Owner: Mortgage Fraud Blog URL:www.mortgagefraudblog.com Join Date: Fri, 23 Feb 2007 17:51:13 -0600 Rating:0 Site Description: Mortgage Fraud is the fastest growing white collar crime in the United States. Unfortunately, it's not just hardened criminals that commit mortgage fraud. The saddest stories are the everyday people and honest real estate professionals that are duped in Site statistics:Click here
Leader of Foreclosure Bail Out Scam Pleads Guilty 2007-02-24 00:00:00 Martha Rodriguez, 35, Downey, California, pleaded guilty to one count of mail fraud and one count of money laundering in relation to the scheme that ran from May 2003 until November 2005. Rodriguez admitting her role in a $12 million real estate fraud scheme that targeted homeowners in default on their mortgages and falsely promised them help. By pleading guilty, Rodriguez admitted that she and several co-schemers located victim homeowners through computerized databases that list homes going into foreclosure. Rodriguez promised victim homeowners that their homes would get refinanced. However, instead of obtaining refinancing, Rodriguez and the other defendants charged in this case submitted loan applications in the names of "straw buyers" who were purportedly buying the …Read More... Read more:Foreclosure
, Guilty
, Leader
Second Indianapolis Man Sentenced in Promised Land Mortgage Fraud Flipping Case 2007-02-23 23:38:01 John Wagner, 46, Indianapolis
, Indiana, was sentenced to 37 months following his guilty pleas to conspiracy to commit mail fraud and money laundering. From late 2000 to early 2002, Romero Brice (who was sentenced on February 20 to 87 months in prison) was the owner of Promised Land Mortgage
. Brice fraudulently obtained over $4,000,000.00 in loans from ABN-AMRO by submitting false loan applications, fraudulent financial documents, and falsely inflated appraisals for the purpose of obtaining mortgage loans. Brice located and obtained at fair market value properties in low income neighborhoods of Indianapolis, Indiana. He then used "investors" to repurchase the properties a very short time later at 3-4 times their fair market value. John …Read More... Read more:Flipping
, Mortgage Fraud
, Second
, Sentenced
Indiana Investor Sentenced to 24 Months in Mortgage Flipping Scheme 2007-02-23 23:05:00 Frankie Lamont Howard, 38, Indiana
polis, Indiana, was sentenced to 24 months imprisonment following his guilty pleas to conspiracy to commit mail fraud and money laundering. Howard was a real estate investor operating in the Indianapolis, Indiana area. Between April and October 2002, Howard engaged in at least thirty-one (31) separate fraudulent mortgage loan transactions, obtaining loans of approximately $1,663,340.00 on properties which were actually only worth a total of approximately $439,300.00. This resulted in a loss to First Bank, the lender, of approximately $1,224,040.00. Howard located residential properties for sale in the Indianapolis area, primarily in low-income neighborhoods. Howard purchased these properties at fair market value. A very short time later, he sold these properties …Read More... Read more:Flipping
, Investor
, Months
, Mortgage
, Scheme
, Sentenced
Brooklyn Attorneys Charged in Foreclosure Bail Out Scheme 2007-02-23 22:16:00 Two attorneys who maintain law practices in downtown Brooklyn
have been charged with selling the house out from under a Rosedale woman who was experiencing financial difficulties by engaging in an elaborate real estate foreclosure bail out scheme. Four Long Island residents have also been charged with participating in the alleged scheme. The defendants are: John D. Lewis, 54, attorney, Manhattan, New York, Angelyn Johnson, 48, attorney, Freeport, Long Island, These two defendants, who both maintain law practices at 26 Court Street in Brooklyn, New York, have each been charged with second-degree grand larceny, second-degree forgery, second-degree criminal possession of a forged instrument, first-degree scheme to defraud and first-degree falsifying business records. If convicted, they …Read More... Read more:Attorneys
