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Fraud
Stories
From
Patrick
Crowley
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Fraud
News Wire
| Last Updated |
Thursday,
November 4, 2006, |
04:49
PM |
Texas
Time |
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Fraud Brokers Shut Down
Georgia state regulators are yanking the licenses of two Atlanta mortgage brokers.
Advent Mortgage Inc. operator Joseph C. Quintons Sr. is losing his license for a number of violations, according to a statement from the Georgia Department of Banking and Finance.
The state cited Quintons for "making misrepresentations in loan files submitted to mortgage lenders, purposely withholding information and making false statements or material misrepresentations to the department, and failing to operate mortgage broker activities in compliance with" state laws.
Quintons' Advent office may be out of business; its phone number is no longer operational. He could not be reached to comment.
MortgageDaily.com
subscribers read Patrick's full story
$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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November
4, 2006
NV
Warns about Fake VODs
Nevada regulators are warning mortgage brokers
and lenders about a company that is offering
phony asset verifications.
MortgageDaily.com
subscribers read full story.
'06
Mortgage Fraud may Reach $2.4 Billion
Fraud for housing is growing faster than fraud
for profit as "rates have moved up and
put homes out of reach" for more people,
according to a mortgage banking panel session
this week.
MortgageDaily.com
subscribers read full story.
Mortgage
Fraud Lawsuit
A national mortgage lender has filed a lawsuit
against six businesses and 28 individuals --
including several mortgage brokers and originators
-- alleging that it has been the victim of a
complex sting operation, causing the company
to approve 19 loans that have all defaulted.
MortgageDaily.com
subscribers read full story.
Appraisal
Director Talks Mortgage Fraud
Within the agenda of Appraisal Institute Director
Bill Garber at a fraud conference by Illinois
Mortgage Bankers is emphasizing the pressures
appraisers receive to overvalue properties and
recommending adoption of legislative remedies
to close loopholes in licensing requirements.
read
story from Rismedia.
Affordable
Housing Fraud
Andrew M. Cuomo, candidate for New York attorney
general, is quick to claim that he reduced fraud
while serving as housing secretary of HUD, but
a review alleges there was quite a delay in
fixing problems in a loan program aimed at renovating
buildings into affordable housing that left
taxpayers with a $250 million cleanup bill.
read
story from the New York Times.
Brothers
Admit Fraud
James and Eric Byrd pleaded guilty to defrauding
mortgage lenders of at least $2.5 million with
the help of an unnamed attorney who would inflate
their bank accounts by providing short-term
loans, among other things.
read
story from the Greenville News.
November
2, 2006
Loan Fraud Solutions Awarded
The Interthinx combination of leading edge technology
and innovative training merits top honors.
Brasota
Pays Third Round
The trustee of Brasota Mortgage Co., which went
bankrupt and whose past transactions are being
investigated by regulators, will distribute
about $13.5 million to creditors -- the third
round of distribution of roughly $95 million
in recovered assets.
read
story from the Herald.
Former
Broker Receives Hefty Fine
Ex-mortgage broker and Haitian death squad leader
Emmanuel "Toto" Constant, who awaits
trial on mortgage fraud charges stemming from
a $1.3 million scheme that involved a highly
inflated appraisal, must pay $19 million to
three women who were raped under his leadership.
read
story from the Queens Chronicle.
Mortgage
Fraud Session
There are insufficient resources to combat the
growing problem of mortgage fraud, a practice
often perpetrated by mortgage industry insiders,
according to the FBI and real estate finance
industry insiders who recently discussed the
problem at a seminar.
read
story from the Rocky Mountain News.
November
1, 2006
Lawyer
Accused of Mortgage Fraud
Among the charges Vince Whibbs was arrested
for was mortgage fraud - and he allegedly took
$650,000 from his law firm's trust accounts
for his personal use.
read
story from FOX 10.
Witness
Admits Making Phony Docs
Michael Cox testified that he prepared false
documents, such as paycheck stubs, for Richard
Lucas, who along with Kimberly A. Castle and
Kenneth Stalnaker, is in trial for allegedly
orchestrating a distressed property flipping
scam.
read
story from the Hattiesburg American.
Broker
Stole ID for Mortgages
Mortgage broker Anita Moore was sentenced to
six years for stealing a woman's identity and
using it to obtain home loans for $1 million
worth of property.
read
story from the Denver Post .
Appraiser
Linked to Foreclosures
The Colorado Board of Real Estate Appraisers
is seeking record fines from Albert Fajt and
James Esters because they allegedly inflated
values on properties -- with some by Esters
previously linked to contributing to the state's
high foreclosure rate.
read
story from the Denver Post .
Foreclosure
"Rescuer" Pleads Guilty
John D. Cash Jr. faces over 5 years in jail
for admitting he preyed on borrowers on the
verge of losing their homes by filing bankruptcy
on their behalf to slow the foreclosure process
and collecting mortgage payments from them before
the foreclosure actually happened.
read
story from the Chicago Sun-Times.
