Tuesday, July 01, 2008

Additional Indictments Announced In Illinois

Anthony Matthews, 38, Chicago, Illinois, who owned and controlled Express Mortgage, located at Wabash Street and Western Avenue in Chicago, was charged with one count of wire fraud in a criminal information. Between 2003 and 2006, Matthews allegedly schemed to fraudulently obtain more than $1.1 million in mortgage loan proceeds from various banks and lending companies, which ended up losing approximately $400,000 because the loans were not repaid and the lenders were unable to recover the balances due by foreclosing on the residences in Chicago, Illinois. As part of the scheme, Matthews allegedly prepared loan applications containing false information, including inflated employment income and personal savings, and documents supporting these false representations, to induce lenders to approve loans for prospective buyers who were not otherwise qualified. Matthews allegedly provided a co-schemer with false information to create false wage statements, bank statements and pay stubs to support the false loan packages that were submitted to lenders through Express Mortgage.

The charges also seek forfeiture of $400,000. The case is part of the This Old House investigation conducted by the IRS Criminal Investigation Division and the Chicago Police Department. The Government is being represented

by Assistant U.S. Attorneys Egan and Getter.

Twelve defendants, including five loan officers and an attorney, were charged in a 20-count fraud and identity theft indictment. Between January 2003 and November 2005, the defendants allegedly fraudulently obtained more than $3.2 million in mortgage loan proceeds from more than a dozen lenders by submitting false loan applications for 17 fraudulent transactions involving residences located in Chicago. Defendant Freddie Johnson, 39, Chicago, Illinois, also known as ”Shelton Williams,” ”Ramon," ”Terry," and ”Knucklehead," orchestrated the deals in which co-defendants using stolen and fraudulent identities appeared at staged real estate closings as the purported buyers, sellers and their representatives to obtain the loan proceeds “paid” to the purported sellers and their nominees, according to the indictment.

Johnson allegedly arranged the fraudulent real estate transactions without the actual homeowner’s knowledge or consent. After the transactions closed, Johnson and his co-defendants obtained the loan proceeds that were paid to the imposter sellers, the indictment alleges, adding that the purported buyers in the deals then did not make mortgage payments and defaulted on the loans. Johnson allegedly recruited and paid defendants Marilyn Rainey, 60, Chicago; Willie Collins, 76, Chicago; Brandy Amos, 26, Chicago; and Ernest Preston, aka ”Richard Preston,” to pose as buyers, sellers and their purported representatives in the bogus real estate deals that he arranged. Rainey, Collins, Preston and defendant Khadija Mumin, aka ”Erica Smith,” 34, Chicago, allegedly cashed “sale” proceed checks that were fraudulently obtained.

Johnson, together with five loan officers for various mortgage companies, co-defendants Robin Yancy, 39, Philadelphia and formerly of Chicago, Illinois; Qiana Bishop-Oyedepo, 29; Owen Pittman, 34, Chicago; Jennifer Richardson; and Leandre Burnett, 31, Elmhurst, allegedly knowingly prepared and submitted and caused to be prepared and submitted to lenders false loan applications and supporting documents in the names and on behalf of purported buyers using stolen and false identities. These documents included false appraisals and verifications of employment and rent, as well as false statements that the proposed buyer would occupy the home as his or her primary residence and failing to reveal that the buyers were simultaneously seeking or had obtained loans on additional residences from other lenders, according to the indictment.

Defendant Lorie Westerfield, 43, Chicago, Illinois, an attorney, allegedly handled some of the fraudulent transactions that she knew Johnson had arranged and also acted as a title company closer for some of the fraudulent deals. Bishop-Oyedepo, Preston and Mumin were arrested yesterday and released on their own recognizance. Johnson, Rainey, Collins and Richardson are in federal custody, and the remaining defendants were arraigned on June 26 in U.S. District Court.

The investigation was conducted by the FBI and the Secret Service. The Government is being represented by Assistant U.S. Attorney Joel Hammerman.

Six defendants, including a home renovator, an attorney, a mortgage broker and two appraisers, were charged with mail and wire fraud in a 10-count indictment unsealed yesterday for allegedly participating in a scheme to fraudulently obtain more than $11 million in mortgage loans and proceeds from those loans totaling more than $4.2 million, which is subject to forfeiture, for themselves and others.

