Monday, June 23, 2008
9 Californians Charged In Cash Back Scheme
Nine defendants were charged by with mail fraud, money laundering, and related offenses in connection with a “cash back to buyer” mortgage fraud scheme that occurred between May 2006 and September 2006. The defendants charged are:
Joy Johnson, 33, Solano County, California;
Elizabeth Carrion, 38, Solano County, California;
Lenin Galeano and Carmen Galeano, 32 and 30, husband and wife, Solano County, California;
Angelito Evangelista, 40, Solano County, California;
Clarisa Ang and Cris Ang, 43 and 46, husband and wife, Solano County, California;
Lydia Ang, 71, Cris’ mother, Solano County, California; and
Cory Whalen, 31, Solano County, California.
The defendants purchased 12 houses in Solano County, California. In all but one of the transactions, the real estate agent was Johnson. The real estate transactions were designed to allow the sellers to credit defendants “money for repairs” at the close of escrow. The purchase prices were substantially inflated from the list prices, and the increases were then credited at the close of escrow to fictitious businesses controlled by the defendants. The defendants by and large did not use the funds they received for repairs on the properties. Instead, the funds were used to pay the mortgage payments on the properties and for living expenses. In addition, the loan applications contained false information about employment, income, assets, real estate owned, and/or occupancy status. Eleven of the homes have either been foreclosed upon or have had notice of defaults recorded against them. The amount of loss attributed to these defaults has not been determined, but it is anticipated the lenders will sustain losses in excess of one million dollars. This case was investigated by the FBI and IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Courtney Linn.
The properties listed in the Criminal Complaint are:
142 Virginia Street, Vacaville, California;
701 Camellia Way, Vacaville, California;
206 Arbor Street, Vacaville, California;
254 Newport Circle, Vacaville, California
1889 Buena Tierra Street, Vallejo, California;
429 Valle Vista, Vallejo, California;
301 Campbell Avenue, Vallejo, California;
909 Hargas Avenue, Vallejo, California;
21 La Cruz, Benicia, California
337 East T Street, Benicia, California.
mortgage fraud
For everyone who voted yes on the poll on the bottom of this page that asks,
“Can a borrower legally get cash back at closing of a purchase money mortgage? “
I hope you all start to realize that the correct answer is No!
Posted by on 06/23 at 10:49 AM
Thats not true Bob. Only if its disclosed to the lender on (HUD) and of course the lender agrees! Its fraud when you cover it up…
Posted by on 06/23 at 03:29 PM
Greedy theives, I hope they get 10-25 years, especially the mother Lydia Ang,. I also love the way the brothers turned on each other. Hum, sounds like a novel in the making. I’m so glad they were caught, few of their statements and comments are unreal. Again, I hope they get at least 10 years.
Posted by on 08/30 at 04:40 PM
I think the brother who owned Rare Management took advantage of his brother’s creditline who was the STAW PURCHASER trying to help him out by jumpstarting Rare. Imagine he lived in his brother’s house paid half of the rent, ran the business using proceeds coming from purchased homes. When the Feds came, he turn on his brother. Never lend your credit with family!
Posted by
steve on 10/04 at 06:55 AM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
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...
Previous Articles
|
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.
More Trial Coverage
|
|
|
|
|
|
|
|
|
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. 
