4:52PM

CT Dept of Banking issues order to loan officer - alleges fraud

On November 8, 2006 The Connecticut Dept of Banking issued a Notice to Issue a cease and Desist Order against Raymond L. Patrice who was registered as a loan originator with VIP Mortgage Corporation (“VIP”).

The Dept allege that on February 9, 2006, Respondent took two loan applications from a borrower for the purchase of two different properties, each of which indicated that the property was going to be the borrower’s primary residence. Based on one of the applications, Credit Suisse Financial Corporation, a first and secondary mortgage lender/broker licensee, made a first mortgage loan and a secondary mortgage loan, both of which closed February 23, 2006. Based on the other application, IndyMac Bank, F.S.B. made a first mortgage loan and a secondary mortgage loan, both of which closed on February 27, 2006

Click here to view the complete Notice.

4:33PM

CT Dept of Banking issues cease and desist order, alleges misrepresentation

On November 16, 2006 The Connecticut Dept of Banking issued a Notice to Issue a cease and Desist Order against Yvette Allen who was formerly a loan officer employed with Stanley Capital Mortgage Company, Inc. whose principal office is at 270 Sylvan Avenue, Suite 260, Englewood Cliffs, New Jersey.

The Dept of Banking allege that on October 11, 2004, Allen took a loan application from a borrower for the purchase of a Connecticut property, which indicated that the property was going to be the borrower’s primary residence. Based on the application, First Franklin Financial Corporation, a division of National City Bank of Indiana, made a first mortgage loan that closed on November 12, 2004. On November 22, 2004, Allen took another loan application from the same borrower for the purchase of another Connecticut property, which also indicated that the property was going to be the borrower’s primary residence. The address stated in the application as the borrower’s residence was the same as that stated in the October 11, 2004 loan application, and the application did not reflect the borrower’s mortgage obligation for the loan that closed on November 12, 2004. Based on the application, IndyMac Bank, F.S.B. (“IndyMac”) made a first mortgage loan that closed on December 30, 2004.

On October 29, 2004, Allen took a loan application from another borrower for the refinance of his primary residence in Connecticut. According to the application, the borrower’s monthly base income from his employment was $5,000 and the borrower owned one other property. Based on the application, IndyMac made a first mortgage loan which closed on December 31, 2004. On December 28, 2004, Allen took another loan application from the same borrower for the purchase of an investment property. The application stated that his monthly base income was $5,500 when it was actually $4,604. Based on the application, Greenpoint Mortgage Funding, Inc., a first and secondary mortgage lender/broker licensee under Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators”, made a first mortgage loan and a secondary mortgage loan, both of which closed on January 27, 2005.

Click here to view the complete Notice.

4:13PM

Two appraisers charged by Colorado Division of Real Estate

On October 31, 2006 The Colorado Division of Real Estate  announced a decision by the Colorado Board of Real Estate Appraisers to file charges against two real estate appraisers for violating Colorado law. The Board filed charges against:

James Esters (Parker) seeking revocation of his license and a $24,000 fine for 48 violations of the real estate appraiser standards. Division of Real Estate investigators allege that Esters overvalued 7 properties in the Pueblo area an average of 70% over their real value. One property was allegedly overvalued by 100%. All 7 properties went into foreclosure.

Albert Jajt (Pueblo West)  In a separate action the Board filed charges against alleging 113 violations and is seeking revocation of his license and a fine of $56,500. Fajt is alleged to have overvalued at least 12 properties in the Colorado Springs area, increasing the sales price of one home by 46%. Many of the properties were listed for sale at reduced prices for months, but Fajt adjusted his appraisals to reflect the increased sales prices.

Allegations against both appraisers include charges of using improper comparables and other practices to artificially inflate the value of properties. Such practices are harmful to consumers and lenders and are believed to contribute to the increase in real estate foreclosures in Colorado.

Click here for the DORA Press Release

3:33PM

Alabama State Banking Dept cease and desist orders in 2006

The following administrative actions have been taken against Mortgage Brokers by the Alabama State Banking Department during the year 2006.
Click on the broker name to read the relevant order.

Cease and Desist Orders:

AAA Benefit Sales Inc dba Loan Pro Co, Inc
Alliance Home Mortgage Co, Inc
(Gerald T. George and Robin Taylor)
Country Home Creative Services, Inc – October 2006
M & R Marketing – October 2006
McAllister Mortgage Group – August 2006
Standberry & Associates – August 2006
Stevenson Mortgage Consulting, LLC (Cheryl Stevenson) – August 2006

Broker License Revoked

American Home Mortgage Services, LLC – August 2006
Construction Mortgage Corporation – October 2006
First Trust Mortgage Corp of America – October 2006
Gulfside Mortgage Inc – October 2006
Houchins Mortgage Company Inc – August 2006
Mid-South Mortgage, LLC – August 2006
RN Realty and Associates (Nicole Ward) – September 2006

The Alabama State Banking website can be found at http://www.bank.state.al.us/

4:47PM

Couple charged with using phony documents to obtain mortgage

In the course of investigating the hit and run death of Justin Goodman, John Ferrugia a reporter for ABC 7 News in Denver uncovered evidence of what ABC 7 allege is a mortgage fraud ring set up to obtain fraudulent mortgages for illegal immigrants.

