Mortgage and Real Estate Fraud

Brian Jackson, owner of Unlimited Properties is said to have found straw buyers to apply for mortgage loans in their name. The loans were processed through Sapphire Mortgage, located in Henderson, NV. Jackson caused false and fraudulent information to be placed in the straw buyers’ mortgage loan applications and caused the same home to be purchased multiple times by different straw buyers at ever increasing prices. Read more..

Three indicted in Dayton (OH) area mortgage fraud charges

James L. Mack, 64, a former loan officer at the Centerville branch of Republic Bank, Walter A. Millat, 70, and his son William E. Millat, 49, all of Dayton, are charged with operating a scheme to fraudulently obtain more than $4.5 million in mortgage loans by fraudulently orchestrating the purchase and sale of more than 100 properties in the Dayton area between 2001 and 2006. Read more..

Two charged in Milwaukee area mortgage fraud allegations

Jeffrey Stadelmann and his associate Donna Lonzo are charged with conspiracy to commit wire fraud. The indictment alleges that they conspired to defraud Countrywide Home Loans in connection with mortgage loans that they allegedly used to buy a $2 million vacation home in Boulder Junction, Wisconsin. Read more..

Jeffrey Todd Crandell pleads guilty in AZ cash-back fraud scheme

Jeffrey Crandell was the leader of a sophisticated cash-back mortgage fraud scheme. In 2005, he obtained the rights to various parcels of real estate located in Queen Creek, Ariz., obscured his interest in those properties by placing them in the name of his brother-in-law, and then recruited friends and acquaintances to buy the properties for inflated prices—often hundreds of thousands of dollars more than the cost of the land. Read more..

SOCA (UK) freezes assets of alleged IRA member - money allegedly came from mortgage fraud

The Serious Organised Crime Agency (SOCA) has frozen the assets of a leading republican in South Armagh. It has been granted a court order to take control of properties and bank accounts belonging to Sean Gerard Hughes of Aghadavoyle Road, Dromintee. The agency claimed the assets came from laundering the proceeds of mortgage fraud, tax evasion and benefit fraud. Read more..

Flushing man charged in scheme to get proceeds of foreclosure

Harry Coumnas of Flushing (NY) has been charged with second-degree attempted grand larceny, second-degree criminal possession of a forged instrument and other charges for allegedly forging the signature of a man whose home had been foreclosed on in an effort to collect the surplus that resulted from a sale of the house. Read more..

Texas AG obtains injuction against foreclosure rescue company

The defendants are alleged to have visited homeowners facing foreclosure and pitched a way for them to obtain new loans, renewals, extensions of time to pay and modifications of existing mortgage loans. In return, the defendants required at least $1,000 in advance from homeowners and demanded they have no contact with – or make future payments to – their original mortgage servicers. Read more..

Florida AG files suit against loan modification companies

The Florida Attorney General has filed a lawsuit against two Central Florida companies and their owner over allegations they charged up-front fees for foreclosure rescue-related services. National Payment Modification Company and The Bostonian Group, LLC, which conducts business under the name People’s First, allegedly charge up to $2,500 in up-front fees to homeowners trying to rescue their homes from foreclosure. Read more..

FSA bans three in Birmingham (UK) fraud allegations

Having obtained authorisation on a false basis Mohammed Hanif, together with the only mortgage adviser at Pak Property Centre, Anmbur Saddiq, submitted a mortgage application for Zaneb Sarfraz based on false information about her earnings from the business. Saddiq also made false mortgage applications for himself and for a family member. He has also been banned by the FSA. Read more..

Case Updates

Two loan officers sentenced in Michigan foreclosed property fraud case

Wildor Washington, Jr pleads guilty in Kansas flipping scheme

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Tuesday November 10, 2009

Two former Bear Stearns Executives acquitted of fraud charges

Various media outlets are reporting that Ralph Cioffi and Matthew Tannin have been acquitted of all charges after their trial at which they were accused of fraud involving mortgage backed securities. Read more..

Case Updates

Timothy A. Brown sentenced to 37 months imprisonment in large scale Indianapolis fraud

Katherine Vidaurri pleads guilty in New Mexico to a mortgage fraud

Clarence Lewis III sentenced to 15 yrs in Texas mortgage fraud

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Monday November 9, 2009

Tampa area Mortgage Fraud Surge

I now have in my possession details of all 107 people arrested/charged in the Mortgage Fraud Surge which operated in the Middle District of Florida - Tampa, Orlando, Jacksonville and Ft Myers. It is going to take some time to read and publish a precis of each case and then group the defendants by case rather than the DOJ office they were charged in, however I have listed them all, along with the Indicments etc in the Mortgage Fraud Surge page. Read more..

New defendant pleads guilty in North Carolina fraud case

Gary Mark Wood has entered a guilty plea in relation to his role as a builder involved in the wider fraud scheme which is part of an ongoing prosecution in North Carolina. Wood, the owner of Gary Wood Construction, was a member of Mortgage Fraud Cell #4. Read more..
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Sunday November 8, 2009

Windsor (CA) man pleads no contest in real estate fraud

Juan Carlos Acala owned an undeveloped Healdsburg property which went into foreclosure and several investors, who had funded mortgages for Mr. Alcala on the property, discovered that he had secured the mortgages using forged documents and false information. His fraudulent use of documents resulted in an inflated appraisal of the property, which was relied upon by various investors in three different real estate transactions. Read more..

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Friday November 6, 2009

Two arrested in Carlsbad (CA) in investment scam allegations

Alan Espiritu and Cesar Moreno allegedly targeted non-English speaking Hispanics who were told that their company, Permex, was a development company and guaranteed investment returns as high as 25%. After investing victims received little or nothing in return. Some were offered loan modifications and encouraged to stop making house payments and instead, invest those funds with Permex. Many victims lost not only their investments but also their homes. Read more..

Police in Northern Ireland investigating mortgage and loan fraud

The BBC reports that an unnamed firm of Newry solicitors is under investigation in connection with an alleged £7m fraud. It was revealed in the High Court that police have established 116 “high risk lending transactions” linked to a former bank manager accused of being at the centre of the scam. Financial adviser Damien Mallon is on bail and former bank manager Peter Creegan is in custody. Read more..

Case Updates

William Everett Nichols, former owner of now closed Shreeveport lender, enters guilty plea

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Thursday November 5, 2009 - Bonfire Night to us natives of England

Former mortgage broker admits widescale Georgia mortgage fraud

Edward William Farley, a former mortgage broker, operated through “Creative Home Search,” “Southern Land Partners,” “Georgia Land Group,” and “Global Mortgage” in Dunwoody and Norcross, Georgia, to defraud mortgage lenders through same-day “flips” of properties located in numerous cities in Georgia. He paid an appraiser to fraudulently inflate the value of each property by $50,000 to $100,000, and recruited often unqualified investor/borrowers to purchase them from one of his companies. Read more..

