Mortgage fraud is an epidemic that continues to be around and it can take form in many different ways (foreclosure rescue schemes, illegal flipping, etc). One form of mortgage fraud is a “straw buyer” scheme. This is how it works:
The participants
The most important piece to this scheme is the buyer. We’ll call him “Mr. A” [...]
Recently, we contacted the U.S. Department of Justice to ask if we may write about and post some their actual occurrences involving identity theft and they said yes. In this article we want to tell you about a 37 year old Nashville man recently sentenced to 26 years and four months in a federal prison [...]
Buyers of real estate properties, even foreclosure homes, should be cautious about mortgage fraud. Falling victim to one can prove to be a painful experience, both financially and emotionally. As the saying goes, prevention is always better than the cure. Even if you are dealing with a supposedly-reputable mortgage provider, you should still be able to protect yourself from fraud.
Vintage Vegas was especially hard hit by the alleged Mortgage Fraud scheme by the owners of Distinctive Realty.
5th Place, 6th Street, 16th Street, 8th Place, Cochran, several in McNeil and several in Paradise Palms all had homes sell in 05 and 06 where the deals looked fishy to me. There were at least a dozen homes [...]
The mortgage fraud trial involving Nelson Miller, owner of Freedom Financial Services, resulted in a hung jury. A mistrial was declared on November 19, 2007. The new trial resulted in a conviction on all sixteen counts charged in the indictment. ...
Wilbert Brodie appealed his mortgage fraud conviction on ten grounds in five pro se (without counsel) filings. Additionally, the Federal Public Defender filed an amicus brief claiming that the district court committed three errors: (1) sustaining an ob...
John Andreas Tsiaoushis, 40, Alexandria, Virginia, pled guilty to a two-count information charging him with mail fraud affecting a financial institution and giving false testimony at a hearing in the United States Bankruptcy Court. Tsiaoushis faces a m...
In the following press release United States Attorney for the District of Maryland Rod J. Rosenstein announced that Kolawole Aminu, age 45, a Nigerian national, pleaded guilty today to conspiring to make a false statement in connection with a scheme to defraud a mortgage lender. Oyekunle Ikudayisi, age 39, of White Plains, Maryland, pleaded guilty to the same charge on April 23, 2008. According to their plea agreements, Aminu and Ikudayisi conspired with others to purchase properties from a company owned by a co-conspirator. Aminu and Ikudayisi obtained mortgage loans for the properties in their own names, using their good credit histories. The co-conspirator, however, was responsible for making all payments associated with the purchase of the properties, including the down payments, cl
In the following press release James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky announced that three Ohio residents were indicted today for conspiracy to commit wire fraud. The indictment alleges that William R. Bowling Jr., 46, of Cincinnati, Georgia Bowling, 64, of Franklin, and Gregg E. Russell, 54, of Middletown devised a complicated scheme to defraud Countrywide Home Loans. The Indictment alleges that William Bowling Jr., the buyer/borrower, purchased 24 investment properties in Kettering, Ohio and that the paperwork submitted to the lender, Countrywide Home Loans, represented that the down-payment was coming from Bowling Jr. The 24 purchases each originated and were processed through Countrywide Home Loan’s office in Ft. Mitchell, Ky. Th
In the following press release United States Attorney Robert E. O’Neill announced that LUIS URIBE, a 28 year old resident of Tampa, pleaded guilty to one count of wire fraud and one count of aggravated identity theft. The maximum penalty URIBE faces is thirty years’ imprisonment and a $1million fine. According to the plea agreement, from July 2006 through September 2007, URIBE committed wire fraud and aggravated identity theft. URIBE was a licensed mortgage broker in Florida and was able to originate mortgage loans. URIBE and others fraudulently submitted mortgage applications under false pretenses, obtaining and disbursing the proceeds of those loans, including directing portions of the proceeds to bank accounts in their control. URIBE was one of the principals behind Bay
From the Oregonian:U.S. District Judge Michael Mosman today sentenced a Portland man to 30 months in prison for his role in a mortgage fraud scheme.According to a news release from the office of United States Attorney Karin J. Immergut, the scheme involved two residential real estate transactions in 2004.Ryan Bonneau, 31, also will serve five years of supervised release after his prison term. Bonneau pled guilty to wire fraud and money laundering in November, 2007.The news release said that Bonneau admitted that he, along with two others, devised a scheme to defraud the Union Federal Bank of Indianapolis by making false statements in mortgage loan applications in connection with transactions involving the two properties.In each transaction, the sales price of the home was inflated so that
Reports of suspected mortgage fraud rose 42 percent last year as banks became more leery of lies on loan applications.
