Missouri
Mortgage Fraud - Missouri
Tuesday, July 08, 2008
Mortgage Fraud Defendant Sentenced To Probation
Christopher Rakel, 29, St. Louis County, Missouri, has been sentenced to a term of 2 years probation, this term maybe terminated after 1 year if the defendant has complied with all conditions of probation. As previously reported by Mortgage Fraud Blog, Rakel pled guilty to fraud charges involving a far-ranging scheme to defraud banks and other mortgage lenders. Rakel, a mortgage broker with Tri-State Mortgage, facilitated the purchase of dozens of fraudulent real estate transactions, primarily in South St. Louis, Missouri, during 2005 and 2006. Rakel prepared fraudulent …
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Thursday, July 03, 2008
Missouri Announces Mortgage Fraud Indictments
In September 2006, James Sutton violated his probation from a 2005 sentence for mail fraud by purchasing more than 20 properties using his father’s social security number. As a result, Sutton pled guilty this spring to an additional felony charge of misuse of a social security number and was sentenced June 3, 2008 , to a term of 16 months in prison. In addition, Sutton‘s probation for the 2005 offense was revoked and he was sentenced to six months prison to run concurrent to the 16 months. On June 9, 2008, Daryl W. Miller …
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Thursday, June 12, 2008
Husband And Wife Plead Guilty To Identity Theft And Mortgage Fraud
Tyrone L. Davis , 40, and Stephanie E. Davis, 49, both of St. Joseph, Missouri, pleaded guilty before U.S. District Judge Dean Whipple to the charges contained in an October 3, 2007, federal indictment. The Davises are co-owners of Davis Custom Homes in St. Joseph, Missouri. Stephanie Davis also worked as a loan originator for Gateway Mortgage Group, LLC (formerly known as American Home Lending). By pleading guilty, Tyrone Davis admitted that, from March 1 to November 1, 2006, he participated in a conspiracy to defraud banks and …
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Tuesday, June 10, 2008
Missouri Man Pleads Guilty To Mortgaging Properties He Did Not Own
Daryl W. Miller, St. Charles, Missouri, pled guilty to one felony count of wire fraud for selling two properties and then, after he no longer owned these properties, taking out a mortgage against one and selling the other for a second time. The plea agreement currently remains under seal. According to the indictment, between June 2006 and March 2007, Miller owned commercial and residential properties in the St. Louis and St. Charles, Missouri areas. In July 2006, Miller deeded two properties, one in Maryland Heights, Missouri and one in
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Tuesday, April 15, 2008
Missouri Man Pleads Guilty to Loan App Misreps
John “Jack” Gorecki, St. Charles, Missouri, pled guilty to bank fraud charges involving false loan applications submitted to financial institutions in the St. Louis, Missouri area.
According to the facts filed with the court, Gorecki owns several residential rental properties and Captain Jack’s Marina in St. Charles County. To fund his business endeavors, Gorecki often obtained loans from 1st Advantage Bank, Truman Bank and Southwest Bank (formerly Missouri State Bank). In February 2006, Gorecki was experiencing financial difficulties. Between February and November 2006, Gorecki submitted false information on …
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Man Indicted For Mortgaging And Selling Properties He Did Not Own
Daryl W. Miller, St. Charles, Missouri, has been indicted on mail and wire fraud charges for selling two properties and then, after he no longer owned these properties, taking out a mortgage against one and selling the other for a second time. According to the indictment, between June 2006 and March 2007, Miller owned commercial and residential properties in the St. Louis and St. Charles, Missouri areas. In July 2006, Miller deeded two properties, one in Maryland Heights and one in St. Charles, to the first purchaser. In August and December …
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Monday, April 07, 2008
Broker Pleads Guilty To Fraud
Christopher Rakel, 29, St. Louis County, Missouri, pled guilty to fraud charges involving a far-ranging scheme to defraud banks and other mortgage lenders. As previously reported by Mortgage Fraud Blog, Rakel, a mortgage broker with Tri-State Mortgage, facilitated the purchase of dozens of fraudulent real estate transactions, primarily in South St. Louis, Missouri, during 2005 and 2006. Rakel prepared fraudulent loan applications and other documents to assist buyers in obtaining millions of dollars in financing they could not otherwise obtain. The mortgage fraud scheme involved dozens of properties, and a number …
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Tuesday, March 11, 2008
Kansas Appraiser Pleads Guilty To Missouri Fraud
Lydell Flowers, 32, an Overland Park, Kansas real estate appraiser, pled guilty to one count of conspiracy to commit money laundering, admitting that he helped prepare inflated appraisals of Kansas City, Missouri properties so that the excess amount could be shared and misappropriated by co-conspirators. According to the Indictment, from October 2002 through January 2004, Flowers allegedly submitted inflated appraisals and caused to be submitted false and fraudulent loan applications to lenders to obtain money and funds. The indictment stated specifically that Flowers submitted a false and fraudulent appraisal on a property …
