Ohio AG files suit against a Toledo loan modification company

Ohio Attorney General Mike DeWine today announced [Press Release] a lawsuit against N.M.M.S.R. Incorporated, doing business as Making Home Affordable USA, and its owner Jason Keating of Maumee. The Lawsuit charges Keating and his business with multiple violations of Ohio’s consumer laws. 

“Too many consumers have lost thousands of dollars, or even their homes, because of loan modification services that did nothing to help them,” DeWine said. “We are continuing to target foreclosure relief businesses that mislead consumers, and we will continue to take action when we find them.”

 

Making Home Affordable USA is located at 120 10th Street in Toledo. It offers loan modification and foreclosure assistance services through its “National Mortgage Modification Stimulus Home Saver Program.” Although the business’ name and website closely resemble that of the federal government’s Making Home Affordable program, Making Home Affordable USA is not associated with the federal government. 

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Disbarred attorney indicted in Ohio real estate fraud allegation

In the following press release Ohio Attorney General Mike DeWine and Hamilton County Prosecutor Joseph Deters announced today the indictment of a disbarred attorney who allegedly stole more than $400,000 from an 83-year-old woman from Morrow, Ohio. William G. Goetz, of Cincinnati, was indicted Tuesday by a Hamilton County grand jury on two counts of Theft from the Elderly, two counts of Money Laundering, and one count of Tampering with Records. If convicted, Goetz faces a maximum of 31 years in prison.

“Prosecutor Deters and I both believe that we need to prosecute those who prey on the elderly,” said Attorney General DeWine. “The amount of money that this man allegedly stole from the victim is staggering.” 

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Three sentenced in Ohio for mortgage fraud involving Arizona properties

Cameron Green, 36, of Pickerington, Ohio was sentenced to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Jason Simcox and Kevin Simcox, to the victim mortgage lenders for fraudulently obtaining approximately $15,037,421 in mortgage loans to finance the purchase of 26 real estate properties in Maricopa County, Arizona.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced  the sentence handed down today by U.S. District Judge Michael Watson.

On January 9, 2013 Jason Simcox, 39, of Pickerington, Ohio was sentenced by Senior U.S. District Judge George C. Smith to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Cameron Green and Kevin Simcox, to the victim mortgage lenders.

According to court documents, between August 2006 and May 2007, the two men applied for loans using false income, assets, and occupancy statements on the loan applications. The mortgage loans were inflated to allow Simcox and Green to use the excess mortgage proceeds to generate cash kickbacks payable to co-conspirators that were undisclosed to the mortgage lenders. The co-conspirators then provided the money to Simcox and Green via interstate wire transfers.

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Ohio woman indicted by Grand Jury on mortgage and tax fraud charges

A federal grand jury here has indicted Regina Shields, 40, of Cincinnati, Ohio charging her with scheming to file false claims for federal income tax refunds with the Internal Revenue Service (IRS), as well as wire fraud and money laundering in connection with a mortgage fraud.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the indictment unsealed today following her arrest.

The indictment charges Shields with four counts of filing false claims for federal income tax refunds with the IRS, one count of wire fraud, and one count of money laundering.  In addition, the indictment contains two forfeiture allegations, one of which calls for the forfeiture of $141,491 relative to the wire fraud that was charged in this case.

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Two plead guilty in Ohio mortgage fraud case

Gordon L. Yocom, 44, of Dublin, Ohio pleaded guilty to conspiracy to commit money laundering for fraudulently obtaining a mortgage loan to finance the purchase of a real estate property in Powell, Ohio.  Yocom agreed to forfeit $119,000, which represented the proceeds of this transaction.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Yocom’s plea which was entered today before U.S. District Judge Michael Watson.

According to court documents, Yocom owned and operated a mortgage brokerage business called Gordon Lending.  Yocom and an employee of his, Nancy Rayfus, worked to arrange for a buyer to purchase a property located at 10577 Durham Place in Powell, Ohio.  The buyer was from California, but it was Rayfus’ intent to reside at the property.  The purchase contract was negotiated so Rayfus could obtain substantial cash payments at closing through the submission of two false invoices.  Yocom knowingly provided funds to Rayfus in the amount of $123,500 for the purpose of funding the majority of the down payment for the purchase this property.  Yocom purchased two official checks out of accounts that he controlled.  The checks were made payable to Landsel Title.  Yocom disguised the fact that he was the one providing the funds by having the bank place a variation of purchaser’s name as the remitter on each of the checks.

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Man pleads guilty to tax and mortgage fraud charges

Steven R. Hinz pleaded guilty today to tax fraud and mortgage fraud charges in Cleveland federal court, the Justice Department and Internal Revenue Service (IRS) announced [Press Release]. Hinz’s guilty pleas followed recent guilty pleas of three other defendants—Heather L. English, Patricia A. Polk, and William E. Phillips, III—who were charged in indictment in December 2011 on a tax conspiracy and various false return charges. The case is assigned to U.S. District Judge Patricia A. Gaughan, who scheduled the sentencing for January 2013.

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Blaine Murphy indicted in Cuyahoga County, accused of mortgage fraud

In the following press release Cuyahoga County Prosecutor Bill Mason announced that Blaine Murphy (aka Bryce Peters, III and Martin J. Franks) and Bryce Peters Financial Corporation, Inc. were indicted on charges of illegally “flipping” 235 houses in Cuyahoga County by filing forged deeds to these properties. Murphy, 43, of Naples, Florida, forged the deeds as an individual named Bryce Peters, III. The indictment includes properties located in 14 other Ohio counties.