The Treasury Department’s Financial Crimes Enforcement Network said Thursday that there were 52,868 reports for mortgage fraud in 2007, up from 37,313 a year earlier. Mortgage fraud reports were the third-most common type of suspicious activity.
The [...]
A Centennial man has been sentenced to more than 12 years in federal prison for mortgage fraud, federal officials said Wednesday.
Torrence James, 44, pleaded guilty on Jan. 10 to wire fraud and money laundering charges related to mortgage fraud. He was sentenced Wednesday by Chief U.S. District Judge Edward Nottingham to 151 months in prison, [...]
LOS ANGELES — In August 2007, investigator Eric Bremner found evidence in a shredder at Olympic Escrow that he says confirmed borrowers’ complaints that they had never signed the mortgage documents that pushed them into a financial hell.
Bremner found pieces of documents that had been cut to remove signatures and notary seals. Loan applications, escrow [...]
If you ever wondered why there is a problem with UK Household debt - look no further thatn this 2003 report from the money programme.Undercover researchers from The Money Programme posing as first time buyers talked to advisers recommended by ten estate agents in Ealing, West London.Nine encouraged them to take out self certified mortgages – where borrowers simply state their incomes and lenders promise not to check.All nine advised the buyers they would have to lie about their true income to secure a larger mortgage, raising the amount which could be borrowed from around £150,000 to £220,000.Where does this leave the honest ones amongst us.
Being part of a crisis management law firm requires some duties above and beyond....Mortgage fraud cases can result in many unoccupied, unfinished properties that leave clients not only with foreclosures, but a host of property management concerns....I arrived at the property with a trusted companion, a cell phone, and a rather large hammer (among other tools, but the hammer looked the most impressive)....
Focusing on the Country Club of the South neighborhood and other high-end developments and subdivisions in metro Atlanta, Keith Garner and his co-conspirators bought properties in the name of their straw borrowers, often without the straw borrower's consent. Each of the properties was accompanied by an inflated appraisal, which in addition to the submission of false loan applications, enabled the defendants to secure real estate financing from SunTrust Mortgage in excess of the fair market value of the properties. The defendants then stole the spread between the inflated and fair market value of the properties primarily through defendants Latesha Garner and Khodadad, who ensured that SunTrust Mortgage either directly paid a bogus seller's obligation or was never made aware that a substanti
Reuters has reported here that the state of New York has subpoenaed three large Wall Street banks (Merrill Lynch, Bear Stearns, and Deutsche Bank) pursuant to a probe related to the creation of mortgage-backed securities. The New York probe reportedly is looking into how mortgages were packaged together by Wall Street to create securities sold to investors and the banks’ relationship with credit-rating firms.
Most people buying a home or refinancing put their trust on their mortgage broker or real estate agent but in many occasions this trust is abused by these same so called “professionals”.
I have encountered many cases where a real estate agent and a mortgage broker teamed up to literally rob money from the homeowners like [...]
Budimir Radojcic, 54, Crown Point, Indiana, allegedly led a financial crimes enterprise that netted more than $3 million by obtaining federal grants and mortgages under false pretenses. The 52-count indictment also names Radojcic‘s two daughters, Suzana Radojcic and Mirjana Omickus, Christa Patterson and Mark J. Helfand. The indictment describes how Budimir Radojcic allegedly purchased rental properties, converted the units into condominiums and then sold them to straw …Read More...
In the following press release David Kustoff, United States Attorney for the Western District of Tennessee announced that Gwendolyn House, 46, of Collierville, Tennessee, pled guilty before U.S. District Judge Samuel H. Mays to bankruptcy fraud, two counts of wire fraud, money laundering and income tax evasion. House will be sentenced on February 29, 2008. House was named in a superseding indictment filed on October 24, 2006, charged with wire fraud, bankruptcy fraud, money laundering, fraudulent use of a social security number, and identity theft. An Information was filed on November 29, 2007, charging House with one count of income tax evasion. At the plea hearing House admitted to providing false and fictitious statements and information to obtain mortgage loan financing to purchase 523 Tribal Land Cove in Collierville in 2001. The fraudulent items included a false social security number, fictitious employment income, and omitted a bankruptcy declaration. House admitted
Robert L. Dodsworth, 60, Erie County, Pennsylvania, pleaded guilty to felony charges that he engaged in mortgage fraud in the city of Erie, Pennsylvania. Dodsworth entered the plea at a hearing before U.S. District Court Judge Sean J. McLaughlin. Dodsworth pleaded guilty to the felony counts of money laundering and conspiracy, criminal conspiracy to commit mail fraud, wire fraud and bank fraud. He faces a maximum of 25 …Read More...
