Owner: The Mortgage Fraud Blog URL:www.mortgagefraud.org Join Date: Mon, 05 Feb 2007 14:29:15 -0600 Rating:0 Site Description: A blog dedicated to bringing you the latest news about mortgage and real estate fraud Site statistics:Click here
Mortgage company owner / Tax preparer indicted for mortgage fraud 2007-02-02 03:54:29 In the following press release Alice H. Martin, United States Attorney for the Northern District of Alabama announced that LADON CHRISON BAFFIELD has been indicted
by a federal grand jury for conspiracy to defraud
the U.S. Government with respect to claims and wire fraud. BAFFIELD, 42, of Madison, Alabama, owned and operated LCB Financial Services (LCB) and Titanium Mortgage. BAFFIELD through LCB engaged in the business of preparing and filing income tax returns for taxpayers. As a part of his business BAFFIELD offered refund anticipation loans to taxpayers in the amount of their income tax refunds, less a fee to LCB. “The ‘quick money’ from Refund Anticipation Loans is appealing to dishonest tax preparers and some citizens. I wonder if defendants can even remember how they spent the money once they go to jail,” said U. S. Attorney Alice H. Martin. The indictment alleges in Count One that from April 2002 until about June 2002, BAFFIELD co Read more:company
Two men charged with ID theft - one alleged to have bought 5 properties 2007-02-01 18:44:55 In the following press release Susan W. Brooks,(pictured left) United States Attorney for the Southern District of Indiana, announced that ERICK RAMON ANDERSON, 30, Indianapolis, Indiana, was indicted by a federal grand jury sitting in Indianapolis for 7 counts of identity theft
and 4 counts of bank fraud, following an investigation by the Indianapolis Metropolitan Police Department and the Federal Bureau of Investigation in Cincinnati, Ohio and Indianapolis. CHARLEY WALKER, 46, was charged by information with a single-count of identity theft. The indictment alleges that ANDERSON purchased five Indianapolis properties and obtained or attempted to obtain two vehicle loans using the personal identifiers of three men, including their social security numbers. These men do not know ANDERSON and had not given permission for him to do this. The indictment additionally alleges that ANDERSON committed bank fraud by depositing $13,800 in funds from four different checks purportedly authoriz
Daily Updates - Thursday February 1st 2007 2007-02-01 18:23:00 The following older entries were updated today. Click the blue text to follow the link to the main article.Oklahoma Real Estate Commission upholds decision to suspend realtors license Read more:Daily
, February
, Thursday
New York mortgage broker pleads guilty to grand larceny 2007-02-01 01:52:02 The story of the New York
couple who filed a federal civil law suit against a mortgage broker
they accused of stealing their house is in the news again after their case was dismissed by a New York judge. To read more about the civil case please click here. The broker named in the suit was Mitchell Sims who has also been charged with felony offences in relation to his activities as a mortgage broker. The case is being prosecuted by the Suffolk County District Attorney. Sims waived indictment and accepted an information which laid out the charges. Click here to read the Waiver/Information.According to court records obtained by this blog on July 22, 2005 Sims appeared in the Suffolk County Supreme Court where he entered a plea of guilty to 2 charges of Grand Larceny of property worth more than $50,000. Those records show he is due to be sentenced on February 2, 2007. Click here to read the court recordsWe are grateful for the assistance given by the Suffolk County DA’s office. Read more:larceny
Mortgage banker indicted on bankruptcy and mortgage fraud charges 2007-02-01 01:14:39 In the following press release United States Attorney Catherine L. Hanaway announced that Rose A. Shaw was indicted
last week on multiple mail and wire fraud
charges, along with a forgery charge alleging that she signed a judge’s name on a bankruptcy
document.According to the indictment, Shaw received monthly social security disability payments from January 1985 thought March 2006 by falsely claiming on the applications that she was mentally retarded and suffered from schizophrenia. The total amount of these benefits was approximately $153,000. The indictment states that during this time, Shaw was employed as a mortgage banker under the business name of Rose Shaw Enterprises, LLC and Shaw Brokerage Real Estate Investment Firm, LLC.In count five of the indictment, it is alleged that on August 25, 2005, Shaw forged the signature of Chief United States Bankruptcy Judge Barry Schermer on a bankruptcy document.In December 2005, Shaw applied for a loan to purchase #10 Hansen Manor, St.
