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Archive of FraudBlogger.com entries going back to 2005.
September 28, 2007|
Defendant Blames State and Police for Foreclosures
Thomas Hastert, who is being investigated for real estate fraud, claims he is
not responsible for the mounting foreclosures associated with his company, as
he was unable to service the loans after police confiscated the files and
computers from the CA office of Loan Sense.
read story from The Union
Woman On Trial For Mortgage Investment Scam
A Florida woman, Lorraine Adele Afshari, claimed she was "mentally ill" during
her trial for using her company, Tuscany Mortgage and Investments Group Inc,
to scam investors out of at least $180,000. A former employee stated that she
had never even seen a mortgage file in Afshari's office.
read story from The Naples Daily News
Ex Con Headed Back To Jail For Fraud Charge
A Chicago financial adviser, Edwin Evens, is being charged for assisting a woman
obtain two loans worth $250,000 total by using fraudulent documents. This will
not be Evens first trip to jail, however, as he has already been involved is
some rather violent crimes in the past.
read story from WQAD
September 27, 2007
Fraud Strikes Florida In Massive Scam
18 people are being charged with a $50 million straw buyer scam involving
17 luxury condos in South Beach and homes in Broward County. This being
the most recent case in a state quickly topping the list as having the most
incidents of mortgage fraud.
read story from The Miami Herald
A San Diego woman, Juliet Al, was unaware she was involved in a mortgage
fraud put together by Angel Mora to secure a home loan for Paul Mangione,
who needed a co-signer due to a tarnished credit history. Her name appeared
on the deed of that home, which is now in foreclosure, and with Mora no where
to be found, she is left trying to rebuild her name.
read story from KLAS-TV
3 Admit to Wisconsin Scam
Martin Valadez is following his father, Jose Valadez, and another participant,
James Lytle, in signing plea agreements admitting their involvement in a scam
involving 12 Wisconsin properties and $2.9 million in bad loans.
read story from The Gazette Extra
September 26, 2007
ID Theft In The Cubical Next Door
If you think a looming deadline is the only worry you have at the office,
you're wrong. Your co-workers could be looking to steal more than just your
Drugs, Murder, and Foreclosures
At least 25 Wisconsin homes were involved in Michael Lock's $2.3 million scam.
Lock's resume is not limited to mortgage fraud however. He is also accused of
involvement with a drug ring and two dead bodies found under a concrete slab.
read story from The Journal Sentinel
Four Loan Officers Face Charges In CA Court
Four men in Sacramento, James Roy Martin, Mario Fellini III, Gabriel Richard
Viramontes, and Joseph Salvatore Gallo are being charged with bank fraud after
the FBI and IRS seized and investigated hundreds of files and their computers.
read story from KCRA News
Fraud Prevention Program Launched
A new program created by Wolters Kluwer Financial Services will aid warehouse
lenders and mortgage originators produce fraud free loans by focusing on reviewing
risk controls, staff training, and pre and post-funding audits.
read story from The Earth Times
September 25, 2007
Mortgage Fraud Index Soars
Monthly mortgage fraud activity soared during August, according to a new mortgage
fraud index created by MortgageDaily.com.
Scam Ring Member Gets Out Due To Disability
Even though the judge in the case stated he thinks Amy Hudd Pauker belongs in jail,
he let her go free with time served due to her chronic multiple sclerosis. Her
partners in scamming Tampa area homeowners under a company named First Hanover
Mortgage Corp, remain in jail.
read story from The St. Petersburg Times
The Inner Workings of Mortgage Fraud
Once a good way for a buyer to help pay for repairs or closing costs, cash back
at closing has become one of a mortgage lenders worst fears when approving a home loan.
Read how this scam works, where it's most common, and why home sellers find it
read story from The Voice Of SanDiego
Inflated Home Values Cost Lenders $17.7 Million
Justin D. Barker and Robert W. Hulbert are looking at three decades behind bars
and a million dollar fine each for their activities which involved inflating appraisals
and submitting false documents to mortgage lenders in order to have the loans approved.
read story from WJXT Jacksonville
$100 Million Fraud Plot Revealed
The case being constructed against a homebuilder, that has devastated a local market,
continues to grow as more families are forced out of their homes.
read story from TwinCities.com
September 24, 2007
Florida Duo Accused Of Mammoth Mortgage Fraud
Justin D. Barker and Robert W. Hulbert Jr, are facing up to 30 years in prison
each for masterminding a massive $17.7 million mortgage fraud.
read story from The Beatrice Daily Sun
Fraudulent Application Grants Loan to Unemployed Woman
A Queens woman was offered a loan by 2000 Homes for a property she could not
afford, as she was unemployed at the time of closing. Now the company faces
accusations it forged false employment and income figures on her mortgage documents.
read story from The NY Daily News
Mortgage Company Sued By State
The State of Nebraska has filed suit against Advantage Mortgage Service Inc., with
allegations of predatory lending, although the company's president, Bob Goldberg,
denies any wrong doings.
read story from The Beatrice Daily Sun
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
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
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