One Source Mortgage, Inc., and the president of the company, Charles G. Mangold are named defendants in a suit by the Illinois AG. One Source operated on Chicago’s northwest side. “This company’s conduct is a prime example of the behavior of unscrupulous mortgage brokers that has led to a foreclosure crisis for many Illinois homeowners,” Madigan added. One Source solicited consumers through advertisements in the Chicago Sun-Times and …Read More...
In the following press release John F. Wood, United States Attorney for the Western District of Missouri, announced that a Kidder, Mo., attorney pleaded guilty in federal court today to defrauding a North Kansas City, Mo., bank in a series of loans totaling $866,810. Dawn Renee Harpster, 38, of Kidder, waived her right to a grand jury and pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan, Jr., this morning to a federal information that charges her with five counts of bank fraud. Harpster , formerly doing business as Northwest Missouri Title Co., LLC, in Gallatin, Mo., admitted that she defrauded Norbank by obtaining five loans totaling $866,810 between March 2006 and Dec. 26, 2006. For each of those loans, Harpster admitted, she falsely claimed to have contracts with the Church of Jesus Christ of Latter-Day Saints in Salt Lake City, Utah, under which the LDS Church would purchase Daviess County, Mo., properties from her. If Norbank would loan her the funds to purcha
Randall Tharp, Atlanta, Georgia, a builder for Tyson Homes, Inc., and the Paddocks Development Group, Inc., was acquitted on all charges via directed verdict at the close of the government’s case. Tharp was indicted in April 2006, and faced charges of conspiracy to commit mortgage fraud, money laundering, bank fraud and wire fraud stemming from the sale of several luxory homes in metro Atlanta, Georgia area. As previously reported …Read More...
In the following press release Illinois Attorney General Lisa Madigan announced that she continues to lead the fight against mortgage and home repair fraud today by filing two lawsuits against mortgage brokers who sold complex mortgages to Illinois consumers. (The details of these lawsuits can be found in the two entries below this one). These suits are the first lawsuits filed by the Attorney General’s Office focusing primarily on the origination of mortgage products that have played a major role in the series of events leading to the current subprime mortgage foreclosure crisis. Today’s filings follow a number of lawsuits filed by Madigan targeting the subprime mortgage crisis, including eight suits against mortgage rescue scam artists that prey upon homeowners threatened by foreclosure. “Like many Illinoisans desperately trying to save their homes, the victims of these two companies have been left with few options,” said Attorney General Madigan
Harold Stafford, Miles Jackson Black and Jeffrey Dunn Hathcock were indicted by a federal grand jury for conspiracy, wire fraud and bank fraud. In addition, Harold Stafford was charged with money laundering. The fifty-one count Indictment alleges that from January 2005 through October 21, 2005, Stafford, Black and Hathcock engaged in a mortgage fraud scheme that involved the purchase of approximately twenty-two luxury homes (see individual addresses …Read More...
In the following press release the Texas Department of Insurance announced that a district court in Houston has sentenced Stevie L. Johnson, a former licensed Escrow Officer, to 40 years in prison for his part in a multi-million dollar mortgage fraud scam in the Houston area. The case, heard before Judge Brian Rains of the 176th District Court, involved the fraudulent acquisition of mortgage loans associated with approximately 300 residential properties valued at nearly $40 million. The prosecution was the result of a long-term investigation by the Consumer Fraud Division of the Harris County District Attorney’s Office and the Texas Department of Insurance (TDI) Fraud Unit. TDI is the state regulatory agency responsible for licensing title insurance companies, title agents and escrow officers. Two other defendants in the case were previously convicted for their part in the fraud scheme; Mark A. Jones was sentenced to 25 Years in 232nd District Court and Reginald Washington was
The following entry is reproduced from an article written by Steve Brandt for the Star Tribune. A Minneapolis man sentenced on a federal mortgage fraud charge in 2001 now faces Hennepin County charges involving at least $1.2 million in mortgages that stretched from Bloomington to Blaine. Larry D. Maxwell (pictured below), 52, was charged Monday with 10 counts in the alleged mortgage fraud, including racketeering. Also charged with nine counts of forgery, identity theft and theft by swindle was Realty Executive Advantage Plus Group. The real estate brokerage was operated from Maxwell’s north Minneapolis riverfront condo. Larry Reed, Maxwell’s attorney, said that his client will plead not guilty. “Because Mr. Maxwell made a mistake in the past, they decided to go after him. He hasn’t done anything improper,” said Reed, who represented Maxwell in his federal case and said he had also bought a house from him. The case is the fourth alleged mortgage fra
Robert L. Dodsworth, Erie County, Pennsylvania, is accused of a mortgage-fraud scam that included misrepresenting Borrower income and financials. Dodsworth is also alleged to have manipulated the bank accounts of prospective homeowners. According to the criminal iinformation, Dodsworth, owner of several Pennsylvania corporations, from January 2003 through March 2006, in the Western District of Pennsylvania, conspired with others to obtain investors for the purpose of procuring funds for the …Read More...
