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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Dossey Richards, 36, Atlanta, Georgia, Lovie Hobbs, a/k/a Lovie Hobbs Hagwood, 47, Lithonia, Georgia, Montra McKenzie, 29, Atlanta, Georgia, Cyrus Davis, 42, Atlanta, Georgia, Marcus Vickers, 35, Ellenwood, Georgia, Rayshuan Harmon, 27, East Point, Georgia, and Michelle Davila, 35, Atlanta, Georgia, have been arrested on a federal criminal complaint related to a mortgage fraud scheme.
According to United States Attorney David E. Nahmias and the information presented in court: The complaint alleges one count of conspiracy to commit wire fraud based on a mortgage fraud scheme. Participants in the alleged fraud included Dossey Richards, the owner of ”Red Hair Investment Group, LLC,” Marcus Vickers, d/b/a ”Title Depot of America,” a closing attorney in the Atlanta area; Montra McKenzie and Cyrus Davis, both mortgage brokers in the Atlanta area, Michelle Davila, an employee of Wachovia Bank, and Rashuan Harmon, who provided fraudulent appraisals as a part of the scheme. In addition, Lovie Hobbs, accused of being a straw buyer, is an employee with the Internal Revenue Service (IRS) in Atlanta.
The properties that are the subject of the charges are units in the ”Blue Sky” condominium complex located at 3106 Memorial Drive, Atlanta, Georgia. It is alleged that the persons named in the criminal complaint conspired to defraud certain lenders by inflating the value of units at Blue Sky.
The fraudulent transactions outlined in the complaint occurred between March and May of 2008. The complaint alleges that the current listings of 25 units in the complex range in price of between $2,000 and $28,750, however, the inflated sales prices used to fraudulently obtain inflated loans were between $135, 000 and $155,000. The participants charged include the property owner/seller Dossey Richards as well as the straw buyer/borrower Lovie Hobbs. As in most mortgage fraud cases, prior inflated loans obtained for units in Blue Sky have gone into foreclosure, causing losses to the victim lenders.
United States Attorney David E. Nahmias said, “This is unfortunately another in a long series of major mortgage fraud cases in metro Atlanta. In this case, an entire condominium complex was gutted by fraud and greed. And as we have seen too many times before, one of the defendants charged is a closing attorney, someone the victim lenders retained and trusted to protect them against such fraud, but who instead became a participant in it. Mortgage fraud will remain a high priority for federal law enforcement in North Georgia.”
FBI Atlanta Special Agent in Charge Greg Jones said, “Today’s arrests illustrate clearly that the crime of mortgage fraud involves people from all walks of life who unwisely choose to collectively use their various positions and skills to rip off banks or other lending institutions. Mortgage fraud is a complex and prevalent crime problem that the FBI is well suited to address and intends to do just that.”
The defendants each face a possible maximum term of 30 years in federal prison. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the FBI. Assistant United States Attorney Barbara Nelan is prosecuting the case.
THAT IS THE SAME THING THAT WAS DONE IN THE T/H COMPLEX I LIVE IN.ONE PERSON INVOLVED WAS AN ATTORNEY,ONE A PERSON WITH A BACKGROUND OF PHONEY COMPANIES SUCH AS SHADY OAKS THOROUGHBREDS.THIS PERSON SHOULD HAVE BEEN PUT AWAY LONG AGO.PEOPLE LIKE THIS STAY JUST LOW ENOUGH TO MAKE IT HARD TO PROSECUTE BECAUSE OF TIME AND MONEY. G.UBER USN RET.
Posted by on 06/19 at 11:50 AM
I was sent to this complex to do a BPO in March. Upon entering, I inhaled and immediately called the bank and refused the order. The stench of criminal activity permeated the air once I got out of my vehicle. It didn’t take long to recognize this met the definition of mortgage fraud. It was so apparent I started looking for hidden cameras and surveilance vans to see if someone was recording my actions.
