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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Maurice McDowall, Andrea Moore, Aleksander Lipkin, a/k/a “Alex”, Marina Dubin, Kerri Clarke, and Michael Irving were charged with participating in a wide-ranging “home foreclosure rescue” scheme, in which they defrauded homeowners of the titles to their homes and caused lenders to hold millions of dollars of bad loans. Moore, Lipkin, Dubin, and Irving were arrested earlier today, and McDowall was arrested on the charges earlier in Puerto Rico. Clarke remains at large. According to the Indictment filed in Manhattan federal court:
From November 2003 through April 2005, the defendants engaged in a fraud scheme targeting homeowners whose homes, primarily in Brooklyn and Bronx, New York, were in foreclosure or facing foreclosure, by offering them a plan to “save” their homes. The proposed plan included the refinancing of the homeowners’ debt with new, larger mortgages. Because the distressed homeowners typically had poor credit and were not otherwise eligible to refinance their debt at favorable terms , the defendants induced them to “sell” their homes to third parties, or straw buyers, who would apply for loans to be used to “save” the home. The defendants promised that once the straw buyer obtained the mortgage, the proceeds would be used to pay off the homeowners’ old debt and make one year’s worth of payments on the new loans. The homeowners were told that, during that year, they could continue to live in their homes and work on improving their finances and credit. Finally, the defendants explained to the homeowners that, at the end of the year, the title to their homes would be returned to them by the straw buyers, with their credit repaired and their homes saved. There were also cases in which the defendants did not explain to homeowners that the plan to “save” their home required them to deed their house to a third party and did not obtain permission to deed the homes to others. In such cases, the defendants effectively stole the property of the homeowners by forging the homeowners’ signatures on various documents that transferred the homes to straw buyers without the homeowners’ knowledge.
The straw buyers, individuals with good credit scores whom the defendants recruited to buy the homes facing foreclosure, were typically told that they were helping someone to “save” their home, and were paid a fee of up to ten thousand dollars per property for taking out debt in their names. Once a potential straw buyer agreed to participate in the scheme, the defendants submitted loan applications to lenders on the straw buyer’s behalf. In submitting these applications, the defendants regularly used documents containing false or misleading information, including information concerning the straw buyer’s income, assets, and existing debt, to improve the straw buyer’s credit worthiness. In addition to false statements concerning the straw buyers’ financial profile, the defendants misrepresented to lenders that the straw buyers intended to reside in the property that would secure each mortgage or loan, when, in fact, the properties were already occupied by the distressed homeowners.
The defendants facilitated the funding, by various banks and lending institutions, of over eighty home mortgages and/or equity loans valued at over twenty million dollars. These home equity loans and mortgages were often in amounts greater than the homeowners’ pre-existing debt and, in some cases, in excess of the properties’ actual values. The difference between the amount of the new and old loans represented the defendants’ profit from the scheme. Furthermore, the defendants deceived straw buyers by refinancing multiple properties in the names of individual straw buyers, without fully disclosing this to them. Thus, loans were taken out in the name of the same straw buyers for up to four different properties. To minimize the risk of detection by any of the lenders, such loans were closed within a short period of time.
At loan closing, after the homeowners’ previous debt was retired, the remainder of the loan proceeds were deposited into bank accounts that the defendants controlled, rather than used to make the monthly payments on the new loan as promised. In some instances, the defendants failed to make even one payment on the new loan, causing the loan to default immediately; in nearly every other case, they eventually failed to make the payments and defaulted on the loans, thereby “cashing out” on the properties.
As a result, the homeowners lost the titles to their homes and faced eviction, the straw buyers owed the lenders hundreds of thousands of dollars that they were unable to repay, and the lenders suffered losses from the defaulted loans.
Each defendant is charged with one count of conspiracy to commit bank and wire fraud, and six counts of wire fraud. If convicted, each defendant faces a maximum sentence of thirty years in prison, on each count of the Indictment, and a fine of the greatest of $1,000,000, or twice the gross gain or loss resulting from the crime.
Maurice McDowall was arrested on December 1, 2007 in Puerto Rico and presented on the charges in federal court. The defendants arrested earlier today are expected to be arraigned in Manhattan federal court United States District Judge Robert P. Patterson.
“The defendants charged today perpetrated a multimillion dollar fraud in which they profited by preying on the most vulnerable of homeowners,” said United States Attorney Michael J. Garcia. “While promising rescue from foreclosure, they instead stole their victims’ homes and millions of dollars in loans secured by their victims’ properties.”
“This case is yet another example of the pervasive fraud we have found in the mortgage industry,” said Attorney General Andrew Cuomo. “My office investigated the scheme charged in this case in response to complaints from individuals who had been victimized and lost their homes. I applaud U.S. Attorney Garcia and his prosecution team for their excellent work and look forward to more productive partnerships with the Southern District of New York.”
