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Owner of a North Carolina Title Agency sentenced to 67 months in prison
2007-11-27 01:36:00
Ryan Cook reports for the Dayton Daily News that former Springboro football standout W. Brad Lamb began serving a 67-month sentence this month after pleading guilty in federal court to bank fraud, money laundering and filing a false tax return, according to Internal Revenue Service spokeswoman Nancy Hatfield. Between May 2004 and May 2005, Lamb, 40, of Huntersville, N.C. attempted to obtain more than $1 million in money and property by falsifying loan documents, transferred more than $21,000 from the business to his personal account, and filed a false tax return in 2004 by failing to report about $459,000 of income, according to the charges against him. Facing up to 43 years in prison, Lamb pleaded guilty and was sentenced on Nov. 15 in U.S. District Court in Charlotte, N.C. Lamb had worked for a local Nations Title Agency , and in 2000 was promoted by Nations Title Agency and transferred to North Carolina , where he moved with his family. In 2001 Lamb and two others founded Light...
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Recent Case Updates
2007-11-26 18:27:00
The following older entries were updated today.Arkansas woman sentenced in manufactured housing scam Two convicted in Dorean Group mortgage elimination scheme 
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Title Agency in Plano, TX has licence revoked
2007-11-26 18:05:00
The Texas Department of Insurance announced that on September 27, 2007 New Frontier Title Agency , LLC of Plano had their Title Insurance Agent’s license revoked and were fined $41,550 fine and ordered to pay $4,000 restitution in relation to charges that they engaged in fraudulent or dishonest acts or practices and misappropriated or converted money belonging to an insurer or insured. This action was covered by Order Number 070876. For confirmation of this and to see the other orders issued in September (we only post those which mention fraud or dishonesty) please click here.
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Texas man gets 40 years in prison for his part in a mortgage fraud
2007-11-25 22:56:00
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 w...
More About: Mortgage Fraud , Mortgage , Prison

Hennepin County (MN) man charged in mortgage fraud allegations
2007-11-25 04:38:00
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 f...
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Four plead guilty in San Diego sub-prime mortgage fraud case
2007-11-25 04:19:00
In the following press release United States Attorney Karen P. Hewitt announced that Alejandro Lopez, Emilio Lopez, Ravinderjit Singh Sekhon, and Linda Velasquez each pled guilty today in federal court in San Diego to conspiracy and wire fraud charges. The defendants entered their guilty pleas before United States Magistrate Judge Nita L. Stormes, subject to final acceptance of the pleas by United States District Court Judge Marilyn L. Huff at the time of sentencing. According to court records, Alejandro and Emilio Lopez were two of the owners of “Century 21 El Dorado,” a San Marcos, California firm that offered real estate and home financing services targeting mostly Hispanic clientele. Alejandro and Emilio Lopez headed the “Lopez Team,” which consisted of, among others, loan officers, loan processors and real estate agents who conducted fraudulent real estate and loan broker activities. Ravinderjit Singh Sekon was a loan officer, and Linda Velasquez was t...
More About: Fraud , Mortgage Fraud , Mortgage

Recent Case Updates
2007-11-25 04:05:00
The following older cases were updated recently.Matthew Cox sentenced to 26 years in prison - Updated entry contains link to Video News reportTwo sentenced in Maryland stolen ID’s case Fomer owner of World Wide Financial, LLC sentenced in mortgage fraud scheme 
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Three men indicted in Tennessee mortgage fraud allegations
2007-11-25 03:50:00
In the following press release on November 16, 2007, the Office of U.S. Attorney for the Middle District of Tennessee , announced that Harold Stafford, Miles Jackson Black and Jeffrey Dunn Hathcock were indicted by a federal grand jury on Wednesday 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 in Hendersonville and Gallatin by unqualified straw buyers. Stafford, Black and Hathcock caused the submission to mortgage lenders of false mortgage loan applications that overstated the straw buyers’ income, falsely stated that the homes would be the straw buyers’ primary residences, and failed to disclose other recent home purchases by the same straw buyers. If convicted, Stafford, Black and Hathcock e...
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Pennsylvania AG files suit in real estate fraud allegations
2007-11-18 20:54:00
In the following press release Pennsylvania Attorney General Tom Corbett today announced that the Attorney General’s Bureau of Consumer Protection has filed suit against a Pittsburgh area man, along with several of his businesses, accused of orchestrating a multi-million dollar mortgage and real estate scheme in Allegheny, Beaver and Butler counties. Corbett said the 13-count civil complaint was filed on November 15, 2007, in Allegheny County against Easy Realty Solutions Inc., Easy Realty Solutions LLC (doing business as Fieldstone Real Estate Co.) and Guaranteed Results Co., along with James C. Platts (pictured below), the only known employee or officer for these companies.  “Consumers came to Mr. Platts and Easy Realty looking for homes and a piece of the ‘American Dream’,” Corbett said. “Instead, their dreams of home ownership quickly turned into nightmares of inflated prices, undisclosed fees and bogus legal filings, all intended to s...
More About: Fraud , Real Estate , Realtor

