Illinois
Mortgage Fraud - Illinois
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. ...
Wednesday, May 11, 2005
Illinois Appraiser Agrees to Revocation of License
Wiese Enters Into Consent Order with Department
Dennis M. Wiese Jr., Belleville, Illinois, entered into a consent order with the Illinois Department of Financial and Professional Regulation whereby he agreed to a 10 year revocation of his real estate appraiser license. The Department of Financial and Professional Regulation had filed a complaint against Wiese alleging 10 allegedly inaccurate...
Thursday, May 05, 2005
Chicago Real Estate Story
Click here to watch the NBC-5 Video (Sold Out)
I recently consulted with Phil Rogers of NBC Chicago on an investigative report concerning some activity in the Chicago area. Follow the above link and chose the “Sold Out” story to watch the video feed.
Wednesday, May 04, 2005
Flip Participants on Trial in Chicago
Two Week Trial Expected for Barren and Bishop
The federal trial of Demetrius Barren and Julian Bishop is proceeding in Chicago and expected to last one to two weeks. 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. Witnesses testifying the first day of trial included ...
Friday, March 04, 2005
Kemper Employee Indicted for Mortgage Portfolio Theft
Johnson also Subject of Civil Action
Laura Johnson, 47, Crystal Lake, Illinois, was indicted by a Lake County grand jury on charges of stealing $1.5 million from Kemper Insurance Cos., Long Grove, Illinois. Kemper has also filed a civil lawsuit to recover the funds. Johnson was an account manager for Kemper but was laid off in December. Authorities allege that, from 1999 to 2004, ...
Proceeds of Home Sale Misappropriated
Landwer Charged with Theft by Deception
Charles Landwer (South Elgin, Illinois), owner of Accurate Financial Group (Bloomingdale, Illinois) was taken into custody on two counts of exploiting an elderly person and two counts of theft by deception. Police had been searching for Landwer for almost two weeks when he walked into a Kane County courtroom and asked for a bond hearing. ...
Wednesday, March 02, 2005
Appraiser in Kakvand Fraud Pleads Guilty
Groh Admits to Inflating Appraisals
Thomas M. Groh, 57, appraiser, Universal Appraisal Service, pleaded guilty to one count of wire fraud, admitting he inflated appraisals in connection with a mortgage fraud scheme to sell run-down apartment buildings in Chicago, Illinois for amounts in excess of their value. Lenders suffered damages of $11M. Sentencing is scheduled for June 1,...
Monday, February 28, 2005
Mortgage Fraud and Chicago Foreclosures
Press Release of Foreclosures.com
Foreclosures.com issued a press release suggesting that flipping of properties with inflated appraisals and outright fraud on mortgage lenders was a major factor in the persistently high level of foreclosure activity in the Chicago metro area. The company notes high levels of foreclosure filings in Cook County.
Friday, February 25, 2005
Chicago Alderman Seeks to Block Development
Company Owned by Wives of Easy Life Principals Seeks Approvals
Alderman Madeline Haithcock has vowed to block a Chicago, Illinois development being proposed Mansion View Development because its principals are the wives of two men who were involved in Easy Life Real Estate System Inc. In 2001, Easy Life paid $1.3M to settle a class action lawsuit concerning the sale of alleged substandard homes to...
Friday, February 11, 2005
Illinois Mortgage Fraud Indictment
Gary D. Harpole Accused of Submitting False Tax Returns and Financials
Gary D. Harpole, 58, Daytona Beach, Florida was charged with making a false statement to The First Bank, Quincy, Illinois. The indictment alleges that Harpole made false statements and willfully overvalued property to influence the bank to refinance a loan in the amount of $228,937 on three properties located in Quincy, Illinois. Harpole ...
Wednesday, January 26, 2005
Former Danville Loan Officer Sentenced for Bank Fraud
Urbana, IL - A former loan officer, Charles Boyer, age 45, of 604 Stratford Drive, Washington, Illinois, was sentenced today to a term of 14 months in prison for bank fraud, as announced by Jan Paul Miller, United States Attorney for the Central District of Illinois. Chief U.S. District Judge Michael P. McCuskey also ordered Boyer to pay...
Friday, December 10, 2004
Man Facing Mortgage Fraud Charges Shot and Killed
Thomas Fazy Indicted in 2002 and 2004
Thomas Fazy, 49, Oak Forest, Illinois, was shot and killed in the offices of Allied Mortgage at 3824 W. 147th St., Midlothian, Illinois. Court records reflect that Fazy, his wife Julie, 41, and Craig Hendrick, 68, were involved in scams where they obtained mortgage loans in Crestwood, Naperville and DuPage Counties using the identities of...
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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 
