Friday, July 11, 2008
9 Indicted For Scheme Involving 13 Properties
Joy Johnson, 33, Vacaville, California, Cory Whalen, 33, Solano County, California, Elizabeth Carrion, 38, Vacaville, California, Lenin Galeano, 32, Vacaville, California, Carmen Galeano, 30, Vacaville, California, Angelito Evangelista, 39, San Francisco, California, Clarisa Ang, 43, Elk Grove, California, Cris Ang, 46, Elk Grove, California and Lydia Ang, 71, American Canyon, California, were indicted in connection with a mortgage fraud scheme involving the purchase of 13 real estate properties in Solano County, California in 2006. Each of the defendants was previously charged in a Criminal Complaint filed June 18, 2008, which complaint coincided with the Nationwide “Operation Malicious Mortgage” takedown. Several of the defendants are scheduled to be arraigned tomorrow afternoon before United States Magistrate Judge Edmund F. Brennan.
According to Assistant United States Attorney Courtney J. Linn, who is prosecuting the case, the indictment charges Elizabeth Carrion, Angelito Evangelista, Clarisa Ang, Cris Ang, and Lydia Ang with mail fraud arising out of their involvement in the fraudulent purchase of 11 real estate properties between May 2006 and September 2006. The indictment further charges Lenin Galeano, Carmen Galeano, Cris Ang and Clarisa Ang with making false statements to a financial institution in connection with the purchase of two additional real estate properties in April and May of 2006. Finally, the indictment charges Elizabeth Carrion, Angelito Evangelista, Cris Ang, Clarisa Ang, Cory Whalen, Lydia Ang, and Joy Johnson with engaging in monetary transactions involving more than $10,000 in criminally derived property.
The scheme involved purchasing properties at prices substantially higher than the list price without the lenders knowledge. They were entirely financed with so called 80/20 loans. The difference between the list price and the inflated sales price was then credited at the close of escrow to fictitious businesses controlled by the defendants and others. The defendants and others then used the credited funds mainly to make mortgage payments on the properties and for their own living expenses. In addition, the loan applications contained false information about income, personal assets, and intent to occupy the property as a primary residence. Most of the loans that were secured by the properties have either been foreclosed upon or are in default.
The maximum penalty for mail fraud is 20 years in prison, a fine of up to $250,000, or both. The maximum penalty for making a false statement to a financial institution is 30 years in prison, a fine of up to $1,000,000, or both. The maximum penalty for engaging in a monetary transaction involving criminally derived property is 10 years, a fine of up to $250,000, or both. However, the actual sentence will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables, and any applicable statutory sentencing factors.
This case is the product of an extensive investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the California Department of Real Estate.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
mortgage fraud
If proven guilty. These frauds should be made example of to the fullest extent of the law!
Posted by on 07/12 at 10:49 AM
If found guilty,these frauds should be mdae an example of to the fullest extent of the law!
Posted by on 07/12 at 10:52 AM
If found guilty, these frauds should be made example of to the fullest extent of the law.
Posted by on 07/12 at 10:55 AM
13 properties. What a joke! I know of a man who sold 130 properties in the St Joseph county of Indiana in a single year and he’s not even the one doing the most frauds! At one point I went through the first 21 houses held by Wells Fargo bank in this county and 15 of them I know were repoed do to this fraud. The astounding thing is that I can’t get Wells Fargo, or Deutsche bank for that matter, to return phone calls or certified letters.
www.MichaelAndrewThompson.com
Posted by on 07/13 at 09:34 AM
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Mortgage Fraud: Beware the Wolf (Loan Officer) in Sheep's Clothing
24-7PressRelease.com - USA
US consumers looking to refinance their homes or to secure a home loan to purchase their dream homes would be well advised to educate themselves...
Internet Scammer Sells Cape Coral Residential Lot For $18,000
The News-Press - Fort Myers, FL
Because she had title insurance, Kunda will probably get back her money from the 2007 purchase, but the incident highlights cracks in the real estate market and the risk from international scammers who are growing more sophisticated.
Prosecutors Busy With Fraud Cases
Daytona Beach News-Journal - Daytona Beach, FL
The U.S. Justice Department has formed more than 40 mortgage fraud task forces nationwide as prosecutors and investigators struggle with a flood of mortgage-related criminal cases. The FBI reports that its mortgage-fraud caseload has more than doubled in three years to about 1,600 investigations that have cost lenders at least $4 billion. About 200 FBI agents are assigned to the cases, up from 120 a year ago.
Yanchek may take plea deal
Herald Tribune
Sarasota attorney John Yanchek is expected to plead guilty to mortgage fraud next week, statements from a federal prosecutor and the judge presiding over the high-profile criminal case seem to indicate.
Bear Stearns Execs Trial Slated for September
News Inferno
Two former Bear Stearns hedge fund executives are slated to go to trial in September over charges that they lied to investors about two of the funds they managed
Rockford, Chicago lead state in mortgage fraud
Rockford Register Star
Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared with the year-ago period.
Report Finds Tampa No. 2 In Florida For Iffy Mortgages
Tampa Bay Online
In a state that leads the nation in mortgage fraud, Tampa had the second most cases of suspicious loan activity of any Florida city, according to a report released this morning from the Reston, Va.-based Mortgage Asset Research Institute.
Mortgage Fraud Jumps by 45% on Fewer Loan Applications in U.S., Per... MARI
Cloud Computing Journal
Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to "General Application Misrepresentation"
Seven Are Accused Of Identity Theft And Mortage Fraud
The Star Ledger, New Jersey
Seven people have been arrested in connection with an international identity-theft scheme that targeted home equity lines of credit and siphoned at least $2.5 million away from dozens of banks, including more than 10 in New Jersey, according to documents unsealed today.
Suthers Cracks Down On Mortgage Fraud
Rocky Mountain News - Denver, CO
Suther’s office also indicted 10 individuals last March in an $11 million mortgage fraud ring involving 34 local properties...Several other investigations of mortgage fraud are ongoing.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
