Fraud Stories From Patrick Crowley

Fraud News Wire

Last Updated

Friday, October 27, 2006,

04:49 PM

Texas Time

$25 Million Inside Job

Mortgage loan officer Elizabeth Hessel and Angela Parenza, her office manager, "would do anything" to close a loan.

Even, according to federal prosecutors in Kansas, lie, create phony loan documents, provide illegal down payments and closing costs to buyers and steal as part of a $25 million bank fraud scheme.

Hessel, 46, and Parenza, 39, have pleaded guilty to and bank fraud and money laundering for their part in the $25 million fraud involving builder and mortgage brokerage F. Jeffrey Miller.

Miller, who is awaiting trial, operated home building companies along with Associated Capital, a subprime mortgage brokerage that employed Hessel and Parenza.

MortgageDaily.com subscribers read Patrick's full story

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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.

Bennett operated mortgage, realty and appraisal businesses. After a 14 day trial in January he was convicted of operating a financial crimes enterprise, four counts of wire fraud and six counts of bank fraud.

A jury found him guilty after deliberating for just one day, according to prosecutors.

MortgageDaily.com subscribers read Patrick's full story

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