Robert Brunt, 41, Chicago, Illinois, president of Genesis Investment Group, Inc., which purported to engage in the renovation and sale of residential properties; Tracey Scullark, 40, Chicago, a sales agent for Genesis; John Farano, 46, Palos Hills, an attorney who handled certain real estate closings for Brunt and Genesis, and also operated Big Dog Holdings, Inc., BD Financial Group and Capital Acquisitions, through which he provided funds to finance the purchase of properties by Brunt and Genesis; Armani D’Aifallah, 36, Chicago, a mortgage broker; Walter Jackson, 34, Chicago; and Douglas Blanchard, of Chicago, both of whom provided real estate appraisals.

According to the indictment, between 2002 and 2004, Brunt, Tracey, Scullark, Farano and another individual acquired and caused to be acquired residential properties in Chicago, Illinois, often in economically-depressed areas that were in need of extensive rehabilitation work, with the intent of quickly reselling the properties at fraudulently and grossly inflated prices for a profit. Farano and another individual provided funds to purchase the properties.

As part of the scheme, Brunt, Scullark and others recruited unqualified buyers for the resale properties, enticing them with promises of “no money down” and “cash back at closing,” together with false promises of making prompt renovations and repairs. The straw buyers either agreed to use their identities for a fee, or in some cases did not know that their identities were being used to

purchase residences far in excess of their fair market value or based upon fraudulent appraisals. To induce the purchases, Brunt allegedly performed cosmetic improvements to disguise the true nature of the property. Jackson and Blanchard completed false appraisals representing that the properties had been improved, knowing that they had not been renovated or the changes were only cosmetic, the charges state.

The buyers signed documents at closings they had never seen, allegedly at the urging of Brunt, Scullark, Farano and another individual, who promised to and sometimes made several monthly payments on the buyer’s mortgage to prevent a first payment default. After the closing, Brunt and another individual made mortgage payments for several months and then resold the property to yet another buyer at an inflated price so that the proceeds could be used, in part, to satisfy the earlier mortgage obligation, according to the indictment.

Brunt, Scullark and Jackson have been arrested, and Brunt remains in federal custody pending a detention hearing tomorrow. The other three defendants will be arraigned at a later date.

The investigation was conducted by the IRS Criminal Investigation Division, the Department of Housing and Urban Development Office of Inspector General, and the Drug Enforcement Administration. The Government is being represented by Assistant U.S. Attorney James Kuhn.

Charles White was added as a defendant and charged with seven counts of wire fraud in a 17-count superseding indictment returned last month. White and co-defendant Norton Helton, a Chicago, Illinois, lawyer who was first charged in 2006 with bankruptcy fraud, allegedly schemed to fraudulently obtain more than $1.6 million in mortgage loans through a so-called “mortgage bailout” program. Between August 2004 and September 2005, they allegedly perpetrated a “rescue fraud”

scheme, preying on financially-distressed homeowners facing foreclosure by persuading them that they could avoid such action by selling their homes to a relative, friend, or a paid third-party investor for whom they fraudulently obtained mortgage financing.

Both men have pleaded not guilty in U.S. District Court.

White owned and operated Eyes Have Not Seen, Inc. (”EHNS”), located at 800 South Wells St., Chicago, which offered a mortgage bailout program that would purportedly prevent homeowners from losing their homes in foreclosure, and he was an owner of Title Zone L.L.C., which provided escrow and closing services for real estate transactions involving EHNS. Helton owned and operated Diamond Management located at 1657 North Halsted St., Chicago, through which

he offered homeowners a similar rescue fraud program that would purportedly prevent them from losing their homes in foreclosure.

According to the indictment, White and Helton submitted and caused to be submitted to various mortgage lenders, false loan applications and real estate closing documents, enabling them to obtain fees totaling at least $390,000 through ENHS and Diamond Management from the sale of the nine clients’ homes. The defendants then encouraged their clients to retain Helton to file a Chapter 7 bankruptcy case in which the clients concealed their recent residential sales. White allegedly caused EHNS representatives to persuade clients to sell their homes to investors by assuring them that the investors would hold their homes while they attempted to eliminate their debt and repair their credit. As part of the scheme, the indictment alleges that White caused EHNS representatives to persuade clients that they would be able to live in their homes rent and mortgage free for one year, after which they would have the right to repurchase their homes, if financially able to do so. Through ENHS, White withdrew significant amounts of equity from the sale of clients’ homes at the time of closing, it adds.

