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Mortgage Fraud Newswire
| Last Updated |
Wednesday, August 27, 2008, |
9:45 AM |
Texas Time |
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August 27, 2008
“Operation Whose House” Nabs Fugitive
Delroy Patterson, 47, was extradited from Jamaica last month. Patterson and his wife Yvette Scott Patterson headed a $10 million mortgage fraud scheme that involved more than 30 properties in Broward County Florida. Patterson pleaded guilty and was sentenced to 24 months in prison followed by one year of supervised release. His wife is currently in the process of being extradited.
August 26, 2008
Fraudsters Helped Unqualified Applicants
Terri J. Hart, 45, April Hall, 34, Thomas Walter Thacker Jr., 68, and Shiquandra Ann Brooks, 35, have been accused of falsifying documents in order to obtain 100 percent financing for applicants that otherwise would not qualify. Hart and Hall were named as owners of Carriage Crossings, Inc. and ABC Trading, Inc., both companies that were used in the scheme. If convicted of the mortgage fraud, each face up to 35 years in prison, three years supervised release and up to $1.25 million in fines.
Fifth State Sues Countrywide
An investigation by Indiana's attorney general has led to a lawsuit against Countrywide. Indiana, which alleges mortgage fraud and customer deceit, is the fifth state to sue Countrywide since June.
Attorney General Steve Carter announced that a lawsuit was filed by the state in Steuben County Court against Countrywide Home Loans Inc. and parent Countrywide Financial Corp.
Carter claims the Bank of America Corp. subsidiary engaged in deceptive and misleading practices that led to borrowers obtaining potentially risky and costly loans.
Read story at MortgageDaily.com
Mortgage Stacking Scheme
Kevin F. Carey, 48, has been accused of refinancing four homes without paying off the existing liens several times over, also termed as “stacking.” Using properties in Massachusetts, Carey caused a $2 million loss to a title company.
Read story at Enterprise News
Basketball Star Investigated for Fraud; More Details
Lindsey Hunter, former Detroit Pistons guard, is a partner in a company that is under investigation for mortgage fraud activity. Hunter’s attorney said he is a silent partner and had no involvement in any fraudulent activity; including a deal that helped one man who earns $35,000 a year obtain a mortgage for a $1.25 million home.
Read story at Crain's Detroit
FBI Predictions Realized
In September 2004, FBI Criminal Investigator Chris Swecker told reporters that trouble was brewing in the mortgage industry given the low interest rates and rising home values. The question is: Did the FBI have enough resources to contend with the sudden and massive rise in mortgage fraud?
Read story at LA Times
Last Minute Plea Change
Gregory M. Finney changed his not guilty plea to guilty of fraud, conspiracy and money laundering after a 40-minute hearing. Finney, president of the now defunct A & M Homes, faces a maximum of 55 years in prison and a $1.75 million fine. Sentencing is set for November. Robert L. Dodsworth and Frank Kartesz II have also pleaded guilty in this case. Keith A. Rice and Francis R. Conti have pleaded not guilty.
Read story at Erie Times News
August 25, 2008
Florida Leads Rising Fraud
Led by in increase in new mortgage fraud cases along Florida's coast, U.S. fraud activity has risen significantly since last year.
Reported incidents of mortgage fraud rose 42 percent from the first-quarter 2007 to the first-quarter 2008, Mortgage Asset Research Institute reported today.
MARI said its findings are based on data submitted by its 600 subscribers to the Mortgage Industry Data Exchange about their first-quarter originations that have since been classified as fraudulent.
Read story at MortgageDaily.com
Convicted Alien Steals ID for Mortgage
Fanny Velasquez, 54, is being deported from California after trying to purchase a home with someone else’s identity. She was sentenced to 16 months in state prison but was given time served so she could be released to Immigration and Customs Enforcement for deportation to Columbia. Velasquez took out a $177,000 mortgage in her victim’s name prior to being caught for the second time.
Read story at VictorVille Daily Press
Racing Foreclosures
Foreclosures are affecting affluent neighborhoods as much as those in lower income areas. Here’s a look at the Maryland-area foreclosures and surrounding communities, at a bird’s eye view.
Read story at Washington Independent
Arizona AG Notes Lackadaisical Mortgage Laws
Arizona AG Terry Goddard said the state needs more comprehensive loan-disclosure rules and defined mortgage laws.
