Mortgage and Real Estate Fraud

Thursday July 2, 2009

Minnesota man pleads guity in flipping scheme

Frederick Earle Deen III a former loan officer and part-owner of Legacy Lending, a mortgage brokerage company in Minnesota has pleaded guilty in a fraud scheme. The others [unamed] involved in the mortgage fraud scheme include the co-owner of the mortgage brokerage company, a residential real estate appraiser, a real estate agent and someone who recruited individuals to act as “straw buyers”. Read more..

Phoenix man accused of ID Theft & Mortgage Fraud

Raphael Libardi wasarrested on felony identity theft and mortgage fraud charges and is suspected of usinga deceased person’s social security number to purchase two vehicles and two homes (one of which has been foreclosed on). Two adult children of Libardi’s, Ive Libardi (25) and Isac Libardi (20), were also arrested at the business for suspicion of being in the country illegally. Read more..

OHIO AG cracking down on foreclosure rescue scams

Ohio Attorney General Richard Cordray has filed three lawsuits in three seperate cases against 21st Century Legal Services, Foreclosure Home Assistance, LLC, and Michael Brotherton, who does business as Financial Emergency, Inc. The lawsuits seek to shut down the companies’ ongoing operations in Ohio after they ignored orderes to Cease and Desist. Read more..

Scott Alexander has been sentenced in Kansas to one year and a day in federal prison

Erie, PA man Francis Conti sentenced to 33 months imprisonment for mortgage fraud

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Wednesday July 1, 2009

13 charged in $9 million Ohio flipping scheme allegations

Ohio Attorney General Richard Cordray and the Ohio Organized Crime Investigations Commission announced today details of an investigation which has led to the indictments of 13 people alleged to have perpetrated a $9 million mortgage fraud scheme to buy and sell more than 30 houses at highly-inflated prices and to falsify loan documents in order to skim ten of thousands if not hundreds of thousands of dollars from each sale. Read more..

Former Staten Island couple accused of $1 million title fraud

Joseph DeVito and his wife, Mary Ann Palladino-DeVito former residents of Staten Island now residing in Wilkes-Barre, Pennsylvania have been arraigned on an indictment alleging they embezzled over $1 million from homeowners seeking to clear titles, as well as their franchise’s parent company, Fidelity National Title. (Pictured is Richmond County District Attorney Daniel M. Donovan) Read more..

Beazer Homes agrees to pay up to $53 million to settle fraud claims

Beazer Homes USA Inc. has agreed to pay the United States $5 million dollars, plus contingent payments of up to $48 million dollars to be shared with victimized private homeowners, to resolve allegations that it, and Beazer Mortgage Corp., were involved in fraudulent mortgage origination activities in connection with federally insured mortgages. Read more..

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Tuesday June 30, 2009

New Jersey AG indicts six people in three seperate fraud cases

New Jersey Attorney General Anne Milgram announced today the indictment of six people charged in three separate, unrelated mortgage fraud cases, including two women charged with spearheading a conspiracy to use stolen identities to obtain more than $1 million in unauthorized mortgages, lines of credit and credit cards. Read more..

Ronald Luczak given 22 years imprisonment and ordered to repay $5.9 million
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Monday June 29, 2009

Three Oregon loan officers charged in 3 seperate fraud cases

US Attorney Karen ImmergutAn indictment filed in the Oregon District Court alleges that on or about February 16, 2007 Michael Duc Han devised a scheme to defraud First Franklin Financial Corporation. Han is said to have acted as a residential mortgage loan broker and he prepared a fraudulent loan application for a borrower. Read more..

Beniamin Lucian Lucescu is accused of submitting fraudulent loan applications on behalf of Cristina Miu. He disguised the true nature of the loans and described them as owner-occupied purchases when in fact they were for investment purposes. Read more..

Joel Surprenant, is accused in connection with a mortgage application in his own name and on that application he knowingly falsified his financial qualifications. He then created false supporting documentation, including pay stubs, to support his employment and income details. Read more..

Lakeville, MN woman accused of theft of closing funds

Kuntee Singramdoo of Lakeville, MN has been charged with five counts of Theft and three counts of Theft by Swindle, in connection with the theft of over $220,000 while she worked as an independent closer for a Burnsville title and real estate company. Read more..

FSA bans director for inadequate supervision of his firm

The UK financial services regulator has prohibited Simon Robins, Compliance Director of Chase UK Corporation Limited [of Waterlooville, Hants] for failing to adequately supervise the operations of the firm. As a result of these failings the firm was used by third parties to obtain mortgage applications on a fraudulent basis. Read more..