I could say this as a positive - some of the laborers on site had concerns of fraud and the place has a really nice sign out front. Otherwise, it is a dump. I think crack/meth heads/alcoholic addicts and various urban adventurers would avoid this place to avoid getting arrested for mortgage fraud.
If you took this scenario and dubious characters and created it as a plot for a crime drama, I think Hollywood would reject this as too unbelievable.
Posted by on 06/21 at 04:02 AM
they try to get me being that i was from out of town wish that Dossey would get out so i can show him what i think about what he try to do to me
Posted by on 06/27 at 06:58 AM
Who should be notified if anyone is a victim of this scam and fraud?
Posted by on 06/30 at 09:15 AM
I used to work for Dossey in 2002-2003, finding potential properties to flip. He never paid me what he owed me. He deserves the maximum.
Posted by on 09/19 at 06:36 AM
Dossey is not a bad person, he just made some bad decisions. He is a generous and kind person. This is unfortunate but we all make mistakes.
Posted by on 12/09 at 07:04 AM
To “S”: When someone intentionally sets out to defraud someone else, “generous and kind person” does not come to my mind to describe them. This person went to great lengths to commit fraud, to rob and steal. He left many people holding $140,000 mortgages on property not worth $5,000. This goes beyond a “bad decision.”
Posted by on 12/09 at 07:22 AM
Please don’t misunderstand, I am not saying that he isn’t wrong for the things he did. He is. As the person I know, he is kind. We all have to suffer the consequences of our actions and he will as well. I think it is horrible that so many were affected by his decisions however,he is still a generous person whether you knew that side of him or not.
Posted by on 12/09 at 07:34 AM
Hey S,
Even tyrants have friends that see a kinder more generous side. That doesn’t make them any less of a tyrant. As someone that witnessed Dossey’s tyranny, I say he deserves the max!
Posted by on 12/13 at 11:13 AM
Whom should we informed if anyone is a victim of this scam and fraud?
Posted by on 02/11 at 11:17 PM
To Avandia Lawyer: Take it from me, it doesn’t matter that you were a victim. The mortgage company that financed Dossie did so under fraudulent circum-stances but they’re still going to hold you liable for the amount of the loan even though the docs were embellished and they have no appraisal report.
Posted by on 02/12 at 07:51 AM
Superceding indictment february 2009 makes a total of 16 defendants, including 4 appraisers and a variety of mortgage brokers. Of note is the indictment of lawyer C---------- K-----, whose name keeps cropping up in these fraud cases. see, Pinnacle Development fraud (Gene O’Neal; $22mil in losses to 1900 investors). Here he was (allegedley)closing deals, disbursing the loan funds to fraudsters, and then a week later getting the “borrower’s funds to close” back from a fruadster
Posted by on 03/10 at 08:01 AM
To all of the buyers to bought from Dossey Richards..
First and Foremost:
I do apologize that yal were scamed however you all are GROWN ASS ADULTS THAT SIGN CLOSING DOC’S AND IM SURE YOU WAS AWARE OF THE UNFINISHED UNIT(S) FROM THE BEGINING..MY ADVICE TO ALL DONT JUST TRY TO BE A INVESTOR BECAUSE YOU HEAR YOU WILL BE RECEIVING MONEY BACK AND WHEN THE DEAL DIDNT GO THE WAY YOU WANT THEN ALL THE BUYERS WANT TO BAD MOUTH THE SELLER..U SHOULDNT BEEN SMARTER FROM THE JUMP AND REMEMBER ALL MONEY AINT GOOD MONEY AND PLEASE DONT TRY TO BE A INVESTOR WITH YOUR OWN MONEY AND HAVING KNOWLEDGE!!!
Posted by on 03/25 at 11:18 PM
Dosey is a scum bag. I helped him buy some homes years ago when he was an Investor. I later found out he was scamming people and I cut all ties with him. He is a fast talker. I feel bad for his Girl friend and Baby. She only thinks he will get a slap on his hand.. LOL
Today 4/23 he is in trouble again for credit repair fraud in GA.... He will never learn 30yrs!
