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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Additional Defendant Charged In Hattiesburg, Mississippi Mortgage Fraud
A superseding indictment was filed in the case of US v. Lucas, the Hattiesburg, Mississippi mortgage fraud case that resulted in the indictment of ten people earlier this year.
The superseding indictment names one new defendant – Kenneth Fairley, Jr. who is alleged in the indictment to have acted as a nominal buyer for the purpose of obtaining mortgage loans for the purchase of property. Media sources indicate that Kenneth Fairley, Jr. and his brother and co-defendant, William Vaston Fairley the sons of the Rev. Kenneth Fairley, senior pastor of Mount Carmel Baptist Church and a Hattiesburg political activist.
Those charged in the original indictment and named in the superseding indictment are:
• Richard B. Lucas, alleged to be the controlling person for Lucas Development and Investments and its affiliates including C&J Properties, Southwest Trust Co., the Mellon Group, Lucas & Castle Properties and the Auto Marketing Group
• Phillip N. Weary, alleged to have been an employee of Lucas Development or its affiliates
• Kimberly Castle, Mississippi lawyer alleged to have handled real estate settlements for Lucas
• Kenneth Stalnaker, real estate appraiser doing business as Accurate Appraisals
• Loretta Joy Champ, real estate appraiser doing business as J&J Appraisal Services
• William V. Fairley aka Vaston, alleged to have been an employee of Lucas Development or its affiliates
• Jafus Jones Jr. , alleged to have been an employee of Lucas Development or its affiliates
• Kristy N. Packer, alleged to have been an employee of Lucas Development or its affiliates and a straw buyer
The superseding indictment charges all of the defendants with one count of bank fraud, one count of bank and wire fraud conspiracy and nine counts of wire fraud. Lucas, Castle and Weary were also charged with money laundering conspiracy.
Malcolm C. Clark, alleged in the original indictment to have been an employee of Lucas Development or its affiliates and Marcy R. Irby, alleged in the original indictment to have acted as a straw buyer, both pled guilty earlier this year and neither is named in the superseding indictment.
From December 2000 through November 2002, Lucas, Weary, William Vaston Fairley, Jones and others acquired distressed properties in Hattiesburg and Laurel, Mississippi and elsewhere. Lucas arranged to produced inflated appraisals for properties acquired in the names of Weary, William Vaston Fairley and Jones. Stalnaker, Champ and others prepared inflated appraisals. William Vaston Fairley, Kenneth Fairley, Jr., Packer and others submitted false mortgage loan applications to finance their purchase of properties from Weary. Lucas and Jones would recruit purported investors to acquire properties from Weary and others knowing that the investors would not be required to make any down payments. Lucas and Jones represented to potential investors that Lucas Development or its affiliates would lease the houses to tenants, collect the rents, make the monthly mortgage payments and handle all maintenance and repairs. Lucas caused mortgage loan applications to be made on behalf of the investors and on behalf of the nominal buyers, Packer and Kenneth Fairley, Jr., which falsely represented the income and assets of the borrower.
Castle would conduct the real estate closings knowing that the borrowers routinely did not make the down payment reflected on the settlement statement. Lucas would prove funds due from borrowers at settlement.
The indictment identifies transactions involving loan proceeds of almost $600,000.
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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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