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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Joy Jackson, 40; her husband, Kurt Fordam, 38, Ft. Washington, MD; Jennifer McCall, 46; her husband, Clifford McCall, 47; McCall‘s daughter, Chandra Jones, 30; Wilbur Ballesteros, 32, all of Lanham, Maryland; Kurt Fordham‘s sister Katisha Fordham, 35, Washington, DC; Ronald Chapman, 33, Washington, DC, are charged with conspiracy to commit mail and wire fraud and 15 counts of mail fraud to obtain money and property from homeowners and lenders through their “foreclosure reversal” scheme. Jackson and Kurt Fordham are also charged with six counts of money laundering and Jennifer McCall, Clifford McCall and Chandra Jones are each charged with one count of money laundering.
According to the indictment from September 2004 through June, 2007, the defendants, operating through several companies, including the Metropolitan Money Store, controlled by Joy Jackson and Jennifer McCall, fraudulently promised to help homeowners avoid foreclosure, keep their homes and repair their damaged credit, by directing the homeowners to allow title to their homes to be put in the names of third party purchasers (the straw buyers) for a one year period, during which time the defendants would help the homeowners obtain more favorable mortgages, improve their credit rating and eventually return title to their homes to them. The defendants told the homeowners that the equity withdrawn from the properties would be used to pay the mortgage and expenses on their homes and to repair their credit.
In fact, the indictment alleges that the defendants: paid approximately $10,000 to each of the straw buyers to participate in the scheme; fraudulently bolstered the credit of the straw buyers so they could qualify for more favorable mortgages; obtained fraudulently inflated loans on the properties in the straw buyers names; stripped away the bulk of the homeowners equity proceeds and converted that money to their own personal use; and stopped making the mortgage payments on the homes, resulting in the homes being foreclosed upon. According to the indictment, the defendants used the proceeds of the scheme to pay their personal expenses including art, cars, fur coats, international trips, gambling expenses, jewelry, limousine services, student tuition and a luxury wedding for Jackson and Kurt Fordham.
As a result of the scheme, the indictment alleges that the defendants obtained over $35 million in fraudulent loans on over 100 homes and the homeowners suffered losses of over $10 million in stripped equity. The indictment also seeks forfeiture of $35,873,150 obtained as a result of the scheme, including 11 properties owned by the defendants.
The defendants all face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and each of the 15 mail fraud counts. Jackson, Kurt Fordham, Jennifer McCall, Clifford McCall and Chandra Jones also face 10 years in prison and a $250,000 fine on each count of money laundering. Joy Jackson and Kurt Fordham were arrested in Raleigh, North Carolina and had their initial appearances there. The remaining defendants are scheduled for initial appearances this afternoon in federal district court in Greenbelt, beginning at 2:15 p.m. Ronald Chapman has not been arrested and is still being sought.
“Homeowners who fall behind on their mortgage payments should be wary of con artists who claim that there is an easy way to avoid foreclosure,” said U.S. Attorney Rod J. Rosenstein. “Just as get-rich-quick schemes are usually fraudulent, get-out-of-debt-quick schemes are usually phony, too. The indictment alleges that the defendants used a ‘foreclosure-prevention’ scheme to cheat homeowners out of the remaining equity in their houses by transferring their homes to straw buyers. The defendants then defrauded lenders by inducing them to make new loans based on inflated appraisals and fraudulent credit applications.”
“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS Criminal Investigation is committed to pursuing individuals who commit these types of crimes,” said C. André Martin, Special Agent In Charge of the Washington Field Office.
“We are using every available tool in our regulatory arsenal to protect Maryland homeowners from fraud and other unscrupulous practices,” Secretary Perez said. “We appreciate the leadership of the U.S. Attorney in this case, and we look forward to a continued partnership with the federal government to ensure individuals who prey on distressed homeowners are brought to justice.”
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service - Criminal Investigation and the Maryland Department of Labor, Licensing and Regulation for their investigative work. Mr. Rosenstein commended Assistant United States Attorney James A. Crowell IV, who is prosecuting the case.
It is a great day for justice now that these two fugitives and their accomplices have been caught and indicted. After serving their sentences they should be made to repay every cent they stole from the people who were caught in their web of deceit and greed.
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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