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Thursday June 25, 2009

Two Colorado men indicted in 22 property fraud scheme

Danny N. DeGrande (on right of picture) and John M. Scherling were charged in a 29 count indictment which accused them of committing widespread mortgage fraud involving $1 million worth of mortgage loans taken out in 22 properties in Pueblo, Colorado. In each property involved in the scheme DeGrande acted as the realtor and Scherling as the purchaser. Read more..

Brooklyn man charged with theft of $2.3 million mortgage loan

Mayer Goldberger of Brooklyn has been charged with three felonies in connection with the theft of $2.3 million from a Great Neck real estate company that thought they were providing a real estate loan to a reputable customer. Goldberger is alleged to have set up Speedy Title Services LLC to facilitate the fraud. Read more..

NY attorney accused of Grand Larceny in real estate closing

Craig Heller is accused of acting as escrow agent who was hired to remit a settlement check for more than $82,000 to the partial owner of a piece of Brooklyn property that was sold. The closing took place on April 18, 2008, but Heller never gave the victim a check. He was ordered to pay the amount on Dec. 18, 2008, but failed to do so. As in the other case, Heller promised numerous times to pay his victim. Read more..

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Wednesday June 24, 2009

Ohio man indicted in 12 property mortgage fraud allegations

Paul R. Tomko has been charged with one count of mail fraud in connection with mortgage loans that were obtained fraudulently. The information alleges that from August 2003 through January 2005, Tomko and others who were not named executed a scheme to defraud Homecoming Financial Network and People’s Choice Home Loans in connection with twelve mortgage loans. Read more..

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Tuesday June 23, 2009

41 indicted in five seperate Chicago mortgage fraud cases

Forty-one defendants are facing federal charges relating to various mortgage fraud schemes in five separate cases made public today by federal law enforcement officials. In some of the schemes, the defendants were charged with falsely inflating the values of dilapidated homes in urban areas. The defendants include appraisers, an attorney, a former CEO of a lender and straw buyers.

Case 1 - United States v. Lisnek, et al. Read more..
Case 2 - United States v. Askar, et al. Read more..
Case 3 - United States v. Okulaja, et al. Read more..
Case 4 - United States v. Luckett. Read more..
Case 5 - United States v. Beck, et al. Read more..

Jacksonville mortgage broker convicted in lien fraud scheme

Katina Mickens (pictured), a mortgage broker from Jacksonville, FL, was sentenced to three years imprisonment for obtaining approximately $60,000 at real estate closings by filing 3 separate liens which claimed she had carried out home repairs. She had been convicted by a Duval County jury in May 2009. Read more..

CA Attorney General charges woman in fraud allegations

California Attorney General Jerry Brown has filed grand theft, embezzlement and burglary charges against Maria Elna Flora of Sacramento, after she “fleeced” retirees out of almost $350,000 to pay for a daily gambling habit. Flora was arrested yesterday by Yolo County law enforcement officials and is being held in Sacramento County Jail. Bail has been set at $400,000. Read more..

MO company ordered to cease & desist in investment scheme

Missouri Secretary of State Robin Carnahan (pictured) issued a Cease and Desist Order against Morris A. Bird Sr. and M. Allen Bird Jr, for alleged securities fraud in a Southwest Missouri real estate investment scheme that cost investors in four states over $1.7 million. The men ran a company called Chapar, LLC. Read more..

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Monday June 22, 2009

SEC files suit in real estate investment scheme

FTC stops foreclosure prevention company that misled borrowers

DA and Senator give update on Kings County task force

Harris County man convicted in mortgage fraud case

AZ DFI revokes broker licence over fraud allegations

Disbarred attorney indicted by Prince George’s County grandjury

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Friday June 19, 2009

4 mortgage fraud cases in Pittsburg announced by US Attorney

Father and son indicted in Missouri fraud allegations

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Thursday June 18, 2009

100 mortgage fraud probes ongoing in Puerto Rico

Puerto Rico mortgage broker pleads guilty

Omaha real estate investors accused of mortgage fraud

Denver real estate developer accused of mortgage fraud

Philadelphia man sentenced in massive mortgage fraud case which involved 180 properties

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Wednesday June 17, 2009

Maryland house builder accused of fraud

Massachusetts broker fined and banned over fraud allegations

Two indicted in Nevado foreclosure fraud allegations

FinCEN clarifies guidance on information sharing

NY man posed as his deceased mother in deed fraud allegations

Los Angeles man accused in foreclosure fraud allegations

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Monday June 15, 2009

Wayne County man accused of forging deeds to church building

Tracy Carmichael (right) of Detroit has been indicted by the Wayne County prosescutor in connection with a fraudulent scheme to obtain an over $120,000 mortgage on a church property located on 11731 Mount Elliot in Detroit. The building belongs to the Temple of God Deliverance. Carmichael allegedly persuaded a woman to be a straw buyer for the property. Read more..

