers are often led to believe they are making wise financial decisions. This deception is a critical element of the builder bailout, as it relies on the exploitation of the straw buyers' lack of knowledge about the underlying illegality of the scheme. The primary motivation for the builders is to offload unsold properties or manipulate market conditions, making the involvement of straw buyers a pivotal component of the fraud.