Thursday, September 27, 2007
3 Michigan Men Charged With Deed Fraud
Nelson Sumpter, 42, Pittsfield Township, Michigan, Omar Sumpter, 35, Sterling Heights, Michigan, and Paul Rhoads, 35, Novi, Michigan, were charged in connection with three deed fraud cases.
In all three of the cases the defendants used the same scheme. They would claim to be real estate professionals who assist homeowners in selling their property to potential investors. They induced elderly victims to give them information such as property information, personal signatures and multiple pieces of personal documents. They were able to use the information to take possession of the property without the owner’s knowledge and consent. The defendant’s later sold the property at a profit. None of the victim’s knowingly conveyed their property to the defendant’s.
Victim #1: 72-year old female, 1100 block of Glynn Court, Detroit:
The property owner, a 72-year-old woman was trying to sell her house on Glynn Court, which she owned free and clear. Omar Sumpter came to look at the property representing himself as an appraiser. The property owner was asked to sign some documents but there was no authorization to sell the property. Nelson Sumpter allegedly forged a Power of Attorney from the property owner and arranged a real estate closing at Original Title, Troy, Michigan. Nelson Sumpter then conveyed the property to Mr. Paul Rhoads, who obtained a mortgage from New Century Mortgage for $133,000. The funds were distributed to DMC Acquisitions ($64,371.53) for a first mortgage and to DirecWay Mortgage ($64,371.53) for a second mortgage. Both companies list Nelson Sumpter and owner and operator. The property owner never received any proceeds from the sale of her property.
Nelson Sumpter, Omar Sumpter and Paul Rhoads have been charged with False Pretenses over $20,000, a felony punishable by up to 10 years in prison; Identity Theft, a felony punishable by up to 5 years in prison; Money Laundering 2nd Degree, a felony punishable by up to 10 years in prison, and Conspiracy to Commit False Pretenses and/or Money Laundering, a felony punishable by up to 5 years in prison. Nelson Sumpter has also been charged with two counts of Uttering & Publishing, a felony punishable by up to 14 years in prison; two counts of Forgery, a felony punishable by up to 14 years in prison and as a Habitual 4th Offender which upon conviction would subject him to a sentence of any term of years up to life in prison. Paul Rhoads has also been charged with one count of Uttering and Publishing, one count of Forgery and Larceny by Conversion, a felony punishable by up to 10 in prison.
Victim #2: 76-year old female, 12000 block of Memorial, Detroit:
Nelson Sumpter told a 76-year-old woman that he was a real estate broker who specialized in helping homeowners sell their property through potential investors. He obtained personal information under that pretense and then used the information to create a fraudulent power of attorney to obtain her property. Sumpter received approximately $130,000 for this property.
Nelson Sumpter has been charged with two counts of Uttering and Publishing, a felony punishable by up to 14 years in prison; two counts of Forgery, a felony punishable by up to 14 years in prison; False Pretenses > $20,000; Identity Theft, a felony punishable by up to 5 years in prison; Money Laundering Second Degree, a felony punishable by up to 10 years in prison and, Conspiracy to Commit False Pretenses and/or Money Laundering, a felony that carries up to 5 years in prison. Sumpter has also been charged as a Habitual 4th Offender, which upon conviction would subject him to a sentence of any term of years up to life in prison.
Victim #3: 66-year old male, 15000 block of Stansbury; 15000 block of Mark Twain; 14000 block of Winthrop and 13000 block of Santa Rosa, Detroit:
Using the same subterfuge as with he previous victims, Nelson Sumpter defrauded a 66-year-old man of five properties. Sumpter realized approximately $384,000 in these fraudulent transactions.
