Tuesday, September 30, 2008
2 Indicted In Arizona Mortgage Fraud Scheme
Kimberly R. Werking, 42, Phoenix, Arizona, and Jeffery Z. Sayegh, 44, Cave Creek, Arizona, were indicted on five counts of forgery, one count of money laundering and one count of fraudulent schemes and artifices. Werking was also indicted on six counts of residential mortgage fraud, five counts of theft and one count of illegal control of an enterprise.
The charges, all felonies, relate to the defendants’ alleged equity “skimming” operation in Phoenix and North Scottsdale, Arizona. These are among the largest indictments issued under the state’s residential mortgage fraud statute (A.R.S. 13-2320), enacted in 2007.
“Acts of fraud such as this jeopardize the security of Arizona’s families, neighborhoods and economy, especially during this time of financial uncertainty,” Goddard said. “I am committed to protecting Arizonans from those who violate the law and undercut the financial stability of businesses and consumers.”
According to court documents, between February 2006 and August 2007, Werking, a licensed Arizona realtor, and Sayegh, a loan officer, collaborated to obtain fraudulent bank mortgages for Werking on five properties in North Scottsdale. Werking, with assistance from Sayegh, allegedly induced lenders to approve applications for bank mortgages and refinancing loans by knowingly misrepresenting the truth or concealing material facts contained in those applications.
The indictment further alleges that Werking “skimmed” over $1 million in equity from the homes through the refinancing process, and, once no more money could be pulled out of the properties, allowed them to go into foreclosure. Werking would purchase homes using false information, receive cash for refinancing them and then not make the mortgage payments.
Werking also collected $350,000 in real estate commissions through the home purchases.
Court documents name eight financial institutions, with collective losses of over $675,000, as victims of the alleged operation: The Carioca Company, Countrywide Financial, Bank of America, Avelo Mortgage, Plaza Home Mortgages, Inc., INDYMAC Bank, Carnegie First Lending Services and Preferred Home Mortgage.
Assistant Attorney General Andrei Cherny is prosecuting this case. For more information, contact Anne Hilby at (602) 542-8019.
mortgage fraud
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Mortgage Fraud: Beware the Wolf (Loan Officer) in Sheep's Clothing
24-7PressRelease.com - USA
US consumers looking to refinance their homes or to secure a home loan to purchase their dream homes would be well advised to educate themselves...
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The U.S. Justice Department has formed more than 40 mortgage fraud task forces nationwide as prosecutors and investigators struggle with a flood of mortgage-related criminal cases. The FBI reports that its mortgage-fraud caseload has more than doubled in three years to about 1,600 investigations that have cost lenders at least $4 billion. About 200 FBI agents are assigned to the cases, up from 120 a year ago.
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Sarasota attorney John Yanchek is expected to plead guilty to mortgage fraud next week, statements from a federal prosecutor and the judge presiding over the high-profile criminal case seem to indicate.
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Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to "General Application Misrepresentation"
Seven Are Accused Of Identity Theft And Mortage Fraud
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Seven people have been arrested in connection with an international identity-theft scheme that targeted home equity lines of credit and siphoned at least $2.5 million away from dozens of banks, including more than 10 in New Jersey, according to documents unsealed today.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
More Trial Coverage
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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. 
