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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Jamila Davis a/k/a Jamila Baker, 31, now of Queens Village, N.Y., who operated now defunct Diamond Star Financial Services, with offices in Leonia and later Fort Lee, New Jersey, was sentenced to 151 months in prison; Brenda Rickard, 54, Montclair, New Jersey, who formerly owned and operated MS Financial Services in Montclair and later in Verona, was sentenced to 121 months in prison. In addition to the terms of imprisonment, U.S. District Judge Jose L. Linares ordered Davis and Rickard to pay $12.4 million in restitution to the victim banks. Judge Linares revoked the bail for both women and ordered them to begin serving their prison terms immediately.
On Sept. 20, 2007, after two hours of deliberations, a jury convicted Davis and Rickard of conspiracy and six counts of bank fraud. As previously reported by Mortgage Fraud Blog, the seven-count indictment was returned in June 2005 and the case was tried by Assistant U.S. Attorneys Donna Gallucio and Jenny Kramer. Through the use of straw buyers, Davis and Rickard orchestrated a scheme to falsify loan applications and closing documents for million-dollar homes in Cresskill, Alpine and Saddle River, New Jersey to secure mortgages that were almost more than double the true purchase price of the homes.
Defendants Davis and Rickard managed and led more than nine other co-conspirators in this scheme, including five straw buyers, a mortgage broker, an attorney, an accountant and a real estate investor, almost all of whom testified at trial against them. According to the evidence introduced at trial, Davis and Rickard set aside a portion of the banks’ money to make 12 months of mortgage payments but, after having spent the money buying luxury automobiles, such as a Bentley, a Mercedes Benz and a BMW, the money ran out and they were unable to keep up with the payments or even purchase the eighth property.
In total, Davis and Rickard obtained more than $29 million. Subsequently, after the fraud was discovered and Lehman Brothers Bank, FSB and Commerce Bank seized and sold the over-valued collateral and the two houses that had been purchased in cash, with proceeds of the fraud, they were still left with millions of dollars in losses.
In determining the sentence, Judge Linares consulted the advisory U.S. Sentencing Guidelines, which provide appropriate sentencing ranges that take into account the severity and characteristics of the offense, the defendant’s criminal history, if any, and other factors. The judge, however, was not bound by those guidelines in determining a sentence. Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all that time.
“This is a long prison sentence that appropriately matches the breadth and complexity of the fraud committed by Davis and Rickard,” said U.S. Attorney Christopher J. Christie.
Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Weysan Dun, in Newark; the U.S. Postal Inspectors, under the direction of Postal Inspector In Charge David L. Collins; and the Special Agents of the IRS Criminal Investigations Division, under the direction of Special Agent in Charge William P. Offord.
The government was represented by Assistant U.S. Attorneys Donna Gallucio of the U.S. Attorney’s Office Commercial Crimes Unit and Jenny Kramer of the Special Prosecutions Division.
Finally real justice has been served for a very real crimminal which needed to be stopped. I know that a lot of people innocently was effected by the fraud and the lies that Ms. Jamila Davis produced. I dont wish any bad on anyone, but in this particular case justice has been served !
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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