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September 21, 2007
Mortgage Fraud Worsening
NEW YORK and Providence, R.I. -- A shrinking mortgage origination sector has
only intensified the presence of mortgage fraud, according to panelists at a
securities conference this week. One new scheme has emerged where individual
mortgage loans are being sold to more than one investor. The meeting produced
predictions that 2007 vintage loans will suffer the same performance problems
as those created in 2006.
Biggest Fraud Case In Atlanta's History Goes To Trial
A $41 million mortgage fraud scam that was led by Phillip E. Hill, and involved
flipping more than 50 homes and 250 metro area condominiums has ended in a trial
verdict that puts Hill behind bars for 28 years.
read story from The Atlanta Business Journal
Loop Hole in Lending Laws Allow Accused To Continue Working
Joseph Gallo and Jim Martin admit to wrong doings in their mortgage lending
practices, and they are also aware they are under investigation by the FBI
and IRS and have had their licenses revoked, however, both continue to operate
their lending activities due to a loop hole that allows them to work under the
license of someone else.
read story from My58.com
Mortgage Company Owner To Be Sentenced
Tiffany L. Sprouts, who started Sprouts Mortgage LLC, will be sentenced by the end
of the year for admitting to falsifying loan documents, including appraisals, work
histories, and tax returns, in order to obtain mortgages on at least six properties.
read story from The Post Gazette
Report Worries Local Markets
The Mortgage Asset Research Institute, part of the Mortgage Brokers Association, has
released a report that focuses on the growing numbers of fraud cases nationally. In
addition, it has also released a ranking of local markets risk of potential mortgage
scams.
read story from EnidNews.com
Mom Sells Name To Fraud Ring
A stay at home mom, Melissa D. Smith, had other activities other then being a homemaker.
She has admitted to her roll in a massive fraud scam that includes nearly $50 million
in lender losses, by letting a home building company use her name to acquire loans.
read story from The Star Tribune
Straw Buyers Watch Fraud Ring Collapse
The participants in a scam headed by James F. Stovall III, an attorney for Reti
Relocation Services Inc, watched as he plead guilty to his involvement in the
flipping of nearly 50 properties and other illegal loan activities.
read story from The Atlanta Business Journal
September 20, 2007
3 Charged In Flipping Scam
Scott R. Rosenlund, Celeste Skaar, and Shinon Lindberg have been charged
with racketeering and theft for their involvement in a scam where they
recruited straw buyers and flipped properties causing losses with three
separate mortgage loan lenders.
read story from The Star Tribune
Leasing Scheme Forced Properties Into Foreclosure
Eric Heckler has been arrested for his role in a scam where hopeful homeowners
were leased properties to repair their credit scores and then offered the
option to buy the properties at the end of a twelve month period. The only
problem is that the leasing company kept the rent for themselves, did not
make the mortgage payments, sending the homes into foreclosure.
read story from NBC 2
State Attorney Cracks Down On Fraud
The Illinois State Attorney General's office is targeting mortgage lenders
with bad reputations for involvement in fraudulent activities, having already
revoked the license of one company, and is in the process of suing another.
read story from WBBM 780
September 19, 2007
Executive Joins Economic Crime Council
Joel Bartow, Director of Fraud Prevention and Investigations for Sitel,
a leading outsourcing provider that services the mortgage industry, has
been appointed to the Economic Crime Council of ASIS International.
Protecting Personal Information Topic of Meeting
The FTC met with the Maryland Task Force on Identity Theft to reinforce the
importance of federal, state, and local governments to work with the private
business sector to prevent identity theft.
Company That Promises To Save Homes Investigated For Fraud
Michael Thomas Stoller, owner of Mortgage Assistance Solutions, says his company
is not a fraud, however, the State of Florida may decide otherwise after they
investigate allegations made by homeowners, this just days after the state shut
down a similar company with a very similar name.
read story from FOX 13
September 18, 2007
Upgrade Made To Risk Mitigation System
Interthinx Inc, a leader in fraud prevention products for the mortgage industry,
has integrated a new tool into it's FraudGUARD system that will reduce
transaction processing time.
Curious Neighbor Uncovers Mortgage Fraud
After noticing some unusual behavior from the people buying the homes in her
neighborhood, Ann Fulmer began to investigate, and uncovered an illegal home
flipping scam. Working with the FBI, she has been able to finger more than 300
people involved in the scheme.
read story from CNN.com
Arizona Legislature Makes Mortgage Fraud A Felony
Lawmakers have passed a new law making mortgage fraud a felony in efforts to reduce
cash-back deals in Arizona which have been on the increase in that state during the
recent market troubles.
read story from The Tucson Citizen
County Officials Offer Tips On Avoiding Fraud
Two officials with the Orange County Department of Consumer Affairs, Charles Mitchell
and Edward Diana, have offered their top tips to home buyers on the best practices
when it comes to recognizing red flags and steering clear from becoming the victims
of predatory individuals looking to take advantage of them.
read story from Mid Hudson News
State Passes New Regulations For Mortgage Brokers
After passing new mortgage regulations, Colorado is changing it's reputation of being
the most lenient state for mortgage lending, to having one of the most stringent in
order to reduce the number of fraud cases and crack down on violations, starting with
mortgage brokers being required to obtain licenses starting next year.
read story from The Rocky Mountain News
10 States File Grievance Against Mortgage Operation
After failing to obtain licenses for his business, Apex Mortgage, or himself, Frederick
C. Lee, Jr. is facing action from several states for not complying with their
regulations. Lee claims not to be facilitating mortgage loans, but is collecting
fees and brokering loans according to documents.
read story from Pantagraph.com
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