Former NYC Police Commissioner admits to a mortgage fraud

Bernard Kerik today pleaded guilty to one count of obstructing and impeding the due administration of the internal revenue laws from 1999 to 2007, one count of aiding in the preparation of a false tax return, one count of making a false statement on a loan application, and five counts of making false statements to the federal government. Read more..

10 indicted in Puerto Rico mortgage fraud allegations

Puerto Rican singer Aldo Matta was among the suspects rounded up by federal authorities in connection with a purported $14 million mortgage fraud scheme allegedly masterminded by local developer Joseph McCloskey Díaz. They were among 10 people indicted by a federal grand jury on 33 conspiracy, mortgage fraud and money laundering counts in connection with the scheme centered on luxury residences in the exclusive Palmas del Mar area of Humacao. Read more..

Orange County (CA) man sentenced in HELOC fraud scheme

Martin Quoc Pham and his associates used personal identifying information to take over HELOCs at JPMorgan Chase Bank. Once they had online access to the HELOCs, Pham and his co-conspirators transferred money into bank accounts they controlled. This scheme, which lasted only five months but netted well over $1 million, caused losses to the bank and to individual victims whose identities were taken over. Read more..

SEC files charges against real estate investment promoter

The SEC alleges that the investment scheme collected nearly $12 million from approximately 90 investors who were told that the return was more than 50 percent on the sale of some properties in which they were investing. The SEC also alleges that the real estate funds promoter, Charles C. Slowey, Jr., misappropriated more than $1 million of investor funds in such ways as charging excessive fees and taking out a loan to purchase his own home. Read more..

Case Updates

Former attorney Steven H. Ballard sentenced to 63 months in Georgia real estate fraud scheme

Jacksonville man who made over $6 million from a mortgage fraud scheme given 7 yrs in prison

Northumbria Police (UK) announce arrest of solicitor in ongoing mortgage fraud enquiry

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Wednesday November 4, 2009

US Attorney in Tampa announces details of Mortgage Fraud Surge

United States Attorney A. Brian Albritton announced today the results of a ninemonth-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. Read more..

Mississippi woman pleads guilty in Memphis flipping scheme

Paula Sharice Nelson has admitted to engaging in a property flipping scheme in which she would purchase HUD homes that were in foreclosure at low prices and then sell those homes to purchasers who were family members and other associates at inflated prices. These sales usually took place on the same day as the purchase by Nelson, and in some instances, before Nelson even purchased the property. Read more..

Missouri woman pleads guilty to fraudulent refinance

Leona Jackson has admitted refinancing her home in North St. Louis County in 2005 without the participation or authorization of her husband, who was incarcerated at the time of the refinance and, therefore, not present at closing. Jackson also admitted to taking $20,000 in cash out of the home’s equity and then “walking away” from the property - failing to make a single payment on the new note. Read more..

Michigan woman accused of ID Theft & mortgage fraud

Michigan resident Maria Antonia Franks Hernandez is accused by Attorney General Mike Cox of stealing her sister’s identity between December 2003 and February 2004 to fraudulently obtain an $83,000 mortgage through MSHDA. She then defaulted on the mortgage, leaving taxpayers with a balance of more that $76,000. Franks Hernandez’s sister resides in Mexico. Read more..

Case Updates

Father and son developers Gary and Brian Rickert plead guilty in Missouri mortgage fraud

Tahmeane Elrod of Tyler, TX pleads guilty to a mortgage fraud

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Tuesday November, 3, 2009

Arizona couple plead guilty in real estate fraud scheme

Gordon and Renata Deibler owned and operated 1031 Exchange Consultants, LLC, Etna Land Trust, Executive Realty Group, and Tax Management Consultants, LLC. Through these companies Gordon Deibler, acting as a qualified intermediary, accepted the proceeds from property sales for clients. Deibler was supposed to use the proceeds to purchase new property, resulting in delayed tax consequences for his clients. Instead, he diverted his clients’ money for personal use.
Read more..

San Francisco mortgage broker pleads guilty to mortgage fraud

Michael Chou has admitted that he defrauded mortgage lenders by providing false and fraudulent information in support of mortgage loan applications. Working out of an office in San Francisco, Chou and his colleagues assisted individuals who wanted to obtain mortgages from mortgage lenders so they could purchase residential properties. Read more..

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Friday October 30, 2009

Case Updates

Terrence White sentenced to 42 months imprisonment in “Al Bari” case

Oralia Hidalgo found guilty in forged deed “out from under” fraud

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Thursday October 29, 2009

Sorry “under the weather” so no postings here yesterday, however I did add 11 (eleven) new articles in the Mortgage Fraud News section. They are now listed below.

Colorado AG files complaint against mortgage broker

Colorado Attorney General John Suthers has filed a complaint against Alternative Lending of Colorado, its managing general partner, James W. Dale III, and top loan originator, April A. Bigler. Bigler is accused of working with appraisers to over-value homes, resulting in borrowers owing more on their homes than they were worth; inflated borrowers’ incomes on their mortgage applications and a number of predatory lending issues. Read more..

Idaho Dept of Finance files complaint of real estate fraud

Idaho Department of Finance has filed a complaint in Ada County District Court against Sheila Lea Jones. Jones, owner of Vitruvian Investment Group, solicited investors to pool their money for investment into a real estate fund that purported invested in short-term construction and development loans, as well as conventional real estate transactions. The funds were supposed to be secured against real estate. Read more..

NH lawyer indicted for selling home of client without permission

Thomas J. Tessier, who was a practicing lawyer, is accused in part of using fraudulent powers of attorney and other dishonest means for the purpose of stealing more than $200,000 from the client’s oldest son by selling a home that belonged to him, without his knowledge or consent. Read more..

MN title agent pleads guilty to theft of $470,000

In her plea agreement, Roseann Wagner admitted operating a scheme to defraud mortgage lenders, borrowers, and a title insurance underwriter from January 2007 to December 2007. She owned and operated Tri-Star Title, and was an agent for Stewart Title Guaranty Co. Wagner accepted more than $470,000 from lenders at hundreds of closings, knowing the money was to be used to pay closing costs, including title insurance premiums. Instead, however, she used the money for her own benefit. Read more..

Two charged in TX scheme that targetted Hispanic home buyers

The Texas Attorney General has charged Fern Hernandez Realty, Inc., with defrauding Hispanic home buyers. The state’s enforcement action names the corporation; its owner, real estate broker Jose Fernando “Fern” Hernandez and his wife, Odessa S. Hernandez. According to court documents the defendants falsely promised their customers home ownership when, in fact, the customers’ homes were actually owned by the defendants. Read more..

Las Vegas man charged with defrauding borrowers

Nevada’ Attorney General announced that Wayne Goldenbaum, also known as Robert King, of Las Vegas, Nevada, has been indicted on multiple charges of theft, including theft from an individual over the age of 60. The charges stem from instances where King fraudulently obtained the proceeds from his victims’ mortgage loans or obtained money for the lease of property which he did not own. Read more..

