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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4 Charged With Orchestrating Mortgage Fraud Scheme
Kandace Marriott, 52, and Darrell Lynn Marriott, 55, both of Gun Barrel City, Texas and Karen Hayes, 57, Mabank, Texas are all charged with engaging in organized criminal activity. They are indicted for the two underlying offenses of filing false statements to obtain property or credit, and securing the execution of a document by deception. The indictments reveal that the 3 defendants committed at least 88 separate offenses in Kaufman County of making false statements to obtain property or credit.
The Marriotts’ daughter, Kally Marriott, 22, Dallas, Texas, was also indicted on the charge of engaging in organized criminal activity for securing the execution of a document by deception. The indictments mark the second round of indictments issued since last August against the four. In February, Kandace Marriott, Darrell Marriott and Karen Hayes were also indicted in Navarro County on similar charges. The charges are first-degree felonies.
The charges stem from the defendants’ involvement in a conspiracy to forge signatures and falsify home loan applications, which included creating and using numerous fraudulent documents containing statements the borrowers never made. The fraudulent documents were prepared for prospective homeowners who otherwise would not have qualified for loans backed by the U.S. Department of Housing and Urban Development (HUD).
The defendants have operated a Kaufman County real estate business known as Torenia Inc., which did business as Energy Homes. They continued to operate the enterprise even after the Navarro County indictments were announced last February. The defendants closed their Navarro County business, One Way Home & Land, after litigation and investigations ensued in late 2005. As a result, they opened a Kaufman County firm under the assumed name, Torenia.
Acting on search warrants last August, the Attorney General’s investigators seized numerous assets of the defendants, including 88 plots of land being offered to prospective buyers, and shut down the defendants’ Kaufman County business.
According to state investigators, the defendants’ scheme cost the federal government and taxpayers millions of dollars. Evidence uncovered by the state indicates that the defendants supervised the falsification of residential loan applications to ensure that the buyers’ loans would be approved by mortgage lenders. Investigators found that the defendants repeatedly falsified supporting documents and information, including the buyers’ rent payment verification statements, proof of employment and information about Social Security Administration benefits, among other documents.
Investigators believe the defendants targeted lower-income purchasers whose residential loans would be guaranteed by HUD. As a result, when unqualified buyers defaulted on their home loans, mortgage lenders did not suffer the loss. Rather, HUD as guarantor of the loans, had to cover these costs. In the Navarro County scheme, investigators believe the defendants cost the taxpayers more than $3 million.
The Office of the Attorney General received assistance from the Kaufman County Criminal District Attorney’s Office, the FBI and HUD’s Office of Inspector General. Attorney General Abbott’s Criminal Prosecutions Division is leading the prosecution of the four defendants with the cooperation of district attorneys’ offices in Navarro, Henderson and Ellis counties.
After reading your blog, I noticed these were the only ones with pictures. You seem kinda biased. Also, I know one of the Defendants personally and 75% of your information is incorrect - poor, poor reporting.
Posted by on 12/03 at 08:22 PM
Can anyone tell me who the lender is that Darrell Lynn Marriott used for this fraud. I am trying to help a friend that is in this mess. None of the documents are correct. I only wish I had seen the docs before the closing happened!!!
Posted by on 03/05 at 11:37 PM
(Darrell) Lynn Marriott has in my opinion been a sorry slime bag his whole adult life. How could he cheat his own family - with no care in his stupid mind. He deserves to rot in prison for the rest of his life. Lynn explain to M.R. and her kids what you really are - you know who I mean. MAN UP You SORRY Sucker.
Now she is losing her home because of your lies and she didn’t deserve that crap. Call your child and help her out.
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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