Mortgage Fraud

In the following press release Marty J. Jackely, United States Attorney for the District of South Dakota announced that Benjamin Ashley Markham, age 31, of Sioux Falls, appeared before US Magistrate Judge John E. Simko on December 16, 2008, and pled guilty to two counts of an indictment that charged him with bank fraud and fraudulent use of a social security number. The maximum penalty upon convic

Court records show that Ohio couple Joy Freeman and Shawn E. Pass have been indicted in Drug Trafficking and mortgage fraud allegations. Freeman pleased guilty on December 11, 2008 and Pass is due for trial in January. Counts 12 to 14 of the indictment allege that in May 2004 Freeman applied for a $367,200 mortgage with Countrywide to purcahse a new home from Duffy Homes. at 5290 Port Haven, Lewis

In the following press release Benton J. Campbell United States Attorney for the Eastern District of New York announced that two indictments were unsealed this morning in federal court in Brooklyn charging sixteen defendants for their participation in two separate schemes to defraud mortgage lenders of more than $13 million in mortgage loans. A third indictment was unsealed charging four defendant

In the following press release Catherine Hanaway, United States Attorney for the Eastern District announced the formation of the U.S. Attorney’s Mortgage Fraud Task Force. The first meeting of the U.S. Attorney’s Task Force on Mortgage Fraud occurred today at the U.S. Attorney’s office in St. Louis. “Most of us have learned the hard way that the mortgage industry is a cruci

In the following press release Catherine L. Hanaway, United States Attorney for the Eastern District of Missouri announced that Russell Todd McBridge of Creve Coeur, MO and Robert P. Wrolstad of O’Fallon, MO have been indicted in a mortgage fraud scheme involving the sale of residential real estate located in Sikeston, Missouri. McBride and Wrolstad have been charged in a 34-count indictment

The following article was taken from the Channel 4 TV News website and was originally posted on 10/20/2008. The reporter for the article was Katie Razzall. Channel 4 News has discovered that mortgage fraud is booming as house prices continue to fall. Mortgage lending has slumped to its lowest monthly level for more than three and a half years, hit by weak demand and the financial crisis. But just

In the following press release McGregor W. Scott, United States Attorney for the Eastern District of California announced today that a federal grand jury returned an indictment yesterday charging DEREK DAVIS aka Terry McCullough, 62, of Sacramento, and DINO ROSETTI, 39, of Roseville, with mail fraud and making false statements in loan documents. DAVIS was separately charged with attempting to caus

  In the following press release David E. Nahmias, United States Attorney for the Northern District of Georgia announced that Joseph Sterling Jetton, 61, of Woodstock, Georgia, was sentenced today by United States District  Judge Beverly B. Martin on charges of conspiracy, bank fraud, wire fraud, and money laundering related to a multi-million dollar mortgage fraud scheme. United States

In the following press release Don DeGabrielle, U.S. Attorney for the Southern District of Texas announced that a federal grand jury sitting in Houston has indicted five individuals in a 12-count indictment with devising a scheme to defraud residential mortgage lenders by misstating facts relevant to the lending decisions. FBI Houston Special Agent-in-Charge Andrew R. Bland III and Rodney E. Clar

In the following press release Florida Attorney General Bill McCollum today announced that his office has filed criminal charges against an active mortgage fraud ring in South Florida. Nine individuals, including the previously convicted Boca Raton ringleader, are charged with criminal racketeering, conspiracy to commit racketeering and multiple counts of grand theft. The criminal ring allegedly u

In the following press release Terrence Berg Acting United States Attorney for the Eastern District of Michigan announced the formation of a multiagency task force set up to take aim on the escalating problem of mortgage fraud in the Eastern District of Michigan. Mr. Berg was joined by Special Agent in Charge Andrew G. Arena, Federal Bureau of Investigation (FBI).As mortgage fraud continues to ha

I received a call from a young lady the other day.  She said she had gone into a Detroit home being showed by a metro Detroit real estate agent.  The buyer said it was a very nice home.  She was calling me to get pre-qualified for a mortgage. As she explained what was going on with the home purchase I quickly decided I wanted nothing to do with this deal.  The real estate agent

From the Oregonian:Marty Ray Folwick, the Portland man who put together more than 70 fraudulent mortgage deals during the housing boom, pleaded guilty Thursday to four counts of bank fraud, wire fraud and money laundering.Prosecutors recommended that Folwick serve 62 months in federal prison. He is scheduled to be sentenced Dec. 8. Folwick, 50, worked as a real estate loan officer, matching would-

A bill to establish in the Federal Bureau of Investigation the Nationwide Mortgage Fraud Coordinator to address mortgage fraud in the United States, and for other purposes was passed on Tuesday (9/22/08) by 352 votes for to 20 against and will now go before the Senate. To read the bill and follow its progress please click hereThe following is a summary of the Bill as taken from Govtrack.us:“

The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers and AIG - and their executives - as part of a broad look into possible mortgage fraud. The mortgage fraud investigation totals 26 large financial institutions involved in subprime lending.

The party is over for one Cape Coral couple, Ron and Lisa Luczak, who last week plead guilty to a mortgage fraud scheme. The racket which targeted Cape Coral property, used straw-man buyers, over-inflated appraisals and contract assignment fees involving at least 37 properties and $27M in home loans. In an 18 month period, Lisa Luczak's Cape Coral firm, Cape Coral Equity and Development Group rec

Mortgage Fraud -Think and use these words carefully if you are a short sale seller!  I say this because I have seller's calling me from all walks of life...from different states...with different situations..short sale situations and some sellers choose the words mortgage fraud! When I hear mortgage fraud...I ask immediately...have you called an attorney? In most instances..a REALTOR is the fi

On August 20, 2008 it was announced by United States Attorney Catherine L. Hanaway and St. Charles County Prosecuting Attorney Jack Banas that John “Jack” Gorecki was sentenced to twenty-seven months in prison on bank fraud charges involving false loan applications submitted to financial institutions in the St. Louis area.

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

FinCEN reports Illinois led the country in increased filings of suspected mortgage fraud.... Here's what to do if you're a victim of mortgage fraud...

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...