Entries in Broker (520)

6:11PM

Real estate investor and mortgage broker indicted for fraud 

US DOJ Press Release — October 15, 2004

KANSAS CITY , Mo. — Todd P. Graves, United States Attorney for the Western District of Missouri, announced today that a real estate entrepreneur and a former employee of a mortgage brokerage have been indicted by a federal grand jury in a property flipping scheme and a mortgage fraud. Brent Michael Barber , 40, of Belton, Mo., and Vernon David Williams , also known as Dave Williams, 57, of Kansas City, Mo., were charged in a four-count indictment returned by a federal grand jury in Kansas City on Oct. 7, 2004. Barber and Williams appeared for an arraignment hearing before U.S. Magistrate Judge John T. Maughmer this morning and entered a plea of not guilty.

Barber was involved in the business of buying and selling real estate, and did business as KC Properties and KC Securities LLC. Williams was a loan employee of mortgage brokerage companies in Merriam, Kan., and Lee’s Summit, Mo.

Count One of the federal indictment alleges that Barber and Williams conspired to defraud MILA, Inc., a mortgage lending company with its principal office in Mountlake Terrace, Wash., and Finance America LLC, a mortgage lending company with its principal office in Irvine, Calif., from July 24, 2004, to Sept. 16, 2004. The indictment alleges that Barber and Williams attempted to borrow $285,000 from MILA in connection with the purchase of property at 3741 Locust in Kansas City, Mo. In furtherance of the conspiracy, Barber created a trust in the name of the true owner in order to conceal the additional transfer (the “flip”) of the property on the day of closing for a greater price, and knowing that MILA would not have approved the loan if it had known the seller acquired the property the same day it sold the property. Barber and Williams allegedly caused an inflated appraisal to be prepared for submission in the relation to that loan application. They allegedly prepared and provided material false, fraudulent and misleading loan applications and other documents regarding the loans.

Counts Two, Three and Four of the federal indictment relate to a second real estate transaction in August 2004, in which Barber and Williams allegedly attempted to receive a $158,251 loan from Finance America on behalf of another person to purchase property at 1013 Brookside Drive in Raymore, Mo. According to the indictment, a fraudulent loan application was submitted that contained false employment and income information, and forged rent checks were provided as proof that the proposed borrower had paid rent for the last several months. Counts Two, Three and Four each relate to a separate facsimile transmission or wire transfer of money related to the loan.

11:52PM

Former mortgage broker pleads guilty 

Loiusville Courier Journal - Oct 15 2004

A former New Albany mortgage broker pleaded guilty yesterday to fraud, money laundering, witness tampering, suborning perjury and possession of a firearm by a convicted felon.

James Scott Dewitt Cinnamon, 41 , faces a sentence of 57 to 64 months in prison under a plea agreement accepted yesterday by U.S. District Court Judge John Heyburn II in Louisville.

Cinnamon could have received 70 years in prison and a fine of up to $2.25million if convicted of the seven counts to which he pled guilty. He will not be fined under the plea agreement. The plea bargain combines two separate cases with a total of 36 criminal counts that had been filed separately by federal prosecutors in both New Albany and Louisville.

Cinnamon , who has been held in the Grayson County (Ky.) Jail since 2002, gave his prior address as the 2700 block of Lamont Road in Louisville. He was charged in the Indiana case with 16 counts each of money laundering and bank fraud in connection with mortgages through Mortgage One of Indiana , a company that he ran in New Albany from 1995 to 1999.

He was charged with closing 16 mortgage refinancing loans totaling more than $1.4million without paying off the original loans during the refinancing boom of 1999. Checks written by First Tennessee Bank to pay off the loans were instead deposited in accounts controlled by Cinnamon, according to court documents.

Clients then received payment-due notices from both First Tennessee and their prior mortgage holder on loans ranging from $32,250 to $202,700. First Tennessee eventually paid off the prior loans. Prosecutors will ask Heyburn to order Cinnamon to repay the bank, according to the plea agreement.

The fraud and money-laundering charges to which he pled guilty relate to a single loan for $56,900, but Cinnamon admitted in the plea agreement that he laundered the full $1.4million total of all 16 loans in the original indictment. The four charges from Kentucky include tampering with a witness, two counts of suborning perjury and one count of unlawful possession of a firearm by a convicted felon.

The witness tampering and perjury counts say Cinnamon got others to say falsely that they owned guns found in his home in May 2001. Cinnamon is serving a 41-month prison term for possession of a handgun by a convicted felon in connection with that case.

11:38PM

Actions Taken Against Brokers and Lenders by NYDoB

Excerpts from the New York Banking Department Weekly Bulletin — October 15, 2004

The following brokers were removed from the roll for failing to comply with Surety Bond requirements:

Date

Broker

Address

10 07 04

Bullaro Securities Corp.

Astoria , NY 11103

10 07 04

H-U-S Of Staten Island, Inc. D/B/A HelpU Funding

Staten Island , NY 10305

10 07 04

James Williams D/B/A Jmg System Enterprises

Jamaica , NY 11435

10 07 04

Russell Financial Corporation

New York , NY 10028

10 07 04

Strategic Financial Network Inc.