Unlicensed mortgage broker ordered to cease and desist 2007-01-31 22:44:22 In the following press release the Georgia Department of Banking and Finance announced that o n January 21, 2007, a Cease and Desist Order which had been issued to Mary E. Murray, Richmond Hill, GA 31324, became final.This Cease and Desist Order was issued by the Department after it obtained evidence that Mary E. Murray engaged in mortgage brokerage/lending activities without a license or under an applicable exception.Pursuant to Georgia law, it is prohibited for any person knowingly to purchase, sell, or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt from licensing or registration provisions to engage in mortgage broker/lender activities. Click here for the full press release.
Maryland mortgage company employee charged with theft of over 300 identities 2007-01-31 21:15:34 In what is a worrying case, a mortgage company
employee has been indicted for selling files of personal information. The case shows the value criminals put on your personal information and credit record, according to the FBI he offered to sell the files for a mere $50 each. More follows below: In the following press release United States Attorney for the District of Maryland
Rod J. Rosenstein announced that Robert Michael Stewart, age 26, of Timonium, Maryland, was indicted (on January 17, 2007) for fraud in connection with identity information (identity theft
) and aggravated identity theft in a scheme to sell stolen personal and financial information. According to court documents, Stewart sought to sell 325 folders of personal and financial information that he gained, or had access to, from his employment at a Pikesville, Maryland mortgage company. Initially, Stewart had over 200 folders at his residence, which he intended to be sold to others, who would use the information to o Read more:identities
Daily Updates - Wednesday January 31, 2007 2007-01-31 17:32:47 The following older entries were updated today. Please click on the blue text to read the full article.Four sentenced in ID Theft & Mortgage Fraud case - Hospital patients records stolen Read more:Daily
, January
, Wednesday
New Mexico man pleads guilty in investment scheme that targeted seniors 2007-01-30 23:50:22 In the following press release from Albuquerque on January 16, 2007, New Mexico
Attorney General Gary King announced a plea agreement in the state’s fraud case against Angelo Garcia, the Albuquerque businessman charged with defrauding a group of senior citizens out of nearly one-point-four million dollars. According to the agreement, Garcia admitted his guilt in a series of securities fraud counts and one count of racketeering. He now faces up to 33 years imprisonment at sentencing. Restitution to the elderly victims is also ordered under terms of the agreement. Attorney General King says, “We are pleased by this outcome so that Angelo Garcia will pay for his crimes. Those who victimize our state’s elder citizens will be caught and they will be punished.” The senior citizen investors had been falsely led to believe their money, in some cases their life savings, was being invested in various housing projects. Garcia diverted most of the victims’ money and p Read more:investment
, investment scheme
, New Mexico
Two plead guilty in single mortgage fraud case 2007-01-30 22:10:02 According to Court Records on January 18, 2007 Derek Henry, 38, of Ooltewah, TN entered a plea of guilty in response to charges that he obtained a mortgage loan under false pretences from Decision 1 Mortgage. The $240,000 loan was made in May 2003. In addition court records show that Cheryl Kyles, 36 of Ooltewah, TN plead
ed guilty in relation to the same fraud
and on January 11, 2007 she was sentenced to 1 years probation. As part of her plea deal she agreed to forfeit a property at 10414 Sims Harris Road, Ooltewah. Henry is due to be sentenced on May 3, 2007, in the Chattanooga District Court. Please click here to read the Criminal Information against HenryPlease click here to read the Criminal Information against Kyles
Source: Ooltewah Man Pleads Guilty To Federal Fraud Charges (http://www.chattanoogan.com/articles/article_100365.asp) Read more:single
Illinois man pleads guilty to tax evasion, made false statement on 1003 2007-01-30 01:46:54 In the following press release Randy G. Massey, Acting United States Attorney for the Southern District of Illinois