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Friday, January 25, 2008
Missouri Man Sentced On Mortgage Fraud Charges
Dack Daugherty, St. Louis, Missouri, was sentenced to 44 months in prison on conspiracy and money laundering charges in connection with a mortgage fraud ring that operated primarily in South St. Louis, Missouri. Additionally, as part of his sentence, Daugherty was ordered to pay $576,390 to twenty-one different banks and mortgage companies. According to the Indictment, Daugherty and a number of others, including real estate appraisers and loan officers, arranged for the fraudulent purchase of 52 properties. As part of the scheme, Daugherty convinced corrupt appraisers to inflate the values of …
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Thursday, January 17, 2008
Missouri Mortgage Banker Sentenced for Fraud
Rose A. Shaw, St. Charles, Missouri, was sentenced to 33 months in prison. She pled guilty in September of 2007 to one felony count of social security fraud and one felony count of mortgage fraud. Shaw was ordered to pay mandatory restitution of $153,857.10 on the social security fraud and $70,718.94 on the mortgage fraud. In December 2005, Shaw applied for a loan to purchase #10 Hansen Manor, St. Charles, Missouri, by submitting false information on the application, including: false net income records for 2005; false financial/income statements for 2004 and a false 2004 …
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Monday, January 07, 2008
McFadden-Weaver Sentenced to 2 Months
Saundra McFadden-Weaver, in a truly ground-breaking following of new law decided December 10, 2007, was not sentenced according to the federal sentencing guidelines, which suggested between 24 to 30 months. Fernando J. Gaitan, Jr., Chief U.S. District Judge presiding over the case, did not follow the federal sentencing guidelines when sentencing McFadden-Weaver. The Judge’s Sentencing Memorandum demonstrated that he believed a substantial variation from the sentencing guidelines was appropriate based upon the mitigating factors referenced in his Memorandum. The sentencing guidelines are only the first step in the Court’s consideration. Having considered all of the factors …
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Thursday, December 13, 2007
Guilty Plea in Missouri Mortgage Fraud Case
Leslie Saunders II, 34, Kansas City, Missouri, pled guilty to conspiracy to commit money laundering stemming from a $14 million mortgage fraud that had focused on low income borrowers. Saunders had been involved in the same mortgage fraud scheme that triggered a federal indictment against six others in early November, 2007. He had not been identified in the indictment and was charged separately. According to his plea, Saunders admitted that he conspired with others to get mortgage loans fraudulently by submitting inflated appraisals of the properties and other false information to lenders. Specifically, …
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Thursday, December 06, 2007
Guilty Plea in Conspiracy Aimed at Low-Income Borrowers
Terrell Ford, 33, Kansas City, Missouri, pled guilty to participating in a conspiracy in which low-income borrowers obtained home loans or refinancing by submitting fraudulently inflated appraisals and false financial information to lenders. Ford faces up to 25 years in prison for his role in the $14 million mortgage fraud scheme. According to the Information and other court documents, from January 2002, through January 2004, Ford was involved in a conspiracy wherein he and his co-conspirators would submit false and fraudulent loan applications and appraisals to lenders for the purposes of obtaining funds. …
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Friday, November 30, 2007
Attorney Pleads Guilty to Misuse of Closing Funds
Dawn Renee Harpster, 38, Kidder, Missouri, pled guilty in federal court to defrauding a North Kansas City, Missouri bank in a series of loans. Harpster, formerly doing business as Northwest Missouri Title Co., LLC, Gallatin, Missouri, admitted that she defrauded Norbank by obtaining five loans totaling $866,810 between March 2006 and December 26, 2006. According to the criminal information, for each of those loans, Harpster admitted, she falsely claimed to have contracts with the Church of Jesus Christ of Latter-Day Saints, Salt Lake City, Utah, under which the LDS …
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Wednesday, November 28, 2007
Title Company Owner Sentenced
Bennie Clark, indicted earlier this year for his role in a mortgage fraud scheme centered around the illegal flipping of properties has been sentenced. Clark, who pled guilty in August of 2007, must serve a total term of 24 months in prison followed by 36 months of supervised release and pay $415,504.00 in restitution. The other three defendants indicted with Clark pled guilty earlier this year and have already been sentenced. As previously reported by Mortgage Fraud Blog, Clark, Michael Jackson (pled guilty in March, 2007, sentenced to 5 years probation …
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