IN
Policeman Accused of Forgery
Master Trooper Michael A. Nufer was recently
charged with forging his ex-wife's signature
on a home equity loan in which he withdrew $25,000.
read
story from the South Bend Tribune.
October
31, 2006
Fraud
Brokers Shut Down
Georgia state regulators are yanking the licenses
of two Atlanta mortgage brokers.
MortgageDaily.com
subscribers read full story.
NV
Warns about Fake VODs
Nevada regulators are warning mortgage brokers
and lenders about a company that is offering
phony asset verifications.
MortgageDaily.com
subscribers read full story.
'06
Mortgage Fraud may Reach $2.4 Billion
Fraud for housing is growing faster than fraud
for profit as "rates have moved up and
put homes out of reach" for more people,
according to a mortgage banking panel session
this week.
MortgageDaily.com
subscribers read full story.
Mortgage
Fraud Lawsuit
A national mortgage lender has filed a lawsuit
against six businesses and 28 individuals --
including several mortgage brokers and originators
-- alleging that it has been the victim of a
complex sting operation, causing the company
to approve 19 loans that have all defaulted.
MortgageDaily.com
subscribers read full story.
Countrywide
Testifies in Fraud Trial
In the trial in which Richard Lucas, Kimberly
A. Castle and Kenneth Stalnaker are defendants
accused of engaging in a mortgage fraud scheme,
the government had Chris Raycraft, a regional
operations manger for Countrywide, testify on
how the mortgage business works and identify
foreclosures on 41 properties the company made
mortgages for.
read
story from the Hattiesburg American.
Boxing
Legend Dead
A former heavyweight boxing champ, who at one
time also forged his ex-wife's signature to
get a mortgage on a home, was found dead in
a church courtyard.
read
story from the Seattle Post-Intellligencer.
Former
Lt. Gov Fights Sentence
Ex-Lt. Gov. Earle E. Morris Jr. could avoid
about 4 years in jail if the court overturns
his conviction for lying to investors while
he was a chairman at failed Carolina Investors,
a subsidiary of subprime lender HomeGold Financial
Inc. that caused over $288 million in losses
to investors.
read
story from The State.
Colo
Investigating Inflated Deals
Colorado officials are probing various participants
in inflated sales, including mortgage brokers,
to attack the state's high foreclosure problem.
read
story from the Denver Post.
Avoiding
Foreclosure Rescue Scams
A watchdog group and former HUD supervisor detail
how foreclosure rescue scams work and can be
avoided.
read
story from the Star-Telgram.
Brasota
Investors May Get Returns
Investors of defunct Brasota Mortgage, which
allegedly operated a multimillion-dollar Ponzi
scheme, await to see if the auction of an equestrian
center will pay them off in some way.
read
story from the Herald Tribune .
Mortgage
Con Artist At Large
While Matthew Bevan Cox, who has used several
aliases to steal at least $15 million through
fraudulent mortgages, is still at large, his
female crime accomplices, Rebecca Marie Hauck
and Alison Arnold, sit in jail and recount his
movie-like life.
read
story from CNN.
Four
Sentenced in FHA Scam
Philip Miskimon, Douglas Hastings, Price Brooks
and Julie Smith, are the last four of 11 people
sentenced for participating in a scheme in which
false documents were submitted to get the Federal
Housing Administration to insure more than $1
million in loans for unqualified borrowers.
read
story from the Rockford Register Star.
Mortgage
Flipping Trial Begins
Trial has begun for Richard Lucas, Kimberly
A. Castle and Kenneth Stalnaker, who are accused
of collaborating in a scheme in which appraisals
were inflated on distressed homes to pocket
proceeds from mortgages approved and sold into
the secondary market by Countrywide Finance
and Alliance Bonding.
read
story from the Hattiesburg American.
Ex-CEO
Faces 60 Years
If found guilty of defrauding investors out
of $268 million, over 60 years in prison could
be the outcome for Ronald J. Sheppard, the former
CEO of bankrupt HomeGold Financial, which funded
subprime mortgages through high-interest unsecured
investments of now-defunct Carolina Investors.
read
story from the Greenville News.
Ex-Mortgage
Employee Admits Fraud
Lucesita Santiago, a former account manager
of bankrupt NJ Affordable Homes, which securities
regulators said collected $40 million from investors
through a Ponzi scheme, pleaded guilty to submitting
fake loan documents to help the company get
mortgages.
read
story from Star-Ledger.
Woman
Defrauds Mortgage Investors
Lorraine Afshari was arrested for allegedly
defrauding investors of about $180,000 they
contributed to her mortgage company to finance
homes but that she instead used for personal
expenses and to pay previous investors to keep
her business running.
read
story from NBC-2.
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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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