The investigation found that Daniel Martinez-Ruiz, an illegal immigrant, and his wife Conception Hernandez were charged this month with using phony documents to purchase property. Martinez is a relative of Roberto Martinez-Ruiz, the man eventually convicted of the hit and run death.

7News found that the immigrant family used the phony documents, and in apparent collusion with realtors and lenders, received fraudulent loans to buy two homes in Thornton which were backed by F.H.A. loans, one of those homes is located at East 77th Avenue in Thornton, CO.

But 7NEWS investigators have learned Martinez used a phony name on a fraudulent alien card because he had no credit and documents show that Hernandez used a fraudulent Colorado driver’s license. In addition they learnt that that part of the scheme involved phony W-2 forms and pay stubs from a Colorado cleaning service. Golden Eagle Cleaning was set up by Daniel Martinez, again with fraudulent documents, as income verification to obtain the loan.

But Hernandez claims it wasn’t the family who produced the fraudulent financial documents, but the realtor and lender.

Click here to view the video news report.

The lender’s (broker) mentioned and interviews in the report is William Romano.

The case is now being investigated by the Adams County District Attorney’s office.

3:44PM

Five arrested, accused of stealing property from deceased owners

In the following press release The Florida Department of Law Enforcement, as a partner in the United States Secret Service Southwest Florida Financial Crimes Task Force, announces (11/30/06) a federal indictment of the following five people who are alleged to have been involved in a scheme to steal title to real properties in Charlotte, Collier and Lee counties by way of mail fraud and wire fraud:

Howard Henry, 45, Miramar, Fla. is charged with one count mail fraud and three counts of wire fraud.
Sheila W. Henry, 48, Miramar, Fla. is charged with one count of mail fraud and two counts of wire fraud
Quitin Henry, 23, Tamarac, Fla. is charged with one count of mail fraud and one count of wire fraud.
Tysha Wiggins, 28, Miramar, Fla. is charged with one count of mail fraud and one count of wire fraud.
Omar Dalberry, 24, Miami, Fla. is charged with one count of mail fraud.

A number of companies controlled by the defendants (in brackets) mentioned in the indictment, they are:
Hartford Property Connection, 12535 Orange Drive, Suite 610 Davie, 33330. (Howard and Sheila Henry)
Better Tomorrow Community Development LLC, 4733 N.W. 88th Avenue, Sunrise 33351 (Quitin Henry)
East West Investments Corp, 7320 East Fletcher Avenue, Tampa 33637 (Howard and Quitin Henry)
Atlantic Coast Land Holdings, Inc 1840 S.W. 22nd Street, 4th Floor, Miami 33145

The five defendants are accused of fraudulently obtaining title to real property throughout Southwest Florida. The investigation began in November 2004. According to the indictment, the group would research property using the Internet to find existing property that had several years of property taxes unpaid. The group would then connect those properties to deceased persons and begin to fraudulently obtain the property. The group is accused of forging the names of the deceased owners on deeds in order to illegally obtain the properties and sell them. The indictment alleges the defendants have fraudulently obtained title to at least 18 real properties located in Collier, Lee and Charlotte counties with a total market value of more than $576,000. 

The properties (all in Florida) mentioned in the indictment are:
3013 73rd Street W, Lehigh Acres
3476 Everglades Blvd, S., Naples
2706 to 2712 64th Street W, Lehigh Acres,
18364 Garman Avenue, Port Charlotte
2519 17th Street S.W., Lehigh Acres

Click here to read the indictment

All five suspects were present for an initial appearance hearing on Wednesday at the federal courthouse in Fort Myers. The United States Attorney’s Office Middle District Fort Myers Office is prosecuting the case.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.

1:26PM

Home sellers in Polk County (FL) warned re credit card thieves

Detectives in Polk County (FL) say a black couple pretends to be interested in homes for sale. When they show up to see the home one person distracts the owner, while the other steals their credit cards.

Investigators say the couple targets owners selling their own homes. Both are African American between 35 and 40 years old. The man is bald about 5’10” and weighs about 275 pounds. The woman is about 5’6” and about 150 pounds.

The couple is suspected in at least six different cases. Investigation has shown that the stolen credit cards are being used throughout the central Florida area.

The suspects have increased their criminal activities over the past month in Polk County, and detectives need the public’s help in locating them. If you have any information about these suspects or feel you have been a victim, please contact Detective Glenda Eichholtz at 863-297-1153.

12:03PM

Central Florida realtors advised to beware three more credit card thieves

The Seminole County (FL) Sheriff’s Office  is searching for two women who are apparently pretending to be interested in buying new homes to steal from real estate agents, according to a Local 6 News TV report. Investigators allege that Denise Fuller and Winshenia Lamarr and possibly a third person are meeting with real estate employees in Central Florida and then taking credit cards from their wallets.

Their alleged MO is for the suspects to pretend they are interested in buying property and while keeping people in realtor’s offices distracted a third person would enter the office and steal a credit card from each employee’s purse.

fuller and lamarr.jpg
Picture courtesy of Local News 6

The Local 6 News report showed video of the women at a Target store in Seminole County purchasing items with stolen credit cards.

Click here to see the Local 6 News video report.

Anyone with information concerning the whereabouts of Fuller or Lamarr is urged to call Crimeline at 800-423-TIPS.