The investigation was conducted by the FBI, the Department of Housing and Urban Development Office of Inspector General and the Postal Inspection Service. The Government is being represented by Assistant U.S. Attorney Hammerman.

Jonathan Hon, 37, Ottawa, Illinois, who bought and sold real estate, including seven homes in Chicago, Oak Park and River Forest, Illinois, and was a principal of Burnham Mortgage, Inc., was indicted on 11 counts of mail and wire fraud for allegedly obtaining approximately $2.5 million in fraud proceeds.

The indictment alleges that Hon used straw purchasers to defraud lenders, title companies, lien holders and banks in 2002 and 2003 by submitting fraudulent loan applications on their behalf through Burnham Mortgage to lenders. Hon allegedly knew that these individuals were not bona fide purchasers and would not make loan payments, but instead were nominees through which he would continue to control the seven properties. Hon submitted loan applications containing false statements, knowing that the straw purchasers would not reside in the homes, that he would provide the down payment funds, and that the lenders would rely on these misrepresentations, the charges state.

According to the indictment, Hon fraudulently obtained approximately $570,000 in mortgage loan proceeds in the form of title company checks payable to himself or a nominee as seller of the properties, and approximately $1.9 million in loan proceeds in the form of title company checks payable to lien holders, including financial institutions. The indictment further alleges that Hon fraudulently obtained approximately $200,000 in Section 8 housing assistance payments from the U.S. Department of Housing and Urban Development, by falsely representing that he owned rental properties occupied by tenants entitled to Section 8 support, knowing that, in fact, he had sold all the properties and was not eligible to receive the federal assistance payments.

The investigation was conducted by the FBI and the Department of Housing and Urban Development Office of Inspector General. The Government is being represented by Assistant U.S. Attorney Brian Netols.

Jeff Trochowski, 41, Somonauk, Illinois, owner of Lakeshore Financial Corp., a licensed mortgage broker, and Greg Sarwa, 39, who owned properties in Chicago through PGN, Inc., and Kee Builders, Inc., were each charged with one count of wire fraud in a criminal information. They allegedly schemed to obtain approximately $757,500 in fraudulent loan proceeds between 2001 and

2003, including for the purported sales of four basement condominiums in the 3200 block of West Polk Street that did not exist, as the basement had no plumbing and no interior walls separating the area into units.

The information alleges that Sarwa transferred those properties and others in Chicago to nominees and Sarwa and Trochowksi, together, obtained loans secured by those properties that exceeded their value by making false representations to the lenders about the nominees and the property values. Sarwa allegedly received the proceeds of the fraudulently obtained loans and Trochowski received fees totaling $23,145 for brokering the fraudulent loans, the charges state. The charges seek forfeiture of $713,668.

The investigation was conducted by the FBI. The Government is being represented by Assistant U.S. Attorney Margaret Hickey.

Mario A. Carroll, 45; Robert E. Louis, 59; Lashon Daniels, 35, a loan officer for American Street Mortgage; all of Chicago, Illinois, were charged with one count each of bank and wire fraud, and

Cecilia J. Edwards, 37, Chicago, Illinois, was charged with one count of wire fraud for their alleged roles in obtaining a total of approximately $600,000 in fraudulent mortgage loan proceeds involving the completely fictitious sales of two residences in Chicago without the knowledge of the true owners.

According to the indictment, in late 2007, Carroll, Louis and Daniels recorded a quit claim deed bearing the forged signatures of the true owners of a residence in the 700 block of North Drake Street, Chicago, Illinois, purporting to transfer the residence to Carroll. In return for a promise of $40,000 if the loan was approved, Daniels allegedly agreed to submit a false loan application to obtain financing for an unnamed individual who had no knowledge of the application to purchase the home from Carroll for $335,000. Carroll agreed to falsely pose as the seller at the closing on the Drake Street home in return for a promise of 10 percent of the proceeds, while Louis agreed to falsely pose as the buyer in return for a promise of $15,000 from the proceeds, the charges allege.

About the same time, those three defendants plus Edwards were allegedly involved in a similar scheme to hijack a home in the 1800 block of South Kedzie, Chicago, Illinois. Edwards allegedly agreed to falsely pose at the closing as the seller, while Louis agreed to falsely pose as the buyer in the purported $350,000 transaction. Following the closing, at which a check for more than $317,000 representing the loan proceeds was obtained, Carroll, Louis and Edwards allegedly traveled to a

currency exchange to cash the check and obtained the proceeds over the next few days.