WHAT: Learn how to survive in today’s marketplace by attending the Mortgage Fraud Blog Conference. This conference is focused on guiding lenders, mortgage brokers and other industry participants in identifying and preventing fraud and recovering losses when lenders are victimized. Mortgage Fraud Blog is the premier site for mortgage fraud news and information. Rachel Dollar, editor, is at the forefront of the fight against fraud. Led by industry experts and top-notch attorneys, …Read More...
In the following press release Wayne County (MI) Prosecutor Kim Worthy announced that over the course of its first two years investigating property scams, the Wayne County Deed Fraud Task Force has arrested and convicted quite a few bold individuals for ripping off homeowners and mortgage companies, but few have been as bold – or as foolish – as D’Clarence Reynolds, according to Task Force officials. Investigators for the Task Force say Reynolds, 27, who last year had been terminated by the Detroit Police Department in June 2006, allegedly forged the signature of Wayne County Clerk Cathy Garrett on a form that indicated he was still an employee with the city. The letter was dated October 16, 2006, nearly two months after his termination. With that forged document in hand, Reynolds successfully obtained an $80,000 loan from Long Beach Mortgage to purchase a home located at 7389 Warwick in the city of Detroit. “It’s hard to believe that anyone &ndash
Edward Batayeh, a.k.a. Ed Bhataybh, 40, Concord, California, has been indicted on charges that he executed a mortgage fraud scheme to defraud financial institutions of over $13 million and committed tax evasion. The defendant, the Executive Vice President and CFO of CHL Mortgage Group fled from FBI Special Agents last November, 2006, and should be considered armed and dangerous. According to the indictment, Bateyah is alleged to have conspired from …Read More...
Raymond Walter Zwego, Jr., 59, Kansas City, Missouri, pled guilty to all of the charges contained in a January 4, 2007, federal indictment. Zwego owns and operates Xpress Car Sales, Xpress Car Rental, North Mission Investments, Cobalt Blue, LLC, and Indigo Blue in North Kansas City. Zwego admitted that, from early September through November 17, 2006, he participated in a conspiracy to defraud Fieldstone Mortgage Corporation. Zwego, …Read More...
http://online.wsj.com/article/SB119241016826258768.html?mod=googlenews_wsj"FHA-backed loans are being touted for their "safety" -- to consumers and the financial system. "If we can get people into the FHA rather than to some of the other kinds of loans they have, everybody will be better off," argued Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee, during a hearing this year.
But before the FHA's loan spigots are opened up, a little due diligence by the political sector is in order. The FHA's recent credit history shows it is far from the prudent institution it is said to be. By its own estimate, next year the agency expects to be in the red, paying out more for defaulted loans than borrowers pay to it in insurance premiums. "Because of adverse loan performance," the FHA states in its budget submission for 2008, "total costs exceed receipts on a present value basis, and therefore would require appropriations . . . to continue operation."
The agency
Hugo Rodriguez, 52, Ronald Gordan Lichte, 65, Connie Marie Cullifer, 58, and John C. Kelly, 67 were charged in for their alleged participation in a multi-million dollar mortgage fraud conspiracy. Defendant Rodriguez resides in Miami, Florida; Lichte, Cullifer, and Kelly all reside in Tampa, Florida. Rodriguez is a Miami real estate investor, Lichte is a licensed mortgage broker from Tampa, and Cullifer was Lichte’s loan …Read More...
