5 indicted in Florida mortgage fraud allegations
In the following press release the Florida Department of Law Enforcement announced that a three-year joint investigation by the Tampa Police Department (TPD), Hillsborough County Consumer Protection Agency (HCCPA), Pinellas County Department of Justice and Consumer Services (PCDJCS), Florida Attorney General’s Office of Statewide Prosecution (OSWP), and the Florida Department of Law Enforcement (FDLE) has led to the arrests of five defendants charged with racketeering, conspiracy to commit racketeering, obtaining of a mortgage by false representation, and second-degree grand theft by fraudulently obtaining mortgages in the names of victims solicited for home improvement projects and for obtaining fraudulent loans on their own personal properties. The individuals arrested include Scott Almeida, Orson Benn, Adrienne White, Frank Giffone, and Samuel Green.
“The allegations brought against these individuals are unspeakable. To prey on the hopes and dreams of these people who were simply trying to improve their homes is a terrible scheme and my office is committed to prosecuting those involved to the fullest extent of the law,” said Attorney General Bill McCollum. “I commend the cooperation exhibited by this investigation and look forward to a positive resolution for the citizens who were victimized.”
“The FDLE is committed to working with our local and state partners to investigate these types of major fraudulent schemes,” said FDLE Commissioner Gerald Bailey. “It is important for us to send a message that this type of criminal behavior will not be tolerated in our state.”
http://www.youtube.com/watch?v=EDjhwV8r3iQ
The investigation began in 2004 when some of the victims filed complaints about incomplete and substantial construction work. The TPD and HCCPA initiated separate investigations that quickly grew from construction fraud and theft to a sophisticated mortgage fraud by a criminal enterprise. As the investigations expanded to Pinellas and Polk counties, and statewide, the FDLE and the OSWP joined to form a task force. The task force investigators conducted hundreds of interviews, issued approximately 250 subpoenas, and reviewed tens of thousands of documents.
The majority of the fraudulent loans were submitted through and funded by Argent Mortgage Company, one of the nation’s largest wholesale “sub-prime” mortgage companies. Thirty-one of these fraudulent residential mortgage loans totaling nearly $3 million are outlined in a 150-page arrest affidavit.
Two of the defendants charged, Orson Benn and Samuel Green, are former high-ranking employees of Argent’s White Plains, New York office. Benn and Green were instrumental in the fraud as they subverted Argent policies and approved fraudulent documents and loan packages submitted by brokers. The fraudulent loans were funded and the proceeds were distributed to the defendants. Benn received bribes or kickbacks from Scott Almeida, Frank Giffone and others associated with submitting the fraudulent loan packages for approval.
The other three defendants, Scott Almeida, Frank Giffone and Adrienne White, are all former owners, principals or employees of the Hillsborough County mortgage broker companies Advanced Mortgage Solutions and Consumer Lending Resources. In addition to the mortgage brokerage businesses, the defendants operated two home improvement companies: Premier Quality Renovations and Florida Beautiful Construction.
In addition to the construction-related mortgage fraud cases, Almeida submitted fraudulent documents in support of at least two mortgages for his own personal property and for close associates of the criminal enterprise. In addition to Argent, fraudulent loans were also submitted by Almeida and processed and approved by Pinnacle Mortgage Company, Decision One Mortgage Company and Mortgage Lenders Network USA.
In total, Almeida and his associates, through various mortgage broker businesses, have submitted approximately 180 loans through Argent Mortgage Company totaling nearly $18 million. At least 129 of these loans were funded in the amount of approximately $13 million.
Argent executives and their outside legal counsel have cooperated with investigators and have provided information and documents to support the investigation. Argent made swift personnel decisions and conducted their own internal investigation to help prevent similar activity in the future. Argent has also communicated with and assisted the victims in this case, many of which were facing potential foreclosure actions.
The investigation is ongoing and additional charges are anticipated against other associates related to these five defendants and their criminal enterprise.
“This case is an excellent example of a specialized County level Consumer Protection Agency looking beyond the initial consumer complaints about shoddy and unfinished construction work,” said Director James L. Sudberry. “This multi agency team of experienced investigators worked tirelessly uncovering a major mortgage fraud scheme that would have likely gone undetected costing citizens hundreds of thousands of dollars and, in some cases, their homes. We still feel this may just be the tip of the iceberg.”
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Video News Report frm ABC News - Tampa
The Editor - Ian Shuter - DMS
The Florida Attorney General recently announced that Scott Alemida has recently pleaded guilty in this matter.
