Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
imageRachel 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

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August 6, 2009 - Inman News
The Lowdown on Downpayment Programs

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Loan Officer Charged in 22-Count Scheme to Defraud HUD

James L Boyle, 40, Roscoe, Illinois, was charged in a 22-count indictment with scheming to defraud HUD, making material false statements in a matter within the jurisdiction of a federal agency, and making false statements to cause HUD to insure home mortgage loans.  Specifically, the indictment alleges that Boyle increased the commissions he earned by causing unqualified loan applicants to receive Federal Housing Administration (FHA) insured loans.

According to the indictment, from at least June 2002, through approximately April 2003, Boyle was employed as a loan officer by RBC Mortgage Company, located at 4960 East State Street, Rockford, Illinois, and from approximately May 2003 through approximately June 2003, as a loan officer at Irwin Mortgage, located at 4920 East State Street, Rockford, Illinois.  Both RBC and Irwin were mortgage lenders and mortgage brokerage companies.

The FHA insured loan program is designed to assist low and moderate income families in obtaining housing by providing mortgage insurance to lenders who make home loans to these individuals.  If the individuals default on their loans, HUD reimburses the lenders for any losses sustained on the loans.

The indictment alleges that Boyle caused numerous documents to be falsified in order to get his loan customers qualified to receive FHA insured loans.  Specifically, the indictment charges that Boyle caused fraudulent “Verifications of Employment” forms and fictitious pay-stubs to be created and placed in the loan files of some of his loan customers.  These forms and pay-stubs contained false income figures for Boyle’s loan customers.

In addition, the indictment alleges that Boyle caused fraudulent mutual fund statements to be created and placed in his loan customers’ files.  According to the indictment, Boyle created these false documents in order to show that his loan customers had the necessary funds to close on their loans.

The indictment further charges that Boyle caused fraudulent “Gift Affidavit” forms to be prepared and placed in his customers’ loan files.  According to the indictment, these fraudulent gift affidavits falsely represented that Boyle’s loan customers had received monetary gifts from relatives for the purchase of their houses, when Boyle knew that the relatives had not given any funds to his loan customers. These fraudulent gift affidavits made it appear that Boyle’s loan customers had the necessary funds to make a 3% equity investment in the homes they were purchasing.

Boyle is charged with ten counts of making false statements in the jurisdiction of a federal agency, eleven counts of making false statements to cause HUD to insure a loan, and one count of interstate carrier fraud. Each charge of making a false statement within the jurisdiction of a federal agency, and the interstate carrier fraud charge, all carry a maximum sentence of five years of imprisonment.  Each charge of making a false statement to cause HUD to insure loans carries a maximum penalty of two years of imprisonment.  All of the charges carry a fine of up to $250,000 and restitution. 

Posted by on 02/28/07 at 11:40 AM
  1. It would be really great to know exactly
    what property codes/addresses that Mr. Boyd produced mortgages for RBC Mortgage
    as it seems there is not an easy way to
    actually get a complaint through regarding fraudulent conveyances in ILlinois.  Mr. Boyd may have been a party to my problem as a plaintiff.

    I for one have sought help from the Illinois Attorney Generals Office by complaint by mail/e-mail complaint;
    State of Illinois Dept. of Financial Institution multiple times and yet no one can find that I have a complaint & also no one can reply???
    I first filed complaints with the above
    in 2003..
    This fraudulent conveyance & ETC. happened in Winnebago Co., Illinois.
    It sure would be nice to have government help on something so criminal.

    My e-mail address again is bluehealerwolfbaarstad@yahoo.com.

    Posted by  on  08/29  at  11:02 AM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.

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A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.

U.S. Attorney Targets White-Collar Crime
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In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.

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During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.

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A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...

Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.

FHA Digging Out After Loans Sour
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Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...

Mortgage Fraud Probe Nets 105 Across State
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At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.

Mortgage Fraud Increases
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The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.

Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

F. Jeffrey Miller Update - October 20, 2009

A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.

Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied

Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.

The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.

Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.

The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.

Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.



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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.

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