Texas Attorney General hosts mortgage fraud summit

Texas Attorney General Greg Abbott today welcomed state and local authorities, law enforcement officials, prosecutors and other interested Texans to the Office of the Attorney General’s (OAG) Mortgage Fraud Summit. Panelists discussed latest mortgage fraud trends, including foreclosure rescue fraud and falsified loan applications. Read more..

Oak Grove, MN couple sentenced in forged mortgage satisfaction letter scheme

Nevada AG files indictment in William Vargas et al foreclosure rescue fraud allegations

Calvin Davis sentenced to 40 months imprisonment in New Orleans flipping scheme
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Friday June 12, 2009

Realtors and attorney arrested in San Bernadino mortgage fraud

Realtor Richard Nazabal, attorney Garabed Kamarian, Christina Martirossian have been arrested in connection with a mortgage fraud. Nazabal’s wife, Desiree Wilcox Nazabal (pictured) remains outstanding and is wanted on a $2.5 million arrest warrant. The allegations are that the defendents ran a real estate investment scheme the defrauded more than 25 people. Read more..

Grand Jury indicts Dallas man for mortgage fraud

Pierre Sowell of Dallas, TX was indicted by a federal grand jury in Plano for several counts of mail fraud and conspiracy to commit mail fraud in connection with a mortgage fraud scheme. Sowell and an unindicted, unnamed co-conspirator are alleged to have engaged in a scheme to make false statements to mortgage lenders to enable him to purchase three residences. Read more..

Former President of U.S. Mortgage pleads guilty

Michael J. McGrath, Jr the former president and director of U.S. Mortgage, pleaded guilty today in connection with a $139 million fraud scheme that bankrupted Pine Brook-basedU.S. Mortgage Corp. and its subsidiary, CU National Mortgage, LLC. He admitted fraudulently sell loans belonging to credit unions. Read more..

7 charged with mortgage fraud by Michigan Attorney General

Eddie Zaben, of Dearborn (right) is charged along with Dagoberto Reyes, Evelyn Santana, Mohamed Beydoun, Memoud Makky, Ali Hassan Haidous and Balil Hashem. The joint investigation revealed Zaben used his business, MYA’s Investment Group, LLC, to perpetrate large scale mortgage fraud. The scheme involved the financing of at least eight Wayne County homes in 2006 and 2007. Read more..

Mass AG obtains orders against 3 foreclosure “rescue” companies

Attorney General Martha Coakley’s Office obtained a temporary restraining order against defendants H.O.P.E. Alliance, Inc., (H.O.P.E. Alliance) Law & Associates, LLC and Thomas E. Law, II. In a complaint filed yesterday in Suffolk Superior Court, the Attorney General’s Office alleges that the defendants collectively solicited unlawful advance fees for foreclosure-related services. Read more..

Mass AG enters into judgement with closing attorney over fraud

Attorney General Martha Coakley’s Office has entered into a judgment with Brockton attorney Valerie Hanserd resolving allegations over her role as a closing attorney in two companion lawsuits that both allege unfair practices with respect to mortgage brokering services. The first lawsuit involved Ms. Hanserd’s closing of a loan allegedly obtained by using false and forged documents. Read more..

Kansas appraiser pleads guilty in wider fraudscheme

Ryan Keith Miller pleaded guilty in U.S. District Court in Kansas City, Kan., to two fraud counts, one money laundering count, and one count of aggravated ID Theft. In his plea, Miller admitted he conspired with Wildor Washington, Jr., David Kostelec, Amanda Childs, Gregory Stevenson and others to fraudulently obtain mortgage loans. Read more..