Phoenix realtor pleads guilty in scheme that defrauded elderly man

Former Phoenix, AZ real estate agent Ammar Dean Halloum has pleaded guilty to a scheme where he acted as a licensed real estate agent to obtain title to a Gilbert home through misrepresentations and omissions. The homeowner he victimized was suffering from dementia and living in a nursing home at the time the sales documents were signed. Halloum subsequently flipped the property and kept the profit. Read more..

4 arrested in Highland County (FL) grow house mortgage fraud case

Highlands County Sheriff’s Office and Agents of the Florida Department of Law Enforcement’s (FDLE) Sebring Field Office announced that they attempted to serve arrest warrants on 10 subjects for charges that include conspiracy to commit racketeering, conspiracy to traffic in cannabis, attempt to manufacture cannabis, mortgage fraud and grand theft. Read more..

Ohio title agent sentenced in fraud scheme

Karen Axline has been sentenced to 4 years imprisonment for knowingly participating in a scheme to defraud mortgage lenders in several real estate transactions. She presented bogus documents including invoices for home improvements on residences. The home improvements were the basis for inflated appraisals that resulted in mortgage loans that were in excess of the actual real estate value. Read more..

5 charged in allegations of torture of loan modification agents

Los Angeles District Attorney prosecutors said Daniel Weston and Mary Ann Parmelee live in a house that is in foreclosure. The two allegedly sought loan modification assistance from the victims but believed that nothing was being done and wanted their money back. The defendants, including Mario Gonzales and Melissa Parker, purportedly set up a meeting with the victims at the location where the assault took place. Weston and Gustavo Canez allegedly carried out the attack in the presence of the other defendants. Read more..

Idaho Dept of Finance issues order to loan modification outfit

The Idaho Department of Finance issued a Cease and Desist Order against Meridian-based International Co-op LLC for engaging in unlicensed mortgage loan modification activities and for illegally charging distressed Idaho homeowners exorbitant upfront fees. Read more..

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Wednesday October 28, 2009

Case Updates

Gregory Cooper found guilty in wider New York mortgage fraud scheme

Noel Albanes-Gomez convicted in Miami grow house mortgage fraud

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Monday October 26, 2009

Ewing (NJ) couple indicted in mortgage fraud allegations

It is alleged that between August 2006 and February 2008, Joann Smith and Wayne Betha stole more than $600,000 from clients who agreed to have Smith sell their homes. They then allegedly diverted proceeds of the sales into their own bank accounts for their personal use, deceiving the sellers into believing they were not entitled to all of the profits from their homes. Most of the sellers were having serious financial problems and could not continue paying their mortgages.

Kent Police (UK) bust major drug and mortgage fraud gang

Kent Police led the multi agency investigation, which began in November 2007, into the gang members who smuggled drugs into Kent from Spain and other European countries via France. A complex web of family members and criminal associates in both Kent and Teesside underpinned the large-scale drugs enterprise that also included money laundering and mortgage fraud. Sixteen people have been sentenced to a total of 70 years and one month in jail.

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Friday October 23, 2009

Case Updates

Maryland loan officer, Sidney Okosun sentenced to 18 months and ordered to repay over $2 million
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Thursday October 22, 2009

5 indicted for mortgage fraud as part of major grow house bust

A federal grand jury returned three superseding indictments charging 14 Bay Area residents with conspiracy to manufacture at least 1000 marijuana plants and manufacturing at least 1000 marijuana plants arising out of a wide-scale (50 houses), sophisticated indoor marijuana cultivation operation in the Central Valley. The grand jury also returned a separate indictment against five Bay Area residents with 26 counts of mail fraud in connection with mortgage fraud in several houses used in the scheme. Read more..

IRS examaning 107,000 first-time buyer tax credits

Around 1 million homes have been bought using the first-time buyer tax credit scheme which gives a $8000 tax credit to first-time buyers. The scheme was introduced to stimulate the housing market. However it is now reported that the IRS is examining 107,000 of them and that they have identified 167 fraud schemes (including the one below). Read more..

Mound (MN) man accused of foreclosure investment scheme

Timothy Lynn Beliveau’s indictment alleges that between January 2004 and July 2007, he orchestrated a scheme to defraud vulnerable homeowners and induce investors to purchase distressed real estate from those homeowners at inflated prices. The scheme created a pool of funds Beliveau then used to buy boats, motorcycles, a Florida vacation home and other personal items. Read more..

Jacksonville tax preparer sentenced in FTB tax credit scheme

James Otto Price, III was sentenced to 30 months imprisonment becuase in at least fifteen tax returns prepared by him for tax year 2008, he falsely claimed that the taxpayers were eligible to receive the First-Time Homebuyer Credit made available by Congress pursuant to the Housing and Economic Recovery Act of 2008. In total he caused a loss of $216,454.00. Read more..

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Wednesday October 21, 2009

Other Cases of Note

UK’s FSA bans another East London mortgage broker for fraud. Read more..

Case Updates

Minnesota loan officer Micah Beaumia pleads guilty in mortgage fraud case

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Tuesday October 20, 2009

8 people indicted in northern Florida “Mortgage Fraud Surge”

In the past two weeks federal prosecutors have charged at eight real estate professionals in connection with mortgage fraud in Duval and St. Johns counties.These charges arise from the FBI & US Attorney’s “Mortgage Fraud Surge” in Jacksonville, Orlando and the Gulf Coast. They are: Sharon Keller Baker, Joseph Cirlot, Jennifer Rosemarie Genus, Donna Nelson Gurlides, Timothy Lee Miller, Christopher Reid, Barry Westergom, and Winslow Ballenger Wheeler. Read more.. [please note still compiling the article but you can read all 8 of the indictments].

HUD, FHA and US Attorney file civil suit against Lend America

It is alleged by the Government that Ideal Mortgage Bankers, dba Lend America of Long Island, New York broker the conditions of participation in the FHA program in that the lender must determine that all borrowers who receive FHA-insured mortgage loans meet HUD lending standards. It is alleges that Lend America falsely certified to HUD that borrowers who received over $14 million in loans met HUD’s lending requirements when, in fact, the defendants knew they did not. Read more..

UK’s Financial Services Authority wants banning of “Liar Loans”

In its Mortgage Market Review discussion paper, the FSA’s announced a changed approach to a more intrusive and interventionist style of regulation. They recommend, among other things, that lenders must assess to borrowers ablitity to repay the loan, the banning of “Self Cert” [Stated Income] loans, the elimination of certain “toxic” loan products and that all mortgage advisors [loan officers etc] must be accountable to the FSA. Read more..

Other Cases of Note

Three indicted in Stockton, CA Section 1031 real estate tax fraud charges. Read more..

