Monday, January 24, 2005
Small Receives Small Sentence
Testify Against Your Husband - Stay out of Prison
Kelli B. Small , Broomfield, Colorado was sentenced to probation and 160 hours of community service for her role in a mortgage fraud scheme in Denver, Colorado - she and her husband (along with several other people) were accused of stealing the identities of people who responded to help wanted ads and using those identities to obtain loan...
Friday, January 21, 2005
Hollman Escrow Owner Indicted
Click here to view Indictment - Available on Mortgage Fraud Blog
Cheryl Roberts, Bailey, Michigan, was indicted in federal court on charges of mail fraud. The indictment alleges that Roberts diverted funds meant for refinance transactions and breached her fiduciary duties. Damages are estimated at close to $2M to at least 10 lenders. For previous articles on this case, click on the following links: Hollman...
Cardona Pleads Guilty
Click here to view Guilty Plea - Available on Mortgage Fraud Blog
George Eric Cardona, formerly of Irving, Texas, pled guilty to one count of mail fraud and one count of money laundering in connection with a mortgage fraud scheme that resulted in losses over $1M to at least 50 victims. Sentencing is scheduled for April 18, 2005. The U.S. Attorney Press Release describes the scheme: According to documents...
Norris Speaks Out
Plead Guilty Based on Issues with Mortgage
In being released from prison after pleading guilty to filing a false tax return and conspiracy, Ed Norris, former Baltimore, Maryland police commissioner, spoke with reporters. He described a meeting he had with two former U.S. Attorneys in Washington with his lawyer prior to his guilty plea. He laid out the government’s evidence, telling...
Arizona Real Estate Agent Pleads Guilty to Fraud
Previously Suspended by HUD
Harold “Hal” Fields, 57, real estate agent, Arizona has agreed to plead guilty to fraud and theft in connection with a real estate fraud scheme in which investors reportedly lost $1.4M. The prosecution alleges that alleging that Fields took money from more than 20 people who expected profitable investments in low-cost HUD homes. Some didn’t...
Thursday, January 20, 2005
Detroit Investigation of Stolen Identity
News without Names
A woman in Detroit - “Dorothea” - claims that her mortgage broker stole her identity and credit, using it to purchase a home and take out a $200,000 mortgage. Dorothea discovered the mortgage when she reviewed her credit report. According to Dorothea, the mortgage broker offered her $10,000 to keep quiet. But Dorothea went to the police - who...
Former Naples Attorney Sentenced
Trust Shortfalls Resulted in Borrowing
David J. Szempruch, 54, [former] attorney, Naples, Florida was sentenced to 3 ½ years in state prison after pleading no contest to two counts of grand theft and one count of forgery in connection with his diversion of approximately $338,000 from clients in connection with a condominium sale. Szempruch has also been disbarred. He was also...
Wednesday, January 19, 2005
Maryland Man Convicted in Mortgage Fraud
Brodie May Get Two Year Sentence
Wilbert Brodie, real estate developer, Mount Rainier, Maryland was convicted of conspiracy and wire fraud in connection with a mortgage fraud operation in the Washington D.C. area that resutled in losses of over $850,000 to lenders. Brodie was accused of buying nine distressed properties using inflated appraisals to obtain overvalued loans. He...
Overvalued Appraisals in Softening Market
Homeowners (and lenders) may be left holding the bag
The New York Daily News ran a story today on the problem of inflated appraisals. The article addresses ‘run of the mill’ overvaluation rather than the type usually involved in stories posted on Mortgage Fraud Blog. Let’s say you’re trying to buy a house. You lost your last two bidding wars, so this time you go in with guns blazing. Forget the...
Tuesday, January 18, 2005
Aurora Loan Services v. D&M Financial Corporation, Inc.
Click here to view a copy of the Civil Complaint
Aurora Loan Services, Inc. filed a Civil Complaint in the United States District Court for the District of New Jersey against D&M Financial Corporation, Inc. The complaint alleges that D&M failed to honor its repurchase obligations under a Loan Purchase Agreement with ALS and seeks damages for breach of contract and unjust enrichment. The...
Fraudster Summers in Fiji
Returned to U.S. to Face Prison Term
The Milwaukee Journal-Sentinal has an interesting article about Kenneth Onapolis - a globe-trotting fugitive who is trying to escape a prison sentence for in Wisconsin for fleeing charges back in 1993. Apparently he used many aliases and managed to obtain some interesting jobs (he was even appointed as an honorary diplomatic consul to Cyprus in...
Monday, January 17, 2005
Arkansas Home Builder Sentenced to 15 Months
Used Appraisal Software to Defraud Lenders
Paul Robertson, 31, home-builder, Benton, Arkansas, was sentenced to 15 years in Arkansas state prison after being convicted of felony charges of theft of property and multiple counts of forgery. Robertson received a 53-month federal sentence in the summer of 2004 for making false statements on loan applications to federally insured banks. ...
Equity Skimmer Pleads Guilty in New York
Diverted Rents on HUD and FHA Loans
Edwin “Andy” Kane, 68, real estate broker, Rochester, New York, plead guilty to “equity skimming” — collecting rent but failing to pay mortgages. Kane used his business, Hacienda Holding Corp., to purchase homes by fraudulently assuming mortgages guaranteed by FHA and HUD. He admitted that he transferred deeds with false signatures and gave...
Pennsylvania Fraudster Sentenced
Two 1/2 Years for Seven Loans
Todd D. Breninghouse, 39, Lower Burrell, Pennsylvania (Platinum Financial Services) was sentenced to sentenced to 2 1/2 years in federal prison for mail fraud in connection with allegations that he defrauding four lenders of more than $1 million between February 2000 and July 2002 by filing fraudulent mortgage applications.
Colorado May Eliminate Real Estate Recovery Fund
Legislature Depleted Fund
Members of the Colorado Real Estate Comission are following the lead of a recent task force recommendation in suggesting that the real estate recovery fund be discontinued. The fund is supported by a portion of real estate broker/agent licensing fees and pays claims of people who are defrauded by licensees. In 2003, the State legislature...
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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 
