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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Some Sources require Registration.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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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. 
