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Mortgage Industry Fraud
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Fraud
Stories
From
Patrick
Crowley
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Fraud
News Wire
| Last Updated |
Thursday,
October 05, 2006, |
04:49
PM |
Texas
Time |
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Mortgage
Fraud a $1 Billion Industry
Losses from mortgage fraud ballooned to $1 billion last year, and the
Federal Bureau of Investigation is blaming mortgage brokers for the
increase. Meanwhile, Los Angeles is the star in an upcoming FBI report.
Federal Bureau of Investigation spokesman Steve Kodak has confirmed
the figures to MortgageDaily.com.
An entire report on mortgage fraud will be released within a few weeks,
Kodak said. He would not comment further on the numbers or offer an
analysis or perspective on the report.
"In a couple of weeks the end of the fiscal year report will have
the new data," Kodak said in a brief phone interview. "I'm
not going to speculate right now."
MortgageDaily.com
subscribers read Patrick's full story
Countrywide
Stung by Massive Fraud
Countrywide Home Loans appears to have been victimized in a mortgage
fraud case that could involve as much as $40 million.
Calabasas, Calif.-based Countrywide, the nation's largest residential
mortgage lender, has filed suit in Marion County, Indiana, trying to
recover millions in allegedly fraudulent loans made to unsuspecting
buyers in Virginia and North Carolina, according to a copy of the complaint
provided by the company.
The loans totaled more than $15 million, court documents indicate --
but published reports have put the figure at as much as $40 million
or higher.
The alleged perpetrators used a scheme to entice borrowers to join an
"investment opportunity" or "investment club" that,
according to a lawsuit, were nothing more than the fronts a complex
property flipping and mortgage fraud ring.
MortgageDaily.com
subscribers read Patrick's full story
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October
5, 2006
Tips to Avoid
Fraud
The California Escrow Association suggests borrowers should check their
credit reports, title records and tax bills in an effort to avoid mortgage
fraud.
Mortgage
Co. Operator Awaits Sentencing
Sentencing is yet to be scheduled for Troy Scott Clements, operator of American
Funding, who pled guilty to fraud involving use of the company to obtain
million of dollars from mortgage lenders.
read
story from The Community Press & Recorder .
SoCal
Fraud Prompts Default Worries
Fraud for housing, including borrowers overstating income, surged in Southern
California, where suspicious activity reports are on track to double last
year's total, and has industry observers worried that many defaults will
ensue as a result.
read
story from The Mercury News .
Jail
Time for Mortgage Fraudster
In addition to a 4-year sentence, Theodore Antonucci must pay over $900,000
for submitting fraudulent documents to obtain mortgages.
read
story from WHAM 13 .
Roof
Scam Season Is Here
An assistant attorney general warns that fall is the season most likely
for fraudulent roof repairers to come knocking on doors and steal borrowers'
home equity.
read
story from Heartland News .
Mortgage
Processor Guilty of Fraud
John Kurzel, a loan processor of bankrupt NJ Affordable Homes, faces up
to 71 months in prison after pleading guilty to creating fake documents
to obtain mortgages in the names of investors who collectively were allegedly
duped out of $40 million.
read
story from The Star-Ledger .
Fraud
Victims Interviewed for TV Show
ABC Nightline news will air a report Friday based on the interviews of 27
people who claim they were victims of an alleged real estate scam in Indiana.
read
story from Martinsville Bulletin .
False
SSN Extends Fraudster's Sentence
After almost a year in jail, Michael Lane Prevette was assigned another
six months for admitting he used false Social Security numbers on things
such as an employment application to a mortgage company.
read
story from Press-Register .
Accounting
Co. Settles Fraudulent Mortgage Financials
PricewaterhouseCoopers entered into a $39.5 million settlement with investors
who accused the company of assisting in a fraudulent mortgage loan fund
scheme for not revealing audit findings of fraud.
read
story from WebCPA .
SoCal
Fraud Prompts Default Worries
Fraud for housing, including borrowers overstating income, surged in Southern
California, where suspicious activity reports are on track to double last
year's total, and has industry observers worried that many defaults will
ensue as a result.
read
story from The Mercury News .
October
4, 2006
2005
Mortgage Fraud $1 Billion
Mortgage fraud reached $1 billion during 2005, according to government data
provided to MortgageDaily.com
LOS
Integrates Fraud Protection
Users of Ellie Mae's mortgage automation systems can now integrate LoanShield,
a mortgage loan fraud protection service by Advantage Credit International,
into each of their applications.
New
Collateral Risk Solution
Amongst Kroll Factual Data's expansion of risk detection tools was the launch
of CollateralFacts, which evaluates property flipping, over-valuated appraisals,
and ownership and title issues.
Loan
Closing Greatest Fraud Deterrent
The Ciercus system, which offers settlement agent registration, closing
document collection and data reporting, was recently touted as the "greatest
deterrent for mortgage closing fraud that exists today."
Website
Touts Fake Income
Interthinx issued a warning about an Internet Web site, www.proofofincome.com,
which was set up to produce fake paystubs to be used in real loan qualifications.
September 29, 2006
Warehouse
Lending Workshop
Mortgage fraud mitigation will be one of the many topics covered in the
workshop Street Resource Group will host in Chicago on Oct. 23 for lenders
who provide interim funding to the small cap mortgage originator market.
QC Tool
Launched
At a conference today, Visionet announced the availability of Closed Loop
QA/QC, which enables automated predictive modeling, fraud risk management,
and error recording.