, Charged
, Foreclosure
, Scheme
New Hampshire Attorney Indicted for Forgery and Theft in Mortgage Case 2007-02-22 18:20:00 Thomas M. Walsh, former attorney, Manchester, New Hampshire
was issued four indictments. Walsh previously practiced as an attorney in Manchester, New Hampshire
, but is presently suspended from the New Hampshire Bar. Two Forgery indictments charge that in January and April of 2004, Walsh presented to a private lender fraudulent mortgage documents along with another fraudulent document that purported to grant power of attorney to Walsh from a former client. These fraudulent mortgages caused liens to be recorded against the former client's real estate. Two indictments charge Walsh with Theft by Deception for unlawfully receiving $30,000.00 from the proceeds of the January fraudulent mortgage, and $23,750.00 from the April fraudulent mortgage. The investigation is ongoing. …Read More... Read more:Attorney
, Attorney Indicted
, Mortgage
Loan Officer Sentenced in $2.3 Million Mortgage Fraud Scam 2007-02-22 15:18:00 Troy Scott Clements, former operator of the Springdale mortgage firm, American Funding, was sentenced to 24 months in prison for his role in defrauding mortgage lenders out of $2.3 million in the Greater Cincinnati, Ohio area over the course of several years. He admitted to charges of bank fraud and money laundering last fall in an ongoing mortgage fraud investigation. The fraud scheme has already resulted in over three dozen guilty pleas. According to the indictment, Clements was a private mortgage lender in Southwest Ohio and operated under trade names of American Funding, T.C.T. Contracting and Troy Clements, Trustee. American Funding‘s offices were co-located with the offices of Airline Union’s Mortgage
Company, …Read More... Read more:Million Mortgage
, Million Mortgage Fraud
, Sentenced
Indictment Handed Down in South Carolina Mortgage Fraud 2007-02-22 14:25:00 Candy Ryan, 50, mortgage company owner, Summerville, SouthCarolina
, was charged with wire fraud for her part in a fraudulent mortgage transaction. The indictment alleges that the mortgage proceeds were transmitted by wire in interstate commerce from California to South Carolina
. Ryan was the owner of Candy Ryan Mortgage
, Inc., Charleston, South Carolina, a company that specialized in arranging residential mortgages for sub-prime borrowers. The indictment alleges that Ryan and an unindicted co-conspirator persuaded an individual to purchase the property at 14-B Strawberry Lane , Charleston, South Carolina. Ryan and the unindicted co-conspirator promised the potential buyer that major repairs would be made to the property. They also stated that the property would be …Read More... Read more:Mortgage Fraud
Broker Sentenced in Indiana Mortgage Fraud Scheme Involving 83 Properties 2007-02-21 21:36:00 Romero Brice, 37, Chicago, Illinois, was sentenced to 87 months imprisonment following his guilty pleas to conspiracy to commit mail fraud and money laundering. According to facts presented at the guilty plea hearing, from late 2000 to early 2002, while living in Indiana
polis, Indiana, Brice fraudulently obtained over $4,000,000.00 in loans from a Michigan lending institution by submitting false loan applications, fraudulent financial documents, and falsely inflated appraisals for the purpose of obtaining mortgage loans. The court found that the loss to the lender caused by Brice's fraudulent activities was $2,738,900.00. Brice operated as both a mortgage broker and a real estate broker. He was the owner of, and licensed mortgage broker for, Promised Land Mortgage
in …Read More... Read more:Broker
, Properties
, Scheme
, Sentenced
First Horizon Files Lawsuit against Former Employees Alleging Fraudulent Transaction 2007-02-21 15:15:01 First Horizon Home Loan Corporation has filed a civil lawsuit against
