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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Sheila Jones, 46, and Temika Ganae Gustus, 27, both of District Heights, Maryland, each pleaded guilty in federal court to one count of making a false statement to the Department of Housing and Urban Development.
Jones pleaded guilty in the U.S. District Court for the District of Columbia before the Honorable Emmet G. Sullivan. Gustus pled guilty to the same charge before Judge Sullivan. The maximum sentence for making a false statement to HUD is one year of incarceration, one year of supervised release, and a fine of $100,000. A sentencing date has been scheduled for November 5, 2008, for Jones, and November 13, 2008, for Gustus.
According to the factual proffers presented by the government in court, as well as the Jones Information and the Gustus Information, Jones and Gustus, both employees of the D.C. Office of Tax and Revenue, each submitted loan applications to HUD in 2006 that listed fictitious second jobs and bank balances that were inflated by $20,000. Using a scanner and a computer, Jones’s and Gustus’s real estate agent, Alethia Olivia Grooms, created bogus pay stubs and W-2 forms and forged bank statements to support their false claims. These fraudulent documents were included in their loan applications.
In announcing these guilty pleas, U.S. Attorneys Taylor and Rosenstein, Assistant Director in Charge Persichini, Special Agent in Charge Clarke, D.C. Inspector General Willoughby, IRS Special Agent in Charge Martin, and D.C. Chief Financial Officer Gandhi commended the outstanding and dedicated team that has investigated this case, including: FBI Special Agents Andrew Sekela, Julie Shields, Debra LaPrevotte, and Matthew Walsh, and Intelligence Analyst Jessica Pipher, Paralegal Specialist Lucy Sampson, and Contract Forfeiture Investigator Jerry Simpson; HUD OIG Assistant Special Agent in Charge Kathleen Hatcher and Forensic Auditor Robert Fisher; IRS CID Special Agent Nicole Davis and TIGTA Special Agent Edward Bosak; Director of Internal Security Charles Fultz and Senior Investigator Donna Tolliver, of the OCFO Office of Integrity and Oversight; Special Agent Kevin Craddock and Tax Auditor James LeSane, of OTR; and D.C. OIG Special Agent Kerthalia Peavely.
U.S. Attorney Taylor commended Paralegal Specialist Diane Hayes; Criminal Investigator Diane Eickman; Legal Assistants April Peeler, Lisa Robinson, and Michael Thompson; summer legal intern George Ingham; former Assistant U.S. Attorney Geoffrey L.J. Carter; and Chief Steven Durham, Deputy Chief Howard Sklamberg, and the attorneys and entire staff of the Fraud & Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia. U.S. Attorney Taylor also commended Information Technology Specialist Oliver John-Baptiste, Litigation Support Specialist Joseph Calvarese, and the entire staff of the Litigation Services Unit of the U.S. Attorney’s Office for the District of Columbia.
Lastly, U.S. Attorneys Taylor and Rosenstein commended Assistant U.S. Attorneys Timothy Lynch and David Johnson, of the U.S. Attorney’s Office for the District of Columbia; Assistant U.S. Attorneys Jonathan Su and Deborah Johnston, of the U.S. Attorney’s Office for the District of Maryland; and Assistant U.S. Attorneys Diane Lucas and William Cowden, of the Asset Forfeiture Unit of the U.S. Attorney’s Office for the District of Columbia.
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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