Queens, NY appraisal firm indicted in allegations of inflated appraisals
2007-11-16 01:44:00
In the following press release Queens District Attorney Richard A. Brown, joined by Police Commissioner Raymond W. Kelly and New York State Secretary of State Lorraine A. Cortes-Vasquez, today announced the indictment of a Whitestone real estate appraisal company and its chief executive officer for allegedly inflating the value of properties in connection with numerous residential mortgage applications. In a 397-count indictment, D & T National Appraisals, Inc., and its CEO, Donato Odato, 54, of 166-11 Cryders Lane in Whitestone, have been variously charged with second- and third-degree forgery, criminal possession of a forged instrument, first- and second-degree falsifying business records, first- and third-degree identity theft, first-degree scheme to defraud and fifth-degree conspiracy. Odato faces up to seven years in prison if convicted. The corporate defendant faces a fine of up to $10,000 for each felony count conviction or double the amount of the illegal gain. Distr...
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Recent Case Updates
2007-11-16 00:02:00
The following older cases were updated todayLoan officer sentenced for his part in scheme that saw funds funnelled to Pakistan 
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Man pleads guilty over failed mortgage business
2007-11-15 01:14:00
In the following press release Martin C. Carlson, Acting United States Attorney for the Middle District of Pennsylvania , announced today that his Office has charged the Berks County man at the center of a multi-million-dollar, failed mortgage business with Mail Fraud and that he has agreed to plead guilty to the charge. WESLEY A. SNYDER, age 71, of Oley, Pennsylvania, is charged in a one count Information filed in U.S. District Court Harrisburg today with Mail Fraud Affecting a Financial Institution, 18 U.S.C. § 1341. The Information alleges that between 1988 and September of 2007 SNYDER defrauded more than 800 individuals throughout Central and Eastern Pennsylvania via his “Wrap Around, Equity Slide Down Discount” Mortgage Program and his “Mortgage Participation” Investment Program. The charge carries a potential penalty of 30 years imprisonment and $1,000,000 fine. SNYDER has agreed to plead guilty to the charge pursuant to a written plea agreement...
More About: Business , Indictments , Guilty

Disbarred NY attorney indicted, accued of stealing deposit
2007-11-15 01:10:00
In the following press release the Nassau County District Attorney Kathleen Rice announced today that Joseph Levine, a 59-year-old recently disbarred attorney from Hewlett, has been arrested and charged with stealing more than $300,000 from two clients he was hired to represent in legal matters during the past year. Mr. Levine is facing felony counts of Grand Larceny in the Second and Third Degrees, and two counts of Criminal Possession of a Forged Instrument in the Second Degree. “Lawyers are hired into positions of trust, often during a difficult time of someone’s life,” said Rice. “The betrayal of that trust is something my administration takes very seriously and will continue to investigate and prosecute aggressively.” Rice said that in December of 2006, the defendant counseled a Rockville Centre woman to settle a personal injury lawsuit that awarded his client $300,000. On December 27, 2006, Mr. Levine traveled to the Pennsylvania office of the...
More About: Indictments , Disbarred , Stealing