Read story at BizJournals
Fraudster Re-Sold Homes
Robert Flores, operating as Texas-based Galindo Trust, was re-selling a number of homes without telling the buyers about pre-existing liens. Some almost lost their homes to the scam, fortunately, University Federal Credit Union helped them clear the pre-existing liens and provided homeowners with fixed rate mortgages.
Read story at KVUE News
August 21, 2008
Four Texan Fraudsters Plead Guilty
Four people have recently pleaded guilty to a $15 million mortgage fraud in Texas. Carlos Paul Gonzalez, 38, and Machell Halstead, 42, Jannice Bonner, 39, and Russell Browder, 41, all admitted to various forms of fraud including falsifying documents to obtain several mortgage loans. If convicted, each faces up to 20 years in prison and a $250,000 fine. Sentencing is scheduled for December.
Pennsylvania Revokes Broker License
NorthStar Mortgage LLC has had its license pulled because of fraudulent activity among its employees. Officials say employees repeatedly altered, fabricated and falsified documents to obtain mortgage loans, many of which have since defaulted.
Broker Submitted False Loan Apps
Andrew McCullough, 35, was indicted on charges of mortgage fraud in Pennsylvania. McCullough is accused of submitting false documents to various mortgage brokers to obtain mortgage loans.
Read story at Pittsburgh Tribune
Four Dearborn, Mich. Men Indicted
Hassan Nagi, 30, Ali Haidous, 24, Safi Bzeih, 35, and Hussein Aoun, 23, have been charged with conspiracy, bank fraud and mail fraud in a $1.9 million fraud scheme that involved 16 properties. Aoun is a fugitive in Lebanon, but the other three will be arraigned this week.
Read story at The Detroit News
Title Co. Owner Sentenced
Molly L. Heise, 50, owner of Profile Title and Escrow in Minnesota, was sentenced to almost six years and ordered to pay more than $3.9 million in restitution. Heise stole $3.7 million in the scam to a secret escrow account. Christine A. Hein, 38, from also pleaded guilty in the case. She was sentenced to two years probation.
Read story at Star Tribune
August 20, 2008
Routine Examination Turns Costly
When New Hampshire regulators were given loan files for a routine examination of a mortgage brokerage, they became suspicious about missing documents. With a little more work, they found the missing documents in a shredding bin and reconstructed them only to find altered documents on loans from that state and from Massachusetts. In addition to fining the broker $400,000, they alerted Massachusetts regulators -- who then took their own actions.
The New Hampshire Banking Department has entered into a consent order with The Mortgage Specialists Inc. Also listed in the order were the company's owner Michael Gill and its compliance officer Lisa Tracy.
In a staff petition dated July 23, the state said it conducted a routine examination of 20 loan files.
Read story at MortgageDaily.com
Broker Avoids Trial
Donald Walthall, 40, pleaded guilty right before going to trial. He was charged with one count of racketeering and 24 counts of theft by swindle. His plea bargain resulted in a 6-year prison sentence. He has also been ordered to make an undetermined amount of restitution.
Read story at Star Tribune
Six Tricked Lenders out of $17 Million
Six of 15 arrested in connection with a mortgage fraud scheme have pleaded guilty of defrauding a number of lenders out of over $17 million. Monica Fergusson, 37, and Diana Diaz, 40, if convicted, face up to five years in prison and a fine of $20,000 plus legal costs. Mari Matilde Leony Rodriguez-Triana, 44, and Raisa Diaz face up to three years in prison and a $10,000 fine and legal cost; Marlene Norono, 47, faces up to three years in prison and a $15,000 fine plus legal costs. Mario Lubian, 47, was sentenced to one year of community control followed by four years of probation and 90 days in county jail plus $10,000 in fines.
Read story at BizJournals
Appraiser for Parish Sentenced
Donald T. Yeager, 41, was sentenced to 15 months in prison for his role in a $100 million mortgage fraud scheme that involved about 200 homes with Parish Marketing. He pleaded guilty to inflating 74 appraisals for Parish. Michael Parish and his wife, Ardith were sentenced to 13 years and five years, respectively.
Read story at Star Tribune
Avoiding Mortgage Fraud
Increased awareness of mortgage fraud activity has necessitated homeowner’s educate themselves before taking out a mortgage. Here are some tips from the FBI compiled by BloggerNews.net.
Read story at Blogger News
Central Coast Foreclosure Aid Scam
Maria Ponce, 50, has been accused of defrauding a number of homeowners facing default, including the elderly, out of thousands of dollars. She was charged with 12 counts of elder abuse, grand theft and residential burglary.
Read story at KSBW News
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