FraudGUARD
Officially Launched
Interthinx announced the offiicial launch of FraudGUARD -- its next generation
of loan-level fraud detection.
Realtor's Sentencing Delayed
Mary E. Bolan, a real estate broker who plead guilty to mortgage fraud,
had her sentencing delayed.
read
story from the Bradenton Herald .
3 Linked to Mortgage Fraud Scam
Mortgage brokers Leanne Booth of Home Mortgage Corp. and Ryan F. Bonneau
and real estate agent Troy Martin are being accused of conspiring in a scheme
that involves submitting false documents to mortgage lenders as a means
to pocket thousands of dollars.
read
the story from The Oregonian .
CO Closely Eyeing Appraisers
In an effort to minimize escalating foreclosures, the new real estate division
chief of Colorado will begin her plan to shut down fraudulent appraisers
by unveiling the investigation next month of an appraiser believed to inflate
property values by as much as $100,000.
read
the story from the Rocky Mountain News .
Broker Used Shell Co.s For Mortgages
Mortgage brokerage owner Nicholas Piscitelli was charged with wire fraud
for allegedly creating a fake company to create phony rental history documents
so lenders could issue loans to unfit borrowers.
read
story from the Philadelphia Daily News .
Appraisal Fraud Leads to Foreclosure
A couple's home went into foreclosure after a mortgage refinanced with Centex
Home Equity turned out to have terms different than what the borrowers were
told and had new monthly payments too large to handle because the value
of the home was allegedly inflated.
read
the story from the Community Press
Flipping Gets Ex-Pastor Convicted
Former church youth pastor Israel Pena could receive up to 65 years in prison
for a scheme in which he would buy homes and quickly sell them at a substantial
profit to borrowers who submitted fraudulent applications to qualify for
a loan.
read
the story from the Mid-Hudson News .
Attorney Admits to Mortgage Fraud
Michael M. Hipe faces up to five years in the slammer after pleading guilty
to charges related to submitting fraudulent home loan applications to obtain
money for his personal expenses and auto business.
read
the story from the Gwinett Daily Post .
MD Warns of Foreclosure Rescue Scams
Some state officials worry that fraudulent foreclosure help will continue
growing due to housing and mortgage market conditions.
read
the story from the Baltimore Sun .
Landlord Sentenced After Massive Foreclosures
Robert J. Palano received a 1-year prison sentence for letting over 100
rental properties fall into foreclosure and for stealing money from a lender,
events that separately required him to pay $1.5 million in restitution for
lenders, including Fannie Mae, that lost money.
read
the story from The Buffalo News .
Man Admits Fraud
James Elliot Coleman faces prison time after pleading guilty to several
charges related to his participation in a mortgage and insurance fraud scheme
from which he obtained proceeds for his personal use -- such as repaying
money he embezzled from a school board he headed.
read
story from the Kansas City Business Journal .
7 Years for Mortgage Fraud
Charlie Reed Smith, who pleaded guilty to mortgage fraud, was sentenced
to seven years and agreed to testify against the man who allegedly recruited
him into a fraud ring.
read
the story from the Atlanta Journal-Constitution .
Forensic Accounting
William D. Brown, a former FBI agent, is now a forensic accountant that
dissects mortgage fraud cases.
read
story from the Fort Worth Business Press .
Mobile Home Mortgage Fraud
Richard D. Meador and Donald Scott Carroll, both mobile home salesmen, were
sentenced to prison for helping Donald Wayne Gupton, owner of the the dealership,
commit mortgage fraud.
read
story from Internet Broadcasting Systems .
No Money Down a Sham
Troy Scott Clements, who operated American Funding, pleaded guilty Friday
to promising unsuspecting borrowers they could obtain financing with "no
money down."
read
story from the Enquirer .
Convicts Conversations Can be Considered
As he awaits sentencing for mortgage fraud on government loans, Joseph Greenblatt's
attempt to keep his jail telephone records and visitor logs confidential
was struck down by a judge
read
story from North Jersey Media .
Jail for Fraudster
Rob Ellertson was sentenced to nearly 3 years in prison for executing mortgage
documents using straw buyers.
read
story from Deseret News Publishing .
Restauranteur Going to Jail
George Broches, a former restaurant owner, and his former business partner,
Dimitrios Brotsis, were sentenced to prison for commiting loan fraud.
read
story from the Daily Chronicle .
Texas County Busy With Fraud
Two continuing investigations in Collin County, Texas, already have yielded
convictions on mortgage loans totaling more than $10 million
read
story from the Dallas Morning News .
Man to Serve For Mortgage Fraud
Ronald A. Waker was sentenced to 20 months after funneling over $10 million
in 148 fraudulent mortgage loans obtained through false statements.
read
the story from the Dayton Daily News .
2 Men Sentenced For Mortgage Fraud
Mobile home salesmen Richard D. Meador and Donald Scott Caroll will go to
prison for a $19 million fraud scheme in which they falsified loan applications
to qualify borrowers with bad credit and whose inability to afford the loans
resulted in foreclosure.
read
the story from the News Observer .
Former Attorney Faces Prison
In October, ex-lawyer Jerard Hankin is scheduled to appear in federal court
and faces up to 35 years in jail for charges related to his bribing mortgage
companies in exchange for real estate closings.
read
the story from Poughkeepsie Journal .
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read archived blog entries
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Patrick
Crowley is fraud journalist for MortgageDaily.com and a reporter and columnist
for The Cincinnati Enquirer.
Email Patrick at: PatCrowley@FraudBlogger.com |
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