In the following press release Michael Ramos District Attorney for San Bernardino County, CA announced that on Thursday, October 18, Investigators from the his Real Estate Fraud Unit and Special Response Team (SRT) assisted several other law enforcement agencies in the service of Gang Association search and arrest warrants in the city of San Bernardino. District Attorney Investigators assigned to the warrant sweep operation recognized a subject wanted by the Real Estate Fraud Unit and conducted a traffic stop near the corner of 5th Street and “F” Street in San Bernardino. Arrested at the stop was Jeanette Amaya, 49, who is suspected of using a forged deed to steal a residence in the 1900 block of North Western in San Bernardino. Investigators then served a search warrant at that residence where gang memorabilia and suspected narcotics, believed to be cocaine, were seized. District Attorney Investigators then went to a number of locations in the community of Muscoy be
Azem Limani, 37, Anchorage, Alaska, was sentenced in federal court to 18 months imprisonment for violations of wire fraud and engaging in monetary transactions in criminally derived property related to a mortgage fraud scheme involving properties in Achorage, Alaska. According to the information presented to the court, Limani engaged in a wide ranging mortgage fraud scheme using a number of others to obtain a series nominee loans, that is loans that …Read More...
Gandhi Ben Morka, 52, Arlington, Texas, was convicted following a week-long trial on all seven counts of an indictment charging him with various offenses in a mortgage fraud scheme, announced U.S. Attorney Richard B. Roper. Specifically, the jury found Morka guilty of one count of conspiracy to commit mail fraud and wire fraud, four counts of wire fraud and two counts of mail fraud. Morka faces a maximum statutory sentence of 125 …Read More...
Anthony J Andersen, Florence, Massachusetts, plead guilty to two of the thirty counts he was charged with and has agreed to assist and cooperate with prosecutors. Specifically, he plead guilty to making false statements for the purpose of influencing a federally insured banking insitution and for engaging in monetary transactions involving property derived from specified unlawful activities. Sentencing is set for early 2008. As previously reported by Mortgage Fraud …Read More...
The first round of arrests warrants for criminals dealing in mortgage fraud schemes brought in 11 people this week with two suspects still at large. At a press conference this morning Miami-Dade County Mayor Carlos Alvarez presented the cases where these individuals are suspected of committing mortgage fraud. “Mortgage Fraud affects all of us as artificially inflated home values increase taxes making it unaffordable to live here,” said Mayor Alvarez. “On the flip side, …Read More...
Daniel Goodwin, 42, a mortgage broker in Augusta, Georgia, entered a guilty plea in U.S. District Court for his role in a mortgage fraud scheme. According to the criminal information and other court documents, Goodwin pled guilty to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 371, in connection with a scheme to defraud various residential mortgage lenders by submitting fictitious repair estimates to the lenders …Read More...
Gerald Mullaney, 60, East Greenbush, New York, pleaded guilty in United States District Court in Burlington, Vermontm to a charge of bank fraud. Chief U.S. District Judge Williams K. Sessions III released Mullaney on conditions pending sentencing, which is set for January 28. On November 9, 2006, a federal grand jury in Burlington returned a one count indictment charging Mullaney with bank fraud. The indictment accused Mullaney of …Read More...
In the following press release R. Alexander Acosta, United States Attorney for the Southern District of Florida (pictured left), Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael E. Yasofsky, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS), Henry Gutierrez, Inspector in Charge, United States Postal Inspection Service, John Large, Acting Special Agent in Charge, United States Secret Service (USSS), Jon Rymer, Inspector General, Federal Deposit Insurance Corporation - Office of Inspector General (FDIC-OIG), Kenneth M. Donohue, Inspector General, U.S. Department of Housing and Urban Development - Office of Inspector General (HUD-OIG), Bill McCollum, Florida Attorney General, William N. Shepherd, Statewide Prosecutor for the State of Florida, Don B. Saxon, Commissioner, Florida Department of Financial Regulation, and Al Lamberti, Broward County Sheriff, announced today the launch of a Federal-Sta
In the following press release U.S. Attorney for the District of New Jersey, Christopher J. Christie (pictured left) announced that a Staten Island, N.Y., dentist was convicted by a federal jury today for operating a scheme in which he fraudulently obtained $1.36 million in mortgages and spent the proceeds on luxury items including the purchase of a 46-foot yacht, a North Carolina residence and a GMC Yukon Denali. After less than two hours of deliberations today, a jury convicted Terrance D. Stradford, 46, a.k.a. “Wayne Sellers,” of all 24 counts contained in a Superseding Indictment. Stradford was convicted on one count each of conspiracy to commit wire fraud, conspiracy to commit money laundering and tax evasion. Stradford was also convicted of three counts of wire fraud and 18 counts of money laundering. Stradford also consented to the entry of a criminal forfeiture order in the amount of $720,000, which the government sought as property derived from proceeds of the