, announced that on January 17, 2007, ERIC DEAN TROUTT, age 40 of Sandoval, Illinois, pled guilty to the offenses of Tax Evasion and Making a False Statement to a Financial Institution. The offenses carry a total statutory maximum possible punishment of up to thirty-five years imprisonment, a fine of up to $1,250,000, five years supervised release, and mandatory restitution. Sentencing is scheduled for April 16, 2007.ERIC DEAN TROUTT admitted as part of the plea that he evaded the assessment of federal income tax on his 2003 U.S. Individual Income Tax Return by not reporting approximately $200,000 he received as payment for legal services, by filing a false
tax return, and by using a trust account to conceal the income. ERIC DEAN TROUTT used the unreported income to purchase luxury vehicles, real estate property, and luxury furniture as well as other various purchases Read more:evasion
, statement
, tax evasion
North Carolina loan officer has licence revoked for fraud and ID theft 2007-01-27 09:11:36 In a January 25, 2007 press release the NorthCarolina
Commissioner of Banks announced that he had issued an order which permanently revoked the license of Kimberly C. Taylor, a Fayetteville mortgage officer
.htm">loan officer
for mortgage fraud
and identity theft
. Taylor was additionally fined $50,000. The order found that in 2004 and 2005 whilst employed by Advantage Loans, Inc, Taylor had falsified documents in relation to 3 mortgage loans. It further states that in 2006 whilst working for NationsBest Financial Services she falsified documents on at least two other mortgage loans. Her actions leave the mortgage brokerages facing liabilities of $500,000 if the loans default. In addition they found that Taylor stole the Identities of mortgage loan customers to obtain at least 7 personal loans from Centura Bank. The bank was left with losses of nearly $500,000. Click here to read the Press Release Click here to read the 14 page decision and order. Read more:North Carolina
Daily Updates - Friday January 26th 2007 2007-01-27 08:46:03 The following older entries were updated today. Please click on the blue link to read the whole entry.Losses in Minnesota real estate investment fraud now stand at $50 million Read more:Daily
, Friday
, January
Georgia DBF issues cease and desist order to Scott and Debra Losch 2007-01-27 08:07:35 In the following press release the Georgia
Department of Banking and Finance (“Department”) announced that on January 11th 2007 the Cease and Desist Orders issued to Scott
Losch and Debra
Losch of Tierra Verde, Florida, became final.The Cease and Desist Orders issued by the Department contended that false statements were made or material facts were misrepresented to lenders; felons were employed; employees were paid or compensated for the performance of mortgage activities as independent contractors on a 1099 basis; unapproved branches were operated; net branching was engaged in; unapproved managers operated branch offices; a mortgage loan transaction journal was not properly kept; business was transacted with a person who was unlicensed and unregistered, not exempt from licensing and registrations requirements and was not an employee of a mortgage broker or lender; and false statements were made to the Department. Pursuant to state law, the Department may revoke the
Georgia DBF issued cease and desist order to Victor Roberson 2007-01-27 07:58:05 In the following press release the Georgia
Department of Banking and Finance (“Department”) announced that on January 24th 2007 the Cease and Desist Order issued to Victor
Roberson of Smyrna, Georgia, became final. This Cease and Desist Order was issued to Mr. Roberson by the Department for misrepresenting or concealing information concerning mortgage transactions, as well as engaging in a course of business not in good faith.Pursuant to state law, the Department may revoke the license of a mortgage broker or lender that employs an individual against whom a final Cease and Desist Order has been issued within the preceding three years if the Order resulted from misrepresentations being made in loan applications.Click here to read the Press Release
Georgia DBF issues cease and desist order to Jabari King 2007-02-06 03:11:23 In a press release the Georgia
Department of Banking and Finance’s announced that on February 1st, 2007 the Cease and Desist Order became final against Jabari King of Atlanta, GA. This Cease and Desist Order was issued to Mr King by the Department for misrepresenting or concealing information concerning mortgage transactions, as well as engaging in a course of business not in good faith.