FSA bans mortgage broker, Ayodele Thomas for mortgage fraud. Read more..
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Monday October 19, 2009

Case Updates

Frank Blake sentenced in New Hampshire mortgage fraud case

Kara McIntosh is the latest to plead guilty in the Maryl and “Al-Bari” case

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Friday October 16, 2009

6 indicted in another New York fraud case that targeted a lender

Flaherty Funding and Vista Mortgage agreed that Vista Mortgage would close its operation and some of its staff would become employees of Flaherty Funding. One such person was Manre Ebhomielen. Subsequently, Ebhomielen and the other defendants participated in a scheme to obtain large mortgage loans from Flaherty Funding by submitting false information and documents to Flaherty Funding. Read more..

Co-Owners of Balitmore settlement agents plead guilty to fraud

Gregory Todd Alter conducted a settlement at All Star Settlement in which 7017 Surrey Drive was sold for $40,000.00 by his co-owner David Davis who sold the property to 1st National Entities for $40,000.00. On June 14, 2008 another settlement took place at All Star where the same property was sold to an innocent third party for $90,000.00. The true owner of the property was Mildred Sheehan an 85 year old woman who lives in Massachusetts who was not aware her property was being sold. Read more..

NJ woman pleads guilty in $1 million foreclosure investment scam

Ms. O’Neill proposed a business venture to prospective investors. She represented she could locate homes on the verge of foreclosure. She would then locate potential buyers for these homes, use the investor’s money to purchase the homes from the financially distressed owners, and then sell the homes at a profit to the potential buyers. She never sold any of the properties. Read more..

Chicago man charged with trying to sell properties he did not own

John Hemphill is accused of engaging in a scheme to defraud property owners and prospective purchasers of property by creating and recording fictitious deeds in various counties in Illinois, posing as the property owner selling the property in question. He typically filed a fictitious deed that purported to convey title to a parcel of property from its lawful holder to one of Hemphill’s businesses, and then filed a second fictitious deed purporting to convey title to the same property from his business entity to a third party. Read more..

Florida man indicted in foreclosure rescue fraud charges

Peter Porchelli operated Safe Harbour Foundation and was involved with Silverstone Lending, LLC, & Silverstone Financial, LLC. In June 2005, on behalf of Silverstone Lending, Porcelli applied for and received a Florida mortgage brokers license. He then mailed to homeowners whose homes were falling into foreclosure information about Safe Harbour. However in an April 2003 conviction he had been enjoined from selling credit-related products. Read more..

Case Updates

Wanted Loudoun County woman, Diane Atari apprehended in Turkey on $50 million fraud charges

Walter E. Stuckey, Jr. sentenced to 9 months imprisonment in Augusta mortgage fraud

Michael O’Keefe Jr., the son of a former Senator is sentenced to 18 months imprisonment

Sabrina Weinberg sentenced to 2 yrs imprisonment in the Maryland “Al-Bari” case

Yvette Patterson sentenced to 70 months in Operation Whose House case

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Thursday October 15, 2009

41 charged in 8 NY mortgage frauds - “Operation Bad Deeds”

In Operation Bad Deeds charges have been filed against 41 defendants, in eight separate cases, for allegedly engaging in various mortgage fraud scams that collectively defrauded lenders out of more than $64 million in home mortgage loans on more than 100 properties across New York State. Among those charged are six lawyers, seven loan officers, three mortgage brokers, an accountant, and a residential property appraiser. Read more..

Fraud 1 - 6 new defendants and new charges in Lavette Bills case. Read more..
Fraud 2 - 8 charged in “distressed seller” flipping scheme. Read more..
Fraud 3 - 6 charged in flipping scheme. Read more..
Fraud 4 - 5 indicted in $13.5 million mortgage fraud. Read more..
Fraud 5 - 4 indicted in $6.8 million straw borrower fraud. Read more..
Fraud 6 - 6 indicted in $6 million straw borrower/flipping scheme. Read more..
Fraud 7 - 3 charged in false appraisal and down payment fraud. Read more..
Fraud 8 - 2 lawyers charged in straw borrower fraud. Read more..

Salem, OR mortgage broker is first charged by new Task Force

Julian James Ruiz III, the owner of American Home Modifications, a Salem-based loan modification company has been indicted on 17 counts of first degree aggravated theft, mortgage fraud, identity theft, aggravated identity theft, forgery in the first degree and criminal possession of a forged instrument in the first degree. Read more..

Manhattan DA charges NY realtor in mortgage fraud allegations

Henry Vargas is accused of fraudulently passing himself off as the owner of 21-41 Lenox Avenue, a commercial building just north of Central Park. In fact, the building was wholly-owned by Manuel Duran, Jr. Using false representations and forged documents, VARGAS duped numerous real estate developers, business people, architects, attorneys and property owners into believing that he, not Duran, owned a controlling interest in the property. Read more..

Case Updates

Cindy Tilley Greer and Stanley Garfield Williams, Jr given prison terms in NC mortgage fraud

Jason Bloom sentenced to 90 months and ordered to pay over $1.7 million in PA escrow fraud

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Wednesday October 14, 2009

Three new cases announced by US Attorney in Miami

The United States Attorney in Miami has announced three seperate indictments of 14 people:

8 indicted in same day flipping scheme fraud allegations. Read more..
4 indicted in straw borrower scheme that recruited students and young soldiers. Read more..
West Palm Beach couple who owned title company indicted for “looting its escrow account”. Read more..

FinCEN issues SAR Activity Review - emphasis on mortgage fraud

FinCEn has issued its SAR Activity Review for the first 6 months of 2009. Encouragingly the number of reports is static when compared to the same period in 2008 with an increase of less then 1%.The top three hotspots identified are Los Angeles-Long Beach- Santa Ana, CA; Miami-Fort Lauderdale- Pompano Beach, FL and New York-Northern New Jersey-Long Island. Read more..

3 Kentucky mortgage brokers have been charged in wider scheme

Richard Hild, Mike Otis and Chris Whitfield are accused of, or have pled guilty to, conspiring with others to fraudulently obtain residential mortgage loans by misrepresenting the financial information of borrowers, and by providing fraudulent documents in support of loan applications. The conspiracy involved 34 fraudulent loans totaling over $10 million. Read more..

Case Updates

Kara Robinson-Franks pleads guilty in Kansas City mortgage fraud case

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Tuesday October 13, 2009

Arizona AG wins $1.37 million in two mortgage fraud cases

Arizona AG Terry Goddard announced that he has gained a total of more than $1,370,000 in civil penalties and restitution for consumers as a result of two mortgage fraud lawsuits filed earlier this year against Taken Care Of Investments, LLC and Hope For Homeowners Now, LLC. These enforcement actions come as part of Goddard’s crackdown on businesses that prey upon homeowners struggling to avoid foreclosure. Read more..