In the following press release from the Office of the United States Attorney for the District of Vermont stated that on August 29, 2007, Laura Zipprich, 40, of Bennington, Vermont, appeared in United States District Court and pleaded guilty to Wire Fraud in connection with a fraudulent real estate transfer. Sentencing has been set for December 12, 2007, in Rutland, Vermont. The Honorable J. Garvan Murtha presided at the change of plea. According to Court documents, in September, 2004, Zipprich used a fraudulently obtained Power of Attorney in order to transfer property and execute a $135,000 mortgage on a Winhall, Vermont home that Zipprich had owned. The property and mortgage were transferred to an unsuspecting victim, making the victim responsible for the mortgage. After the closing, the mortgage company wired approximately $133,000 into an account at a Bennington, Vermont bank. Zipprich was then given more than $54,000 in proceeds from the fraudulent transfer.In December, 2004, the
In the following press release from Jacksonville, FL, Acting United States Attorney James R. Klindt today announced that Justin D. Barker, 31, and Robert W. Hulbert, Jr., 45, both of Jacksonville, pleaded guilty to conspiracy to commit wire and bank fraud. The maximum penalty faced by both individuals is 30 years’ imprisonment, a fine in the amount of $1 million, a term of supervised release of up to five years, and special assessment of $100. According to the plea agreements, between January 2005 and June 2006, Barker negotiated with sellers of residential real estate properties, who executed Purchase and Sale Agreements to sell their properties at a given price. A co-conspirator, who was a licensed real estate appraiser, then fraudulently appraised the properties at substantially higher amounts than those stated on the Purchase and Sale Agreements. The conspirators provided a second, fraudulent, Purchase and Sale Agreement, showing the inflated appraisal price along with var
In the following press release from Sacramento, CA United States Attorney McGregor W. Scott announced that three defendants will appear in federal court today to face charges that they engaged in a Sacramento area mortgage fraud scheme that involved at least 19 homes with loans of more than $8 million. A federal grand jury returned an indictment last Thursday, sealed until today, charging JAMES ROY MARTIN, 36, MARIO FELLINI, III, 38, GABRIEL RICHARD VIRAMONTES, 44, and JOSEPH SALVATORE GALLO, 34, all from the Sacramento area, with bank fraud and conspiracy to launder money. In addition, MARTIN, FELLINI, and GALLO were indicted on charges of making false statements in loan applications, and MARTIN, FELLINI and VIRAMONTES were indicted on mail fraud charges. MARTIN was arrested at about 9:00 p.m. yesterday at a family member’s house, FELLINI self-surrendered to federal authorities this morning at approximately 10:00 a.m., and GALLO self-surrendered in federal court at 2:00 p.m. It
James F. Stovall III, 56, Roswell, Georgia, pleaded guilty in federal district court to charges of conspiracy to commit bank, mail and wire fraud, bank loan application fraud, money laundering, and wire fraud. United States Attorney David E. Nahmias said of the case, “We unfortunately continue to see some real estate professionals, such as attorneys and appraisers, who serve as gatekeepers of the system, instead ignoring their professional duty to participate in mortgage …Read More...
In the following press release from St. Louis, Missouri United States Attorney Catherine L. Hanaway announced that Floyd Irons and John Mineo, Jr., a local restaurant operator, pled guilty to wire and mail fraud charges in connection with a million dollar mortgage fraud scheme.“These defendants both allowed greed to tarnish successful and noteworthy careers. Now, they are facing lengthy prison sentences and the prospect of spending many years paying back this ill-gotten money,” said Hanaway. Both defendants have agreed to cooperate in this ongoing investigation. As part of his plea agreement, Mr. Irons has agreed to provide complete and truthful information and assistance to the Missouri State High School Activities Association (MSHSAA) regarding high school athletic recruiting violations and any and all other MSHSAA violations he is aware of. During the course of this scheme, Irons was employed by the St. Louis Public Schools. Mineo operated his restaurant and was employed
In the following press release United States Attorney Mary Beth Buchanan announced on September 18, 2007, that Scott P. Winovich, a resident of Mars, Pennsylvania, pleaded guilty in federal court to charges of Bank Fraud and Tax Evasion.Winovich, age 43, pleaded guilty to two counts before Chief United States District Judge Donnetta W. Ambrose.In connection with the guilty plea, Assistant United States Attorney Brendan T. Conway advised the court that Winovich, in connection with a real estate business that he owned, obtained millions of dollars of loans through a numerous financial institutions through fraud. Typically the loans were to purchase multi-unit rental facilities, and the loan applications contained numerous misrepresentations, including misrepresentations related to the condition, value and rental status of the buildings, and related to Winovich’s income, assets and liabilities.Judge Ambrose scheduled sentencing for December 18, 2007 at 11:30 a.m. T
Nicholas St. Nichols, 54, Dayton, Ohio, was sentenced in United States District Court here to one year and one day in federal prison for his role in a mortgage fraud scheme to sell homes in the Dayton, Ohio Metropolitan area at inflated prices to a buyer who believed she was merely selling him her credit. Nichols was also fined $4,000 and ordered to pay restitution to victims. St. Nichols and …Read More...