Nelson Sumpter has been charged with 10 counts of Uttering and Publishing a felony punishable by up to 14 years in prison; 8 counts of Forgery, a felony punishable by up to 14 years in prison; 4 counts of False Pretenses > $20,000, a felony punishable by up to 10 years in prison; Identity Theft, a felony punishable by up to 5 years in prison; Money Laundering Second Degree, a felony punishable by up to 10 years in prison and Conspiracy to Commit False Pretenses and/or Money Laundering, a felony that carries up to 5 years in prison, as well as being charged as a Habitual 4th Offender which upon conviction would subject him to a sentence of any term of years up to life in prison.
“ID theft, mortgage fraud and deed fraud continue to create massive problems in Wayne County. We are going to prosecute the criminals who commit the crimes,” said Prosecutor Worthy. “I’m hoping this will shed a much-needed spotlight on this issue. It can happen to anyone, anywhere at any time.”
Wayne County Register of Deeds Bernard J. Youngblood said, “These are sophisticated crimes that demand sophisticated investigations. We have coordinated a sophisticated task force which has once again proven effective in safeguarding Wayne County property.”
Wayne County Sheriff Warren C. Evans said, “Stealing the home of an honest family is among the most brazen and shameful crimes I can think of and Mr. Sumpter appears to have been living like a king by doing just that.”
“People who commit deed and mortgage fraud should start getting the message that we will track them down. Certainly, Mr. Sumpter and his cohorts are finding that out.”
These cases represent many hours of work by the Wayne County Deed Fraud Task Force.
mortgage fraud
Great idea for a blog. Keep it up!! 
Posted by on 09/27 at 07:09 AM
I realize there are victims in this case, Paul Rhoads is also a victim in this malisous case of fraud.
Paul Rhoads was asked to be an investor/partner in a realesate company that flips houses.
A forth man not brought up on charges asked Mr. Rhoads to help fund the company with his good credit and income: well over three figures.
Mr Rhoads the silent partner and only mistake was not asking any questions on how and where the money was going.
Paul recieved no profit from these houses but the burden of trying to pay for them when the mortgage companies came calling.
Bankrupcy and possible jail time looks like the only alternative for this man who was only helping a good friend and co-worker start a buisness from scratch.
Posted by on 09/28 at 09:04 AM
I am Pauls father and all of what #2 says is the truth. When Paul went to the register of deeds and told them about this while looking for a deed they did nothing except tell him he was not the only owner. When he went to the TV and News Paper for help they ignored him. The only thing they did was print the top story saying he was guilty. When he went to 3 different lawyer for help he was told it would cost HIM over $100,000.00 to investigate this. He has been trying for many months to get help and no one would listen. He was even thretened by Nelson to stop asking for help.
Posted by on 10/22 at 11:41 AM
I am very concerned that i am being frauded against by someone claiming to own a home that Mr. Paul Rhoades also owns. The registered deeds shows that the home that i am supose to be buying on a land contract belongs to Paul Rhoades and the person that i gave money to at the same time, through different co’s. How is that? This person claim that he was a partner in the past with this paul rhoades and or the others, but not anymore (after i asked about the deed). I fear that i
am being taken. would anyone know exactly who i can contact to find out the truth about this property? It would not be the registered deeds dept, Maybe the prosicutors office or Who?
Posted by on 12/03 at 08:08 AM
Robert Creasia was also found to be filing unauthorized bankrkuptcy petitions on people. Proceedings pending in Massachusetts. case referred to the Board of Bar Overseers and the US Attorney for prosecution.
Posted by on 09/13 at 04:57 AM
I AM SO GLAD NELSON SUMPTER IS IN JAIL, HE SHOULD NEVER GET OUT OF JAIL. HE TOOK AWAY MY HOUSE OF 40 YEARS. I WILL TAKE ME A LONG TIME TO RECOVER FROM THIS CRIME. THANK YOU MICHIGAN TASK FORCE, YOU GUYS ARE GREAT.
Posted by on 12/11 at 11:02 AM
Well, I’m his daughter.
Are you still so fucking glad?
Posted by on 03/11 at 04:07 PM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
|
|
|
|
|
|
|
|
|
|
|
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 