Recent Case Updates
2007-11-14 20:10:00
The following older cases have been updated today.Father and son attorney’s sentenced in theft of mortgage proceeds case New York attorney given prison sentence in another theft of mortgage proceeds case Austin real estate exec gets 5 years in house-flipping schemePortland man pleads guilty in mortgage fraud case. 
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FBI in Los Angeles arrest four in large scale HUD fraud
2007-11-09 20:15:00
In the following press release the FBI in Los Angeles announced that Federal agents this morning (11/9/07) arrested four officers with a now-defunct Inland Empire mortgage lender on charges of defrauding the United States Department of Housing and Urban Development and private lenders by fraudulently obtaining federally insured loans and selling those notes to private lenders. The defendants arrested today are: Richard Elroy Giddens , 67, of Riverside; John Richard Varner , 54, of Hesperia; Stephen Ray Harper , 50, of Ontario; and Katherine Ann Kilmer , 52, of Hesperia. A seven-count indictment unsealed today charges the four arrestees and two others with conspiracy, bank fraud and tax violations. The scheme, which ran from 1997 until 2002, was run out the Mortgage One Corporation, which was based in Hesperia, and M-1 Capital Corporation, which was based in Riverside and Rancho Cucamonga. The two companies were in the business of approving, funding and then selling home...
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Foreclosure rescue scam results in guilty plea
2007-11-09 20:07:00
In the following press release the FBI in Cincinnati, Ohio announced that Randall L. Webb, age 50, of Springboro pleaded guilty in United States District Court here today to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure, and falsely promising them he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position. Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Habbo G. Fokkena, United States Trustee, Region 9, (Ohio/Michigan); Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division; and Gerald A. O’Farrell, Assistant Inspector In Charge, U.S. Postal Inspection Service, announced the plea entered today before Senior United States District Judge Walter Herbert Rice. Judge Rice set Webb’s sentencing for February 4, 2008, at 11 a.m. Mail fraud carries a maximum possible...
More About: Results , Foreclosure , Rescue , Scam

Recent case updates
2007-11-09 19:44:00
The following cases were updated todayOregon man found guilty in mortgage fraud, faces spending rest of his life in prison 
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SE#C secures judgement in real estate investment scheme
2007-11-09 19:35:00
In the following press release The Securities and Exchange Commission (SEC) announced that on September 25, 2007, the Honorable John Antoon II, United States District Judge for the Middle District of Florida , granted the Commission’s motion for summary judgment against Patrick Kirkland, the primary architect of a fraudulent securities scheme involving the sale of real estate investments known as triplexes. The court permanently enjoined Kirkland from further violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. The order also granted the Commission’s claim for disgorgement with prejudgment interest against Kirkland and will hold a hearing to determine the amount Kirkland must disgorge. In addition, the Court reserved ruling on a specific civil penalty amount Kirkland must pay, pending the Commission’s motion. The Commission’s complaint in this matter, fi...
More About: Estate , Real Estate , Real Estate Investment , Investment

Recent Case Updates
2007-11-08 19:23:00
The following older entires were updated today.Cuyahoga County tite company and its owner plead guilty to fraud charges. 
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6 indicted in Kansas mortgage fraud allegations
2007-11-08 19:13:00
In the following press release Eric Melgren, United States Attorney for the District of Kansas , announced that s ix people were indicted Wednesday on federal charges of taking part in a conspiracy to fraudulently obtain $14 million worth of loans on homes in the Kansas City area. Named in the indictment were Wildor Washington, Jr., 37, Leawood, Kan.; Maurice Ragland, 33, Lee’s Summit, Mo.; Victoria Bennett, 34, Leawood, Kan.; Kara E. Robinson-Franks, 37, Grandview, Mo.; Scott Alexander, 69, Merriam, Kan.; and Terrence Cole, 41, Kansas City, Kan. According to the indictment: Washington owned Heritage Financial Investments, Legacy Enterprises, B&L Custom Development and Liberty Escrow. Through his companies, he prepared fraudulent loan applications submitted to lenders throughout the country including Hamilton Mortgage of Phoenix, Ariz; First Magnus of Overland Park, Kan.; Aegis Funding Corporation of Houston, Texas; National City Mortgage of Dayton, Ohio; Mortgage So...
More About: Fraud , Mortgage Fraud , Ansa

