home mortgage fraud newsletter full stories advertise mortgage industry newsletter RSS about us
 
HOT Topics Fraud Resources Fraud Prevention Mortgage Litigation News Appraisal News

Sign Up for Free Mortgage Fraud Newsletter


 
 
twitter linkedin
facebook google+
Mortgage News

Search
Search mortgage fraud news by keyword.

Mortgage Fraud News
News, analysis and statistics about mortgage fraud.

Local Mortgage Fraud
Stories about individual mortgage crime cases.

Mortgage Fraud Statistics
Statics by year about real estate fraud.

Mortgage Fraud Index
Quarterly index based on case activity.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage Fraud Feedget RSS code
The latest case activity tracked by FraudBlogger.com for your Web site or for your RSS reader.

Mortgage Fraud Archives
Archive of FraudBlogger.com entries going back to 2005.

 

PRESS RELEASE


Broker Charged in Multimillion-Dollar Mortgage Fraud

$2.2 Million in Fraudulent Loans


 
Minneapolis, Minn. - (May 12, 2009) A 29-year-old Alexandria man was indicted yesterday in federal court on nine counts of wire fraud and one count of money laundering in connection with a scheme to conceal payments from mortgage loan proceeds.

Micah John Beaumia was charged May 11 in Minneapolis. His indictment alleges that from 2005 through 2006 Beaumia devised the scheme through his involvement with LHS Mortgage, Inc., located in Burnsville and Anderson Gabriel Mortgage, Inc., located in Alexandria. It also alleges that the concealed payments were diverted to buyers of real properties (either Beaumia or a relative) through the use of fraudulent underwriting and closing documentation. Beaumia allegedly caused fraudulent loan application documentation to be provided to potential lenders for purposes of loan underwriting. This fraudulent documentation misrepresented the true terms of the proposed transaction and, in some instances, the identity of the mortgage broker, and it falsely overstated the true purchase price to be paid by the buyer for a property and concealed payments that were to be made from the loan proceeds to the buyers and other individuals.

Based on the fraudulent documentation, the proposed loans were approved, totaling more than $2.2 million in loan proceeds.

After each loan was approved based on the fraudulent underwriting package allegedly provided by Beaumia, the lender disbursed loan proceeds to a title company. Beaumia then allegedly worked with a closing agent of the title company to execute the fraudulent scheme by disbursing the funds in a manner other than what was understood by the lender – namely the concealed payments. The closing agent also provided fraudulent settlement statements to the lender in an effort to conceal the scheme.

In at least 12 separate real estate transactions, either Beaumia or a relative of Beaumia acted as the buyer of the properties. Through these transactions, Beaumia allegedly secured approximately $430,000 in concealed payments.

For the purpose of executing the scheme, the indictment alleges that Beaumia knowingly caused 10 wire transfers of loan proceeds. The indictment also alleges that on Oct. 17, 2005, Beaumia signed over an $18,000 cashier’s check as partial payment for a Wild West Dragon motorcycle using proceeds derived from his scheme.

If convicted, Beaumia faces a potential maximum penalty of 30 years in prison on each of the wire fraud counts and 10 years in prison on the money laundering count. All sentences are determined by a federal district court judge.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Tracy L. Perzel.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.



SOURCE: United States Department of Justice -- District of Minnesota

 
Mortgage Fraud Litigation

Q4-2012 | Q3-2012
Q2-2012 | Q1-2012

Q4-2011 | Q3-2011
Q2-2011 | Q1-2011

Q4-2010 | Q3-2010
Q2-2010 | Q1-2010

Q4-2009 | Q3-2009
Q2-2009 | Q1-2009

Q4-2008 | Q3-2008
Q2-2008 | Q1-2008

full-year 2007
Red Flags Rule
News about the Fair and Accurate Credit Transaction Act.
Analysis of Fraud Enforcement and Recovery Act
The Mortgage Graveyard
Reverse Mortgage Blog
Mortgage Compliance Newsletter
Free compliance newsletter from MortgageDaily.com.



Copyright © 2014 MortgageDaily.com
MortgageDaily.com Subscribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

pricing engine directory

wholesale lender directory

More Mortgage News Resources (MortgageDaily.com full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan officer compensation rule

loan originator compensation rule

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

sales blog

reverse mortgage news

secondary marketing

servicing news

subprime news

wholesale lenders

wireless mortgage news