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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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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.
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!
Jmporcalla is stupid. How could FANNY MAE give out loans to 30,000,000 that went into forclosures. Request a IRS form 4506-t mark choice 8 and see who really committed the fraud. it will say the lenders created the funds usingsthe sigature of the buyer. signiture is the creditor and the lender is the deptor! Google modern money mechanics and find out that the everyone is playing the game MONOPOLY fake money called FEDERAL RESERVE NOTES.
My father died in Dec. 2006 and a cousin was a part-time real estate agent. I had not seen him in years. He told my mother he had a buyer for her home. The buyer was a friend of his planning on flipping the property. After a quick close my mother moved in to our home to live with my husband and I. This same relative with in a years time of that sale was involved in our home sale. Thats when the fraud was discovered on my mothers home. On the HUD my mother’s home sold for 131,000. My cousin told my mother she would only receive 98,000. The HUD stated that my mother paid off her home 44,000 & paid 30,000 to a Development company(in which she did not and has no knowledge of). There was also an extra 6,000 listed with no explanation taken from her money and the Realty company also listed 2,500 taken for commisson with no perctage rate listed. I feel so bad for her after my dads death and living ther for more than 35 years.I have sent this to the Mn department of Commerce. No reply. If anyone could pass on some tips feel free to contact me. Thank you.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
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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.
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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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