Monday, July 07, 2008

4 Indicted In $4 Million Mortgage Scheme

A federal grand jury in Los Angeles, California, has indicted four people in a mortgage fraud scheme that collected approximately $4 million in loan proceeds for properties that were not for sale. Those named in the indictment and charged with conspiracy, wire fraud and money laundering are:
Angela Cotton, 38, Fontana, California, who allegedly ran a bogus title company and who self-surrendered to federal authorities;
Terral Toole, 40, Irvine (formerly of Lake Elsinore), California, was arrested by authorities;
Miles Davis, 45, Glendale (formerly of Reseda), California, a loan processor, was arrested by authorities; and
Lisa Lievanos, 44, Fontana, California, who allegedly acted as a straw buyer, was also arrested by authorities.
All four are expected to make their initial court appearances in United States District Court in Los Angeles.

According to the indictment, Cotton found two properties in Rancho Cucamonga, California, that had lis pendens notices filed against them, meaning that there was a dispute over the ownership of the property. Neverthess, Cotton, with the assistance of real estate professionals and people who agreed to sell their personal information, “purchased” the two properties and obtained funding on loans totalling approximately $4 million.

On each loan application, the four defendants allegedly included false employment information, which included verifying the amounts of income of the straw buyer. Cotton signed the loan applications as the mortgage broker on the loans using the name ”Tiffany Skinner.” Cotton allegedly established fraudulent escrow companies to complete the fraudulent sale transactions. Cotton assumed the aliases of escrow officer ”Diane Laboski” and escrow employee ”Rayven Skinner” when communicating with the financial lending institutions. According to the indictment, the financial institution victims included Argent Mortgage Company, Mylor Financial, New Haven Financial and Bridgelock Capital.

Cotton, if convicted of the dozen charges in which she is named, faces a maximum statutory sentence of 175 years in federal prison. The other defendants also face potential prison terms.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is a result of an investigation by the FBI’s Southern California Mortgage (SCAM) Task Force.

mortgage fraud

1. I would venture to say New Haven Financial either was knowingly involved or gave the defendants one of those “paid programming” lessons on defrauding homeowners.

   What these people are indicted, with the limited actual document information, is frightenly similar to a transaction New Haven financial put together for us.  Long story short, I was forced to quit claim our home to my husband the day AFTER he signed loan docs, they would not accept loan payments. In fact, the way the documents were filed, I sold my husband our home for the loan amount of 90k(which is not what occured, I signed a quit claim).  I’m not even sure that is legal due to community property, etc.  The financial stress cause a temporary split between my husband and I.  My divorce attorney filed a Lis Pendens, which New Haven ignored.  While our first mortgage was current and paid on time, New Haven Filed title and promptly evicted.  Leaving us with a 130k first mortgage and the took title of our home for their 90k second mortgage.

   I would greatly appreciate anyone whom has or is having strange dealings with New Haven Financial Services in Los Angeles to contact me.

   Posted by  on  09/16  at  04:01 AM

2. We also have a problem with New Haven Financial. California Dept of Real Estate (DRE) has just filed a major complaint against them.  If you call DRE at 916-227-0906, give them case number H-35387 and they will fax you the complaint (11 pages).  The complaint is filed against New Haven Financial and its chief officer Lawrence Rabinoff.  The charges are for at least 5 major code violations including violation of real estate laws and regulations, negligence or incompetence for performing licensed acts, secret profit or undisclosed compensation, making substantial misrepresentations, continued and flagrant misrepresentations through salespersons, and more, including running an in-house escrow company without notification to clients/customers, and running that account in the red. These charges are serious enough to put them out of business.

   Posted by  on  12/15  at  02:47 PM