Friday, August 03, 2007

10 Indicted in Sophisticated Mortgage Fraud Scheme

Ten defendants were indictment in a sophisticated mortgage fraud scheme:

Michael Lock, Mortgage Broker;
Jerhonda McCray, Mortgage Broker;
Chianti Clay, Mortgage Broker;
Monique Dunlap, Loan Originator;
Marcus Leonard, Document Forger;
Ruben Fields, Appraiser;
Nicole Brown, Owner & Operator of Day Care House;
Lisa Colella, Closing Agent; and
Krista Jeray, Loan Originator, all of Milwaukee, Wisconsin; and
Kevin Slamann, Muskego, Wisconsin, Closing Agent.

Each of the defendants were charged with multiple counts of wire and mail fraud in connection with the scheme. Clay and Colella were also charged with a count of bank fraud.

The Indcitment, which contains a total of twenty one counts, alleges that the defendants acted to secure mortgage loans though the submission of fraudulent loan applications and falsely inflated property appraisals. After dividing the fraud proceeds among themselves, they let the loans go into default and the properties go into foreclosure. According to the indictment, Lock and McCray advanced the scheme through their mortgage brokerage company, World Financial Mortgage, Milwaukee, Wisconsin, and Slamann closed some of the fraudulently obtained loans through his business, Excell Closing Services, Kenosha, Wisconsin. The scheme involved at least 25 properties (21 of which are listed in the indictment) and more than $2 million in loan proceeds.

3323 North Richards St., Milwaukee;
1918 N 13th St., Milwaukee;
2951 N. Buffum St., Milwaukee;
2838 N 11th St., Milwaukee;
3128 N 42nd St., Milwaukee;
4944 N 24th Pl., Milwaukee;
2761 N 23rd St., Milwaukee;
2763 N 6th St., Milwaukee;
3876 N 52nd St., Milwaukee;
3332 N 38th St., Milwaukee;
4251 N 42nd St., Milwaukee;
3240-3242 N Palmer, Milwaukee;
3374 N 25th St., Milwaukee;
5822-5824 N 64th St., Milwaukee;
2975 N 24th St., Milwaukee;
3732 N 27th St., Milwaukee;
3771 N 10th St., Milwaukee;
3386 N 26th St., Milwaukee;
7330 W Medford Ave., Milwaukee;

Each defendant faces up to 20 years in prison and a $250,000 fine for each wire or mail fraud conviction. Clay and Colella also face up to 30 years in prison and a $1 million fine on the bank fraud charge. The charges arise from a two year joint state and federal investigation conducted by members of the Public Integrity Unit of the Milwaukee County District Attorney’s Office, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development Office of the Inspector General. The case is being prosecuted by Special Assistant United States Attorney Kurt B. Benkley and Assistant United States Attorney Carol L. Kraft.

The public is cautioned that indictment is a charging document and the that defendants are presumed innocent unless proven guilty beyond reasonable doubt.

mortgage fraud

1. this indictment is just a drop in the bucket on this scam.  These people stole houses from many people that didn’t know how to fight back.  The people were thrown to the street and the legal system has turned a blind eye to this situation for 3 or more years. all of the people involved should be put in a hole with rattle snakes.

   Posted by  on  08/07  at  10:08 AM

2. any outcome on this case.  Wanted to know but can’t find info.

   Posted by  on  09/02  at  10:16 PM

3. I have seen nothing additional on this matter at this time

   Posted by  on  09/03  at  04:54 AM

4. Who is upholding the rights of Millions of consumers who had there homes ripped right from them on these Mortgage Banking Frauds generated from within the Crisis on Wall Street which used consumers homes as a means to create large pools of mortgages within the secondary market which were transfered into Credit and Equity Default Swaps which made trillions of dollars on unknownable consumers.

   Yes indeed these’s people were arrested but the family who loss there home is still in the street and foreclosed on based on a very open fraud being commited within every court within the United States.

   There is no law enforcement provided to stop the foreclosures on the basis of these frauds nothing.

   The consumer is then left without home and or credit. In addition they are asked to bail out those who created the fraud in the first place.

   Indeed this is great I am seek the following:

   Seeking People who are currenting in default within Illinois with their Mortgage payments, we are seeking those who feel, know, and have documentation, evidence that they were placed in Predatory Mortgages and that these loans were created within the current Mortgage Crisis,

   We are looking for the Following People:

   Those who were given the loans who had no knowledge that the loans offered were being sold on the secondary market, then traded within secondary pools into oversea’s markets, whereby the value was then transfered into assets which producted CDS Credit Default Swaps, EDS Equity Default Swaps, and financial tooled positions which lead to the current mortgage crisis. Many of these loans were from Interest Only Products.

   These loans were possibility fraudulant to unknowledgable Consumers. Whereby some alleged that whose within the Banking and Securities Industries made Trillions of dollars from hidden requirements created to pick borrowers who they knew would fail, so that loans would then transfer into pools within a intended purpose of recover these properties into pools of financial instruments used as CDS, EDS and traded on the options, put markets on Wall Street and foreign exchanges.

   We are seeking both Borrowers and Mortgage Loan Officers, Mortgage Bankers and others who have knowledge of these impossible frauds and or witnesses these issues from within the industry who are willing to come forth and discuss what they saw, that had full knowledge of that can help the consumer regain their homes.

   Purpose to create a way to protect consumers who are, have, and will soon in the future lose there homes due to possible fraud, within securites markets, and banking.

   These loans were possibility fraudulant to unknowledgable Consumers. Whereby some alleged that whose within the Banking and Securities Industries made Trillions of dollars from hidden requirements created to pick borrowers who they knew would fail, so that loans would then transfer into pools within a intended purpose of recover these properties into pools of financial instruments used as CDS, EDS and traded on the options, put markets on Wall Street and foreign exchanges. Borrowers Needed for this study, will share their story and we are seeking comsumers matched this background:

   a) Living within Minority Communities formerly “RED LINED”
   b) High risk due to higher income to debt ratio’s
   c) Changes within the values of homes by over appraising of values
   d) Using at risk rehabbers, builders and others who sought loans within the rehab business whereby they were given no-doc loans, with little verification of income and or assets.
   e) Single White males and or women with no family and or spouse signed on to the loan who fell within the area’s of being between 33-45 years of age that had good credit but worked within jobs with flexible income ranges. Re: those within the building trade and other fields.
   f) Looking for those who complained of changes to loans amounts, whereby the amount of income was changed to allow for the process of their loan along with those who felt that there was use of falsified documentation to allow the loan to process.
   g) People who had loans given on property whereby the deeds were clouded whereby the issue of property pin number was non-existing, changed, and or there was a issue of ownership which was still allowed within mortgage contract.
   h)Those who had payments on time and verified this information within courtroom cases which was not allowed within the court.
   I) and all others that feel and have a valid claim to “Mortgage Fraud” within the State of Illinois.

   Posted by DAnne Burley  on  10/17  at  04:50 AM