Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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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.”
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
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
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
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.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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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.
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 
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