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Fraud
Stories
From
Patrick
Crowley
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Fraud
News Wire
| Last Updated |
Thursday,
October 11, 2006, |
04:49
PM |
Texas
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10
Years for Broker
CA $6 million mortgage fraud scheme will cost a southern California mortgage broker more than 10 years in prison.
James Davis Bennett, 52, was sentenced by a federal judge in Los Angeles to 121 months in prison and ordered to pay $715,050 in restitution and $12,500 in fines, according to a statement for the U.S. Attorney's office for the Central District of California.
MortgageDaily.com
subscribers read Patrick's full storyCountrywide
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
11, 2006
Broker Scams Dominate Fraud
Mortgage brokers schemes are the single biggest
mortgage fraud risk, according to an analysis
of millions of loans.
MortgageDaily.com
subscribers read full story.
Investors
Face Jail Time
A group of five investors and its leader, Todd
A. Kolbe, collectively face years of prison
for engaging in a property-flipping scheme in
which $7.4 million in mortgages were obtained
from Home Star Mortgage Services -- $3 million
above the properties' worth.
read
story from The Herald Tribune.
Couple Suing For Scam
A mortgage company of Mitchell Sims, a broker
who has pleaded guilty to grand larceny and
awaits sentencing, is being accused of wrongfully
foreclosing on a couple's home because Sims
allegedly failed to pay the mortgage after tricking
the couple into signing over the deed.
read
story from Newsday.
Flipping Broker Imprisoned
David C. Jackson, a former licensed broker who
operated Comvest Capital, was sentenced to 41
months in jail after pleading guilty to involvement
in a $1.6 million mortgage-flipping scheme.
read
story from the Post-Gazette.
Cross-border Mortgage Scam
A man paid over $2,000 in advance for a mortgage
he never got from Montreal Expo Financial Services,
which has been described by the Federal Trade
Commission as an advance fee loan scam.
read
story from First Coast News.
More Tips to Avoid Fraud
Consumers are advised to check out properties
before buying, take time to review documents
before signing and to protect the elderly, the
group most vulnerable to mortgage fraud.
read
story from CNN Money.
Fraud Prevention Service Due Soon
In November, Oakland County officials will launch
FRAUDCHECK, an online service that will enable
consumers to check home records to determine
if any documents, such as quit-claim deeds and
warranty deeds, have been forged and recorded
illegally.
read
story from the Detroit Free Press.
Former Lawyer Imprisoned
Jerard Hankin, a disbarred attorney, received
a 27-month prison sentence for bribing mortgage
companies into directing real estate closings
to his law firm for over 8 years.
read
story from The Tribune.
Officials Reveal Fraud Tactics
In a recent seminar, mortgage industry officials
informed that the elderly and immigrants are
often victims of fraud and outlined red flags
consumers should watch for.
read
story from the Poughkeepsie Journal.
Broker Jailed for Fraud
A seven year sentence and an order to pay $3.4
million in restitution was assigned to Kenneth
McKinney for submitting false documents and
inflated appraisals to get 99 mortgages -- all
at the time he was president of American Savings
Mortgage.
read
story from the Indianapolis Star .
Brasota Saga Continues
The bankruptcy trustee of Brasota Mortgage Co.,
which has been in a series of legal disputes
for allegedly running a Ponzi scheme, filed
lawsuits against four investors who, within
days of the company discovering its multimillion
shortfall, had retrieved 82 percent of the funds
they'd invested in Brasota.
read
story from The Herald.
October
10, 2006
Fraud,
Compliance Merged
ComplianceEase has entered into a partnership
that will enable its clients to access BasePoint's
FraudMark for a single fraud prevention and
automated compliance solution.
Officials Reveal Fraud Tactics
In a recent seminar, mortgage industry officials
informed that the elderly and immigrants are
often victims of fraud and outlined red flags
consumers should watch for.
read
story from The Tribune.
Priests
Ran Mortgage Scheme
Two of three priests said to invest thousands
in a failed mortgage-loan scheme through SHAG
Inc. have been accused of misappropriating $8.7
million from a church.
read
story from the Palm Beach Post.
October
9, 2006
RE Flipper Sentenced
James Davis Bennett, who owned several real
estate companies, received a 10-year jail sentence
for operating an illegal flipping scheme that
involved $6 million in fraudulent loans.
read
story from the OC Register.
MI
Officials Combat Fraud
A 141 percent increase in Michigan mortgage
fraud has prompted state officials to create
legislation and seminars to prevent borrowers
from being duped.
read
story from the Oakland Press.
October
6, 2006
RE Brokers Accused of Fraud
The state of Illinois filed a lawsuit against
John J. Davis and Christine Frank alleging that
the real estate brokers pocketed thousands of
dollars in loan proceeds from repeatedly submitting
fraudulent downpayment documents to mortgage
lenders for loans on homes with inflated prices.
Mortgage Co. Owner Sentenced
Owner of Quantum Investments, Doris W. Jones,
was sentenced to 21 months in prison for inflating
appraisals, creating phony down payments, and
giving false invoices to closing agents for
home loans that resulted in nearly $700,000
in losses for lenders.
read
story from Indystar.
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.
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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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