Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar

Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.

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- 16 Indicted In New York Mortgage Fraud Scheme
- Mortgage Fraud Scheme Leads to Prison Term for Houston Man
- Loan Officer Sentenced to 41 Months in Prison for Mortgage Fraud
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- Jeffrey Miller Trial Begins in Topeka, Kansas
- Man Sentenced To 22 Years For Defrauding Church, Among Others
- 2 Indicted In Major Mortgage Fraud Scheme
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Three Plead Guilty in South Carolina Mortgage Fraud

Three men pled guilty in connection with a mortgage fraud scheme in South Carolina that involved over 88 properties and over $5.5 million dollars in loans.  Robert Byron Green, John Raymond Hoy and Gary Joseph Hoy each plead guilty to one count of conspiracy to commit mail fraud and one count of making false statements in connection with a loan application, aiding and abetting. 

Also charged in the case were appraisers Allen Dean Raitt, Jeannine Raitt and Steven C. Dubose.  Prosecution of the charges against these defendants were deferred for 18 months for the purpose of allowing the defendants to demonstrate good conduct and, according to court documents, those defendants were entering a Pretrial Diversion Program.

All of the defendants were initially indicted on December 7, 2005 and charged with one count of bank fraud. Green, John Raymond Hoy and Gary Joseph Hoy were also charged with 39 counts each of making false statements to a financial institution, aiding and abetting and 9 counts of making false statements to a financial institution.  The additional charges were dropped in connection with the guilty pleas.

According to the superseding indictment filed on April 4, 2006, John Raymond Hoy and Gary Joseph Hoy (dba DNR Investments, Inc.) would locate properties for sale in South Carolina and contract with the sellers to purchase the properties at or below the initial asking price and would locate potential buyers for quick resales of the properties.  Green, John Raymond Hoy and Gary Joseph Hoy submitted false financial information concerning the potential buyers in mortgage loan applications. Allen Dean Raitt, Jeannine Raitt and Dubose would be retained to prepare inaccurate appraisals for the properties.  The appraisals falsely stated that each of the properties had recently been purchased as a foreclosed property and had then been thoroughly updated and remodeled, or had undergone major renovations.  Green, who was a loan for Branch Bank & Trust, accepted the inaccurate appraisals and loan applications for mortgage loans from Branch Bank & Trust. Applications also indicated that the applicants had proposed down payment money to be paid towards the purchase of the properties when the applicants did not have nor intend to pay such down payment money. 

During the pendency of the case, Allen and Jeannine Raitt filed a motion to suppress a statement made by Allen Raitt to authorities.  Dubose also filed a motion to suppress statements made by Dubose (Dubose Statement 1, Dubose Statement 2, Dubose Statement 3.)

Properties mentioned in the indictment include:

124 Glenncrest Drive, Gaston, South Carolina
319 Kingbird Street, Lexington, South Carolina
304 Deer Crossing Road, Gaston, South Carolina
64 Favor Road, Camden, South Carolina
3912 Coates Road, Kershaw, South Carolina
212 Forestbrook Lane, Gaston, South Carolina
110 Chadwood Circle, Lexington, South Carolina
153 Peak View Road, Lexington, South Carolina
372 Sweet Pea Lane, Swansea, South Carolina
1206 Whiskey Road, Leesville, South Carolina
1025 Heyward Brockington Road, South Carolina
632 Boy Scout Road, Gaston, South Carolina
1490 Charles Town Road, Pelion, South Carolina
131 Rister Road, Gaston, South Carolina
239 Riding Ridge Road, Ridgeway, South Carolina
415 George Lane, Newberry, South Carolina
207 Lantern Hill Circle, Lexington, South Carolina
153 Henry Street, Prosperity, South Carolina
271 Watts Hill Road, Elgin, South Carolina
705 Boy Scout Road, Gaston, South Carolina
335 Charm Hill Road, Lugoff, South Carolina
155 Rish Drive, Leesville, South Carolina
1797 Three Branches Road, Lugoff, South Carolina
1311 Kennedy Road, Lugoff, South Carolina
201 Wild Bird Lane, Gaston, South Carolina
170 Sheffield Road, Elgin, South Carolina
1180 Congaree Road, Hopkins, South Carolina
275 Ashley Creek Road, Elgin, South Carolina
295 Havenwood Drive, Gaston, South Carolina
1420 Windy Wood Road, Pelion, South Carolina
184 Lake Drive, Summerville, South Carolina
951 Old Scout Court, Gaston, South Carolina
120 Daniel Drive, Kingstree, South Carolina
252 Crossfield Road, Gaston, South Carolina
178 Glenncrest Drive, Gaston, South Carolina
141 Hass Lucas Road, Gaston, South Carolina
171 Charm Hill Road, Lugoff, South Carolina
355 Watts Hill Road, Elgin, South Carolina
441 Forestbrook Court, Gaston, South Carolina
271 Watts Hill Road, Elgin, South Carolina
275 Ashley Creek Drive, Elgin, South Carolina
29 Hidden Cove, Newberry, South Carolina
116 Stonearrow Street, Elgin, South Carolina

Posted by Rachel Dollar on 07/11/06 at 05:46 AM




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TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

 