http://www.newsday.com/business/ny-bzdefer0918,0,5702591.story?coll=ny-nycnews-headlinesAs the failing bank, American Home Mortgage, recently fired over 7,000 employees for cost savings related to their subprime investments, they've now decided to freeze the funds in employees deferred compensation plans. Bankruptcy court is to decide whether American Home Mortgage is able to release nearly $27 million of employees contributions to make them accessible to other creditors. This is a dangerous precedent if they find that employees funds are open to creditors. When other banks fail, the issue will be whether banks with commingled funds (investments + customer deposits all in same accounts) have open all their assets to creditors. In the end, customers could be treated as a regular unsecured creditor behind large institutional banks.
In the following press release Hennepin County Attorney Mike Freeman said that mortgage scams “hurt” the community and that’s why he supports the charges against three people and three companies in connection with a mortgage scam allegedly operating out of the Chaska and Chanhassen area. Freeman, along with prosecutors Emery Adoradio and Tom Fabel, partnered with the Minnesota Financial CrimesTask Force Commander Chris Omodt to announce the charges and search warrants issued for Scott Rosenlund of 10Spring Homes, Shinon Lindberg of 10Spring Homes and Celeste Skaar of New Day Capital. The scam allegedly used the good credit rating of individuals coupled with phony annual salaries and employment histories to be approved for bank loans to purchase parcels of land at inflated prices. The difference between the ‘actual’ price of the parcel and the inflated price was allegedly taken by 10Springs and used as kickbacks. The three suspects are charged with rac
In the following press the FBI in Cincinnati, Ohio announced that Nicholas St. Nichols, age 54, of Dayton, was sentenced in United States District Court here to one year and one day in federal prison for his role in a mortgage fraud scheme to sell homes at inflated prices to a buyer who believed she was merely selling him her credit. Nichols was also fined $4,000 and ordered to pay restitution to victims. Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and J. Mark Batts, Acting Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the sentence handed down yesterday by Senior United States District Judge Walter H. Rice. St. Nichols and Todd Armstrong, a 43 year old Bellbrook resident sentenced in July to twelve months and one day imprisonment, were originally indicted for the scheme in July 2005. Eventually, each entered guilty pleas to one count of mail fraud. The victims in both cases included financial insti
Ramzy Moumneh, a/k/a Ramsey Moumneh was sentenced to 60 months in prison, 3 years of supervised release thereafter and must pay $94,088 in restitution. Moumneh was found guilty along with four of his co-defendants stemming from an indictment alleging a foreclosure rescue scheme. As previously reported by Mortgage Fraud Blog, according to the evidence presented at trial and court documents the defendants targeted homeowners located throughout Central and South …Read More...
MORTGAGE FRAUDSTERS You know when you wake up in the morning on the right side of the bed, with a bright big smile on your face and ready to take the world on without even blinking. You open up your mailbox and you've got a couple of leads and you decide to call one of them, and within 5 mins of listening to this guys story you want to cry...Well it happened to me yesterday. It actually upsets me so that people get caught in these traps and schemes and loose thousands if not millions of rands. Well, I'm sick of hearing about them and I've decided to write about the story of Justin Peens and Silver Tale Investments CC. I hope to GOD that this story reaches the people it should reach and that it makes such a RA RA around South Africa that these people get caught and sent to jail!Here's his story:In February 2007 I went to a place called Silvertale Investments to apply for a mortgage and to consolidate all my existing debts. The lady I spoke to whose name was Suzanne, said she was ver
Subprime Crisis
To start off, I think its important to clarify the vague over simplifications you hear in the news describing the "Subprime Crisis" or the "Credit Crunch." The story begins with commission hungry brokers and ends with consumers struggling to keep their homes as their adjustable rate mortgages (ARMs) begin to reset after their teaser rate period expires. After a quick look at the players in the lending industry it becomes clear what happened to the Subprime market.
