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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Daniel Adam Rooks, 31, Whiteville, North Carolina; his father, Alford Eugene Rooks, 63, Whiteville, North Carolina; Stanley Garfield Williams, Jr., 37, Bolivia, North Carolina; Henry Clay Blake, Jr., 69, of Riegelwood, North Carolina; and Cynthia Tilley Greer, 50, Clarendon, North Carolina, have been Indicted and charged with conspiring to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Sections 1349; aiding and abetting wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2; and conspiring to money launder, in violation of Title 18, United States Code, Section 1956(h). Additionally, Williams, Greer and Blake were also charged with aiding and abetting mail fraud, in violation of Title 18, United States Code, Section 1341 and 2.
As stated in the Indictment, from approximately January, 1998, until about April, 2004, the defendants devised a scheme to defraud home buyers, banks and other lenders to obtain money and property from the home buyers and lenders, by materially false and fraudulent pretenses. Daniel Rooks bought about four tracts of land in Whiteville, subdivided the properties, put trailers on them, and sold them to low income people from around the area. In the beginning, Rooks was selling these properties himself with the aid of several other Rooks. Rooks partnered with two mortgage brokers, Williams and another individual out of Greenville, to finance the mobile homes. Rooks falsely stated to the buyers the estimated cost of the property, the payment amounts and his ability to secure loans. After taking their Social Security numbers and names, he would then turn the information over to Williams and the other broker and they would falsify the loan applications, sending them in for approval.
Blake was a registered property appraiser and prepared false and inflated appraisals of certain parcels of real property that were submitted to mortgage lenders, which were relied upon by the lenders to determine the value of the real property for the mortgage loan. Greer was employed as a paralegal and notary by a law firm in Whiteville, North Carolina, where she prepared and notarized various real estate documents including the HUD-1 settlement statement. She also arranged and conducted real estate closings, sometimes without the borrower’s knowledge or presence, and prepared and disbursed settlement checks.
After the first round of sales were foreclosed, because the buyers could not make the payments, Williams began buying up the foreclosed property, finding new buyers or getting straw buyers whose names and Social Security numbers he could use to sell them all over again. Over 100 loans were secured and approximately $6 million in fraudulent funds were received.
The maximum penalty for conspiring to commit wire and mail fraud is 30 years imprisonment, a fine of up to $1,000,000 or both, and supervised release of up to five years. For aiding and abetting wire fraud, the maximum penalty is up to 30 years imprisonment, a fine of up to $1,000,000 or both, and supervised release of up to five years and for aiding and abetting mail fraud the maximum penalty is up to 20 years imprisonment, a fine of up to $250,000 or both, and up to three years of supervised release. Money laundering has a maximum penalty of up to 20 years imprisonment, a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater or both, and up to three years supervised release.
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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