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January 18, 2008
PA Man Bilks 3 Lenders Out Of $1 Million
Matthew McConaghy has been indicted by a federal grand jury in Pittsburgh for falsifying loan documents
and defrauding mortgage lenders First Commonweath Bank, IndyMac Bank, and Countrywide Home Loans out of
a total of $1 million.
read story from The Pittsburgh Tribune
Broker Accused Of Deceptive Practices By State
The State of Maine charges that licensed mortgage loan broker Maine Mortgage Group falsified documents
and deceived a lender by making a short term loan for $7,000 to a prospective borrower in order to make
the borrower's assets seem larger, and able to qualify for a mortgage.
read story from MaineToday.com
Texas Jury Indicts 16 For Real Estate Fraud
A federal grand jury in Austin, Texas has indicted a group of sixteen people comprised of real estate
agents, loan officers, bankers, and attorneys that the FBI accuses of a mortgage fraud scheme involving
24 properties that cost lenders millions of dollars in losses. Officials with the Texas Real Estate Commission
claim that simmilar fraud scams are causing honest people their chances to qualify for affordable home loans,
and costing everyone in lost tax revenues.
read story from KXAN.com
January 17, 2008
Escrow Officer Charged With Theft Of Funds
Las Vegas police arrested escrow officer Sheila Katherine Williams after a six month investigation into
a $568,000 mortgage transaction that the authorities claim she pocketed during the exchange of funds from
the title company to the firm handling the escrow account.
read story from The Review Journal
Appraiser Admits To Roll In Atlanta Condo Scam
Appraiser Julian Perez is awaiting sentencing for his participation in Atlanta home developer Phillip Hill's
mortgage fraud scheme where he overvalued 33 unfinished condominiums by more than $7.5 million all together,
nearly twice what they were actually worth, costing home buyers who lost equity due to the inflated prices.
read story from Bloomberg
Frank Is Back And Fighting Fraud
BasePoint Analytics co-founder and chief fraud strategist Frank McKenna has released his fifth edition of
"Fighting Fraud with Frank" which covers current trends in mortgage fraud and early payment defaults.
read story from BasePoint Analytics
Drug Probe Defendant Charged With Mortgage Fraud
Rodney Claro, already serving time behind bars on marijuana growing charges, has now also been charged with
mortgage fraud. Claro and his father allegedly obtained two home mortgages totaling $269,900 on a Fort Pierce,
Florida property by falsifying stated income figures on the loan documents.
read story from TCPalm
January 16, 2008
Vermont Broker Pleads Not Guilty
Richard Shumway, owner of South Burlington, Vermont based mortgage brokerage TSC Funding has pleaded not
guilty to federal charges of mail and bank fraud that accuse him of skimming thousands of dollars from
each of over 200 loans he brokered in the 1990's up to 2005.
Contractor Bilks Bank of Prairie In Loan Scam
Construction contractor Jared Minor pleaded guilty to charges that he conspired with home builder Steve
Middleton in bank fraud. Minor falsified documents through Middleton's company, Somerset Homes, to acquire
a property in Stilwell, Kansas that defrauded Bank of Prairie on a $950,000 home loan.
Stolen ID Used To Purchase Home and Garage Stuffer
Denise Williams was sentenced to 8 years in prison for using identity information found in a stolen wallet
to purchase a Chicago home worth $173,000 and a $24,000 Chevrolet.
read story from The Chicago Tribune
Mortgage Fraud Ring Defendant Sentenced
Dack Daugherty will serve 44 months behind bars for defrauding 21 different banks and lenders out of more
than $500,000 in a mortgage fraud scheme based in St. Louis, Missouri.
read story from The St. Louis Business Journal
Sacramento Broker Charged For Loan Fraud
Sennett Swift has been accused of defrauding two lenders and two homeowners by forging refinancing documents
and submitting false statements to the lenders without the homeowners knowledge so that he could receive a
$38,594 brokerage commission.
read story from The Sacramento Bee
January 15, 2008
Free Training Offered For Document Fraud Prevention
Interthinx(R) a leading mortgage fraud prevention and risk mitigation provider for the mortgage lending
industry is offering free online training on document fraud and how to recognize the red flags
that signal a loan might be corrupted.
January 14, 2008
Lending Company Issued Cease-and-Desist Order
Needham, Massachusetts based Mass Lending LLC, has been issued a cease-and-desist order from the
state's Division of Banks due to allegations that the company falsified loan documents and mortgage
applications. In one case, a borrower's income was recorded at $74,556 per year when in reality the
borrower only made $22,057. Nearly 800 loans the company made over the last two years are being investigated.
read story from The Boston Globe
NC Reforms Sentencing For Fraud Convictions
North Carolina has stepped up it's efforts to protect it's $70 billion home mortgage industry from fraud
by enforcing tougher regulation in two new laws that make punishments tougher and sentencing more severe
for those convicted of fraudulent lending practices.
read story from The Triangle Business Journal
Missouri Governor Pursues Mortgage Fraud Prevention
Missouri residents at risk of loosing their homes to foreclosure have a new resource for information
thanks to their Governor Matt Blunt's efforts to educate consumers on how to avoid predatory lending
and fraudulent mortgage practices. Along with the new toll free information hotline, Governor Blunt is
introducing legislation that would make punishments for mortgage fraud more severe.
read story from The Kansas City Business Journal
FBI Anticipates More Fraud In 2008
Amidst the record numbers of mortgage fraud claims, and the creation of 34 task forces to combat real estate
related crime last year, the FBI is bracing for an expected increase in mortgage scams in 2008, in which
relatively new kinds of bad lending, such as predatory reverse mortgages and foreclosure rescue ploys, will
target the elderly and those struggling to save their homes, while stretching the resources of authorities
trying to prevent the illegal schemes.
read story from The Tucson Citizen
Bank Accuses Two Mortgage Companies Of Fraud
Quad City, Iowa based Valley Bank has filed lawsuits against two mortgage companies claiming that they provided
fraudulent information for loans totaling $853,000 which eventually went into default.
Andy Green and Martin Oh, employees at Excel Mortgage and Investment Services, are listed in one of the
lawsuits for a bogus property sale in Upper Marlboro, MD.
The other lawsuit names Peach State Home Mortgage LLC. employees Guy Eric Atheba and Maise Parkinson for a
botched home loan in Norcross, GA.
read story from The Quad-City Times
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