Monday, January 31, 2005
ID Theft Convict Released Early
Claims Gambling Addiction Led to Theft
Janet Jeffers, 45, Swanton, Ohio was released early after serving 17 months of her 2 ˝ year sentence for identity theft, passing a bad check, and forgery. From December, 2001, to March, 2003, Jeffers used the Social Security numbers and financial information of her employers, Marcia Guinan and her late husband, James Guinan, to obtain loans and...
Friday, January 28, 2005
Former Settlement Agent Investigated
Stewart Title Filed Suit for Misappropriation
The Westmoreland County Pennsylvania District Attorney is investigating Susan Dougherty, Hempfield Township, Pensylvania a former Greensburg real estate settlement agent who is accused in a civil lawsuit by Stewart Title Insurance Co., of Texas of misappropriating nearly $700,000 for her personal use. The civil complaint filed alleges Dougherty...
Updates on Indiana Indictments
Police Officer Resigns and Other News
Officer James McClung decided to retire and resigned immediately from his position with the Indianapolis Police Department after being indicted earlier this week. Officer Michael C. Smith was placed on unpaid suspension pending review by the merit board. For more, visit the WISH-TV Article There are also a couple pictures of the flip properties:...
Thursday, January 27, 2005
Ten Indicted in Indiana Mortgage Fraud
Three Police Officers Allegedly Involved
Ten people, three of them police officers, were indicted on charges of conspiracy, wire fraud and money laundering in connection with a mortgage fraud scheme involving 43 properties in Indianapolis (34), Marion (8) and Fairmont (1), Indiana. Those charged were: Joseph Britton, 45, Indianapolis, Indiana Robert Carter, 34, Marion, Indiana (Marion...
Five Sentenced in ID Theft Ring
Four Year Sentence for Ringleader
The conspirators in a scheme to steal credit report profiles of more than 3,500 customers of Weichert Financial Services, Inc., Morris Plains, New Jersey were sentenced to prison: Ronald Hyppolite, Irvington, New Jersey: 55-month prison sentence
Marie Louissaint, Haiti, 12 month prison sentence. Juno Geneus, 25, Haiti, 33 month prison sentence ...
Loan Officer Arrested
Accused of Defrauding Refinance Clients
Edgar Mauricio Berrazueta, 43, an assistant loan officer at Pacific First Bancorp in Oxnard, California was charged with grand theft, forgery, manufacture of false identification documents and attempting to dissuade witnesses, in connection with allegations that he promised homeowners lower monthly payments through refinancing. Instead, the...
Baltimore City Mortgage Broker Pleads Guilty
Last Conviction in Flipping Scheme
Pantelis I. “Pete” Karsos, 45, Towson, Maryland plead guilty to mail fraud in connection with a mortgage fraud scheme involving flips in Baltimore City, Maryland. Sentencing is scheduled for March 25, 2005. It was alleged that from approximately April, 1998 to December, 1999, Knoll Housing, a company owned by Karsos, purchased Baltimore City ...
Massachusetts Man Charged with Identity Theft
Obtained Information from Refinance Transaction
Richard P. Blaustein, 54, Lincoln, Massachusetts was charged with unauthorized practice of law, larceny, identity fraud and forgery. It is alleged that Blaustein defrauded a Boston woman by using personal financial information he had obtained while assisting her in refinancing her mortgage to purchase a vehicle and and complete other fraudulent...
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...
Essex Grand Jury Indicts Attorney For Theft Of Client Funds
An Essex County Grand Jury returned a five count indictment charging Michael Scoon, 52, attorney, Union, New Jersey with two counts of Third Degree Theft by Failure to Make Required Disposition of Property Received, two counts of Third Degree Misapplication of Entrusted funds and one count of Fourth Degree Forgery. The indictment alleges that ,...
Erpenbeck Bankers Sentenced
Restitution Order Will Follow
John Finnan, 51, former president and co-founder of now defunct People’s Bank of Northern Kentucky was sentenced to 5 years and 3 months in federal prison and Marc Menne, 48, executive vice-president of the same institution was sentenced to 4 1/2 years in connection with their role in the Erpenbeck mortgage fraud. Finnan and Menne pleaded guilty...
Tuesday, January 25, 2005
PinnFund Executive Sentenced
Five Years and Restitution
Keith G. Grubba, 42, was sentenced to five years and three months in federal prison and ordered to pay approximately $187 million in restitution to victims after pleading guilty to conspiracy to commit wire fraud, conspiracy to commit money laundering, tax evasion and making false statements to HUD. Grubba was the president of PinnFund, ...
Monday, January 24, 2005
Federal Judge Levies Sanctions in Mortgage Elimination Scheme
Click Here - Judge Alsup’s Order - Available on Mortgage Fraud Blog
U.S. District Judge William Alsup, Northern District of California Federal District Court, issued a ruling in the ongoing Mortgage Elimination Cases last week. The cases, which were filed on behalf of various trusts holding title to properties (trustees were Scott Heineman and Kurt Johnson) in the Northern District of California, alleged...
State Expects to File Criminal Charges
Flipping Scheme in New Jersey
The New Jersey Attorney General’s Office expects to file criminal charges against Barry C. Fauntleroy, who headed a multimillion-dollar property-flipping operation in North Jersey. In May 2002, the state of New Jersey brought a civil action for predatory lending against Fauntleroy and his real estate companies along with a number of mortgage...
Capital Title Placed in Receivership
Company has $6.5M Deficit
Capital Title Co.,, St. Louis, Missouri, was shut down and placed in receivership last week. According to court documents, the company has been bouncing checks for six months and has a $6.5M deficit. The St Louis Post Dispatch article states that one of two of Capital’s underwriters is investigating for ‘alleged diversion of escrow funds’ and...
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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 