Georgia DBF issues cease and desist order to Paula Taylor 2007-02-06 03:09:16 In a press release the Georgia
Department of Banking and Finance’s announced that on February 1st, 2007 the Cease and Desist Order became final against PaulaTaylor
of Roswell, GA.This Cease and Desist Order was issued to Ms Taylor by the Department for misrepresenting or concealing information concerning mortgage transactions, as well as engaging in a course of business not in good faith.
Georgia DBF issues Cease and Desist to PFS Mortgage Loans 2007-02-06 03:05:51 In a press release the Georgia
Department of Banking and Finance’s announced that on February 1st, 2007 the Cease and Desist Order became final against PFS MortgageLoans
, Inc., license number 18434, located at 11180 State Bridge Road, Suite 301, Alpharetta, Georgia 30022.This Cease and Desist Order was issued to PFS Mortgage Loans, Inc. by the Department for misrepresenting or concealing information concerning mortgage transactions, as well as engaging in a course of business not in good faith.
Illinois Attorney General files suit against unlicensed mortgage companies 2007-02-06 02:46:09 In the following press release IllinoisAttorneyGeneral
Lisa Madigan (pictured left) announced that her office, working with the Illinois Department of Financial and Professional Regulation (IDFPR), has filed suit against
three affiliated Riverside area mortgage companies and their president for operating without a mortgage license. The lawsuit alleges that the defendants, Candice Company, Inc., Cadillac Properties, Inc., Payment Center, Inc., and Donna DiBrito, the president of the three entities, violated the Illinois Residential Mortgage License Act as well as the Illinois Consumer Fraud and Deceptive Business Practices Act. According to the complaint, the mortgage companies are not licensed by the IDFPR as required by the Illinois Residential Mortgage License Act. Despite the fact that they are not licensed, records obtained from the Cook County Recorder of Deeds indicate that the defendant companies have issued more than 200 mortgages for amounts ranging from $25,000 to nea Read more:files
Man pleads gulty in bid-rigging foreclosed property sales 2007-02-06 02:42:14 In the following press release United States Attorney James A. McDevitt for the State of Washington announced that Douglas Henry Lemon, age 56, a resident of Yakima, Washington, pleaded guilty today to Filing a Fraudulent Income Tax Return. Sentencing has been scheduled for March 15, 2007. According to Douglas Lemon’s Plea Agreement, Bacil W. Shirley, who was an auctioneer, shared money that he received from a third-party in exchange for unlawfully reducing the price of United States property
after it was sold at a public auction. According to the plea agreement, Shirley gave the money to Douglas Lemon in an effort to appease him because Shirley had promised Douglas Lemon that he would be able to obtain the same Yakima property sold on January 10, 2003. Douglas Lemon accepted and kept $1,000 that Shirley gave him after knowing that the third-party had obtained the property at an unlawfully reduced price. Douglas Lemon intentionally failed to report the $1,000 as taxable inc
Man sentenced in real estate bankruptcy case 2007-02-06 02:33:38 In the following press release Rhode Island United States Attorney Robert Clark Corrente announced that U.S. District Court Judge Mary M. Lisi, in Providence sentenced Richard M. Cecca to eight months in prison, followed by eight months home confinement, for making false statements and concealing real estate assets in a bankruptcy
filing. Cecca failed to disclose his ownership interest in about 20 parcels of real estate in Rhode Island.In October, Cecca pleaded guilty to six counts of bankruptcy fraud. At the plea hearing, Assistant U.S. Attorney Richard W. Rose said that the government could prove that Cecca failed to disclose assets in his bankruptcy petition and failed to disclose the sale of assets after the petition was filed. Most of Cecca’s assets were in the form of real estate owned by corporations that he controlled and notes and mortgages owed to those corporations. The total value of the assets that he concealed was between $400,000 and $1,000,000.On September 21, 200