Maryland AG sue foreclosure rescue firm
2007-11-08 00:46:00
 In the following press release Maryland Attorney General Douglas F. Gansler announced that the Consumer Protection Division has filed a complaint in Baltimore City Circuit Court against a group of individuals and companies alleging they violated numerous laws in the course of providing services to homeowners who were facing foreclosure. The complaint names Michael K. Lewis, Earnest Lewis, Cheryl Lynn Brooke, Winston Thomas, and two companies, In the House Technologies based in Upper Marlboro and Cornerstone Title & Escrow based in Laurel. The Division alleges that the defendants market their services to homeowners who are facing foreclosure or are in foreclosure, falsely promising that they can help save the consumers’ homes. Instead of helping homeowners retain title to their homes, the defendants attempt to take title and then strip the equity out of the properties by charging the homeowners numerous undisclosed fees. After the defendants purportedly take the t...
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New York AG accuses eAppraiseIT of inflating appraisals for Wamu
2007-11-08 00:40:00
In the following November 1, 2007 press release New York Attorney General Andrew M. Cuomo announced that he is suing one of the nation’s largest real estate appraisal management companies and its parent corporation for colluding with the largest savings and loan in the country to inflate the appraisal values of homes. In a scheme detailed in numerous e-mails, eAppraiseIT (“EA”), a subsidiary of First American Corporation (NYSE: FAF), caved to pressure from Washington Mutual (“WaMu”) (NYSE: WM) to use a list of preferred “Proven Appraisers” who provided inflated appraisals on homes. The e-mails also show that executives at EA knew their behavior was illegal, but intentionally broke the law to secure future business with WaMu. “The independence of the appraiser is essential to maintaining the integrity of the mortgage industry. First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a s...
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8 defendants plead guilty in Minneapolis fraud scheme
2007-11-07 21:39:00
In the following press release the FBI in Minneapolis announced that the long-time Minnesota home builder, Parish Marketing and Development Corporation (PMDC), and its owners, pleaded guilty in federal court today to conspiring to commit mortgage fraud and money laundering charges arising from their scheme involving approximately 200 residences and approximately $100 million in loan proceeds. PMDC and its owners acknowledged obtaining more than $25 million for PMDC from the scheme. PMDC, its owners, Michael Alan Parish, 62, and his wife, Ardith Ann Parish, 61, and a PMDC agent, Christopher David Troup, 39, all of Eagan, appeared before Judge Ann D. Montgomery and pleaded guilty to participating in the conspiracy. According to their pleas, all four defendants acknowledged participating in the mortgage fraud scheme, by which PMDC utilized “straw buyers” to purchase approximately 200 properties built by PMDC, primarily in the New Prague, New Market and Lonsdale area. In...
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5 indicted on Cuyohoga County fraud allegation (1 of 2)
2007-11-07 21:13:00
In the following press release Cuyahoga County (Ohio) Prosecutor Bill Mason announced the indictments of Donna Leonard, Tonia Glover, Bethany Curry, Terrence R. Sanders, and Kendra Outram in related cases, and George Michaels in another case (see separate entry). Leonard, Glover, Curry, Sanders, and Outram obtained over $600,000 by falsifying documents to purchase six properties throughout Cuyahoga County. As a result, each house went into foreclosure. Donna Curry, Donna Leonard, Tonia Glover, Terrence R. Sanders, and Kendra Outram used fake names to obtain loans to purchase six houses during 2002 and 2003. Curry obtained a $77,000 loan to purchase a house at 1765 Allandale, East Cleveland. Leonard obtained an $86,700 loan to purchase a house at 10104 Olivet Ave., Cleveland. Glover obtained a $111,599 loan to purchase a house at 12404 Oakpark, Garfield Heights. Sanders obtained a $138,000 loan to purchase a house at 25477 Forbes Road, Oakwood. Using another fake name, Sanders ...
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Cuyahogo County man indicted in contruction loan fraud allegations (2 of 2)
2007-11-07 21:12:00
In the following press release Cuyahoga County (Ohio ) Prosecutor Bill Mason (pictured left) announced the indictment of George Michaels [who is accused of] obtaining $200,000 in fraudulent building contract loans for two houses worth almost $1 million in North Royalton. The work was never completed, leaving the victims to find another builder to finish construction. The U.S. Postal Inspection Service, a member of the Mortgage Fraud /Predatory Lending Task Force, conducted the investigations with the Prosecutor’s Office. “The pervasive fraud—whether mortgage fraud or theft—-in the real estate market has been one of the big factors in our high foreclosure rate. These thieves are affecting not just our neighborhoods with blight and abandoned houses but our entire economy,” said Prosecutor Bill Mason. “Our county is making a concerted effort to tackle a mortgage industry gone awry, and these indictments add to this chorus of aggressively combating th...
More About: Loan , Indictments

