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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 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 More Indictments Handed Down in Ohio Mortgage Fraud Crackdown
Indictments were handed down in Cuyahoga County, Ohio in connection with four cases of mortgage fraud involving 26 individuals and entities and four houses in Solon, Ohio totaling over $2.6 million in fraudulent loans. These cases total 134 defendants and over $8.4 million in fraudulent loans for 60 properties located in ten communities: Shaker Heights, Oakwood Village, Cleveland, East Cleveland, Cleveland Heights, Solon, Pepper Pike, Garfield Heights, Brook Park, and Brooklyn, Ohio.
The first Solon, Ohio case involves Gerald Sizemore, 40, Sandusky, Ohio, who bought a new house at 35895 Sedge Circle on May 21, 2003 by fraudulently obtaining a loan for $441,000. He submitted false income and bank statements, claimed he had three rental properties to boost his assets, and claimed he was going to live in the house but had no intention of doing so. Also participating in this scheme was James Sims, a loan officer and owner of his mortgage broker company, Country Home Mortgage, Ohio. Sims was also indicted in another Solon, Ohio mortgage fraud case that Prosecutor Bill Mason filed in January, 2007. Also indicted was Carol McGlothin aka Smith, an agent and unlicensed broker for Country, who received $11,000 in “broker fees.” Robert Hawes and Robert Huff were indicted for assisting in providing a bogus down payment. Each defendant was indicted on several theft and forgery related charges. Each of these felonies carries maximum prison sentences ranging from one to five years. The house was in foreclosure and recently sold at a public auction; it is now vacant.
The second Solon, Ohio case involves Karl Whittingham, 30, Cleveland, Ohio. He bought a new house at 6749 Winston Lane for $725,000 in September 2005 by submitting false loan applications for a $500,000 first mortgage loan from Argent Mortgage Company, LLC, and a $188.750 second mortgage loan from GB Home Equity, LLC. He overstated his income by $100,000 and his bank accounts by $16,000 to these lenders. Whittingham also engaged in a scheme regarding the $36,400 down payment. No down payment was actually made because third parties engineered a scheme to deceive the lenders. Whittingham and the following were each indicted on ten or more theft and forgery related charges: Stephen Holman, Buckeye Lending, a licensed mortgage broker; Buckeye Lending, Inc.; and Theodore Caulkins, owner of and licensed broker at Buckeye Lending. Each of these felonies carries a maximum prison term ranging from one to five years. The house is now in foreclosure and is now vacant.
The third Solon case involves the home at 35532 Nightshade Lane, Solon, Ohio. Estelle Jackson, 63, Bedford, Ohio, fraudulently bought this house by obtaining a $625,000 loan from Meritage Mortgage Corporation. She falsely claimed that she made $122,400 as an account representative for L’Oreal USA, when she made approximately $38,000 as a machine operator for that company. She was a “straw buyer,” as she allowed Frederick Watkins, a licensed mortgage broker at Premier Funding of Ohio, Inc. to lease (with the option to buy) this property to unsuspecting renters who paid Watkins approximately $27,000 before they realized it was a scam. These unsuspecting renters thought their payments were sent to the lender to pay the new mortgage loan. Watkins kept this money and he never paid the mortgage in Jackson’s name. Jackson received $31,000 for the scheme that, in addition to Watkins and Premier, involved the construction company, Northcoast Construction, which was owned by Floyd Patterson, also a mortgage broker at Premier. Watkins, Patterson and Premier were indicted in January, 2007 in another Solon, Ohio mortgage fraud case. Each defendant was indicted on five or more theft and forgery related charges, which carry maximum prison sentences ranging from one to five years. This house is now in foreclosure.
The fourth case involves a new house at 38710 Flanders Drive, Solon, Ohio. Ogbonnaya Edeh, 49, Cleveland, Ohio, fraudulently obtained an $850,000 loan from New Century Mortgage Company. He never made a down payment, never saw the inside of the house before the purchase, and never lived in it. Edeh was employed as a local cab driver, but he falsely stated he made $150,000 as a structural engineer for Classic Tango Engineering, and Phillip Taylor, the owner of that company, falsely verified Edeh’s employment and income. Edeh received $31,000 for this scam. Brian Chenoweth, president of Widdershin One, Inc., and Ike Osuji, a middle man, who posed as a buyer, were also indicted for their involvement in this scheme. Edeh was a “straw buyer” in this scheme that involved other individuals, including Stephen Holman and Jeffrey Brown of Buckeye Lending, Inc. After Edeh purchased this house, Holman and Brown leased the home to a tenant, who signed the lease with Brown’s company, Marketing Land and Concrete, LLC. That tenant made rent payments that were intended to pay the new mortgage and these payments counted toward buying the home. However, the tenant lost his $6,000 initial down payment and $22,600 in lease payments before realizing it was a scam. Neither Brown nor Holman used these payments to pay the mortgage obligation to New Century. Each defendant was indicted on several theft and forgery related charges, which carry maximum prison terms ranging from one to five years. The house is now in foreclosure.
These indictments bring to 12 the total cases that have been indicted since the beginning of the year. For more on the Prosecutor’s Office’s efforts to address these types of fraud and the foreclosure crisis, including a Q and A on mortgage fraud and predatory lending, visit the Cuyahoga County Prosecutor’s Office website: http://prosecutor.cuyahogacounty.us.
Thanks for this info, it is important to stay informed. I appreciate your expertise.
Posted by on 09/17 at 12:53 PM
Todays world and the people that think they can get away with this stuff… that’s what hurt those of us that try to do the right thing… I think that they shuold through away the key to the jail when these people are caught but the bad thing is that our laws protect people like this and the rest of us pay the price… I work to hard and do the right thing and its making my job harder because of the trust factor and those of us that want to do the right thing should stand up and be counted
Posted by on 09/19 at 04:43 AM
I am a victim of this fraud and I wish someone would catch the people involved that has robbed me of my financial and emotional state. I have contacted so many people for help in Ohio as well as as California and as I fall into bankruptcy no one has helped and have been unable to find a remedy. Two investment properties purchased in Ohio have ruined my credit and drained my finances including retirement fund.
Posted by on 02/29 at 08:25 AM
The four new indictments sound identical to deals a mortgage broker in Canton/Carrollton did. Buying property under a dummy corporation and never living in one of the homes. He was using monies borrowed from third parties to boost client bank accounts to get loans approved. Amerimortgage, Inc. & Amerimortgage of Pennsylvania, Inc./Samuel P. Urban, President and Mortgage Broker. Currently he is working for Wells Fargo in PA, doing perhaps the same bad deals.
Posted by on 07/29 at 04:11 AM
I am a victim of this crime, I knew a young lady for 20 years or more who referred me to “Buckeye Lending” to refinance my home and they used my personal information to purchase homes in my name with forged signatures and she was the straw buyer, she was having the mortgage payment invoices sent to her home, did not pay the mortgages, she even was collecting rent checks from one tenant in my name, along with checks from CHMA and Steve Holman the gentlemen in the article was engaged to this young lady younger sister. So him and his partners in crime along with her benefited from this. I am very hurt by this and never thought in a million years, that she would ruin our 20 year friendship over some cash in her pockets, with these hoodlums....unbelievable…
Posted by on 12/25 at 03:17 PM
The real fraud is committed by the banks and lenders who never loan moneyh anyway.
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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