Monday, July 07, 2008
5 Californians Indicted For Misrepresentations And Illegal Referral Fees
Robert Martinson, 45, Newcastle, California; his wife, Sheryl Hayden, 41, also of Newscastle; Kathleen Delapp, 44, Auburn, California; Melissa Villegas, 34, Sacramento, California; and her husband Rick Villegas, 31, Sacramento, were charged in an eight-count indictment with conspiracy to commit bank fraud and other related charges in a mortgage fraud scheme.
According to Assistant United States Attorney Russell L. Carlberg, who is prosecuting the case, the indictment alleges that the defendants schemed to defraud mortgage lenders by submitting fraudulent loan applications in the names of straw buyers and other investors. Hayden was licensed as a real estate salesperson. She and Martinson operated a branch of MAC Real Estate Services at 7031 Watt Avenue, North Highlands, California. Martinson and Hayden also owned and controlled Sheryl’s LLC, which they also operated from the same location. Beginning in 2003, Martinson and Hayden purchased dozens of homes throughout the Sacramento area as investment properties and placing title to them in Sheryl’s LLC. In 2005, Martinson and Hayden wanted to unload properties from Sheryl’s LLC as the housing market began to slow, so they recruited straw buyers and others to purchase the homes.
According to the indictment, co-defendants Rick and Melissa Villegas, who were loan processors, helped Martinson create fraudulent loan applications to ensure that the deals would close. They also assisted Martinson and Hayden in paying substantial kickbacks to at least one straw buyer.
Delapp was a loan processor for MAC Real Estate Services, and was an account executive for Aegis Mortgage. Delapp used her position with MAC Real Estate Services to forge signatures and to knowingly forward at least one false loan application in order to ensure the transactions were processed. She also placed the majority of loans with her employer, Aegis Mortgage, for which she received loan broker commissions or related compensation. Defendants also defrauded IndyMac Bank, a federally insured financial institution.
According to the indictment, after the lenders funded the loans, Martinson and Hayden, through Sheryl’s LLC, would receive substantial loan proceeds from the sales of the homes. Delapp, Rick Villegas, and Melissa Villegas would receive fees and other compensation as a result of the fraud.
Hayden was arrested today on these charges. Rick Villegas surrendered to the United States Marshals today; Martinson and Melissa Villegas were previously arrested on criminal complaints in this case and released on bond.
The maximum statutory penalty in this case is 30 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an extensive joint investigation by the Federal Bureau of Investigation and the Department of the Treasury, Internal Revenue Service–Criminal Investigations, and the California Department of Real Estate.
In another mortgage fraud matter, Paul Bridge, 43, Davis, California, pleaded guilty yesterday to paying an illegal referral fee of $7,500 in violation of the Real Estate Settlement Procedures Act of 1974 (RESPA). The fee was paid in connection with the financing of a home through Zone Funding in November 2006. As part of his plea, Bridge admitted that between January 2006 and April 2006, he paid a loan coordinator at Long Beach Mortgage (later Washington Mutual) at least $1500 in exchange for the loan coordinator to falsify documents used in real estate loan transactions. Bridge faces a maximum sentence of 12 months in prison and a fine of $10,000. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.
mortgage fraud
THIS IS OLD NEWS!!!
Posted by on 07/07 at 06:15 AM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
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 