Oregon DCBS revokes mortgage broker license - alleges fraud

The Oregon DCBS has revoked the license of Pacific Rim Mortgage and its owner, Victoria Bigham. It found, amongst other things, that while originating mortgage loans, Bigham made numerous private loans to the same borrowers to cover other expenses related to the transaction, including earnest money, settlement costs, and credit card debt; and she failed to include these private loans on the applications submitted to the lenders. Read more..

Dallas man convicted of renting out foreclosed homes he did not own

Morris Mosley has been convicted of breaking into houses that were in the foreclosure process that he did not own and then renting the houses out to unsuspecting victims. He committed this offense multiple times across southern Dallas County, breaking into houses in Dallas, DeSoto, Cedar Hill, Glenn Heights and Lancaster, Texas. Read more..

Wisconsin AG files suit against loan modification company

21st Century Legal Services, Inc. is being sued for violating WI state law. The California-based company alleged solicited distressed homeowners facing foreclosure and hired local notaries to go to the homes of potential customers and obtain signatures on sales agreements. The notaries were instructed not to leave copies of signed agreements with customers and to obtain fees in advance of services. Read more..

Case Updates

Robert Penn and Kevin Lafavers plead guilty in huge Indianapolis mortgage fraud case

Richard N. Garries of Newport News, VA is sentenced to 240 months for mortgage fraud

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Monday October 12, 2009

Case Updates

Loan officer, Kristen Anne Way, convicted in Houston area mortgage fraud

William E. McKanry found guilty in St. Louis mortgage fraud trial, two others previously pled guilty

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Friday October 9, 2009

Connecticut paralegal indicted in mortgage fraud

Heather Bliss and her co-conspirators are accused of submitting false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans. Read more..

Former Indianapolis attorney indicted in foreclosure bidding fraud

Brian Nehrig was a lawyer contracted with CitiMortgage to do foreclosure work. He attended sheriff’s sales and placed minimum price bids according to CitiMortgage’s authorization for its properties in foreclosure. In this case he is accused of placeing an inflated minimum bidding price for many of the properties at the sheriff’s sale. He then completed sales of the properties with third parties with whom he was associated without CitiMortgage’s knowledge and permissio and pocketed the difference. Read more..

Two Connecticut realtors indicted in “short sale” frauds

Sergio Natera and Anna McElaney are accused of conspiring to defraud financial institutions on four separate real estate transactionsin CT. The indictment alleges they created straw buyer transactions in order to negotiate with mortgage holders to allow sales of the properties to occur without paying the mortgages in full. During the negotiations with the mortgage holders they knew that legitimate purchasers had already agreed to to purchase the property at higher prices. Read more..

Thursday October 8, 2009

13 indicted in Brooklyn “$10k per day” enterprise/mortgage fraud

The Kings County DA has announced that 13 people have been charged, in three separate indictments, in a wide-ranging criminal enterprise that included real estate fraud, identity theft and credit card fraud, and a conspiracy involving automobile insurance fraud. They allegedly orchestrated fraudulent purchases and sales of the properties, by employing straw buyers and using crooked real estate brokers and loan officers to help them file false paperwork. Read more..

12 indicted in “massive” New York mortgage fraud scheme

The 12 defendants and their co-conspirators allegedly purchased dozens of residential properties throughout New York City and Long Island with fraudulent mortgages. These mortgages, which amounted to 100 percent of the purchase price of the residences, were obtained using names of fictitious individuals or individuals whose identification information was misappropriated or misused. Read more..

Appraiser pleads guilty in Tampa area mortgage fraud

Barry Westergom pled guilty in a case where he used inappropriate comparable properties and other fraudulently means to appraise properties. The appraised value was significantly higher than the agreed purchase price and the true market value of the property. The inflated appraisals were submitted to lenders in support of mortgage loan applications that reflected the higher appraisal price as the actual sales price. Read more..

Two arrested, another wanted, in Nevada mortgage fraud scam

Thomas F. Gentile, Julio C. Martinez both of Las Vegas, Nevada, have been arrested on multiple charges of theft, mortgage fraud, identity theft and forgery. An arrest warrant has been issued for a third suspect, Justin M. Sabo of Huntington Beach, California, whose whereabouts are unknown at this time. The charges stem from the group’s involvement in a scheme to fraudulently obtain a mortgage loan against a property owned by Gentile’s former employer without the knowledge or consent of the former employer. Read more..

Suffolk County (NY) man sentenced in foreclosure/rental scam

Paul Salamone was convicted of entering foreclosed homes that he did not own and then renting them out to unsuspecting tenants. Salamone, 29, changed locks, removed For Sale signs, and put guard dogs in the homes to ward off realtors and owners while he searched for potential tenants on Craigslist investigators found evidence that Salamone filed a total of thirteen fraudulent liens with the county clerk’s office and the state. Read more..

Vallejo, CA woman indicted for mortgage and bankruptcy fraud

Myra Holmes has been indicted on charges she convincing her father – who had previously filed for Chapter 11 bankruptcy – to convey to her, without notifying or obtaining the permission of the courts or trustee, his interest in the Vallejo property where she lived. In addition Holmes is accused of withdrawing the equity from the property by fraudulent refinancing the mortgage loan. Read more..

Case Updates

New Orleans woman sentenced to 69 months in fraud scheme + new details about her husband

Appraiser Gerald Mullaney sentenced to time served in Vermont mortgage fraud scheme

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Wednesday October 7, 2009

Costa Mesa woman surrenders to police in mortgage fraud allegations

Vickie Dang ran a number of loan modification companies and is accused sometimes unlawfully representing herself as an attorney during Radio shows. Those clients seeking loan modifications were required to pay 50% of the money up-front, in violation of several criminal and civil codes. Victim’s alleged that after payments were received, in many cases, services were not rendered resulting in more than one victim losing their home. Read more..

Virginia couple sentenced in Real Estate ponzi scheme

Darrell and Cynthia Underwood owned and operated Walkwood Properties and offered to save homes from foreclosure. Through the company, the Underwoods also offered an investment program to various individuals, allowing them to invest in Walkwood’s real estate purchases. The Underwoods admitted to operating a “Ponzi” scheme through Walkwood’s investment program in 2007. Read more..
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Tuesday October 6, 2009

Minnesota Dept of Commerce suspends licenses of 2 title companies

The Minnesota Department of Commerce has suspended the licenses of Nez Title, LLC and Scenic Title and Abstract in seperate cases.

Nez Title had its license suspended on 9/10/09 for failing to pay off prior liens and failing to record over 3,000 mortgages. Read more..

Scenic Title had its license suspened because there were at least 237 instances where they collected insurance premiums from clients on behalf of Fidelity National Title Insurance Company which they never remitted. Read more..