The investigation was conducted by the Department of Housing and Urban Development Office of Inspector General and the Secret Service. The Government is being represented by Assistant U.S. Attorney Rick Young.

Julius Macklin was charged with wire fraud and using a false identification document for allegedly using an alias and a minor’s Social Security number without authority to fraudulently obtain primary and secondary mortgages on two properties – one in Chicago Heights and the other in Matteson, Illinois – and a line of personal credit, altogether totaling $324,000, from lending companies.

Macklin, also known as ”Julius Heart,” 43, Matteson, Illinois, was arrested on May 10 and remains in federal custody. He pleaded not guilty last week to a five-count indictment.

According to the indictment, in 2005, Macklin used his alias and the minor’s social security number to apply for a $100,000 primary mortgage and a $25,000 secondary mortgage on a residence in Chicago Heights. In 2006, he allegedly used the same false identification to apply for a $151,200 primary mortgage and a $37,800 secondary mortgage on a residence in Matteson. In 2007, Macklin fraudulently applied for a $10,000 personal line of credit, the charges allege.

The investigation was conducted by the Secret Service. The Government is being represented by Assistant U.S. Attorney Bethany Biesenthal

A South suburban couple was charged with various counts of bankruptcy and wire fraud for allegedly scheming between 1996 and 2006 to fraudulently obtain more than $2.4 million in mortgage loans from various lenders. The defendants, Steven Sturdivant, 48, and his wife, Yasmeen Sturdivant, 54, also known as ”Yasmeen Kahn,” were charged in a six-count indictment returned in March, 2008. Both have pleaded not guilty.

According to the indictment, the couple owned personal residences in Dolton and Crete, Illinois, and two properties in Chicago, Illinois, that they leased for rental income. They allegedly misrepresented their income, assets, debts and liabilities, as well as the purchase price for the properties and the down payments they provided to the sellers. The defendants also inflated the purchase prices of the rental properties to the lenders to increase the amounts of money they could borrow, the charges allege.

Steven Sturdivant is in federal custody while his wife was released on bond.

The investigation was conducted by the Department of Housing and Urban Development Office of Inspector General. The Government is being represented by Assistant U.S. Attorney Brandon Fox.

mortgage fraud

1. Lender Police at www.lenderpolice.com seems to have taken care of the mortgage lender loan fraud problem for Borrowers, Closing Agents, Mortgage Lenders, and Real Estate Agents.

   Always use Lender Police after you apply for a mortgage loan.  They’ll tell you if your lender is giving you a good deal or not in one of two ways.  You can purchase a good faith estimate review for $99 that will tell you if the interest rate, points, fees, and rebates you’re being charged is appropriate for your situation.  The loan document review for $199 verifies that the loan documents that you’re signing are for the same loan that you were quoted and your lender didn’t slip in any extra points, fees, pre-payment penalties, or is receiving a lender rebate for selling you a higher interest rate than you qualify for.

   A mortgage loan evaluation from Lender Police is the only way to guarantee you lender isn’t trying to rip you off.

   Posted by  on  07/02  at  06:23 AM

2. Pg.1.)

   …………………………………………………………………………………………………………………
   MORTGAGE FRAUD, MOTGAGE FRAUD, MORTAGE FRAUD, MORTGAGE FRAUD,
   ……………………………………………………………………………………………

   ENGLISH:

   This is important information regarding the practice(s) of one Annette Norton, of Aurora, Illinois. The matter involves both identity theft, mortgage application deception(s) and other fraudulent practices, on the part of this employee of Washington Mutual.

   To date, only some of those individuals targeted, in the past (indentified here), have been able to be contacted; in order to alert them to the need for them to check both their credit reports for erroneous entries, and financial information, in general.

   Also, anyone may use the contact information provided here, in order to allow for these and any other persons to personally contact www. WaMu.com, for purposes of assisting with the investigation of the wrongdoing.

   Home Equity and Personal Account Information:  (800) 788-7000
   (888) 800-8738
   …………………………………………………………………………………….

   SPANISH:

   Ye para todos cual saber ante estas gente, estas importante informacion con respecto a las a practicar anto uno Annette Norton, ante Aurora, Illinois.

