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Archives October 30, 2005


October 28, 2005

Fake Law Firm Stole From Lenders
Eight people have been charged in connection with creating a fake law firm and stealing $12 million from banks, mortgage companies and homeowners.
read article from the New York Times

Mortgage Branch Manager Sentenced to 1 Year

Steven J. Schneider, 48, a former manager of Your Mortgage Solutions, received a 1-year sentence and was ordered to pay $30,874 in back taxes to the Internal Revenue Service for his roll in a Cincinnati flipping scheme.
read story from the Cincinnati Enquirer .

Woman Used Fake Appraisals to Obtain $400k in Fraud Loans

Caroline Hoth, 43, of Yonkers in Westchester County, has been convicted of forging appraisals to defraud three lenders out of $400,000.
read story from Mid-Hudson News Network .

Government Officials Design Plan to Fight Fraud in Ohio

Federal and state agencies in Ohio, including the FBI, U.S. Attorney's Office, IRS and postal inspector's office announced Thursday they will form a joint task force to combat fraud.
read story from the Cincinnati Enquirer .

Former Broker, Mortgage Employee Charged With Mortgage Fraud
Joni Lynn Goss, who once owned a mortgage company with her ex-husband, and Ernest Wayne White Jr., who worked for a mortgage company, are among six people charged in $3 million Mississippi fraud scheme.
read story from The Clarion-Ledger .

October 27, 2005

Mortgage Banker Admits Fraud
Devon Bowie, 53, of Malvern, N.Y., and president of Neighborhood Mortgage Bankers, pleaded guilty to a $2 million mortgage fraud scheme and faces up to five years in prison.
read story at The Star-Ledger .

read Pat's previous story at MortgageDaily.com
(subscription required)

October 26, 2005

100+ FBI Agents Arrest Originators, Others
Federal prosecutors in Detroit have charged 20 people in an alleged $10 million mortgage fraud ring that was under investigation for more than two years.
read Patrick's article at MortgageDaily.com
(subscription required)
3 More Plead Guilty in Oasis Mortgage Fraud Ring
Three people have plead guilty in a Greensboro, N.C., mortgage fraud scheme.
read artile at the Greensboro News-Record .

Mortgage Broker Among 4 Sentenced in Case Where 30 Plead Guilty
The former owner of the Seven Hills Financial mortgage brokerage, Steven Carey, 34, of Akron, Ohio, has plead guilty in a case involving around 1,000 homes and 30 other guilty defendants.
read story at the Cincinnati Enquirer .

October 25, 2005

Six Indicted, 14 Others Charged in Detroit Fraud Scheme
Indictments were handed down by a federal grand jury in a mortgage fraud case that involved Detroit loan originators.
read story at Crains Detroit .

REALTOR Says He Can Spot Fraud With 30-Second File Review
WARREN, Mich., Oct. 25 -- Quick, big profits hidden in complex transactions have made real estate fraud the crime of our time.
read announcement at FraudBlogger.com .

Massive Fraud Ring Case Yields First Jail Sentences
30 Defendants in $50 million case included mortgage loans officers, appraisers and title company owners.
read story at the Cincinnati Enquirer .

$1 Billion in Mortgage Fraud So Far in 2005, FBI Tells Mortgage Bankers

read article at the Orlando Sentinel

October 24, 2005

A Maryland businessman convicted of mortgage fraud is also in trouble for running an illegal money transferring operation.

Mohammad Bajwa, 39, of Herndon, Md., has been convicted of wire fraud for filing false information on a mortgage refinancing application, AP is reporting.

Bajwa was also convicted by a jury of illegally wiring $6 million to people in Pakistan and other countries. Prosecutors claimed Bajwa collected cash from people in Virginia and then wired the money to overseas banks. His brother then reportedly disbursed the money in Pakistan.

Bajwa was ordered to repay $4 million and give up his home.

Two years ago Bajwa was convicted of immigration fraud and sentenced to two years in prison.

read story from ABC 7 News

The former owner of a minor league baseball team is going to prison after being convicted of some major mortgage fraud.

Chuck Hildebrant, 46, was sentenced to five years in prison after pleading guilty to bank fraud that involved $7.2 million in loans. Hildebrant but also pay a $48,000 fine and more than $4 million in restitution, according to federal prosecutors in Ohio.

Hildebrant is former owner of the Florence Freedom baseball team, a Pioneer League team outside of Cincinnati in Florence, Ky. Prosecutors say Hildebrant used fake financial statements and other forged documents to get loans from four banks.

He has reportedly admitted to forging relatives' property to mortgage their property. He also made an illegal $20,000 campaign contribution to try and get and audience with President Bush, prosecutors said.

read story from The News-Sentinal

A Kansas City mortgage company may lose its license after state regulators accused the company of fraud.

Reis Enterprises may also have to pay a $235,000 and the company and its owner, Justin Cahow, would be banned from the mortgage business, the Kansas City Star is reporting.

The company reportedly received a Cease and Desist ordered by Kansas banking officials that accused the company of altering appraisals, submitting false documents to lenders, failing to maintain documents required by law and employing loan originators who were not licensed by the state.

The state said at least 15 loans were made by employees who were not registered as mortgage originators.

Cahow's lawyer reportedly told the paper that his client was "assisting the state in its investigations of others."

Cahow has requested and will receive a hearing before state officials on the allegations. He can continue operating until the hearing. A date has not been set for the hearing.

read story from The Kansas City Star

Robert Miller owned an Ohio company called Federal Mortgage Reduction Systems that collected mortgage payments from more than 200 clients. Miller would put the money in escrow and then send the money to mortgage companies in a move to shorten the terms of his clients' loans.

But Miller has pleaded guilty to taking more than $154,000 of his client's money, according to the Canton Repository.

Miller, 45, a former city manager in Louisville, Ohio, also admitted to taking more than $1.5 million from the customers of a payroll service he operated. He faces up to five years in prison when sentenced on Jan. 5.

"He was well-connected, we all trusted him," victim Russell Goffus reportedly told the paper.

Miller, an accountant by training, reached a plea agreement with federal prosecutors that require him to repay the $1.5 million.

read story at The Canton Repository

A mortgage manager who stole admitting to stealing $1.5 million from Kemper Insurance Companies was given six years behind bars by an Illinois judge.

Laura Johnson was found guilty of stealing from the company since 1999. She used the money to buy three houses, two motorcycles and other vehicles, according to the Chicago Tribune.

Johnson, 47, who is recovering from a motorcycle accident, won't have to report to prison until Jan. 31. She reportedly repaid $73,000 of the money during her sentencing. She also turned over one of the houses to Kemper.

Johnson was laid off from her job in December. She managed mortgage accounts and was allegedly taking money that had been transferred from accounts.

read story from the Chicago Tribune

read Pat's story from MortgageDaily.com
(subscription required)

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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