Case Updates

Dearborn mortgage broker, Hassan Nagi, sentenced to 20 months in Detroit fraud scheme

Joshua Gervolstad pleads guilty in scheme that caused a $1.2 million loss in Redding (CA)

Viktor Kobzar is last of 7 defendants to plead guilty in Bellevue (WA) mortgage fraud scheme

Eric Wayne Moen pleads guilty in Minnesota mortgage fraud case

Milton H. Ohlsen III sentenced to 30 months in St. Louis mortgage fraud

Manuel Pupo is one of four to plead guilty in Miami grow house/mortgage fraud scheme

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Monday October 5, 2009

Sheriff Department lieutenant arrested on real estate fraud charges

Michael Leary of Elk Grove has been arrested for felony grand theft, forgery and recording a false instrument. He is accused of altering a grant deed to reflect he had 90% ownership of a property in Elk Grove rather than the 50% his former girlfriend alleges was subject of the original deed. It is also alleged that he later persuaded her to sign over a further 10% ownership and then evicted her after claiming he was now the sole owner. Read more..

Two indicted in Nevada foreclosure rescue scam allegations

Jack Ferm and Mario Saunders have been indicted for allegedly operating a foreclosure rescue scam in Las Vegas under the business name of US Justice Foundation. The indictment alleges that they operated US Justice Foundation, a document preparation business that charged $2,500.00 and misled customers that their services would stop ongoing foreclosures on their homes and/or obtain loan modifications. Read more..

Case Updates

Robert B. Guest, Jr sentenced to 50 months imprisonment in Alabama mortgage fraud

Mortgage fraud scheme leader Osman Sharrieff Al-Bari given 78 months inprisonment

Clifford McCall and his daughter, Chandra Jones sentenced in Metropolitan Money Store case

Jennings State Bank closed by FDIC, was victim in mortgage fraud by former employee

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Friday October 2, 2009

Rhode Island woman pleads guilty in $1.7 million mortgage fraud

Lisa Torres has admitted purchasing nine residential properties in Providence. She then enlisted the aid of others, some willing participants, others unwitting dupes, to arrange sham sales of the properties at inflated prices in order to obtain mortgage financing. The loan proceeds went to Torres, the purported seller of the properties, so she profited the difference between what she had paid for the properties, about $1.1 million, and what she purportedly sold them for, about $1.7 million. Read more..

Two plead guilty in Wisconsin builder fraud case

John T. Laufer a builder and Rick J. Roloff, a mortgage broker pled guilty to working together to secure loans for individuals buying homes and condominiums from Mr. Laufer. To obtain the loans, Mr. Laufer and Mr. Roloff submitted materially false loan applications and other documents intended to deceive lenders as to the applicants’ financial condition and ability to make down payments. Read more..

Former Queens resident sentenced in mortgage and tax scheme

Rafael Vascones purchased a property at 13-07 141st Street in Whitestone by obtaining a mortgage from the Greenpoint Mortgage Corporation for $360,000 using another identity and without informing the lender of his true identity. Ten months later, he transferred ownership of the property to his brother-in law without notifying the mortgage lender and later obtained an $850,000 mortgage on the same property. Read more..

Case Updates

Tom Ryder pleads guilty in New Hampshire mortgage fraud case

Kansas appraiser Maurice Ragland pleads guilty in mortgage fraud

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Thursday October 1, 2009

Senators Schumer and Kyl announce Fighting Real Estate Fraud Act

U.S. Senators Charles E. Schumer (D-NY) and Jon Kyl (R-AZ) announced new legislation Tuesday to better protect homeowners from the recent wave of mortgage scams by providing up to $200 million over two years for State and local prosecutors offices to battle real estate fraud. The bill authorizes the Justice Department to award competitive grants to prosecutors’ offices that seek to hire specialized staff—including investigators, forensic accountants, and attorneys—to combat such scams. Read more..

Case Updates

Ricky Dean Unruh and Steven Ray Spencer plead guilty in Missouri mortgage fraud scheme

Michael Lee Wilson, owner Pacific Coast Mortgage, files guilty plea in a Santa Barbara court

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Wednesday September 30, 2009

Georgia attorney disbarred over complaints about real estate closings

Georgia State Bar and Supreme Court records show that on September 8, 2009 attorney was disbarred after the Supreme Court ruled on 6 disciplinary matters taken against Moore. The matters related to disbursement of funds from a real estate transaction, dealing with funds held in escorw, checks returned because of insufficient funds and failure to respond to State Bar requests. Read more..

Queens man indicted in immigration and real estate fraud charges

Shane Ramsundar allegedly posed as a federal government agent has been charged with defrauding nearly a dozen members of Queens County’s West Indian community out of more than $1 million by promising to assist them in obtaining “federally seized” properties at cheap prices or to assist them in gaining legal status in this country. Read more..

Maryland AG gets $1 million order against foreclosure scammers

Michael K. Lewis and Earnest Lewis, Cheryl Brooke, In the House Technology, Inc., and Winston Thomas have been ordered to pay over $1 million based on violations of Maryland’s law against foreclosure rescue scams. They are also barred from offering and selling services of any kind to a homeowner who is in default on a mortgage or is in foreclosure. Read more..

Ventura County DA gets full restitution for elderly victim of scam

The Ventura County Real Estate Fraud Prosecution Unit obtained full restitution in the amount of $220,091 on behalf of 70 yrd old crime victim Carolyn Koenig. On September 17, 2009, Ronald Ted Hasson was sentenced on two felony counts involving a real estate investment scheme. At the sentencing hearing the Judge ordered the court-appointed Receiver to disburse these funds to the victim. Read more..

Case Updates

Jerry Jaquess, owner of Charter Homes sentenced in $20 million Indianapolis fraud case

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Tuesday September 29, 2009

Former New Hampshire prosecutor pleads guilty to mortgage fraud

Paula Philbrook has admitted that she obtained over $600,000 in mortgage financing to construct two homes after falsely inflating her income on mortgage loan applications. She further admitted that, in connection with one of those loans, she falsely certified in a later affidavit that she actually had taken occupancy of the property when in fact she had leased it out to a third party and had put it up for sale. Read more..

Former Crisp and Cole staffer pleads guilty to mortgage fraud

Jerald Allen Teixeira has admitted that he along with certain individuals at Crisp & Cole and Tower Lending, and other individuals, executed a scheme to defraud mortgage lending institutions, by submitting materially false and fraudulent statements in mortgage loan applications and related documents to obtain loans from the lenders for borrowers’ purchases of real property. Read more..

4 indicted by Massachusetts AG for mortgage fraud

Allen Seymour, Raymond A. Desautels III (an attorney), Jason Passell (a paralegal), and Judith Piette a notary), are all charged in allegations that fraudulent documents were used to defraud homeowners and mortgage lenders in numerous real estate transactions involving distressed properties in the Worcester County area. Read more..

