Friday, June 20, 2008
6 Indicted For Fraud In Operation Malicious Mortgage
Six people were indicted by a Federal Grand Jury in Seattle, Washington for Conspiracy and Wire Fraud in connection with an estimated $8.5 million mortgage fraud scheme conducted in 2004 and 2005. Those indicted include a lawyer (since disbarred), a former bank loan officer and a mortgage broker, as well as the owner of shell companies involved in flipping dozens of properties as part of the fraud. Some of the defendants will make their initial appearances in U.S. District Court in Seattle, including Robert Ernest Brandt, 40, the attorney who funneled money in the scheme through his client trust account.
According to the Indictment returned in the Western District of Washington, Brandt and William Anderson, 47, Bellevue, Washington, conspired with Mustafa “Marc” Khosraw, 46, Sammamish, Washington, Isaac Palmer, 42, North Bend, Washington, Kristyn Jupiter Moss, 38, Tacoma, Washington, and Zachary Joseph Namie, 30, Seattle, Washington, to defraud banks and other financial institutions using a mortgage fraud scheme. The conspirators would identify houses and would use shell companies or third parties to purchase the homes. At the same time they recruited straw buyers who would enter into a purchase agreement to buy the same home from the conspirators at an inflated price. The conspirators assisted the straw buyers with phony paperwork for the home loans, making it appear that they were qualified for the mortgage loans and planned to occupy the houses. Members of the conspiracy allegedly falsified numerous documents including appraisals, verifications of deposits, employment verification and closing documents. In fact, the conspirators simply split the proceeds from the fraudulent mortgages, and the straw buyers defaulted on the loans after pocketing as much as $20,000 for their fee. The homes were foreclosed and financial institutions and mortgage lenders suffered substantial losses.
The properties involved in the scheme as set forth in the indictment are:
7133 45th Avenue South, Seattle;
13039 6th Place South, Burien;
3513 SW Webster, Seattle;
2616 15th Street, Tacoma; and
8501 71st Street, Mercer Island, all of Washington.
The defendants served various roles in the scheme. Anderson operated SFN, LLC, and Sterling Investments—shell companies that initially purchased numerous properties. Anderson and Moss, then a loan officer for Viking Bank, allegedly created many of the false documents. Brandt and Anderson jointly ran a company called Escrow Authority, that closed the sales of the properties. Khosraw, a mortgage broker, and Namie, a loan officer with a mortgage company, allegedly created and submitted some of the false documents. Palmer operated a construction company called GMI Construction, and allegedly recruited straw buyers and falsely claimed that some of them worked for him.
The indictment was unsealed in conjunction with a nationwide emphasis on mortgage fraud as part of Operation “Malicious Mortgage.” From March 1 to June 18, 2008, Operation Malicious Mortgage resulted in 144 mortgage fraud cases in which 406 defendants were charged, convicted or sentenced. The national takedown of mortgage fraud schemes, is the culmination of substantial coordinated efforts during the last three and a half months to identify, arrest and prosecute mortgage fraud violators through the United States. Operation Malicious Mortgage highlights the strong enforcement response undertaken by the Department of Justice and its law enforcement partners to combat the threat mortgage fraud poses to the U.S. housing industry and worldwide credit markets.
Wire Fraud is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, King County Prosecuting Attorney’s Office and the Washington State Department of Financial Institutions (DFI). The case is being prosecuted by Assistant United States Attorneys Vincent T. Lombardi and Nick Brown.
mortgage fraud
I would like to know if Popular Mortgage Company 856-396-2600 is listed as a fruad company. I have a relative that was mislead by them and is in the process of lousing his home. He has lung cancer and cannot work, the house is not worth what they allowed (gave him a loan for).
Posted by on 06/20 at 12:04 PM
Does anyone know when this will go to trial? This is so wrong and I hope they find EVERYONE involved… which so far they have not charged EVERYONE involved!!!!!
Posted by on 05/13 at 09:48 AM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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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
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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
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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
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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
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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
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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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