Murphy (pictured left) was the key participant in this nationwide enterprise that includes real estate in many states with the most activity occurring in Ohio, Michigan, Pennsylvania, Missouri, and Texas.  From 2005 to 2010, the purpose of the enterprise was to make a quick profit by selling houses in Cuyahoga County, and the enterprise did so by filing forged deeds and engaging in related conduct. Of the 235 houses sold in Cuyahoga County, 186 properties were in Cleveland, 31 properties in East Cleveland, 5 properties in Warrensville Heights, 4 properties in Euclid, 3 properties in Cleveland Heights, 3 properties in Shaker Heights, 2 properties in Maple Heights, and 1 property in Garfield Heights. 96 properties fell into Tax Foreclosure for a total tax delinquency of $1,032,849.84.

Murphy and his company were indicted on charges of engaging in a pattern of corrupt activity (RICO), possessing criminal tools, money laundering, and tampering with records. Murphy is also indicted on charges of acting as an officer of an unlicensed foreign corporation, and operating an unlicensed foreign corporation. The indictment seeks forfeiture of the 79 properties currently owned by Murphy’scompany.  This is the first time a “houseflipper” has been charged for using fictitious identifications to forge deeds and other documents.  

The enterprise existed in two phases. First, acquisitions were made with little or no regard for the condition of each property. In his quest to make a fast profit, Murphy ignored property code violations and payments of taxes at the expense of these communities in Cuyahoga County. Secondly, Murphy sold these properties in bulk or individually for a quick profit to various buyers, essentially in the same manner as these properties were acquired.

The forgeries hid the real identity of Murphy and made it difficult, if not impossible, for communities in Cuyahoga County to make contact with the individual or individuals responsible for the condition and maintenance of the properties. In an attempt to combat repeated housing code violations, Cleveland Municipal Housing Court Judge Raymond Pianka held Murphy and his corporation in contempt of court and levied fines for failure to appear in the amount of $9.5 million dollars. These forgeries aided the defendants in avoiding detection. The Cleveland office ofthe FBI investigated this matter in cooperation with the Cuyahoga County Prosecutor’sOffice.

Cuyahoga County Prosecutor Bill Mason said, “Cuyahoga County has brought to justice an individual who is responsible for causing millions of dollars in damages and ruining whole neighborhoods across Ohio and the Midwest. Today is a triumph of justice over greed.”

The investigation of others who aided and abetted Blaine Murphy (aka BrycePeters, III – aka Martin J. Franks) and Bryce Peters Financial Corporation, Inc. continues.

4 indicted in Northern Ohio mortgage fraud allegations

In the following press release Steven M. Dettelbach, United States Attorney for the Northern District of Ohio announced that an indictment has been filed against David R. Sharrock, Richard W. Balliett, Rhonda J. McElroy, and Ronald L. Kightlinger charging them with multiple counts of bank and wire fraud in connection with a mortgage fraud scheme which caused approximately $1.3 million in losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, and Suntrust Mortgage, Inc.

Sharrock is also charged with making false statements to the FBI relative to the scheme.

David R. Sharrock, age 69, currently resides in Mansfield, Ohio. Richard W. Balliet, age 44, currently resides in Bucyrus, Ohio. Rhonda J. McElroy, age 49, currently resides in Bellville, Ohio. Ronald L Kightlinger, age 51, currently resides in Crestline, Ohio.

The indictment alleges that Sharrock, Balliett, and McElroy (“the sellers”) sold homes in the cities of Mansfied, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing. [Editor note - more details have been taken from the indictment and listed below this press release].

The indictment also alleges that Ronald L. Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, Ohio. Sharrock subsequently lied to FBI agents relative to whether he provided down payment assistance in the scheme.

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation.

An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Editor Note - According to the Indictment:

• David Sharrock is the owner of D.R.L Properties Trust LLC, Herman Trust Properties and D & D Rentals which between them managed hundreds of investment properties in Northern Ohio.
• Richard Balliett oversaw the day to day operations of Homes Central, Inc which also owned and managed investment properties
• Rhonda McElroy is the daughter of Sharrock and worked at D & D Rentals. She allegedly sold multiple properties to the borrower G.S.
• Kightlinger purchased Sharrock’s property at 34-38 West 4th St, Mansfield, OH.

The following properties are mentioned in the indictment

1. 71 Greenwood Ave, Mansfield, OH
2. 76 Greenwood Ave, Mansfield
3. 21 Greenwood Ave, Mansfield
4. 44 Raleigh Ave, Mansfield
5. 565 Arnold Ave, Mansfield
6. 385 Home Ave, Mansfield
7. 284 Remy Ave, Mansfield
8. 144 Columbia, Mansfield
9. 398 Home Ave, Mansfield
10. 542 Gruber, Mansfield
11. 28 Blanche St, Mansfield
12. 338 High St, Mansfield
13. 53 State st, Mansfield
14. 219 LaSalle St, Mansfield
15. 190 Hillside Circle, Mansfield
16. 174 Arthur Ave, Mansfield
17. 216 Blymyer Ave, Mansfield
18. 252 John Ave, Mansfield
19. 34-38 W 4th St, Mansfield
20. 208 Blaine Ave, Marion, OH
21. 335 Edgewood Dr, Marion
22. 576 Herman St, Marion
23. 364 Chester St, Marion
24. 185 Latourette, Marion
25. 738 Gill Ave, Marion
26. 306 Patten St, Marion
27. 190 Glad St, Marion
28. 287 Cass Ave, Marion
29. 168 Nye St, Marion
30. 207 Carhart St, Marion
31. 458 Scranton Ave, Marion
32. 431 Vine St, Marion
33. 236 N Grand Ave, Marion
34. 32 Trux St, Plymouth, OH
35. 130 South Riblet St, Galion, OH
36. 15 Summit St, Shelby, OH
37. 703 S Poplar St, Bucyrus, OH