Tuesday, November 01, 2005
Louisiana Investigates Pre-Construction Real Estate Investment Scheme
According to a story in the Greater Baton Rouge Business Report, a local real estate investment scheme has been suckering investors, leaving contractors unpaid and sticking banks with millions in debt. The article describes a pre-construction purchase and sale program that is reputed to result in large and quick profits. According to the...
Monday, October 31, 2005
Two Indictments in Cincinnati Mortgage Fraud
Two men were indicted in connection with allegations that they engaged in a $2.3 million dollar mortgage fraud scheme in Greater Cincinnati, Ohio over the course of several years. The fraud scheme has already resulted in 30 guilty pleas. Troy Scott Clements and Ralph Edward Mitchell were named as defendants in a twenty one counts indictment...
Six Charged by Information in Mississippi Mortgage Fraud
Six more people were charged by information in connection with a $3M mortgage fraud scheme in Mississippi that resulted in the indictment of four individuals earlier this year. Those charged were: John William Emory, III, mortgage broker, Ridgeland, Mississippi Bobby F. Fisher, attorney, Greenwood, Mississippi Jimmie L. Pruett, real estate...
ABN AMRO Files Civil Suit Alleging Mortgage Fraud Scheme in Ohio
ABN AMRO v. New Partners Mortgage Company
ABN AMRO Mortgage Group, Inc. filed a civil lawsuit in the United States District Court for the Eastern District of Ohio on May 9, 2005 against the following defendants who are alleged, in the Complaint, to have the following roles or capacities: New Partners Mortgage Company, Westlake, Ohio, alleged to have been the mortgage broker on all loans...
Ringleaders of Ohio Mortgage Fraud Scheme Sentenced
Four years in prison for $50 Million Scheme
”It’s important we send a message that if people are going to flip properties, they’re not going to do it here ... especially in our working-class neighborhoods.” - The Honorable Susan J. Dlott, United States District Court Judge for the Southern District of Ohio
Two men described as ringleaders of a $50 million “flipping” scam in Greater Cincinnati, Ohio were each sentenced to serve four years in prison and order to perform community service in the neighborhoods affected by their fraud scheme. Ronald Trester, 52, Cincinnati, Ohio was sentenced to 46 months in prison, five years supervised release and...
New York Attorney Charged with Diversion of Client Funds
Kenneth B. Carnesi, 53, attorney, Garden City, New York was charged with four counts of grand larcency in connection with allegations that the stole clients’ funds amounting to $247,102.81. Count 1 alleges that Carnesi stole $148,562.68 from a client between August 5, 2002 and December 14, 2002. The stolen money had been held in escrow in regard...
Sunday, October 30, 2005
New York Woman Convicted of Forgery
Caroline Hoth, 43, Yonkers, New York was convicted by a jury in Westchester County, New York of three counts of second degree forgery. She faces a maximum of seven years in state prison on each count and is scheduled for sentencing in December. Hoth was accused of submitting forged appraisals on her own residence in an attempt to defraud three...
Thursday, October 27, 2005
Three Men Plead Guilty in North Carolina Mortgage Fraud
Two businessmen and a real estate lawyer pleaded guilty in connection with a North Carolina mortgage fraud scheme involving more than 20 properties. Charles Richardson Jr. and Phillip Wayne Middlebrooks plead guilty to mail fraud and attorney Rick Franklin Shumate pleaded guilty to lying to the FBI. The trio were originally indicted on June 28,...
Eight charged in $12M Money Laundering Scheme
”This is one of the largest money laundering scheme that I have seen as Nassau’s District Attorney. I would like to thank the New York State Banking Department for their assistance during the course of this investigation. My office will be prosecuting this case vigorously, and as always, will work to obtain full restitution on behalf of the victims.”
- Nassau County District Attorney Denis Dillon
Eight individuals who conspired to bilk lending institutions and homeowners out of $12 million dollars were charged by the Nassau County District Attorney’s office. Charged three counts of grand larceny, one count of money laundering and one count of conspiracy were: Joseph W. LaForte, 34, Staten Island, New York and Miami Beach, Florida; James...
Wednesday, October 26, 2005
Seven Sentenced in Cincinnati Mortgage Fraud
”This was a crime against the city of Cincinnati, not just the lending institutions.”
- Debra Bass, Senior Vice-President, Trustcorp Mortgage Company, South Bend, Indiana
A $50M mortgage fraud flipping scheme involving over 1,000 homes in the Cincinnati, Ohio area has resulted in 4 more sentences. So far, thirty people have plead guilty in connection with the scheme. Those sentenced were: Donald M. Powers Jr., 40, former attorney, Forest Park, Ohio (former owner of Premier Land Title, Glendale, Ohio) was...
Thursday, October 20, 2005
Twenty Individuals Charged in Multi-Million Dollar Michigan Mortgage Fraud Schemes
“Honesty and integrity in the mortgage lending business are crucial to protecting home owners, lending institutions, and borrowers. When mortgage fraud is widespread, it undermines the stability of the housing market and the ability of lending institutions to protect themselves from debilitating losses. With these charges, we are telling the fraudulent mortgage dealers: what you’re doing is a crime, and we will prosecute you for it.”
-U.S. Attorney Stephen J. Murphy
Indicted by a federal grand jury on charges of wire fraud, mail fraud and conspiracy to commit those offenses were: Myron L. Hooker, Jr., 39, Southfield, Michigan Peter Garland, 36 Southfield, Michigan Nicole Jackson, 34, Southfield, Michigan Antwan Mcrae, 31, Detroit, Michigan Keith Lakey, 43, West Bloomfield, Michigan Monique Bankhead, 32, Detroit,...
Tuesday, October 18, 2005
Twenty Indicted in Five Michigan Mortgage Fraud Schemes
News sources are reporting that twenty people have been charged in five separate mortgae fraud schemes in the Detroit, Michigan area. According to press sources, FBI agents raided Source One Mortgage in Shelby Township, Michigan as part of a mortgage fraud investigation involving five companies in metro Detroit. The groups—operating...
Alabama Loan Officer Sentenced in HUD Fraud
“For many years, the Federal Home Loan Program has benefitted the lives of many Americans in obtaining FHA guaranteed home loans. The blatant criminal conduct committed by Williams within such a worthwhile government program certainly warranted the full attention and prosecution by this office”
- U.S. Attorney Alice H. Martin.
Tavares Charles Williams, 29, Trussville, Alabama was sentenced to twelve months in prison, and was given a three year supervised release term after the prison term is served. WILLIAMS was indicted on February 2, 2005 and he was convicted on May 4, 2005 of three counts of Social Security Fraud and Making False Statements to a Federal Agency. ...
Monday, October 17, 2005
Elder Abuse in Deed of Trust Fraud
Former Real Estate Broker Charged with Theft
Mark Russon, 47, former real estate broker, Danville, California was charged with 21 counts of elder abuse and seven counts of grand theft as well as counts related to forged documents according to media sources, in connection with allegations he defrauded a 92-year old Richmond, California man out of over 1.5 million dollars over a period of...
Wednesday, October 12, 2005
Houston Man Indicted in Mortgage Fraud Scheme
Lawrence Randall Benham, 41, Houston, Texas was indicted in connection with his alleged role in a multi-million dollar mortgage fraud scheme allegedly executed in the Houston area of Texas since 2002. Benham was charged with five (5) counts of wire fraud, two (2) counts of mail fraud, and one count each of bank fraud, and making a monetary...
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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