two former employees for a non-arms length transaction involving the property of one of the employees. Also named in the complaint are the spouse and girlfriend of the employees, the title company that handled the escrow and title company employees. Defendants named in the complaint are: Michael Edward Phillips, former District Manager for First Horizon Jason Nowak, former loan officer for First Horizon Jane Doe Nowak, spouse of Jason Nowak Bernice Nyden, girlfriend of Phillips, friend of Mercedes Robinson, the borrower Guaranty Title Agency of Arizona, Inc. Claudia Soles, …Read More... Read more:Alleging
, Files Lawsuit
, First
, Former
, Fraudulent
, Lawsuit
, Transaction
Ohio Loan Officer Sentenced for Stealing Proceeds in Transaction with Elderly Borrower 2007-02-20 23:47:01 Candice Robinson, 27, Cleveland, Ohio
, was sentenced to four years in prison for stealing $67,400 from Frankie Jo Henry, a 72-year-old woman from Garfield Heights, Ohio, in a mortgage lending scheme. She was also ordered to pay full restitution. Prosecutor Bill Mason said, "This coldhearted thief targeted the elderly to line her pockets. She stole this poor woman's equity in her home of 25 years and destroyed her peace of mind. For such callous and destructive thievery, Robinson should serve her entire sentence of four years in prison" Henry's daughter approached Robinson, an employee for Great Lakes Mortgage Company, in August of 2005. The daughter was concerned about her home due to missed …Read More... Read more:Borrower
, Sentenced
, Stealing
, Transaction
Mortgage Broker Pleads Guilty to Mortgage Fraud 2007-02-26 23:23:00 James Sparks, 35, Lawson, Missouri, pled guilty to one charge of conspiracy to commit mortgage fraud. He was indicted as part of a case involving contractor F. Jeffrey Miller and three others. Charged along with Miller and Sparks in the indictment are Stephen W. Vanatta, Lenexa, Kansas, Hallie Irvin, Lenexa, Kansas, and Sandra Harris, Overland Park, Kansas. To induce Vanatta and Irvin to continue …Read More... Read more:Broker
, Guilty
, Mortgage
, Mortgage Fraud
New York Broker Charged in 30-Count Indictment 2007-02-26 22:57:00 Anthony J Andersen, 53, Florence, Massachusetts, was indicted charged in a 30-count felony indictment alleging conspiracy, false statements, bank fraud, money laundering and monetary transactions over $10,000 derived from specified unlawful activities. According to the indictment, Andersen held himself out as a mortgage broker. Andersen owned, operated and/or did business using a number of entities, detailed below: Troy Realty Equity Corp First Street Troy Realty Corp …Read More... Read more:Broker
, Charged
, New York
Eagle First Mortgage Company of Arizona Shut Down 2007-02-28 19:24:00 Eagle FirstMortgage
Corporation and its president, David T Sanchez entered into a Consent Order with the Arizona
Department of Financial Institutions whereby EFMC will be shutting down operations by March 14, 2007 and accepting no new business as of January 31, 2007. EFMC was a net branch operation with over 70 locations. The Department of Financial Institutions conducted an examination of EFMC . Without admitting liability, EFMC …Read More... Read more:Eagle
New York Attorney Charged in Mortgage Scam 2007-02-28 17:42:00 Gwenerva Cherry, 50, attorney, New York
, New York, was arraigned on grand larceny charges. Cherry had a firm in the name of Cherry and Marshburn at 305 Broadway, Suite 303, New York, New York. Cherry was well-known in the Harlem area as an expert in removing buildings from Single Room Occupancy (SRO) status and representing clients who wanted to purchase townhouses in need of renovation. The defendant also represented …Read More... Read more:Attorney
, Charged
, Mortgage
Colorado Indicts Man in Mortgage-Backed Securities Fraud Scheme 2007-02-27 23:02:00 Robert O. Bryant, 48, was indicted on 49 counts of securities fraud and one count of theft. Each of the counts is a class 3 felony, punishable by up to 12 years in prison and $750,000 in fines. Bryant was allegedly involved in a scam that promised investors high rates of return on loans backed by deeded real estate. Bryant and his partner, Orange County California’s Salvatore Favata, approached consumers …Read More... Read more:Backed Securities
