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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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Account Executive Pleads Guilty To Role In Mortgage Fraud Scheme
Jarvis Fontenette, 37, an account executive for various lenders, has pleaded guilty to conspiring to commit mail fraud and wire fraud as part of a scheme to defraud Houston, Texas area residential mortgage lenders.
At the hearing before U. S. District Judge Kenneth M. Hoyt, Fontenette pled guilty to the conspiracy charge, admitting that he and co-conspirators devised and operated a mortgage fraud scheme which involved the recruitment of individuals/borrowers to purchase residential properties at or near 100% financing using their good credit and using loan officers at mortgage brokerage offices to furnish false and fraudulent information to the lenders. Once the lender funded the loans, money was withdrawn from the transaction and shared among the conspirators.
Fontenette worked as an Account Executive for various lenders for a period of time during the life of the conspiracy and was the Account Executive on various loans obtained fraudulently during 2003 and 2004 by co-conspirators Michael Goodson, Nancy Booth, and Leslie Tarrance, Sr. Fontenette used his position to assisted his co-conspirators in getting fraudulent loans approved by the lender and received kickbacks for his assistance.
In 2005 and 2006, Fontenette worked with loan officer Nancy Booth and home builder Les Tarrance, Sr., d/b/a Ultra Classic Homes, along with at least two other individuals to obtain fraudulent residential mortgage loans on two Ultra Classic Homes. The Uniform Residential Loan Applications and supporting documentation contained material false and fraudulent information concerning the Borrower’s income and ability as well as incentive to repay the loans. The income used to obtain the loans in the Borrower’s name was grossly inflated. Fontenette and his co-conspirators also created the false pretense that these houses were each being purchased as the Borrower’s primary residence. The same Borrower was used to purchase two additional properties. On both occasions, fraudulently obtained mortgage loans were used to purchase the properties through misrepresentations concerning the Borrower’s creditworthiness.
Fontenette, acting as the loan officer, also obtained a loan in the name of the borrower for his own residence intentionally misstating the borrower’s assets and liabilities on the loan application. On multiple occasions, Fontenette caused this same residence to be flipped into the name of a new borrower and fraudulently obtained a new loan each time the loan neared default so he could continue to live in the house without have the financial burden of making the mortgage payment.
The conspiracy to commit mail fraud and wire fraud carries a maximum penalty of 20 years imprisonment, and a $250,000 fine in addition to any restitution which may be ordered by the court. Sentencing has been set for Feb. 9, 2009. Fontenette has been permitted to remain on bond pending sentencing.
Goodson, Booth and Tarrance have all been convicted for their roles in the mortgage fraud scheme. Booth and Tarrance are pending sentencing and have a range of punishment up to 20 years imprisonment. Goodson was sentenced to 293 months imprisonment.
This investigation leading to the charges was conducted by the FBI and the United States Postal Inspection Service. The case is being prosecuted by Assistant U. S. Attorney Melissa Annis.
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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