Tax prepared indicted, accused (amongst other things) of mortgage fraud 2007-02-06 01:53:53 In the following press release United States Attorney Patrick L. Meehan announced the filing of a 20-count indictment charging Bucks County tax preparer John J. Poltonowicz, 41, with one count of conspiracy, twelve counts of counseling and assisting in the preparation and filing of false and fraud
ulent income tax returns and other tax documents, four counts of mail fraud, two counts of wire fraud, and one count of making a false statement to the Internal Revenue Service in an effort to conceal his ownership of his tax preparation business. The charges relate to Poltonowicz’s conduct of his Bristol-based tax preparation business and his use of false documents to obtain loans and lease a vehicle. The indictment alleges that Poltonowicz prepared hundreds of false tax returns and that he filed a false document with the Internal Revenue Service seeking permission to file tax returns electronically after the IRS had previously revoked his electronic filing privileges. The indictment al Read more:accused
, indicted
, things
Daily Updates - Monday February 5, 2007 2007-02-06 01:45:31 The following older entries were updated today. Please click on the blue link to read the full entry.Five sentenced in Hattiesburg flipping scheme.6th man sentenced in Jackson, Miss mortgage fraud case Read more:Daily
, February
, Monday
Allentown attorney indicted, accused of theft of real estate proceeds 2007-02-06 00:29:44 In the following press release United States Attorney Patrick L. Meehan today announced that a 17 count indictment was filed charging JOHN J. KELLER with 17 felony counts of wire fraud. Defendant JOHN J. KELLER is an attorney in Allentown, Pennsylvania who operated a law office located at 133 North 5th Street, in Allentown, Pennsylvania. It is charged that between February 2002 and January 2004, KELLER, while representing a client in Allentown, Lehigh County, embezzled the client’s funds from his lawyer trust account totaling approximately $225,000 dollars. The indictment alleges that he withdrew approximately $225,000 in funds from his lawyer trust account which he was holding on behalf of his client and, without authorization from his client, used the money for his business and personal use. This money represented the remainder of the proceeds from a earlier sale of a real estate property by the client. Please click here to read the indictment.The government is seeking to forfe Read more:accused
, indicted
, theft
Two indicted in another St Louis mortgage fraud case 2007-02-06 00:09:48 In the following press release from St. Louis
, Missouri United States Attorney Catherine L. Hanaway announced that Anna and Mark Bonds were indicted
on ten charges involving a mortgage scheme. “Mortgage fraud
causes a boost in the home foreclosure rate. This has a negative impact on our neighborhoods and our property values,” said Hanaway. “The FBI recognizes that mortgage fraud activity results in a negative impact on individual victims, and the local economy as a whole, and we are committed to aggressively investigating this type of activity,” added FBI Special Agent in Charge Roland Corvington. According to the indictment, Anna Bonds, a/k/a Anna Tillman, and her husband Mark devised a scheme to defraud mortgage lenders of funds by inducing them to fund mortgages based upon false and fraudulent information. Anna Bonds was a mortgage broker and was employed by A Mortgage Solutions and C.D. Adams. They both also bought and sold properties. Anna Bonds would
More arrests in a new mortgage fraud case in Missouri 2007-02-07 01:23:38 In the following press release from St. Louis, Missouri
United States Attorney Catherine L. Hanaway announced that Bennie Clark, Michael Jackson, Robert Casey and Donna Brown were indicted for their involvement in a mortgage scheme involving several St. Louis area properties. Additionally, Ms. Brown is charged with bankruptcy fraud
