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Mortgage Industry Fraud
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January 19, 2007,
Legislator Accused of Foreclosure Fraud
The Maryland Attorney General is looking into claims that a state legislator duped a woman into selling her home to him.
In a lawsuit filed in Anne Arundel County Circuit Court, Teresa Milligan accuses Maryland State Delegate William "Tony" McConkey, a Republican and a real estate broker, of foreclosure rescue fraud.
McConkey has denied Milligan's claims that he somehow tricked Milligan into singing over her house to him.
Kevin Enright, a spokesman for Maryland Attorney General J. Joseph Curran, confirmed to MortgageDaily.com that the attorney general's office is "looking into the matter."
subscribers read Patrick's full story
A former mortgage executive who is under indictment
for selling the same loans multiple times on the
secondary market escaped when federal agents tried
to nab him.
Edward Batayeh, who is also known as Ed Bhataybh,
has been indicted by a federal grand jury in Oakland
on charges of masterminding a $13 million fraud
that included reselling loans multiple times.
But when federal agents tried to apprehend him on
Nov. 17, he fled in a 2003 BMW X3 with the California
license plate 5ETZ317.
"Defendant is a fugitive and should be considered
armed and dangerous," the U.S. Attorney for the
Northern District of California said in a statement.
subscribers read Patrick's full story
Seeks Tougher Broker Laws
A proposed bill for Colorado bars mortgage brokers,
lenders and anyone else involved in a house
transaction from compensating, coercing or intimidating
appraisers to inflate property values, and,
among other things, allows prohibiting registration
to brokers who have been banned from practicing
in other states in the past five years.
story from the Daily Record.
Employee Admits Fraud
Katrina Arrington is the third employee of N.J.
Affordable Homes to plead guilty to participating
in Ponzi scheme that included submitting loan
applications, to mortgage lenders, that falsified
the incomes, assets and employment statuses
of supposed borrowers of the homes the company
story from the Home News Tribune.
Serves Time for Fraud
Indianapolis Police Department veteran Michael
C. Smith, who moonlighted as an appraiser, was
sentenced to 57 months in prison for his role
in a mortgage fraud scheme that involved inflated
story from the Indianapolis Star.
Fraud Prevention Tool Enhanced
Informative Research Launches Credit Score Verifier.
Sentenced in Flipping Scheme
Man receives sentence for alleged role in mortgage
Picked for Ex-CEO Trial
A jury was chosen to determine the future of
Ronald J. Sheppard, former chief of defunct
HomeGold Financial Inc., a subprime lender that
went bankrupt after allegedly engaging in a
story from The State.
Fraud Trial Begins
Phillip Hill, accused of a mortgage fraud scheme
in which he allegedly used straw buyers to get
mortgages for properties that he resold at much
higher, inflated prices to pocket proceeds,
and 11 co-defendants who allegedly collaborated,
filled a courtroom today to begin a trial expected
to take three months.
story from the Atlanta Journal-Constitution.
Teleconference Call Series Continues
Realtor Ralph Roberts continues his successful
teleseminar series on Feb. 6th.
Allege SC Fraud Scheme
$1.2 billion claim against alleged perpetrators
of Ponzi scheme involving home loans.
2 Await Mortgage Scam Sentence
Carlos Bent and Frank Padilla face up to five
years after admitting to charges in connection
with a $13 million scheme in which the pair
kept the extra proceeds of 23 loans for homes
sold above the listing price to straw buyers.
story from the Arizona Daily Star.
CEO Awaits Trial
On Tuesday, prosecutors will begin trying to
prove that Ronald J. Shepperd, former chief
executive of HomeGold Financial, engaged in
securities fraud through the company, which
collapsed in 2003 in South Carolina’s
largest-ever bankruptcy that left more than
8,000 investors holding more than $277 million
of worthless notes.
story from The State.
Doubles Fraud-Fighting Efforts
Citing that mortgage fraud cases ended fiscal
2006 at nearly 36,000, or 64 percent higher
than a year earlier, the FBI said it has redoubled
efforts to work with the industry and other
law enforcement agencies to address the problem.
story from the New York Times.
Imprisoned for Mortgage Fraud
Lawrence Randall Benham was sentenced to 97
months in prison after pleading guilty to his
involvement in a multi-million dollar scheme
in which he allegedly used straw buyers and
exaggerated their financial resources and ability
to repay mortgage loans for properties priced
in excess of their true value.
story from KHOU.
Chester Underhill was sentenced to 30 months
in federal prison and received three years probation
for allegedly using his late father's license
number to perform more than 1,000 appraisals
for five years at the request of mortgage brokers.
story from 21 WMFJ.
Arrested on Stealing Charges
Denise Cooper, a lawyer that represented a homeowner
in a foreclosure sale, is being accused of using
$100,000 gathered from the transaction for her
personal use rather than depositing to a county
story from the Journal News .
Candidate Denies Fraud
Katheryn Shields, who has filed to run for Kansas
City mayor, and her husband, Philip Cardarella,
pleaded not guilty to mortgage fraud charges
and alleged their signatures were forged on
documents involving the sale of a home they
story from KMBC-TV.
read archived blog entries
Crowley is fraud journalist for MortgageDaily.com
and a reporter and columnist
for The Cincinnati Enquirer.
Email Patrick at: PatCrowley@FraudBlogger.com