Archives For Rachel Dollar

False Advertising Plea in Loan Modification Scam

Rachel Dollar —  August 14, 2015 — 1 Comment

Matthew Goldreich, 46, East Lyme, Connecticut, pleaded guilty in New Haven federal court to a false advertising offense stemming from his production and dissemination of false advertisements for mortgage modification services.

According to court documents and statements made in court, Goldreich used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by Goldreich. The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. For example, one advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.” Continue Reading…

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Ohio AG Sues Loan Modification Companies

Rachel Dollar —  August 14, 2015 — Leave a comment

The Ohio Attorney General brought a lawsuit against the operators of a California-based loan modification scheme accused of taking thousands of dollars from Ohioans while falsely promising to help them avoid foreclosure.

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Townsend Petition to Vacate Sentence Denied

Rachel Dollar —  August 13, 2015 — Leave a comment

Calvin A. Townsend was indicted in a twenty-six count indictment, along with twenty other co-defendants, for participation in a mortgage fraud scheme headed by ringleader Bobbie Brown. Townsend, a licensed real estate agent and owner of Custom Home Service Corporation, was charged with bank fraud and mail fraud. He pled not guilty and, along with five other co-defendants, was tried before a jury. On July 8, 2011, the jury found Townsend guilty on all counts.

Townsend filed a petition with the District Court for the Northern Division of Illinois seeking to vacate, set aside, or correct the resulting 118 month sentence. He argued that he had ineffective assistance of counsel, exculpatory evidence was excluded, and argued further that there was a conspiracy to obstruct justice between his attorneys, the prosecutors, and the trial judge (the same judge hearing the petition to vacate.) The judge recused himself on the claims that he (the judge) had personally engaged in a conspiracy to obstruct justice and considered the remaining requests for relief. Continue Reading…

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short sale scheme

Short Sale Mortgage Fraud Scheme Sentencing

Rachel Dollar —  August 12, 2015 — Leave a comment

Delio Coutinho, 73, loan officer, Woodbridge, New Jersey was sentenced to 36 months in prison for his role in a large-scale short sale mortgage fraud scheme that caused millions of dollars in losses.  Coutinho previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud.  Continue Reading…

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Guilty Verdict in Fraudulent Loan Applications Case

Rachel Dollar —  August 12, 2015 — 1 Comment

Erik Hermann Green, 33, Roseville, California was found guilty by a federal jury after a six- day trial of five counts of wire fraud in a mortgage fraud scheme involving fraudulent loan applications.

According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses. Continue Reading…

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Irving Fryar, a former player with the Philadelphia Eagles, and his 74 year old mother, Allene McGhee, were recently convicted in a mortgage fraud case after a federal jury trial. Fryar was interviewed by Vai Sikahema of NBC News after his conviction.

Part 1 of the Interview

Part 2 of the Interview

Part 3 of the Interview

Part 4 of the Interview

 Posted by Rachel Dollar  onAugust 12, 2015 In Mortgage Fraud
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Indictment Alleges Forgery to Obtain Real Estate License

Rachel Dollar —  August 12, 2015 — Leave a comment

Clifford Elliot Ryan, 29, Chicago, Illinois, was charged in two separate indictments in Tennessee in connection with forgery to obtain a real estate license.  During the course of the investigation, agents from the Tennessee Bureau of Investigation developed information that on two different occasions, Ryan hired two different individuals to submit their fingerprints as his so he could obtain a Tennessee real estate license. The investigation additionally revealed Ryan believed prior arrests on his record would prevent him from passing the background check necessary for obtaining a license.

In January, the Wilson County Grand Jury returned indictments for Ryan, a former resident of Tennessee, charging him with one count of Criminal Simulation and one count of Forgery/Passing a Forged Instrument in Wilson County, Tennessee. In March, the Davidson County Grand Jury returned indictments, charging Ryan with one count of Fabrication of Evidence, one count of Attempted Fabrication of Evidence, and one count of Criminal Simulation.

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The Ultimate In Credit Repair

Rachel Dollar —  August 11, 2015 — Leave a comment

When I spoke at the American Association of Mortgage Regulators Conference (AARMR) last week in New Orleans, I commented on the fact that, due to heightened underwriting requirements in mortgage lending, origination frauds are more distant from the file.  What does this mean?  It means that the fraud itself is occurring through third party manipulation that is virtually impossible to discover by a simple review of the mortgage documents. One of the methods I used as an example is credit manipulation. A recent guilty plea out of Miami-Dade illustrates this trend.  In this case, a Miami-Dade police officer accepted money to create false police reports reflecting that credit repair customers had reported that they were the victims of identity theft.  In such cases, negative credit reporting is blocked.  Paying $1,500 for credit repair is generally worthless.  But, couple that with a  police officer in your back pocket?  Price–less.

George Price, 42, a Miami-Dade Police Officer, Miami-Dade, Florida, pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349, an offense punishable by up to twenty years in prison. Continue Reading…

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Guilty Pleas in Delta Homes Case

Rachel Dollar —  August 11, 2015 — Leave a comment

Moctezuma Tovar, 46, Sacramento, California and Sandra Hermosillo, 53, Woodland, California pleaded guilty to conspiring to commit wire fraud in connection with a mortgage fraud scheme.

According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento, California based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland, California. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf. Continue Reading…

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SBA Loan Fraud for Commissions

Rachel Dollar —  August 11, 2015 — Leave a comment

An indictment in a recent SBA case outlines a fraud for commission scheme that could easily occur in mortgage lending.

Jocelyn J. Brown, 59, San Diego, California, a former loan broker for the now-defunct La Jolla Bank, was indicted by a federal grand jury on charges that she paid kickbacks to the bank’s vice president and Small Business Administration lending department manager.

According to the indictment, Brown paid the bribes in return for the banker’s assurance that the loans Brown referred would be approved and funded, and, more importantly, that Brown’s commissions would keep on flowing. Brown allegedly collected tens of thousands of dollars in referral fees from La Jolla Bank, and kicked back a portion to the bank manager, in cash, every time she was paid, the indictment said. Continue Reading…

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