. (The indictment will be posted as soon as it is available).“Mortgage fraud not only harms lenders, it can have adverse impact on entire neighborhoods, as home values can be adversely affected,” said Hanaway. “The United States Attorney’s Office will continue to vigorously pursue such schemes to defraud.” “The charges brought against these individuals are a further indication that the FBI will continue to provide the resources needed to combat mortgage fraud activity in our area,” added Roland Corvington, Special Agent in Charge, FBI-St. Louis. Bernard Ferguson, Postal Inspector In Charge of the St. Louis Division of Read more:arrests
Title company President pleads guilty to theft of over $3 million 2007-02-07 19:24:26 In the following press release United States Attorney Catherine L. Hanaway announced that Norvel Brown, President
of Mississippi Valley Title
Company, pled guilty to charges of stealing more than $3.2 million
from HUD and commercial escrow accounts and the theft
of $17,900 from his employees 401k benefit plan, United States Attorney Catherine L. Hanaway announced today. “Like all of the title company
executives convicted here, Brown was simply kiting with each customer’s life savings. Brown took the extra step, in this case, of stealing from his own employees 401k savings accounts,” said Hanaway. “This type of fraud is not just stealing from a company, it is stealing the dream of home ownership. The Postal Inspection Service will continue in our efforts to fight those committing mortgage and title insurance fraud,” added B. Bernard Ferguson, Postal Inspector in Charge, St. Louis Division of the U.S. Postal Inspection Service.Norvel Brown was president of M
Florida Senate looking to create mortgage fraud offense 2007-02-08 02:24:59 Florida State Senator Gwen Margolis (pictured left) recently introduced a mortgage fraud
bill in the Florida Senate
. The bill (SB0352) defines the offence of mortgage fraud and is hoped to be used to combat the numerous mortgage fraud cases that occur in Florida. Florida will join states like Georgia in introducing the specific offense of Residential Mortgage Fraud. The bill is currently before the Banking and Insurance; Criminal Justice; and Judiciary committee’s. Its planned introduction date is October 2007. Click here to read the latest version of the bill. Read more:create
, Florida
Georgia DBF issues order to unlicensed mortgage brokerage 2007-02-08 01:58:26 The Georgia
Department of Banking and Finance announced that they have issued Cease and Desist Order to Nations Direct Financial, LLC, Laguna, Niguel, CA 92677, which became final on February 2, 2007.This Cease and Desist Order was issued by the Department after it obtained evidence that Nations Direct Financial, LLC, engaged in mortgage brokerage/lending activities without a license or under an applicable exception. Pursuant to Georgia law, it is prohibited for any person knowingly to purchase, sell, or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt from licensing or registration provisions to engage in mortgage broker/lender activities.Click here for the press release
Mortgage & escrow company employee's accused in massive ID Theft 2007-02-08 01:31:19 In the following press release Jeffrey C. Sullivan, the U.S. Attorney for the Western District of Washington announced that six people have been indicted in connection with a massive
identity theft scheme that used personal identifying information provided by insiders at a mortgage company
and escrow
firm. Members of the conspiracy took over bank accounts and drained them, and opened credit accounts in victim names and ran up thousands of dollars in bills. The defendants have been charged with Conspiracy to Commit Identity Theft and Bank Fraud as well as multiple counts of Aggravated Identity Theft. In all more than $335,000 in fraud has been linked to this conspiracy.The leaders of the ID theft ring, CHARLES W. GRIFFIN, 35, of Federal Way, and BIANCA BOWLER, 29, of Seattle, were arrested this morning and will make their initial appearances on the indictment this afternoon at 2:30 in the U.S. District Courthouse in Seattle. If convicted GRIFFIN and BOWLER face up to 30 years in prison. Read more:accused
, Mortgage
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