Wednesday, July 27, 2005
Mortgage Fraud Charges Severed in Delaware Racketeering Case
Charges on loans will proceed separately
A U.S. District Court judge in Delaware severed wire fraud charges against Sherry L. Freebery (arising from an alleged fraudulent mortgage transaction) from the racketeering case proceeding against former New Castle County, Delaware Executive Tom Gordon and top aide Freebery. The ruling was included in an order that dismissed multiple charges –...
OFHEO Finalizes Regulation on Mortgage Fraud
The Office of Federal Housing Enterprise Oversight (OFHEO) has finalized for publication in the Federal Register a regulation requiring Fannie Mae and Freddie Mac to report mortgage fraud or possible mortgage fraud to OFHEO in a timely fashion. The regulation also requires that Annie Mae and Freddie Mac maintain adequate internal controls,...
Monday, July 25, 2005
Final Dorean Principal Arrested
Johnson Faces Extradition to Utah
Kurt F. Johnson, 42, was arrested in Hayward, California last week. Johnson faces extradition to Utah on ten felony charges including communications fraud, racketeering, theft, false and fraudulent insurance act and conspiracy arising from his alleged participation in the Dorean Group mortgage elimination scheme. Dale Scott Heineman, 45, ...
Redwood Trust Principal Indicted
Titus Believed to Have Taken over $4.2M from Homeowners
Kenneth G. Titus Sr., 60, a former plumber from Scotia, New York and the principal of Redwood Trust in Rotterdam, New York was indicted on charges of mail fraud, wire fraud and money laundering in connection with allegations that he ran a mortgage elimination scheme that defrauded numerous homeowners of millions of dollars. (Redwood Trust of...
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...
Foreclosure Redemptionist Convicted in Baltimore
Federal Jury Finds Coley Guilty on 13 Counts
Gary T. Coley was convicted by jury in a Baltimore, Maryland federal Court after an eight day trial on 13 counts of issuing false government financial instruments and aiding abetting in connection with a foreclosure rescue scam. According to government sources, Coley was a self-proclaimed “Redemptionist” who acted as a Foreclosure Specialist...
Friday, July 22, 2005
The True Costs of Mortgage Fraud
The following is an op-ed article written by Patrick L. Meehan, U.S. Attorney, Eastern District of Pennsylvania entitled “The True Cost of Mortgage Fraud’ following the sentencing of Philip Garland. Garland, real estate developer, Lancaster, Pennsylvania, was sentenced to 18 months in prison and ordered to pay $1,150,000 in restitution to HUD...
MBA Selects Mortgage Fraud Blog as News Provider
Mortgage Fraud Against Lenders Resource Center Features Site News
Mortgage Fraud Blog has been selected as the exclusive provider of news for the Mortgage Bankers Association’s Mortgage Fraud Against Lenders Resource Center. Interthinx and The Dollar Law Firm, PC have partnered to provide the news content through Mortgage Fraud Blog. Headlines and excerpts of stories from MFB will appear on the resource...
Balf is no “Robin Hood”
Last week a federal judge likened Patrick Balf (a Pennsylvania man who was convicted of wire fraud, tax evasion and filing false income tax reforms in connection with a mortgage fraud scheme) to Robin Hood. An editorial in The Morning Call sets the record straight. Noting that “The Banking Department and the U.S. Attorney’s office are trying to...
Pennsylvania Couple Accused of Forgery
Ernest E. Fulton, 63, and Myrna Fulton, 65, husband and wife, Daisytown, Pennsylvania were arraigned on charges of forgery, identity theft and criminal conspiracy arising from allegations that they forged the identification of Ernest’s 84-year old mother in order to obtain a $121,500 mortgage. According to an article in the Pittsburgh Tribune...
Two Charged with Violation of Colorado Organized Crime Control Act
$1M in Losses Alleged
A grand jury in Denver, Colorado indicted Luis Vagle, former head First Financial Corp., and Lawrence M. Rosenberg, on charges they violated the Colorado Organized Crime Control Act in an alleged mortgage fraud scheme that resulted in foreclosures. Losses to home sellers and lenders are estimated at $1 million. According to authorities, Vagle...
Colorado Forms Mortgage Fraud and Foreclosure Task Force
The Colorado Attorney General announced the formation of a Task Force to investigate foreclosure and mortgage fraud. The Task Force is comprised of public trustees, district attorneys, law enforcement and county clerk and recorders from across Colorado. At the first meeting, the Attorney General charged the Task Force with three agenda items, 1)...
Wednesday, July 20, 2005
Real Estate Agent and Loan Processor Guilty in HUD Loan Fraud
Oliverez and Cruz admit to obtaining FHA Loans for Illegal Aliens
Carlos Ruano Cruz, real estate agent, Kansas City, Kansas and Mary Rachel Olivarez, loan processor, Shawnee, Kansas entered guilty pleas in a U.S. District Court in Kansas to one count each of conspiracy to defraud in connection with allegations that they conspired to sell homes to illegal aliens through the FHA loan program. In their pleas,...
Tuesday, July 19, 2005
Three Indicted in Georgia Identity Thefts and Mortgage Fraud
Defendants targeted home that was already sold
A grand jury in Savannah, Georgia returned a 19 count indictment including charges of conspiracy, mail fraud, wire fraud, money laundering and identity theft against: Stacey L. Shefton, 33 Michael D. Dunn, 39 Willie J. Anderson, Jr., 37 The indictment also includes a forfeiture provision in which the Government seeks to recover certain property from...
Pastor and Accomplice Convicted In Mortgage Fraud
Rayborn faces up to 60 years
A federal jury convicted Gerald Rayborn, 59 of mail fraud, wire fraud, money laundering and conspiracy to commit wire fraud, mail fraud and money laundering. Rayborn is the pastor of the New Mount Sinai Missionary Baptist Church, Horn Lake Road, Memphis, Tennessee. The Indictment alleged that Rayborn conspired with Larry Bullock, a CPA, to...
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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 