New York , NY 10036

11:41PM

Actions Taken Against Brokers and Lenders by NYDoB

Excerpts from the New York Banking Department Weekly Bulletin — October 8, 2004

The following brokers were removed from the roll for failing to comply with Surety Bond requirements:

Date

Broker

Address

10 07 04

Lawrence S. Avroch D/B/A Best Seller Realty

Bayside, NY 11364

10 07 04

Vincent A. Alexander

Rochester , NY 14623

3:57PM

Defendant guilty in $10 million fake closings scam

North West Herald - October 7, 2004

ROCKFORD — Another person pleaded guilty Wednesday to federal wire-fraud charges stemming from a real-estate closing ring halted by Crystal Lake police.
Julita Uramowska, 31, of 3903 Grand Ave., Western Springs, pleaded guilty to wire fraud in connection with the $10 million scheme that involved 11 people and 19 fake real-estate closings. Uramowska could be sentenced to 30 years in prison. Her sentencing is set for Jan. 18.

Group members posed as real-estate buyers and arranged for financing to buy a property, according to the federal indictment. The group then gave the title company a fake mortgage release that indicated that other companies holding mortgages on the property had released them, according to the indictment.

The title companies then gave the group the money from the loan, which they laundered by depositing it into bank accounts of third parties, according to the indictment. Prosecutors believe three of the incidents occurred at two Crystal Lake title companies in September 2003.

The group allegedly stole $623,000 during the three transactions. Crystal Lake police caught three members of the group after a bank teller became suspicious when one of the men attempted to cash one of the six-figure checks.

Uramowska admitted in court that she worked for a mortgage brokerage and arranged lending for the fake buyers, prosecutors said. Another member of the scam ring, Zbigniew Recko, 35, 3901 N. Tripp Ave., Apt. 310, Chicago, pleaded guilty last week to one count of wire fraud.

10:51PM

Two PA men convicted in Mortgage Fraud

Pittsburgh Live - Thursday, October 7, 2004

PITTSBURGH — An Indiana Township man must pay more than $700,000 in restitution following his conviction on federal tax evasion and other charges. Terry A. Boring , 55, of Alpine Village Drive, was accused of using his home remodeling business to secure fraudulent mortgage loans for unqualified homeowners. Boring pleaded guilty in April to charges of income tax evasion, conspiracy, mail fraud and making false representations to a government agency. Senior U.S. District Judge Maurice B. Cohill in Pittsburgh sentenced Boring on Sept. 29 to two years and three months in prison and five years of probation in addition to the restitution.

Boring and his business partner, William T. McKee , 51, of Forest Hills, allegedly operated under several business names, including Zintron and Patrome Construction , between June 1993 and November 2003. During that time they are accused of defrauding banks and private lenders by falsifying employment, income, insurance and other information to make homeowners appear qualified for loans. Some homeowners subsequently were unable to make loan payments and lost their homes in foreclosures.

The partners also defrauded the federal Department of Housing and Urban Development by applying for property improvement loans for the homeowners, which required HUD to repay the lending agencies if the homeowners defaulted.

“Boring’s 10-year predatory lending scheme devastated many homeowners who had struggled for years to obtain the American dream of home ownership,” said U.S. Attorney Mary Beth Buchanan in a written statement following the sentencing.

McKee also admitted to participating in the conspiracy and was to be sentenced this week. He faces up to 70 years in prison and as much as a $2.5 million fine.

12:35PM

Broker license revoked

Nevada Mortgage Lending Division Notice

Certified Holding Limited Partnership dba Granite Mortgage & Loan - On 8/23/2004 the Division issued an order for submitting false and forged financial statements; failure to comply with advertising requirements.  On 10/1/2004 Granite consented to a permanent revocation.
10:27AM

3 indicted in scheme to raise bail money for woman accused of murder

US DOJ Press Release - September 30, 2004

Philadelphia - United States Attorney Patrick L. Meehan today announced the filing of an indictment* charging Dorian Baker, James Harley, and Caprice Peay with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of identity theft, in violation of 18 U.S.C. §§ 1028(a)(7), (B)(1)(D), and (c)(3)(A). This case arose from the defendants’ scheme in which they engaged in 2003 to defraud several mortgage companies, financial institutions and merchants by obtaining loans and merchandise through the use of fraudulent information and identity fraud.

According to the indictment, the defendants engaged in this fraud scheme to raise money to pay the bail of an individual who was in custody in New Jersey on murder charges. The defendants pursued several loans through mortgage companies by using fraudulent information to support the loan applications and by using false identities to secure the loans. The defendants also used false identification information to obtain credit at an automobile dealership and other merchants to fund the purchase of a new 2004 Nissan Maxima, a television and jewelry. In total, the defendants attempted to defraud victims out of over $400,000, and actually obtained about $115,000 in cash and merchandise through this scheme.

Read the whole indictment by clicking here