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
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.
Posted by
jmporcalla is stupid on 08/17 at 11:07 PM
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Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
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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 