, Colorado
, Mortgage
, Scheme
, Securities
Co-defendant in Amico Case Returning to Prison in New Mortgage Fraud Scam 2007-02-27 20:50:00 John J Siciliano, 31, Greece, New York, on parole in the Amico mortgage fraud case, pled guilty to a charge of bank fraud as well as violating the terms of his supervised release after his conviction in the largest case of mortgage fraud ever prosecuted in western New York. Siciliano pled guilty in 2001 to seven counts of mail fraud in connection with the prosecution of Robert A Amico and …Read More... Read more:defendant
, Mortgage
, Prison
California Woman Sentenced for Defrauding Grandmother 2007-02-27 20:11:01 Vanessa Sousa, 21, Lindsay, California
, was sentenced to 1 year in jail and 3 years probation in conjunction with her arrest and conviction on charges of real estate fraud, elder abuse, and grand theft. Sousa tricked her dependant grandmother into signing a Grant Deed on an apartment complex in Lindsay, California. Once she secured title, Sousa obtained an $82,500 loan against the property. Sousa was also ordered to vacate …Read More... Read more:Defrauding
, Grandmother
, Sentenced
Challenge Financial Investors Shut Down in Georgia 2007-03-02 22:55:00 On March 2, 2007, the Georgia
Department of Banking and Finance (“Department”) entered into a Consent Order with ChallengeFinancialInvestors
Corporation (“Challenge”), License Number 15790, located at 360 Central Avenue, Suite 600, St. Petersburg, Florida, to resolve allegations pertaining to violations of the Georgia Residential Mortgage Act and agency rules. Pursuant to the terms of the Consent Order: The revocation of Challenge’s mortgage lender’s license is effective as …Read More...
Foreclosure Rescue Group Sued by Illinois Attorney General 2007-03-02 18:34:00 Illinois AttorneyGeneral
Lisa Madigan filed a lawsuit in Cook County Circuit Court against multiple businesses and individuals who operated a mortgage rescue scheme that targeted Illinois homeowners facing mortgage foreclosure. The suit, filed against Eyes Have Not Seen, Inc. (EHNS), its president, Charles T. White, Jr., Debra Gray and Darius K. Monroe as agents of EHNS, Mutual Trust Funding, formerly known as Greater Investment …Read More... Read more:Foreclosure
, Foreclosure Rescue
, Group
, Illinois
, Rescue
Title Agents Charged in $2 Million Mortgage Fraud Scheme 2007-03-02 18:14:00 Pamela Jones Johnson, 38, title agent, Parkland, Florida, and Elena Gunter Granderson, 43, title agent, Pembroke Pines, Florida, each were arrested on a charge of organized scheme to defraud. The two title agents are believed to be part of a six-member mortgage fraud ring suspected of duping several mortgage lenders and a homeowner out of nearly $2 million. The arrests focused on real estate transactions on five properties located in Dade, …Read More... Read more:Charged
, Million Mortgage
, Million Mortgage Fraud
, Mortgage
, Scheme
, Title
States Developing National Residential Mortgage Licensing System 2007-03-02 15:03:01 Twenty-nine state agencies have indicated their intent to participate in the Residential Mortgage
Licensing System
by the end of 2009. The System will be used by state residential mortgage regulators to accept and process national, uniform license applications and renewal forms that have been created by state regulators over the past two years. Licensees will be able to electronically manage a single record in the System to apply for, amend, renew, and surrender licenses …Read More... Read more:National
, States
Nevada Borrower Files Suit Against 27 Defendants in Flipping Scheme 2007-03-01 18:36:00 Ugo John Leone filed suit in Clark County, Nevada