Posted by on 04/23 at 05:09 PM
I’m related to him he is a nice guy but he’s a scammer he ripped off people in our own family but when he came to me with this scam years ago me and my father was the only ones who said hell no there is no such thing as easy money except the lottery!The person above said something right which is a fool and his $ will soon seperate all these people deserve what they got they were greedy D.J came a long way from sellin crack to mortgage fraud he just got greedy,BUT any sane person knows there is no way to repair credit and if you never look at a property and buy it you are a DAMN FOOL and deserve what you got and he will serve many years I will miss him he was a cool cousin to me anyway but I knew to never do buisness with him because I knew where he came from and what he used to do too bad his customers did not I only feel sorry for his baby not his girl cause she was stupid too I’m a realist and his customers should have looked into him more thanks to having street smarts he never con me!
Posted by on 04/23 at 06:04 PM
It is so embarassing to know that i worked for him for a month.I am very glad none of my friends bought from blue sky. However, people were drawn in by the fact they would get money back at closing. also by the promises that the mortgage would be paid until the property was rented out. remember if it is too good to be true it probably isnt true. The buyers saw what was in front of them. we had barbecues at blue sky and only two units were completed. there was downed power lines in the parking lot and the other units were condemned. If you decided to buy an incomplete unit you were a damned fool. secondly who the hell wants to live in an apt that was for sell for 155,000 that used to be a project any way? Now the whole buildings are listed for 4000.00. Now the units he sold in auburn area were very nice and legit. he just got greedy and out of control. he is no different than the caucasians that have done this. look at enron,tedoff,and everyone else. tedoff took billions of peoples retirement money and truly destroyed lives.we need to pray for all of these criminals and hope that they see the error in there ways. I feel sorry for his older son and his baby son. I feel sorry for his greed.
Posted by on 04/23 at 06:21 PM
I used to work under him as well back in the day in the West End when he had a crib on Holderness. The good book says that some people can’t sleep until the do (evil)dirt and I guess that was Dossey. If he get 30 yrs that will be a wake up call, not sure if he has the gonads to survive in the pen. Don’t mock God, men reap what they sow. DJ I hope you can muster the strenght within to beat the demon out of you…
Posted by on 05/05 at 03:42 PM
I wonder what happened to the lady who worked in the office “closing the deals”?.. her name was newberry… Hmmm..
Posted by on 05/05 at 04:05 PM
I was one of the 16 defendants that stood trial. D Richards preys on the innocent and ignorant. He used people to get what he wanted. Some were truly victims and some knew about the scam for the quick money. I got to see first hand how he manipulated and was able to get eveyone to do what he wanted. I really regret the decisions I made dealing with him and his “people”. It has cost me alot. I was the only one found not guilty at trial. So now I begin to pick up the pieces. The lesson learned here is trust no one and ask questions, be nosy. Dossey will never be an upstanding and truthful man. If he was he would have told the FBI that I had no knowledge of his ring of thievery. I will pray for him.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
Couple Loses $850,000 in Alleged Ponzi Scheme Boston Herald
Al and Susan McIlvene of Kittery Point, Maine, can remember the exact moment in November when they realized they might lose their entire life savings of $850,000, reports the Portsmouth Herald.
Mortgage Fraud Charges Filed Against Former Bakersfield Realtor, Her father KGET.Com
A former Bakersfield real estate agent and her father face 15 felony counts each of money laundering, conspiracy and grand theft in connection with an alleged multi-million dollar mortgage fraud scheme, newly filed court charges show.
Witness: Mortgage Name Not the Same Clarion Ledger
A former Clinton homeowner was called to testify Wednesday as prosecutors to try to prove a Ridgeland-based mortgage broker and two associates were behind a $9 million mortgage fraud scheme.
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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