imageRachel 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. Email Ms. Dollar

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Recent Posts

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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.

   

Posted by Staff Reporter on 09/27/07 at 05:06 AM
Mortgage FraudMichigan • Total comments: (7) (0) Trackbacks
  1. Great idea for a blog. Keep it up!! grin

    Posted by  on  09/27  at  07:09 AM
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. Well, I’m his daughter.
    Are you still so fucking glad?

    Posted by  on  03/11  at  04:07 PM

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Today's News

Some Sources require Registration.

 

Erie Area Mortgage Broker Gets Prison in Fraud Case
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Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.

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Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.

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Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.

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Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.

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In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.

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He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.

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Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.

Fed Drug Report: Double Trouble for Metro Chicago
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...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...

Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

Update - US v. F. Jeffrey Miller, et al.

Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.

Vanatta has been in custody for over 2 years.  Vanetta filed a motion for his release pending sentencing. That motion was denied.

Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.

Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.

The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.



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Legal Disclaimer.
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.

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