Missouri
Mortgage Fraud - Missouri
Tuesday, March 22, 2005
FHA Crackdown on False Social Security Numbers used for Mortgages
Illegal Immigrants can be Indicted or Deported
According to an article in Dos Mundos, illegal immigrants in Kansas City, Missouri who have used false social security numbers or employer identification numbers in order to qualify for federally backed mortgages are being indicted and deported. The federal attention is attributed to laws enacted in response to 9/11 require require financial...
Monday, March 07, 2005
Feds Investigate Capital Title Collapse
Escrow Shortfall Estimate $12M
The FBI and Postal Service are investigating the collapse of Capital Title Co. and interviewing former employees. The investigation by the Missouri Department of Insurance that began in December is continuing. First American Title Insurance Co. released new figures showing that escrow account shortages may reach $12 million, twice the projected...
Thursday, March 03, 2005
Drug Traffickers Engage in Mortgage Fraud
Long Prison Sentence in Missouri Drug Ring
Reginald Dinez Johnson, a/k/a Cedric Miller, 35, St. Louis, Missouri was sentenced to 24 years and 4 months on drug and fraud charges. His co-defendants, Carl Alexander, 39, Black Jack, Missouri, Terry Brown, 36, Brandon, St. Louis, Missouri, Edward Quentin Anderson, 36, St. Louis, Missouri and Patricia Alexander-Butler, 58, St. Louis, Missouri...
Friday, February 18, 2005
Appraiser Pleads Guilty in Connection with Mortgage Fraud
Peggy Jo Snodgrass Inflated Appraisals
Peggy Jo Snodgrass, 39, appraiser, Raytown, Missouri pleaded guilty to charges in connection with submission of fraudulent appraisals to lenders. Snodgrass admitted to causing mortgage companies to approve 75 loans totaling approximately $4.3M between June and November of 2000.
Monday, February 14, 2005
Three Indicted in Kansas City, Missouri Mortgage Fraud
New Charges Levied against Brent Michael Barber in Third Indictment
Brent Michael Barber has been charged with mortgage fraud for the third time in less than twelve months. The new indictment includes 66 felony counts of conspiracy and fraud. Also named were Robert Dale Beckley and Roderick Neil Criss. The indictment seeks forfeiture of approximately $4M in cash and real estate. Click here to view the...
Mardell McGee Smith and Mario McGee Sentenced
Brothers Ran St. Louis Mortgage Fraud Scheme
Mardell McGee Smith, aka Patrick McGee, 35, Florissant, Missouri was sentenced to one year and one day in prison and ordered to pay $230,481 in restitution after pleading guilty last year to one felony count of making false statements on HUD applications and one felony count of misusing a Social Security number. Mario McGee, 32, formerly of St....
Friday, February 04, 2005
A Case For Shredding
Hardene Stole Identities From Discarded Mortgage Documents
Jerome Hardene, also known as Jeremy Smith, 44, St. Louis, Missouri was sentenced to 100 months in prison and ordered to pay restitution of over $100,000 after pleading guilty in a credit card fraud scheme. According to the plea agreement, obtained discarded loan documents from a local mortgage company and used the applicant’s personal...
Monday, January 24, 2005
Capital Title Placed in Receivership
Company has $6.5M Deficit
Capital Title Co.,, St. Louis, Missouri, was shut down and placed in receivership last week. According to court documents, the company has been bouncing checks for six months and has a $6.5M deficit. The St Louis Post Dispatch article states that one of two of Capital’s underwriters is investigating for ‘alleged diversion of escrow funds’ and...
Monday, December 13, 2004
Missouri Ponzi Scheme Unravels
Investments in Arizona Manufactured Housing Development
Michael Schaefer, 55, charged with 88 felony counts in Johnson County Missouri District Court, was arrested on Thursday. Schaefer is accused of operating a ponzi scheme in which he sold interests in a purported manufactured housing development in Arizona through two businesses: Omnibus Inc. and Schaefer Enterprises. Each investor paid Schaefer...
Monday, November 22, 2004
Theft by Quit Claim
Stolen Real Property Title is Growing Problem
The Kansas City Star published an article on property theft . A quote from the article provides details as to how this scheme works: The typical scenario involves a thief forging the property owner’s name on a quitclaim deed or a warranty deed. The forgery suggests that the owner sold the house or deeded the property to the thief. The forged...
Thursday, September 23, 2004
More Mortgage Fraud Schemes: Illinois, Colorado, Missouri
Chicago, IL: Jeffrey Grossman and Donald Grauer (dba The Churchill Group). Pleaded guilty. Real estate development scheme where defendants allegedly submitted fraudulent vouchers to banks to construct two condominium complexes. Lender losses: $15 million. Denver, CO: Gerald Small, Kelli Burkhalter-Small, Charles Winnett, Chad Heinrich and Robert...
Wednesday, September 22, 2004
McGee Smith, St. Louis, MO
Mardell McGee Smith (aka Patrick McGee), 35, pleaded guilty to one felony count of making false statements on HUD applications and one felony count of misusing a Social Security number. He is scheduled to be sentenced Dec. 30. The allegations were that Smith, who owned and operated New Alliance Enterprises Inc., bought homes in the St. Louis,...
Thursday, July 08, 2004
Hairston, St. Louis, MO
Tandy Hairston, 38, St. Louis, Missouri
Tandy Hairston pleaded guilty to four felony counts of wire fraud and one felony count of conspiracy to commit mail and wire fraud and was sentenced to 64 months in prison and ordered to pay restitution of $2,424,857. Hairston owned and operated The Loan Store, dba Mid-Town Mortgage from 1998 to 2001 as a mortgage broker and mortgage bank....
Friday, September 27, 2002
Ameriquest Files Civil RICO Lawsuit for Mortgage Fraud
Defendants include Ameriquest Employees
Ameriquest filed a civil lawsuit alleging that the defendants fraudulently obtained approximately 75 properties in Kansas City, Missouri and its neighboring areas from Ameriquest by helping to create or by submitting loan applications and documents, title reports and appraisals that misrepresented material facts and that they organized numerous...
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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 