Wednesday, November 19, 2008

Synopsis of Day 2, Tuesday, November 18, 2008
Seating the Jury: The jury selection process was the order of business in day 2 of the USA v. Miller, et al. Court began at 1:00 p.m. The jurors had filled out a questionaire the previous day. The 56 person pool was narrowed to 42 people whose names were called by the court clerk. Of the initial 42 potential jurors, 27 are women, 15 are men. The remaining 14 sat in the observation area with me. The side of the courtroom is divided by an aisle. The Government is to the left of the aisle, along with the jury box. The defendants are on the right side of the aisle. The choice of which side to sit on can be assumed as 'support' of one side or the other. When the jury pool returned from a break, they all filled the left side of the observation area (where I sat) and almost begrudgingly filled the right side. For the better part of the afternoon, Judge Julie Robinson questioned the jurors about whether they had served on a jury before (including any civil matters against banks. Interestingly, this was the only question in which none of the potential jurors raised their hand), their prior criminal or civil history, among other things. Many of the jurors had previous jury experience. None had been forepersons on those juries. On a few occasions, Judge Robinson excused a juror due to answers given, such as financial hardship over the course of the trial from loss of income. One juror explained that he had a close relationship with Court prosecutors due to his sitting through a murder trial of his nephew. He was unsure whether he could be impartial. When the judge would excuse a juror, the clerk would then call the next name of the 14 remaining jury pool members. The 42 were then given a sheet and asked to stand and tell the Court about their education, job, marital and family status, hobbies, favorite TV shows, military history, and what clubs they belonged to. This took the longest part of the day as some of the members spoke at length. Mr. Vanatta remains in custody. He enters and leaves the courtroom with law enforcement officers. The two officers sit 3 feet away from Vanatta during the court proceedings. Mr. Vanatta clearly struggles to keep up with reviewing jury questionaires unlike the other defendants who are free pending the outcome of this trial. Hallie Irvin sits across from Mr. Vanatta. They continue to chat and exchange notes throughout the day. Samantha Harris has no conversation with her tablemate, F. Jeffrey Miller. Harris's attorney sits between the two. I am unsure whether the jurors have yet to identify Miller. He is better dressed than his lawyers and appears to be an attorney. There is a jury consultant in the court room. Aside from myself, he was the only non-jury pool member in the observation area of the courtroom. One of Miller's attorneys', Mr. Bradshaw, appears to be bothered by my presence in the courtroom. On Monday, he approached me in the courtroom. I told him I was simply there to observe the trial. On Tuesday, at one point Mr. Bradshaw 'squared his chair' towards me. Court is not in session today, Wednesday, November 19th. On Thursday, court will reconvene at 9 am. The attorneys will be allowed to ask further questions of the 42. In case of conflict, the remaining 14 are required to return to court as well. Then, the jury members will be selected. The opening statements are much anticipated. Judge Robinson says they will begin mid-morning on Thursday. -article by field reporter, Anne Mitchell, Crazy Fish Realty

More Trial Coverage

Today's News

Some Sources require Registration.

 

Suthers Cracks Down On Mortgage Fraud
Rocky Mountain News - Denver, CO
Suther’s office also indicted 10 individuals last March in an $11 million mortgage fraud ring involving 34 local properties...Several other investigations of mortgage fraud are ongoing.

Tech Roundup: Interthinx Tackles Conflict-of-Interest Fraud
HousingWire.com
Agoura Hills, Calif.-based Interthinx, Inc., a provider of risk mitigation and regulatory compliance tools, announced last week the addition of 21 new conflict-of-interest alerts within its FraudGUARD scoring system that identify possible collusion between loan participants.

Sex, Lies, and Subprime Mortgages
BusinessWeek
The sexual favors, whistleblower intimidation, and routine fraud behind the fiasco that has triggered the global financial crisis

More Residents Worry About Mortgage Fraud
Killeen Daily Herald - Killeen, TX
Special Agent Matthew Gravelle is an experienced fraud investigator in the Austin office of the FBI's San Antonio Division. During the last five years, mortgage fraud cases have piled up because of the collapsing mortgage market.

Anti-Mortgage Fraud Law Jams Up Realtors
Bizjournals.com - Charlotte, NC
The situation mainly affects short sales, where the asking price is lower than what the homeowner owes on the mortgage. If the homeowner is 60 days delinquent on payments, the home may be considered a “distressed property” under the state Mortgage Rescue Fraud Prevention Act that took effect July 1.

Hearing Delayed for 2 Mortgage Brokers Accused of Fraud
Las Vegas Sun - Las Vegas, NV
The preliminary hearing for two Henderson residents accused of mortgage fraud has been pushed back to March because of the defense attorney's involvement in the O.J. Simpson trial in October.

Foreclosure Fallout: Avoid Mortgage Scams, Fraudulent Schemes
KOLD-TV - Tucson, AZ
Thousands of people in Pima County are facing foreclosure...The U.S. Justice Department is cracking down on mortgage scams. So far this year, more than 400 people have been charged with fraud and other mortgage related crimes.

Task Force Will Fight Mortgage Fraud
St. Louis Post-Dispatch - MO
The U.S. attorney's office in St. Louis announced Wednesday that it was forming a task force to combat mortgage fraud. The effort is intended to "cast a broader net so that we can catch more of these criminals and put them behind bars," U.S. Attorney Catherine Hanaway said in a prepared statement.

Interthinx(R) Identifies Potential Collusion in Mortgage Applications
MarketWatch - USA
Interthinx(R) announces the addition of 21 new conflict-of-interest alerts within its proven FraudGUARD(R) scoring system that identify possible collusion between loan participants. The technology advancement will help lenders identify "non-arms length" mortgage transactions -- a serious indicator of potential mortgage fraud.

Viewpoint: Foreclosure Moratoriums, and Interpreting the Truth
Housing Wire - USA
If you read the headlines, you’d think Citigroup is putting a moratorium on most foreclosures nationwide...There’s just one problem: that’s not what Citigroup really said.

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© Copyright 2004-2007 Rachel M. Dollar

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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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