against 27 defendants who he alleges conspired to defraud him in a flipping scheme. The complaint alleges that Moe David Zahriya purchased the residential property at 7524 Royal Crystal Street, Las Vegas Nevada for $673,754 in March of 2005 and resold it to Leone in May 2006 for $969,888. It further alleges that in January 2006 John Colon purchased the …Read More... Read more:Borrower
, Defendants
, Flipping
, Scheme
Louisiana Contractor Charged with Taking Hurricane Proceeds - Mortgage Companies Unpaid 2007-03-05 20:58:01 Dana Abboud, owner of AB Coastal Construction, Inc., was arrested on three counts of felony theft related to contractor fraud in Orleans Parish, Louisiana
. He is suspected of defrauding numerous homeowners in Orleans, Jefferson and St. Charles Parish, Louisiana, who were trying to repair their Hurricane Katrina damaged homes and who were allegedly defrauded out of approximately $500,000.00, combined. Allegedly, Abboud fled to Boca Raton, Florida to avoid apprehension. …Read More... Read more:Charged
, Companies
, Contractor
, Mortgage
, Mortgage Companies
, Taking
On Time Processing Issued Cease and Desist in Georgia 2007-03-05 20:25:00 Marsha Law, d/b/a On Time Processing
(OTP), Covington, GA 30013, was issued a Cease and Desist Order by the Georgia
Department of Banking and Finance and it has became final. This Cease and Desist Order was issued by the Department after it obtained evidence that Marsha Law, d/b/a On Time Processing (OTP), engaged in mortgage brokerage/lending activities without a license or under an applicable exemption. …Read More...
Gladys Marcelin and Related Companies Issued Cease and Desist 2007-03-05 19:19:00 Gladys Marcelin, d/b/a Marcelin Mortgages, Gladyshomeloans.com, and Georgetown Mortgage, Stockbridge, Georgia, was issued a Cease and Desist Order issued by The Georgia Department of Banking and Finance and it has become final. This Cease and Desist Order was issued by the Department after it obtained evidence that Gladys Marcelin, d/b/a Marcelin Mortgages, Gladyshomeloans.com, and Georgetown Mortgage engaged in mortgage brokerage/lending activities without a license …Read More... Read more:Companies
Former Oklahoma Appraiser Sentenced in Fraud Scheme 2007-03-06 19:18:01 Lawrence Goodwin, 54, of Noble, Oklahoma
, was sentenced today in a wire fraud scheme in which he provided falsely inflated residential real estate appraisals to mortgage brokers who were assisting customers in re-financing their homes. Goodwin was licensed to conduct real estate appraisals in Oklahoma from 1998 until March of 2000, when the Oklahoma Real Estate Appraiser Board revoked his license. However he continued to perform appraisals at the request of …Read More... Read more:Former
, Scheme
, Sentenced
Missouri Forming a Mortgage Fraud Task Force 2007-03-06 14:49:01 The state of Missouri
announced the formation of a department mortgage fraud task force. The task force, led by Richard Weaver, deputy director for the Division of Finance, consists of personnel from the Insurance Consumer Affairs Division, the Real Estate Commission and the Real Estate Appraisers Commission. “Mortgage
fraud affects lenders, mortgage brokers, realtors, appraisers and, most important, consumers,” said Doug Ommen, director of the Missouri Department of Insurance, Financial Institutions & …Read More... Read more:Force
, Mortgage Fraud
, Task Force
USC Professor Bilks Students and Others in Real Estate Investment Scam 2007-03-08 14:14:00 Barry Landreth, 37, formerly of Coto de Caza, California, pleaded guilty to wire fraud, which carries a penalty of up to 20 years in federal prison. By pleading guilty, Landreth, a former adjunct professor of real estate finance at the University of Southern California, admitted that he ran two schemes involving purported real estate development projects in Chicago, Illinois and Las Vegas, Nevada. Through his company, Webster Realty Investors, …Read More... Read more:Estate
, Others
, Real Estate
, Real Estate Investment
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