Jeffery Tye Brown, 50, Henderson, Nevada, has pled guilty to felony mortgage fraud in violation of NRS 205.372, in connection with the operation of DB Financial Services, a foreclosure rescue business located in Henderson, Nevada.
The crime is a Category C felony and carries a potential jail sentence of one (1) to ten (10) years and/or a fine of up to $10,000. In addition, the plea agreement requires Brown to execute Confessions of Judgment to the individual victims in an amount totaling $19,407.00.
The State charged Brown with falsifying loan applications which he submitted to lenders by inflating the incomes of his victims in order to demonstrate a better financial condition or ability to pay a monthly mortgage. In other cases, he mislead customers into believing that, for a fee, he would guarantee resolution of a victim’s pending mortgage foreclosure.
The State’s case against Brown was based on an investigation by the Attorney General’s mortgage fraud task force which revealed that between December 2007 and February 2008, Brown contacted victims whose homes were going into foreclosure and obtained advance payments upwards of $999.00 for foreclosure rescue services that he never performed. He failed to give refunds despite promising refunds in his contracts and advertising. He also forged documents to the Mortgage Lending Division to cover up the criminal activity.
Shortly after execution of a search warrant on the DB Financial offices in 2008 by the mortgage fraud task force, Brown fled the country. He was extradited back to the U.S. from the Philippines, where he was in hiding to evade authorities. The plea agreement requires Brown to forfeit monies seized from his company to pay for the costs of his extradition from the Philippines.
A sentencing date has been scheduled for June 9, 2010, in front of District Court Judge Kenneth Cory. Under the terms of the agreement is not eligible for probation and will serve a minimum of 12 to 30 months in the Nevada State Prison.
Anyone who has information regarding loan modification or mortgage fraud scams should contact the Attorney General’s Office at 702-486-3777 in Las Vegas or 775-684-1180 in Carson City
Nevada Attorney General Catherine Cortez Masto announced the guilty plea.
“In 2007, the Nevada Legislature enacted legislation creating the crime of mortgage lending fraud, which previously, did not exist in Nevada, ” said Attorney General Masto. “The new law is a powerful tool for my mortgage fraud task force in its battle to investigate and prosecute mortgage fraud crimes in Nevada.”