   Los material acerca ambos robo ante financiero propio informacion hipteca aplicacion impropio.

   Hastaenora Annette Norton, colaborador ante Washington Mutual Hipteca Compania.

   Pora data, singular unas ante esos individuo meta es nombre aqui - en lo pasado un pocos poseer contacto, adentro a alerta les ante el necesitar para cheque su credito reportaje pues desperfectp exposicion.

   Tombien, vinculo informacion es donar a caber persona victima anto banditos, presura rapido.

   WWW. WaMu.com, por favor, assitir con investigacion anto impropio actus.

   Asilo ahorro, cassa e personal calculo informacion ….

   Seccion: (800) 778-7000
   (888) 800-8738

   Pg. 2.)

   Likely victims of “fraudulent Mortgage practices”:
   (Presumible sacrificios anteo “hipoteca fraude, sequir”):

   1.) Ms. Kate Simmons … (708) 357-3455 >

   2.) Mr. Thomas Etherly … (708) 343-1337 >

   3.) Miss Carolyn Hart … 223-8934 >

   4.) Mr. & Mrs. Wood … 442-5519 >

   5.) Mr. & Mr. Smith … (847) 288-1610 >

   6.) Mr. .Paul Harmentor … 373-1437 >

   7.) Ms. Bertha Gorden … 681-5076 >

   8.) Mr. & Mrs. Calhoun … 386-3020 >

   9.) Mrs. Carla Jackson …. 649-9129 >

   10.) Ms. Stephanie Reed … 223-8715 >

   11.) Mr. & Mrs. Cecil Thomas … 449-1033 >

   12.) Miss barbera Madlock … 865-7033 >

   13.) Rev. M. Louise ….  865-7032 >

   14.) Mr. Bennett Adams … 938-5446 >

   15.) Mr. Trevor Griffin …. 345-8125 >

   16.) Ms. Stacey Rivers … 223-8032 >

   17.) Mr. Gilda Lilder … (708) 343-3039 >

   18.) Ms. Ava Smith … (708) 202-2145 >

   19.) Mr. & Mrs. Mitchell ....  466-6497 >

   20.) Mrs. Bradey ….  344-6232 >

   21.) Mr. & Mrs. Jose Alverez … (708) 466-6997 >

   22.) Mr. & Mrs. Julio Gomez … 547-7354 >

   23.) Miss C. Bowman ….  562-0798 >

   24.) Mr. & Mrs.  Juan Gonzalez “Now Unlisted ” >

   Pg. 3.)

   25.) Mrs. Guadilupe Fernandez … “Now Unlisted”>

   26.) Mr. & Mrs. John Bradley …. 687-2917 >

   27.) Miss Lucillea Lovely ….  681-2918 >

   28.) Mr. & Mrs. J. Sanchez …. (630) 541-1108 >

   29.) Mr. Sammy Wallace …..  345-0345 >

   30.) Ms. Seymore …..  344-7673 >

   31.) Mr. & Mrs. Flores ….  419-1902 >

   32.) Miss Flowers …….  (630) 983-8676 >

   33.) Mr. Carlos Mardios …..  (708) 482-3842 >

   34.) Ms. Phyllis Trotter ….  (630) 451-1419 >

   35.) Ms. Paula Johnson ….  343-9045 >

   36.) Mr. Conrad Jones …..  (847) 260-7214 >

   37.) Mr. Nevils Caldwell … 216-7050 >

   38.) Mr.& Mrs. Juan Hernadez ..  366- 3589 >

   39.) Mr. Theodore Blackwell …..  223-0774 >

   40.) Ms. Francine Adams …..  “Unlisted now” >

   41.) Mr. Andre Hart …..  223-8934 >

   42.) Ms. Terri Strong …..  496-8018 >

   43.) Mr. Juachim Bradshaw …..  771-5741 >

   44.) Mr. & Mrs. Julio Adeo… (312) 793-7210 >

   45.) Ms. Fran Thompson …… 547-0264 >

   46.) Ms. Christina Chase… (847) 451-9486 >

   47.) Ms. V. Ballet … 547-6094 >

   48.) Mr. Charles Palmeroy … (630) 238-1642 >

   49.) Mr. J. Martinez … “Presently, Unlisted >

   Posted by  on  07/03  at  04:02 PM