Recent Case Updates
2007-11-07 21:06:00
The following older entries have been updated today - click the link for the full entry:Ohio man pleads guilty in foreclosure rescue scheme  Katheryn Shields and her husband are aquitted, tow other convicted.
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Indictments announced in case of former CEO who is still on the run
2007-11-07 20:36:00
The DOJ and FBI in Oakland, CA announced the Edward Batayeh former CEO of CHL Mortgage Group (pictured below) has now been indicted in mortgage fraud allegations and is still on the run, 1 years after evading arrest by the FBI. WantedClick here for the full article. The FBI warns that Bateyah should be considered armed and dangerous.
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St Louis area mortgage broker indicted in fraud allegations
2007-11-07 20:25:00
In the following press release the FBI in St Louis MO announced that Christopher Rakel was charged in a two-count indictment alleging a far-ranging scheme to defraud banks and other mortgage lenders and money laundering, the announcement was delivered by United States Attorney Catherine L. Hanaway. “Mortgage fraud is, unfortunately, rampant in our community,” said Hanaway. “In addition to the lenders duped in this scheme, the neighborhoods in which these homes are situated must struggle with the vacant and dilapidated housing stock that is the unfortunate by-product of this type of crime. This indictment shows the continuing commitment of my office to fight mortgage fraud through prosecution and aggressive pursuit of restitution for its many victims.” According to the indictment, Rakel, a mortgage broker with Tri-State Mortgage, facilitated the purchase of dozens of fraudulent real estate transactions, primarily in South St. Louis, during 2005 and 2006. R...
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Maryland AG places mortgage relared investment company in receivership
2007-11-07 18:56:00
In the following press release Maryland Attorney General Douglas F. Gansler announced that POS DH, LLC, Metropolitan Grapevine, LLC, and Andrew H. Williams, Jr., have been placed in receivership, effective Monday, October 29, 2007. After hearing three days of testimony detailing the business activities of the Defendants, the Honorable Thomas P. Smith, Circuit Court for Prince George’s County, issued an order placing the companies into receivership and freezing their assets as well as those of an additional 18 entities that were shown to be affiliated with the Defendants’ business operations. The court determined that over 1,000 people invested approximately $50,000,000 in promissory note and investment contract securities offered and sold by the Defendants, investments that are essentially without value. The court also determined that the Defendants’ businesses generated no significant income and that they are insolvent with liabilities of $200,000,000 to $300,00...
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Two sentenced in Idaho fraud scheme
2007-11-07 18:25:00
In the following press release Thomas E. Moss United States Attorney for the District of Idaho announced that Charles Drake Cazier, 53, has been sentenced to 24 months in prison for his role in a bank fraud scheme. Cazier and his wife, Carmen Leann Wright, 33, earlier admitted that they made false statements to Mountain West Bank on a loan application. U.S. District Judge Edward J. Lodge also ordered Cazier to pay a $3,000 fine and $5,539 in restitution. He will serve five years on supervised release following his prison term. Wright was sentenced earlier this months to time served plus three years supervised release and 50 hours of community service. She, too, will be responsible for the restitution. The false statements occurred in August 1999, after Wright applied to Mountain West Bank in Coeur d’Alene for a loan of $92,150 in order to purchase property in Spirit Lake. Wright overstated her monthly income on the loan application, and with Cazier’s assistance submitt...
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