Subprime Market
Subprime lending is typically for borrowers that have lower credit scores and do not qualify for prime rates. Understandably, the bank requires a higher interest payment for taking on a higher risk of default. Now as a borrower, if you wanted a loan you would seek out a broker that works with the loan originator (local bank branch) to close your loan. Keep in mind that most brokers are paid on commission for loans that they close. The approval and submission of loans that may not be credi
Nathan Parker, 49, Philadelphia, Pennsylvania, the ringleader of a $4 million mortgage fraud scheme, was sentenced to serve 9 years, 7 months in federal prison by United States District Judge Orinda D. Evans on charges of conspiracy to commit mortgage fraud and mail fraud. “This case again demonstrates how mortgage fraud has seriously damaged communities in the Atlanta metropolitan area, while also stealing from lending institutions,” said United States Attorney David E. Nahmias. …Read More...
Rachel Donegan, 37, and David Lincoln, 37, Baltimore, Maryland, pled guilty to wire fraud arising from a mortgage fraud scheme. Donegan and Lincoln worked at 1st Metropolitan Mortgage and Guilford Title and Escrow, located in Baltimore, Maryland, preparing mortgage applications and assisting in mortgage closings. According to their plea agreements (Donegan plea, Lincoln plea), from January 2005 to December 2006, Donegan and
In the following press release from Brooklyn, NY the Kings County District Attorney Charles J. Hynes today announced the sentencing of Delbert Baptiste, 45, to three to nine years in prison for a mortgage fraud scheme totaling more than two million dollars. Baptiste had previously pleaded guilty to Grand Larceny in the Second Degree. Baptiste used the property at 600 St. Marks Place in Crown Heights to defraud several mortgage companies. He repeatedly recruited acquaintances to pose as purchasers and allow their credit to be used in order to obtain mortgages in their names. These individuals were merely straw buyers and Baptiste, in fact, retained control of the property and resold it several times at inflated values, thus realizing a profit. For their participation in the scheme, straw buyers received a payment from Baptiste. Between June 1 and October 29, 2003, Baptiste arranged to obtain a $512,000 loan from US Mortgage property and purchase the property. The straw buyer earned $
Trial began in the highly-publicized case involving Saundra McFadden-Weaver, ex-Kansas City, Missouri, councilwoman. The opening statements centered around the defendant’s misrepresentation as to occupancy of the Lee Summit, Missouri, residence and McFadden-Weaver‘s general state of mind during the 2005 loan transaction. As previously reported by Mortgage Fraud Blog, The indictment alleges that McFadden-Weaver, Emmanuel Kind and Ricky Hamilton participated in a conspiracy to defraud mortgage lenders. The …Read More...
Ricky L. Hamilton, 52, Grandview, Missouri, pled guilty to a scheme involving a Kansas City, Missouri, City Councilwoman Saundra McFadden-Weaver. Hamilton was among three co-defendants indicted by a federal grand jury for conspiracy and wire fraud for their role in a scheme to engage in mortgage fraud. As previously reported by Mortgage Fraud Blog, Saundra A. McFadden-Weaver, 47, Emanuel M. Kind, 51, both of Kansas …Read More...
Inman News just issued a press release announcing the recipients of the 2007 Innovator Awards. Mortgage Fraud Blog was awarded the Most Innovative Blog award. This was a surprising win because there were some really great blogs among the nominees this year! Other finalists in the blog category were 3 Oceans Real Estate,
In the following press release George S. Cardona, United States Attorney for the Central District of California announced that two real estate agents, as well as two state-licensed real estate appraisers, were indicted this morning by a federal grand jury for allegedly participating in a massive mortgage fraud scam that caused more than $40 million in losses to federally insured banks. An 85-page indictment returned this morning by a federal grand jury in Los Angeles charges Joseph Babajian, 54, of West Los Angeles; Kyle Grasso, 36, of Santa Monica; Lila Rizk, 40, of Trabuco Canyon; and Scott Robinson, 44, of Dana Point. During the alleged scheme, Babajian and Grasso worked at, and were part owners of, Prudential California Realty. Rizk and Robinson were appraisers licensed by the State of California. All four defendants were charged with conspiracy, bank fraud, and loan fraud. Additionally, Babajian and Grasso were charged with money laundering. According to the 35-count indictment, t
Michael Hershkowitz, 51, and Ivy Woolf-Turk, 51, both developers with the Kingsland Group in Manhattan, New York, were arrested on charges of orchestrating a mortgage fraud scheme that cost investors $78 million. Hershkowitz and Wolf-Turk are charged with forging mortgage papers to use as collateral when accepting loans from individual and corporate investors. According to the Complaint, the defendants allegedly told investors they were financing the renovation …Read More...