Ten indicted in Kansas straw borrower fraud allegations

Ten people have been indicted in a $3 million mortgage fraud case. The defendants, who are all charged with mortgage fraud are: Eric M. Rabicoff, Jason L.Rabicoff, Lucas R. Collier, Anthony E. Carollo, Deborah Saulmon, Bora Ly, Anthony “Gabe” Painton, Jr, Kong Bun Ly, Rebecca Gelwix, and Richard Ngek. Read more..
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Thursday June 11, 2009

DuPage county man sentenced to four years for mortgage fraud

Vincent Arena of 1070C Heritage Hill Drive, Naperville, IL was sentenced to four years in the Illinois Department of Corrections for defrauding the All Saints Catholic Academy in Naperville and several financial institutions out of more than $500,000. In all, Arena pled guilty to Financial Institution Fraud, Wire Fraud and Forgery.
Read more..

FTC files suit against loan modification companies

The Federal Trade Commission has filed a civil contempt action charging a deceptive mortgage foreclosure rescue and loan modification operation with violating a 2001 court order. Many homeowners paid the defendants up to $5,500 in advance and ultimately lost their homes to foreclosure. Read more..

Maryland CPA accused of theft of mortgage proceeds

Wilkins McNair formerly of Ellicott City, MD has been indicted for wire fraud and witness tampering in connection with a scheme to defraud a client of $900,000. According to the indictment, McNair was a certified public accountant, and owned and operated an accounting firm known at different times as Wilkins McNair, CPA, P.C.; Wilkins McNair LLC; or The Accounting Offices of Wilkins McNair, LLC. Read more..

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Wednesday June 10, 2009

Former NFL player indicted in GA mortgage fraud allegations

Arthur James Marshall, Jr. has been charged with fraud and money laundering in relation to his real estate ventures. Marshall was a local high school football star who later played at the University of Georgia and also spent five years in the National Football League with Denver Broncos and the New York Giants. He is accused of defrauding three banks and a mortgage lender in connection with 9 properties. Read More..

New Orleans woman convicted in Katrina relief fund fraud

Barbara Simmons Dowl was convicted on a five-count indictment for Theft of Government Funds, False Statements and Wire Fraud. According to the Indictment Dowl had owned a property in New Orleans but lost it in 2004 because of unpaid taxes. However after the disaster she persuaded the government that she still owned it and they paid her $75,000 in cash. Read more..

FSA (UK) Bans mortgage broker over fraud prevention failings

The FSA) has banned North London broker Akin Johnson for systems and controls failings which led to at least eight mortgage applications being submitted to lenders containing false and misleading information. He failed to put in place adequate systems and controls to identify discrepancies in mortgage applications submitted to lenders in his own name. Read more..

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Tuesday June 9, 2009

Rhode Island attorney Pasquale Scavitti III pleads guilty

Disbarred attorney Pasquale Scavitti, III of Cranston, Rhode Island, pleaded guilty today to Wire Fraud. Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million. Read more..

Attorney among 9 arrested in Florida mortgage fraud allegations

Russell L. Akins (left) is one of nine defendants were are accused of being involved in fraudulent transactions through Cue Funding Incorporated, Cueking Family Corporation and Investors Property Corporation. The ring used two title businesses to complete transactions worth $2.4 million with the lending institutions. Read more..

New York AG takes action against alleged loan modification scam

New York Attorney General Andrew M. Cuomo said today that his office is taking legal action against a leading New York foreclosure rescue company for charging illegal up-front fees and engaging in consumer fraud. The company targets homeowners facing foreclosure by claiming that it can save their homes, but often fails to provide the services promised. Read more..

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Monday June 8, 2009

Colorado mortgage broker indicted in mortgage fraud allegations

Ernie Colter, the originating broker, qualified a client for a $700,000 home loan by submitting forged earning statements and asset statements along with other falsified documents to Countrywide Mortgage. Colter is then suspected of diverting more than $80,000 of the proceeds from the sale of the real estate by tricking both the seller and buyer. Read more..

SEC obtains court order against fake loan modification ads

The FTC has obtained a court order to stop an Internet-based operation that pretends to operate “MakingHomeAffordable.gov,” the official Web site of the federal Making Home Affordable (MHA) program. Consumers who clicked on this in search engine results were not directed to the official Web site MHA but were diverted to Web sites that solicit applicants for paid loan modification services. Read more..

NY attorney arrested in allegations that he stole a deposit

Plainview, NY attorney, Stuart Gorman (pictured) has been charged in connection with the sale of a piece of property in Dyker Heights. Gorman was given a check by the buyer for $73,500 as a down payment on the purchase price. Instead of giving the check to the sellers of the property, the check went into his escrow account and was allegedly used the money for personal and business expenses. Read more..

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