Friday, September 19, 2008

10 Companies, 15 Individuals Sued for Mortgage Fraud in Central Florida

Attorney General Bill McCollum announced that his office has sued ten companies and fifteen individuals for their alleged roles in a significant mortgage fraud scheme in Central Florida. The ring obtained more than $37 million in mortgage loans for at least 60 home purchases and siphoned off more than $6 million of those loan proceeds for their own use. The lawsuit was filed in Orange County Circuit Court by the Attorney General’s Mortgage Fraud Task Force.

The lawsuit names:

American Heritage Mortgage Group, Inc.;

Security One Mortgage Corp.;

Security Trust Title LLC;

Trincity Trucking Inc.;

Allen Boyarsky;

Stephen Mahadeo;

E. Brooke Co. LLC;

Longdenville Investment & Management Inc.

American Heritage Commercial Capital;

P & R Funding Corporation;

Steele Property Investments, Inc.;

Bethann Schuldiner;

Anthony Didonato;

Steve Groden;

Brad Frank Groden;

1st Capital Mortgage Associates, Inc.;

Heather Showalter;

Jeanette Lugo;

Magdalene Williams;

Norma Lopez;

Kenneth West;

Marcus Habeeb;

Luis Delgado;

Aziz Mohammed;

and Betty Bedeau.

Beginning in July 2005 and continuing through at least January 2007, three of the ring’s leaders allegedly defrauded banks by recruiting straw buyers with good credit and using these straw buyers to create false loan applications to purchase homes. They also allegedly created and provided fraudulent supporting documentation for the mortgage loan applications including false employment information and verifications for the straw buyers, whose purpose was to conceal the true identity of those behind the purchasing process. The lawsuit claims the ring conspired with realtors to artificially inflate the purchase prices of homes, thus enabling them to obtain larger mortgage loan amounts.

According to the lawsuit, American Heritage Mortgage Group, Inc. and Security One Mortgage Corp. processed the fraudulent loan applications. The participants allegedly used companies they owned or controlled to divert more than $6 million from the fraudulently obtained mortgages at the homes’ closings. Further, in many cases, the defendants allegedly failed to make the required mortgage payments on behalf of straw buyers and allowed 50 properties to fall into foreclosure.

Notable lenders including IndyMac Bank and New Century Mortgage are among those banks affected by the scheme. The Attorney General’s lawsuit requests injunctive relief prohibiting the defendants from continuing the alleged behavior and seeks damages for those who were targeted by the scheme. Civil penalties of $10,000 per violation of Florida’s Deceptive and Unfair Trade Practices Act are also being sought.

“In this particular situation, the economy is the victim,” said Attorney General McCollum. “This group of individuals systematically defrauded banks and mortgage lenders, stealing millions for their own personal use and leaving a gaping hole in the system.”

mortgage fraud

1. TO MRS. DOLLAR, I HAVE BEEN RAISING HELL HERE IN HOUSTON ABOUT OUR T/H ASSOCIATION FOR SOME TIME.WE HAVE A PERSON WHO FLIPED PROPERTIES,FALSEAFIED APPRASIALS WELL THE RAT WAS JUST FORECLOSED ON AND LOST 116 T/H I AM STILL DETERMINED TO PUT HIM IN JAIL ALONG WITH A LAWER AND A SCAMMER FROM SPRING TX. HE HAS LEFT THIS PLACE IN POOR CONDITION.WE WERE ONCE A GREAT PLACE TO LIVE IT CAN BE AGAIN.SO TO ALL THE OTHERS WHO ARE BEING HURT BY THE RATS KEEP FIGHTING AND YOU WILL WIN.HIT THEM WITH IRS COUNTY AND STATE HEALTH DEPT COMPLAINTS FIRE MARSHALLS AND AFTER ALL THAT NOTIFIE THEIR CONGRESSMEN AND SENATORS.I AM RETIRED NAVY,80 YEARS OLD AND I WILL NOT STOP UNTIL I SEE THIS RAT WITH A PAIR OF HANDCUFFS ON HIM,FACE DOWN ON THE GROUND.I 1951 I WAS STATIONED IN HYDE PARK CHICAGO 53RD AND SOUTH LAKE PARK POLICE STATION. MRS DOLLAR HAS TRIED TO BRING THE FRAUD PROBLEM TO THE ATTENTION OF THE GOV.AGENCIES TIME AFTER TIME WE FIND THAT THE CASE IS NOT BIG ENOUGH TO SPEND TIME ON . NOW TELL THE BANKS!!!!  G. UBER

   Posted by  on  09/19  at  02:38 AM

2. We sold foreclosures for tears wondering how the losses could be absorbed. We saw foreclosed homes with more than twice the normal amount appraised and paid for them.

   Posted by  on  09/20  at  03:22 AM

3. the servicer that is trying to take my home needs to be put down also , SN Servicing eureka california , i have proven that them and their attorneys have changed doc , they have lyed to the courts and have signed me and my husbands names on docs we have never seen before , i took it to our local sheriff who refured us to FBI who looked it all over , told us he felt bad for what we had been through ,but unless we could find several other families with the same problem they could not concentrate their time on one individual case, they were over loaded with many large complaints. so these companies keep comminting fraud and stealing homes. very sad that we cannot trust our govermentor the people who are sopposed to protect us

   Posted by  on  09/24  at  08:17 AM

4. George,

   your case sounds like fraud.
   BUT THE PROBLEM IS THAT YOU NEED TO LEARN HOW TO SPELL AND USE PROPER GRAMMAR.

   I DO NOT UNDERSTAND ANYTHING YOU’RE SAYING!!! PLEASE GO TO SCHOOL AND LEARN PROPER ENGLISH.

   THANKS!!

   Posted by  on  09/26  at  10:59 AM