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Fraud
Stories
From
Patrick
Crowley

Fraud News Wire

Last Updated Thursday, November 4, 2006, 04:49 PM Texas Time


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


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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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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