The Editor - Ian Shuter - DMS
The Editor - Ian Shuter - DMS
Tampa Bay Online reports that two people convicted on racketeering charges in connection to a mortgage scam that bilked dozens of people since 2004 were each sentenced today to five years in prison, the Florida Department of Law Enforcement said.
Along with the prison terms, Frank Giffone was sentenced to 10 years’ probation and Adrienne White to five years’ probation. Giffone and White were each sentenced in the 10th Judicial Circuit Court in Polk County.
A third person convicted on racketeering charges, Scott Almeida, will have a sentencing hearing Oct. 24, the FDLE said.
The Editor - Ian Shuter - DMS
In the following press release Florida Attorney General Bill McCollum today announced that a former production manager for a subsidiary of one of the nation’s largest subprime lenders has been sentenced to nine years in prison for his involvement in a mortgage fraud scheme that spanned more than two years and involved loans in Hillsborough, Lee, Pinellas and Polk counties. Samuel Green, a former manager for Argent Mortgage Company, was part of an elaborate mortgage fraud operation that involved co-defendants Scott Almeida, Orson Benn, and multiple others. Green and his co-defendants were prosecuted by the Attorney General’s Office of Statewide Prosecution.
The three-year investigation began when victims filed complaints about incomplete or substandard construction work being performed by construction companies affiliated with Almeida. Almeida and his associates secured mortgages for homeowners to finance the home repair projects by submitting fraudulent documents to Argent Mortgage Company. Green, as a manager for Argent, approved or oversaw the approval of a portion of the fraudulent loan applications with assistance from former Argent vice president Benn. Investigators followed the trail of fraudulent applications back to the organized criminal operation which submitted nearly 130 loans to Argent that were funded for approximately $13 million.
Argent Mortgage has cooperated with investigators and provided information and documents to support the investigation. The joint investigation was conducted by the Office of Statewide Prosecution, the Florida Department of Law Enforcement, the Hillsborough County Consumer Protection Agency, the Tampa Police Department and the Pinellas County Department of Justice.
Green was ultimately charged with racketeering and conspiracy to commit racketeering and was found guilty as charged by a jury on August 28th. Green must serve 20 years of probation after his prison sentence has been completed. Almeida pleaded guilty in October 2007 and will serve 10 years in prison for the crimes he committed. Benn was convicted by a jury in July and was sentenced in September to 18 years in prison. Co-defendant Bradford Peck pleaded guilty and was sentenced to eight years in prison. Co-defendants Frank Giffone and Adrienne White pleaded guilty and were sentenced to five years prison each.
The Editor - Ian Shuter - DMS
The Florida Department of Law Enforcement Tampa Bay Regional Operations Center announced the arrest of a Lithia, Fla. man yesterday in connection with a multi-million dollar mortgage fraud scheme that has victimized dozens of people since 2004. Jeffrey Ryan Ayers, 29, (below) was charged with racketeering, conspiracy to commit racketeering, and grand theft.
Ayers worked for Advanced Mortgage Solutions, a mortgage broker company associated with a home improvement business that persuaded customers to take out home loans. Participants in the scheme would divert money and leave homeowners with large home loans and few, if any, home improvements.
The three-year investigation began when victims filed complaints about incomplete or substandard construction work being performed by construction companies affiliated with Advanced Mortgage Solutions. Ayers and the other co-conspirators secured mortgages for these homeowners to finance the home repair projects by submitting fraudulent documents to Argent Mortgage Company, one of the nation’s largest wholesale subprime mortgage companies. Investigators followed the trail of fraudulent applications back to the organized criminal operation which submitted nearly 130 loans to Argent which were funded for approximately $13 million.
Co-conspirators Scott Almeida, Frank Giffone, Adrienne White, Bradford Peck, Constance Golder, Michael Fetterhoff, Regina Diaz, William McKinney and William Medina have all previously pleaded guilty. Almeida received a 10-year prison sentence, Peck received an eight-year prison sentence, Giffone and White each received a five-year prison sentence, and McKinney received a two-year prison sentence. Co-conspirators Orson Benn and Samuel Green were previously found guilty and sentenced to 18 years and 9 years in prison, respectively.
Ayers arrest was the result of a joint investigation by FDLE, the Hillsborough County Consumer Protection Agency and the Tampa Police Department. Attorney General Bill McCollum’s Office of Statewide Prosecution will prosecute this case.
Ayers was booked into the Hillsborough County Jail on $110,000 bond.
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