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

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.



Six in Wash. Indicted in $8.5 Million Flipping Scheme

Dozens of Houses Used in Fraud

Seattle, Wash. - (June 19, 2008) Six people were indicted by a Federal Grand Jury in Seattle yesterday for Conspiracy and Wire Fraud in connection with an estimated $8.5 million mortgage fraud scheme conducted in 2004 and 2005. Those indicted include a lawyer (since disbarred), a former bank loan officer and a mortgage broker, as well as the owner of shell companies involved in “flipping” dozens of properties as part of the fraud. Some of the defendants will make their initial appearances in U.S. District Court in Seattle at 2:30 today, including ROBERT ERNEST BRANDT, 40, the attorney who funneled money in the scheme through his client trust account.

The indictment was unsealed today in conjunction with a nationwide emphasis on mortgage fraud as part of Operation “Malicious Mortgage.” From March 1 to June 18, 2008, Operation Malicious Mortgage resulted in 144 mortgage fraud cases in which 406 defendants were charged, convicted or sentenced. Today’s national takedown of mortgage fraud schemes, is the culmination of substantial coordinated efforts during the last three and a half months to identify, arrest and prosecute mortgage fraud violators through the United States. Operation Malicious Mortgage highlights the strong enforcement response undertaken by the Department of Justice and its law enforcement partners to combat the threat mortgage fraud poses to the U.S. housing industry and worldwide credit markets.

According to the indictment returned in the Western District of Washington, BRANDT and WILLIAM ANDERSON, 47, of Bellevue, conspired with MUSTAFA “MARC” KHOSRAW, 46, of Sammamish, ISAAC PALMER, 42, of North Bend, KRISTYN JUPITER MOSS, 38, of Tacoma and ZACHARY JOSEPH NAMIE, 30, of Seattle, to defraud banks and other financial institutions using a mortgage fraud scheme. The conspirators would identify houses and would use shell companies or third parties to purchase the homes. At the same time they recruited “straw buyers” who would enter into a purchase agreement to buy the same home from the conspirators at an inflated price (a “flip”). The conspirators assisted the straw buyers with phony paperwork for the home loans, making it appear that they were qualified for the mortgage loans and planned to occupy the houses. Members of the conspiracy allegedly falsified numerous documents including appraisals, verifications of deposits, employment verification and closing documents. In fact, the conspirators simply split the proceeds from the fraudulent mortgages, and the straw buyers defaulted on the loans after pocketing as much as $20,000 for their fee. The homes were foreclosed and financial institutions and mortgage lenders suffered substantial losses.

The defendants served various roles in the scheme. ANDERSON operated SFN, LLC, and Sterling Investments -- shell companies that initially purchased numerous properties. ANDERSON and MOSS, then a loan officer for Viking Bank, allegedly created many of the false documents. BRANDT and ANDERSON jointly ran a company called “Escrow Authority,” that closed the sales of the properties. KHOSRAW, a mortgage broker, and NAMIE, a loan officer with a mortgage company, allegedly created and submitted some of the false documents. PALMER operated a construction company called GMI Construction, and allegedly recruited straw buyers and falsely claimed that some of them worked for him.

The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Wire Fraud is punishable by up to 20 years in prison and a $250,000 fine.

The case was investigated by the FBI, King County Prosecuting Attorney’s Office and the Washington State Department of Financial Institutions (DFI).

The case is being prosecuted by Assistant United States Attorneys Vincent T. Lombardi and Nick Brown.

SOURCE: United States Attorney's Office
Western District of Washington

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


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