Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Illinois Bars Down Payment Assistance Program from Making False Statements
Partners in Charity, Inc. (PIC) based in West Dundee, Illinois-a down payment assistance organization, and its president-Charles M. Konkus of Barrington, Illinois, have been permanently barred from making false and misleading statements in promoting their down payment assistance program to house sellers. PIC and Konkus agreed to the civil...
Frank Kelly Ciota, 45, Riverton, Illinois, plead guilty to one count of bank fraud, one count of wire fraud, five counts of fraud and one count of conspiracy to commit money laundering in a connection with a $8M flipping scheme in Illinois.
Ciota was named in a superseding indictment last August. His co-defendants, Dennis Weise, Jr.,...
Illinois Attorney General Files Suit Against Another Alleged Rescuer
Fighting one of the newer schemes in mortgage fraud, Illinois Attorney General Lisa Madigan filed her third lawsuit in as many months against a mortgage “rescue” company and its officers for misleading homeowners to believe they could save their homes when in fact the homeowners were selling their homes to “rescue” company employees who stripped...
Karen Kertz, the appraiser that was named as a defendant in the civil action filed by American Home Mortgage last year, has been dismissed from the lawsuit, along with her employer, ACT Appraisals. The following is Ms. Kertz’ statement with respect to the dismissal.
I was a victim of professional identity theft. This lawsuit has been dismissed...
An Illinois grand jury handed down a twelve-count indictment charging the following individuals in connection with an alleged Chicago mortgage fraud scheme that operated during 1999 and 2000:
Mark J. Helfand, attorney, indicted on 12 counts of bank fraud and aiding and abetting;
Maria Jackson, former loan officer for Aarhus & Associates, Ltd.,...
Mortgage Fraud Fugitive Arrested in Cananda and Returned to U.S.
Kakvand will face Trial on Illinois Charges
Mohammad Taghie “Mike” Kakvand was returned to the U.S. to face trial on a Chicago, Illinois indictment that was handed down in October of 2004. According to the Chicago Tribune, Kakvand was pulled over in Canada for speeding on October 29, 2005. When Canadian officials ran the name on his driver’s license, they discovered that he was wanted by...
Randolph McAfee, 38, Springfield, Illinois and Darrin Shipley, 38, Peoria Illinois were each sentenced to 20 months in federal prison. The pair were also ordered to pay $1.13 million in restitution.
In December 2004, McAfee and Shipley each plead guilty to one count of bank fraud in connection with a mortgage fraud scheme that involved over...
An amended indictment has been handed down that adds eight counts of bank fraud, wire fraud, mail fraud and money laundering against against Frank Kelly Ciotta, 44, Riverton, Illinois in the case currently proceeding against Gary Knox and Dennis Wiese (click here to view the post on the original indictment.)
Isabel Meija-Cruz, 39, Aurora, Illinois was sentenced to 36 months’ probation, 140 days in jail and ordered to pay $1,362 in court fines and fees after pleading guilty to financial identity theft in connection with her use of New York woman’s identity since 2001.
According to authorities, Meija-Cruz confessed to using the name and Social...
The following defendants were named in a thirteen count indictment handed down in Chicago, Illinois in connection with allegations that they engaged in a mortgage fraud scheme that involved approximately $6.2 million in loans. The indictment alleges mail fraud, wire fraud and making false statements in connection with loan and credit...
John D. Cash, aka Baba Ankh, aka Dr. Typhon.Ra, 45, formerly of Markham, Illinois, was arrested in Atlanta last week by federal authorities. The government seeks to extradite Cash to Chicago, Illinois where he has been indicted on 11 counts including wire fraud, mail fraud and bankruptcy fraud in connection with allegations that he ran a...
Businessman and Appraiser Indicted in Illinois Flipping Scheme
Over 150 Properties Involved in Alleged Scam
An Illinois grand jury handed down an indictment charging Gary Knox, 59, Decatur, Illinois and Dennis Wiese, Jr., 37, appraiser, Bellevue, Illinois with bank fraud, wire fraud and mail fraud in connection with allegations that they engaged in a flipping scheme involving over 150 properties in the Springfield and Decatur areas of Illinois between...
Dorothy Kawa, 36, Chicago, Illinois pleaded to one count of wire fraud and one count of money laundering. Kawa was the owner of a mortgage brokerage firm - Northwest Fidelity Mortgage Corp., Morton Grove, Illinois. She was indicted, along with 10 other people, in April 2004 in connection with a mortgage fraud scheme that resulted in lender...
Two defendants named in a 61 count indictment returned by an Illinois federal grand jury last week have entered guilty pleas. Another two people who were involved in the scheme but not named in the indictment also entered guilty pleas to misdemeanor charges. The indictments arose out of an alleged mortgage fraud scheme involving FHA insured...
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
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 