Case Updates

Paul Ryder pleads guilty in New Hampshire mortgage fraud case

New Hampshire “grow house” owner sentenced to 83 months for mortgage fraud

Former Somerville (MA) real estate attorney pleads guilty to $2 million theft from lenders

Randall Lee Hall and Shanda Lynn Moore plead guilty in Missouri mortgage fraud scheme
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Monday September 28, 2009

More details emerging about NC mortgage fraud investigations

In recent months the FBI and US Attorney in North Carolina have been charging people in relation to a number of fraud schemes referred to in court documents as “Mortgage Fraud Cell No. 1”; “Mortgage Fraud Cell No. 2”; “Mortgage Fraud Cell No. 3”; “Mortgage Fraud Cell No. 4” and “Mortgage Fraud Cell No. 5”. So far I have found court records for 8 cases which are listed herein. Read more..

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Sunday September 27, 2009

FTC takes actions against two more loan modification companies

The defendants, Nations Housing Modification Center and Infinity Group Services allegedly falsely claimed that they would obtain a mortgage modification in virtually all cases. According to the FTC’s complaints, after charging homeowners large up-front fees, the defendants often did little or nothing to help them renegotiate their mortgages or stop foreclosure. Read more..

Terence Mayfield sentenced to 97 months for defrauding church congregation

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Friday September 25, 2009

Three people, including NYPD officer indicted for mortgage fraud

A multi-agency investigation in Brooklyn, NY has allegedly uncovered a fraudulent deed for a house in Brooklyn, which, together with other false documents, was used to obtain mortgage funds of $600,000 that were distributed to the three defendants. At the closing, approximately $511,500 from the mortgages was distributed to the three defendants through checks that were later altered. Read more..

FL attorney disbarred for failing to remit $25 million in mortgages

Jerome David Mitchell Daytona Beach, Florida [has been] disbarred for 10 years effective immediately, following a July 2 court order. Mitchell was a title issuing agent and closed numerous loans on behalf of the Attorneys’ Title Insurance Fund. In the course of conducting those transactions, Mitchell failed to remit approximately $25 million to satisfy existing mortgages and encumbrances. Read more..

Mississippi man accused of fraud in purchase of Florida condos

Seneca Ontario McField is accused of devising a scheme for the purchase of a condominium unit located at 128 Golden Gate Point, in Sarasota, Florida. He is alleged to obtain $1,680,000.00 in loan proceeds by fraud from Merchants and Farmers Bank. The indictment further alleges that he personally benefitted by using $429,407.51 to purchase a black 2005 Bentley Arnage T.
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Inland Empire man sentenced for tax evasion on fraud proceeds

Richard Nazabal was sentenced to nine years in state prison and ordered to pay restitution to his victims as well as FTB. Nazabal fraudulently obtained more than $2.4 million from investors and through a personal home loan. Nazabal promised his victims he would invest the funds and purchase fixer-upper homes and then re-sell them at a profit. Instead Nazabal used the money for personal gain and never purchased the homes.He failed to claim the illegal income on his 2007 state income tax return. Read more..

Case Updates

Garrett Gililland extradited from Spain to face numerous fraud and drug charges

Jamilah Al-Bari pleads guilty in $19 million mortgage fraud

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Thursday September 24, 2009

Fairfax Police & FBI arrest 20 in widescale mortgage fraud case

The case began after elected officials received several complaints from constituents regarding small houses being torn down then built into mansions to be used as boarding houses. The subsequent investigation led police on a countywide search through zoning records and permits involving over 200 houses. “Straw buyers,” with annual incomes of less than $25,000, were being approved for loans over $600,000 to purchase the homes. Read more..

Ventura Pastor and his wife accused in real estate fraud charges

Ventura County (CA) District Attorney’s Office Real Estate Fraud Prosecution Unit filed a felony complaint against Alonzo Gene McCowan and Kimberly Ann Oglesby McCowan, a married couple from Camarillo. The complaint charges Alonzo McCowan with two counts of theft from an elder and two counts of money laundering. The case alleges that over $500,000 is involved. Read more..

Former title agent pleads guilty in theft of mortgage funds

Hubert Ellzey was as an independent title agent for Commonwealth Land Title and was responsible for disbursing funds from the sale of refinanced property. Usually the funds were wired to into an escrow account. At some point after June of 2005, he began to use the funds provided and wired by the lenders to close out mortgages for his own personal use and would then float the funds from subsequent closings to pay off the prior refinanced mortgages. The scheme was discovered when after Hurricane Katrina hit New Orleans in August 2005 all closings came to a halt. Read more..

3 Los Angeles residents arrested on real estate fraud charges

Mario Raul Guevara was arraigned and pleaded not guilty yesterday afternoon to four counts of grand theft of personal property, two counts of forgery and two counts of failure to file tax returns. He is accused of forging a client’s signature and selling the victim’s North Hollywood property to defendant Marcelino Hernandez. The transaction allegedly netted Guevara $788,504. Guevara and Hernandez allegedly engaged in fraud to finance the purchase. Also charged is Maria Guadalupe Banales. Read more..

Case Updates

Adriana Cruz is last of 8 defendants to be sentenced in Miami HELOC fraud case

Uto Essien and nine other sentenced in Colorado mortgage fraud scheme

Marlon Pratt given 10 years imprisonment in Hennepin County mortgage fraud case.

Cheryl Brook is final defendant to be sentenced in Maryland scam that targetted victims via TV ads

All four defendants have now pleaded guilty in Shelbyville (TN) mortgage fraud case

Pastor Roland McGill and his wife Shalonda McGill are sentenced in Florida mortgage fraud scam

Rosario Divins sentenced to 350 months for Texas foreclosure scam & contempt of court

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Wednesday September 23, 2009

Maricopa County (AZ) Supervisor accused of mortgage fraud

Maricopa County Sheriff’s have arrested and booked Maricopa County Board of Supervisor member Don Stapley on probable cause of 93 new felonies and seven misdemeanors. The arrest stems from an eight month long investigation by Sheriff’s deputies into Stapley’s business and campaign accounts which began as a result of information uncovered by deputies earlier this year. Read more..

Former Salem (OR) loan officer arrested - accused of ID Theft

Julian Ruiz, of Keizer, OR has been arrested by Salem Police Department detectives amid allegations that whilst he was employed as a a mortgage loan originator at America One Finance he financed a home in the 900 block of Camelot Dr S for $376,000 using the stolen personal information of a customer. That residence subsequently fell into foreclosure. Read more..

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Tueday September 22, 2009

Edward Walsh given Guardian of Justice Award

In January 2009, a Kansas jury convicted Isaac Yass and Robert Blechman on charges of mail fraud, aggravated identity theft and conspiracy. During trial, [Mr.] Walsh took the stand and guided jurors through the complicated foreclosure rescue scam. Yass and Blechman operated a fraudulent service called Stopco falsely claiming to be able to save homeowners who were behind on their mortgage from losing their homes. Read more..

