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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Alshawntus Beck, 35, Plainfield, Illinois, Michelle Parker, 41, Steven Corbett, 41, Kevin Keller, 43, Jimmie D. Johnson, 38, and Otis Robinson III, 29, all of Chicago, Illinois, were charged with one or more counts of wire fraud in a nine-count indictment returned for allegedly engaging in a $3 million mortgage fraud scheme in the Chicago area. The indictment alleges that between February and December 2006, Beck operated three companies -- Compass Investments and Development Corp., and West Horizon Construction, which purported to be in the business of buying, repairing and reselling real estate.
Assisted by Parker, a loan officer at an area mortgage broker, Beck allegedly brought three nominee buyers to the brokerage to apply for loans to purchase from him three condominium units located at 3834 West Maypole in Chicago. Corbett allegedly fraudulently applied for loans using the fictitious identity "Al Spann;" while Keller and Johnson allegedly fraudulently applied for loans using stolen identities. Beck also allegedly recruited Robinson III to create false real estate appraisals inflating the value of properties that Beck bought for himself and through nominees.
According to the indictment, Parker obtained false verifications of rent for Corbett and Buyer A. Similarly, Beck obtained forged documents falsely stating that Corbett was an employee of West Horizon Construction, and that Buyer A was an employee of Compass Investment and Development Corp., and Parker submitted the false documents to a lender to fraudulently obtain the loans. Parker also submitted to a lender a forged document provided by Beck that falsely stated that Keller had approximately $8,000 in a bank account that did not exist.
As part of the scheme, Parker also processed false loan applications for Keller, using a stolen identity, to purchase properties 3817 West Maypole, Chicago, Illinois and 6828 South Indiana, Chicago, Illinois. The loan application for the Maypole residence was supported by a forged document that Beck provided, which falsely stated that Keller was an employee of West Horizon Construction, the indictment alleges. The loan application for the Indiana Avenue residence was supported by a falsely inflated appraisal, allegedly created by Robinson using the name of a real estate appraiser whose identity Robinson had stolen.
The indictment also alleges that Beck purchased two properties in his own name: 3849-51 West Maypole, Chicago, Illinois and 2023 North Bingham, Chicago, Illinois. The application for the loan to purchase the Maypole property was supported by a false verification of rent provided by Parker, and both loan applications were supported by falsely inflated appraisals provided by Robinson. Four months after buying 2023 North Bingham, Beck sold the property to Buyer B for a price that was 56 percent higher than Beck had paid by using another falsely inflated appraisal provided by Robinson, the charges allege.
The indictment seeks forfeiture of $3 million from the defendants. Arrest warrants were issued for all six, who will also be ordered to appear for arraignment at a later date.
The Government is being represented by Assistant U.S. Attorney Clifford Histed.
There are many, many real estate fraudsters in the city of Chicago. The thing that amazes me is that many continue to commit the same crimes for years before they are arrested. It is the same thing as if a bank robber’s identity is known but the FBI lets them continue to rob banks in order that they attain further bank robbery evidence. The mere fact that street gangs and con artists sit in offices waiting for their next victim is a sign of how ‘de-regulated’ logic and trust has eroded in the USA to a point where con artists and gangbangers are more protected than their victims. This country has turned into a free-for-all to rip-off everyone and anyone. Only the victims suffer the consequences of the crime by being financially devastated while the perp just waits for their next victim. Over and over, this process happens again and again in America because no legitimate checks and balances are put in place to stop the largest financial crime in modern history. All empirical evidence supports that mortgage fraud will continue at a steady rate and nothing will be done to rectify this situation at any point. This is not America anymore. This is a country where corruption and greed has allowed street gangs and con artists to be put in positions in which they can and do commit crimes against innocent people who are defenseless to protect themselves, BEFORE and AFTER they were ripped off.
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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