Monday, November 24, 2008
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.
Karen Hayes (Left) Darrell Marriott & Kandace Marriott (Center) Kally Marriott (Right)     |
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.
mortgage fraud
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.
Posted by on 03/05 at 11:45 PM
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Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
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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.
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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.
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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 