Mother and Daughter accused of mortgage fraud in Manteca, CA

Helen and Irene Sotiriadis are accused of recruiting as many as 25 members of the Cambodian immigrant community to purchase homes they could not afford in and around Stockton and Modesto. They promised that after one initial high monthly payment, the homes would be refinanced to a payment of only $1,500 per month. After the initial monthly mortgage payments of $4,000 came due, they refused to return phone calls to the victims. Most of the homes quickly fell into foreclosure. Read more..

Man accused of defrauding Road Home program in Louisiana

Ryant Price is accused of defrauding Louisiana Road Home Program (LRHP) and FEMA in that prior to and during the time of Hurricane Katrina, he resided in his primary residence and then in 2006 he applied for funds from the LRHP and FEMA, claiming that a second home he owned, located in New Orleans was his primary residence at the time of the storm. He is said to have received approximately $105,000. Read more..

Todays Case Updates

Keith Pittman sentenced to 4 yrs imprisonment in IL fraud case

Two more guilty plea’s in $3 million Kansas City mortgage fraud

Yomi Jagunna given 141 months and ordered to pay around $3.2 million in NJ HELOC fraud

Former settlement agent, Wany Shain, pleads guilty in Louisville mortgage fraud case

Two sentenced in Maryland foreclosure and mortgage frauds that targetted victims via TV ads

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September 8, 2009 to September 21, 2009

Recent Case Updates

Henry “Uche” Obilo sentenced to 88 months in Virginia HELOC fraud scheme

Cheryl Camus sentenced to 5yrs and 3 months in Bay Area real estate fraud scheme

Benjamin Osmanson pleads guilty in $26 million Vermont mortgage fraud case

Lawyer Richard Allison sentenced in Metropolitan Money Store fraud case

Former bank employee, Eric Jason Sunsdahl, pleads guilty in Parish Marketing fraud case

Passadena (MD) title company owner sentenced to 84 months imprisonment

Mario Bernadel convicted in Phoenix (AZ) area mortgage fraud scheme

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Friday September 4, 2009

Houston man indicted in $5 million mortgage fraud allegations

Melvin Lendall Brown is accused of recruiting individuals with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more homes in the Houston area, knowing the borrowers had no intention of making payments on the mortgage loans. Brown generally told each borrower he would buy the home in the borrower’s name, make the mortgage payments, find tenants, take the borrower’s name of the mortgage and compensate the borrower. Read more..

Former Maryland mortgage broker pleds guilty in mortgage fraud

Rasheeda Canty is accused along with other conspirators in a scheme that identified distressed homeowners whose properties in Washington, D.C., and Maryland were facing imminent foreclosure and offering to purchase their properties. The homeowners were told that they could repurchase their properties within one year. Canty prepared fraudulent letters to have derogatory information deleted from the sellers’ credit reports so that their credit scores would be increased, thus allowing the sellers to qualify for the re-purchase of their properties. Read more..

Two indicted in Colorado flipping fraud allegations

Cedric Lipsey, a realtor and Philip Martinez, a loan officer, are accused of running a scheme where they paid individuals to participate as “investors” and then used their good credit to obtain mortgage loans to purchase properties. Shortly after the individuals purchased the properties, they were sold to a second set of buyers at substantially higher prices. Read more..

Saratoga Springs (NY) couple charged in mortgage fraud allegations

The indictment alleges Nikole and Stephen Sutliffe engaged in a scheme where multiple mortgages were fraudulently obtained for addresses in Saratoga County, and the proceeds were shared among themselves, totaling in excess of $2,300,000. Those proceeds were then allegedly used to purchase a 2007 BMW 335i Sedan; a 2007 BMW X3; a 2003 Chevrolet Silverado; a tavern named “Dream Street”; and a nightclub named “Saratoga Winners”. Read more..

Case Update

Myron L. Hooker, Jr. is one of four defendants sentenced in Michigan mortgage fraud

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Thursday September 3, 2009

Former Dallas Cowboy, Eugene Lockhart, charged in mortgage fraud

Eugene Lockhart and 8 other defendents are accused of running a scheme in which they located single-family residences for sale in the Dallas area, including distressed and pre-foreclosure properties, and negotiated a sales price with the seller. They created surplus loan proceeds by inflating the sales price to an arbitrary amount substantially more than the fair market value of the residence. Read more..

Nine indicted in Miama area mortgage fraud allegations

The Indictment alleges that the defendants were involved in the financing of two properties in Miami-Dade County. Once identified the properties used in this scheme were bought by straw borrowers who obtained mortgages using allegedly false personal information in order to qualify them for loans with Washington Mutual. Read more..

Former PA attorney indicted in theft allegations

The Pennsylvania Attorney General has charged former attorney William Trickett Smith with allegedly diverted money from the sale of a 90-year old Harrisburg woman’s home. The proceeds from that $80,000 sale were intended to support the woman’s medical care at a nursing home, but instead were allegedly used by Smith to pay his own personal expenses. Read more..

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Wednesday September 2, 2009

Four indicted in MA. straw borrower/ID theft fraud allegations

Steven Soto, Pedro Soto, Carmen Soto and Kimberly Litwin have been charged in a thirteen-count Indictment with mail fraud and aggravated identity theft in an alleged straw borrower scheme to obtain a number of properties in the Springfield, MA area. The Soto’s ran a company called Paradise Real Estate in Lynn which was used to identify the properties subject of the scheme. Read more..

Michigan couple convicted in mortgage fraud scheme

Patricia L. VanderZwaag and Daniel Lee VanderZwaag have been convicted in a morrtgage fraud scheme in which they provided false documentation and information to mortgage companies to obtain loan proceeds. They managed to obtain two first liens on the same property within days of each other from two different lenders. Read more..

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Tuesday September 1, 2009

Three indicted in Houston area fraud - one of them now wanted

Edward Lee Waddell (left - now wanted), Alfred Warren and Gerald L. Jones were indicted in an alleged Houston area mortgage fraud that caused $1 million in losses to lenders. They are accused of conspiring with Revis Otto Willis and Dedrick Johnson to recruit straw borrowers to purchase properties with mortgages that were greater than the true value of the properties. Read more..

Colorado man indicted over HELOC fraud now wanted

Karen Nikolyan was indicted in connection with a series of HELOC transactions in he which he obtained a 6 seperate HELOC’s from different banks totaling over $550,000 on the same property and each time failed to disclose the existence of the other HELOC’s already taken out on the property. Nikolyan was on bail when he went missing have removed an electronic monitor. Read more..

Two Bronx men indicted over sale of real estate they did not own

Mario Tolisano and Celestino Orta have been charged with bilking three people out of more than one point three million dollars ($1,300,000) in an alleged scam involving the sale of property that the defendants did not own and were not authorized to sell. It is alleged that the victims were led to believe that they were purchasing property that had been owned by the City of New York because the previous owners had either failed to pay taxes or correct code violations. Read More..

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