“The rise in mortgage defaults associated with sub-prime mortgage lending has created a target-rich environment for so-called foreclosure rescue schemes,” said FBI Assistant Director-in-Charge Mark J. Mershon. “We will continue to root out the predatory practices of those who would victimize distressed homeowners and unwitting lenders for a fast and easy (and illegal) buck.”
Assistant United States Attorney Katherine Goldstein is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The Riddles and Rhymes are Submitted as a Reference for the above submittal:
As I stand next to yesterways grace,
I wonder if the catch will deliver thy blue ribbon race.
Did my name riddle out the fiddles middle night eternal place.
Or did the stars whom art in thy fallen heaven reveal the mask that sealed his righteous face.
As this trace of grace aligns whom finish and whom already choose disgrace, our time is now to devote a freewill deal to never ever and forever judge anothers case, therefore our fathers’ decent can hold a grudge but forget about the bet the open is already the seal.
Ryan C. Jennings
money can’t buy me love,
but my lose is another day’s dove,
flown into our destine shove,
torward the manifest date,
that could be just on time late,
STAND give praises to mr. three-in-one preachers sone just may be the created gun called destined mr. almighty great!
UNDERSTAND, IF NOT THEN ELSE, sufer your choice not to rejoice the voice I find within, and started what evolution did plant to begin.
But listen to this pisces quill’s fin, and live a life that could never, ever, and forever commit earthly sin.
Then and only then will you find the difference between you and the busted brothers hen, and never forget when, its today and tomorrow that joins the jude to my daddy gideon ben!
Ryan Jennings
Coday Marshall
And the Players
Hinkle to Geary, Jerry, and oh so Uncle Harry!
Posted by on 12/15 at 08:22 PM
OK finally I am going to put some of the links up for everyone to see and judge for themselves if I had a right to act a bit crazy at times. This is my public accessible myspace page that has a few black and white pieces of documentations illustrating my ID theft, signature fraud, and much more. Please leave comments and tell me your advice on how to proceed. Thus I only get deaf and dumb stares when I ask why these actions where committed. They definitely have violated by rights and freedoms.
not sure if this HTML link will work!
viewmorepics.myspace.com/index.cfm?fuseaction=user.viewPicture&friendID=213079832&albumId=812034
Click here for myspace page of evidential facts that I have been denied proper investigations
Posted by on 11/17 at 05:19 PM
I have plead guilty to a few cases I caught in the past couple years. Now it is their turn.
Who are They?????? List of Cases to be reviewed.
All of this list is building up as pieces to a rather large conspiracy to obstruct justice to my freedom and is directly harming the world in which we live. Not only have my rights been violated but there are many other victims that have had properties flipped behind their back, equity stolen, and civil liberties thrown down the drain. This group of conspirators may link back to the Masons, may link back to the US Government, and may link back to that neighbor that lives next door. In my personal testimony and daily challenges I see the predators as my so-called immediate family. My mother Anna Jennings and Father Ron Jennings continue to hide and cover up my investigational efforts in this corruption. My eyes have been opened to direct black and white evidence that shows my signature being forged, ID stolen, rights diminished, and has livelihood harmed. The latest was me reviewing my credit report and seeing my parents Escalade Cadillac SUV 2000 show up on my credit report. After reviewing a carfax and the Department of Motor Vehicles report I see the title has been flipped around several times. They purchased it from my brother Jonathan T. Jennings. He purchased it from Broome Auto Dealership on 40hwy in KCMO. Broome seems to have lost the purchase receipt. The car was purchased with blood-money and my SSN was used illegally. I am more upset with my parents cover-ups and the lack of apologies after seeing this to be the truth. We could have had the opportunity to work things out like peaceful adults. However, the loop of time for me trying to get reconciliation is over. Now I call out for the world to judge for your self what is right and what is wrong. This evidence can be reviewed at the following URL to see for yourself.
Instructions: go to my pictures section for some screenshots of some fraudulent deeds. These documents should be tagged highlighting the actions that are illegal. They have tried to say these actions were type-o’s or mistakes. However, enough is enough. Strategies used have been rhyming middle initials, misspelled names, using others SSN’s. But the bottom line is these type-0’s have caused me horrific pain and bloodshed. The innumerous irony is that my blood type is type-o positive.
Posted by on 12/03 at 01:02 PM
Interesting, that you say about the fact that I think about it. We update and moderated the site every single day.
Posted by on 01/02 at 02:04 PM
Foreclosure property risk is common as demand supply slope is in balance due to economic crisis ..
Posted by on 08/17 at 07:47 PM
Its a great information that home equity loans and mortgages are greater than the homeowners’ existing debt position and the original property value .
Posted by on 09/07 at 09:53 PM
There are various ways in which foreclosure rescue schemes work, causing different types of harm to the homeowners, but all ultimately with the likely end result of the owner being forced out of his/her home and losing even more money.
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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