Please see update regarding professional identity theft suffered by Karen Kertz and dismissal of Act Appraisal, Inc. and Karen Kertz as defendants...
Tuesday, August 30, 2005
Sentences in Illinois Real Estate Flipping Scheme
McAfee and Shiply with Pay over $1.1 Mil in Restitution
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...
Wednesday, August 10, 2005
Third Defendant Indicted in $8M Illinois Mortgage Fraud
Ciota Accused of Using Relatives as Borrowers
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.)
The new indictment alleges that Ciota...
Monday, August 01, 2005
Illinois Woman Sentenced in Identity Theft
Meija-Cruz Used Assumed Identity Since 2001
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...
Thursday, July 28, 2005
Eight Indicted in Chicago Mortgage Fraud Scheme
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...
Monday, July 25, 2005
Feds Arrest Man Accused of Foreclosure Avoidance Scam
Cash Charged in Illinois
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...
Tuesday, July 12, 2005
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...
Tuesday, June 21, 2005
Another Plea in Illinois Fraud Scheme
Kawa Enters Guilty Plea on Two Charges
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...
Monday, June 20, 2005
Two Plead Guilty In Illinois HUD Fraud
Recent Indictment Nets Two Early Plea Agreements
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...
Friday, June 17, 2005
Kakvand Appraiser Sentenced to Two Years
Groh Ordered to Pay Restitution of $11M
Justice William J. Hibbler sentenced Thomas Groh to 24 months in federal prison and 5 years supervised parole. The sentence was handed down on Wednesday, June 1, 2005 in Courtroom 1225 of the U.S. Northern District Court. Groh was the appraiser who pled guilty to one count of mail fraud in the Mohammed (Mike) Kakvand scheme to sell over 150...
Monday, June 13, 2005
Twelve Indicted in Illinois HUD Fraud
Signatories on False Verifications Also Charged
Twelve people were indicted by an Illinois grand jury in connection with a FHA-insured mortgage scheme that involved 48 properties in the Freeport, Illinois area over a period of almost three years. The individuals indicted include not only the ringleaders and recruiters but also individuals who signed false VOEs and credit letters verifying...
Monday, June 06, 2005
Illinois Lawyer Suspended For Three Years
Harmon Submitted False Letter to Obtain Refinance Loan
The Supreme Court of Illinois allowed the petition of the Illinois Attorney Registration and Disciplinary Commission seeking a three year suspension of Anthony Nickolas Harmon from the practice of law. The petition was filed with the consent of Harmon.
According to the petition, in 2003, while Harmon was serving in the Army in Wisconsin, he...
Monday, May 23, 2005
Guilty Verdicts in Chicago Flipping Trial
Barren and Bishop Face Fifteen Years
A federal jury returned guilty verdicts on mail fraud and wire fraud charges against Demetrius Barren and Julian Bishop. Each of the men faces up to 15 years in prison. Barren and Bishop were indicted in July 2002 along with Carl Miller and Kenneth Washington, in connection with an alleged property flipping scheme in Chicago, Illinois. ...
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 
