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 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.
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.
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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