Wednesday, February 06, 2008
Advance Fee Loan Scam Artist Sentenced
Larry Stallings, 55, Watauga, Texas, was sentenced to 160 months in federal prison after a jury convicted Stallings on two counts of wire fraud and one count of conspiracy to commit wire fraud based upon an advance fee loan scheme that Stallings ran from his residence in Texas.
On June 28, 2007, a jury found that the defendant and others, including the defendant’s son, Christopher Stallings, engaged in a scheme to defraud that began in early 2003 and ran until the defendant was arrested on October 27, 2005. The conspirators held themselves out, through advertising on the Internet and through referrals by so-called mortgage brokers, as individuals who had capital to lend to borrowers who could not obtain conventional financing. The conspirators required that the borrowers pay an advance fee of 10% of the amount of the loan so that an insurance binder could be purchased to protect against default by the borrowers. The Stallings told the buyers that the 10% advance payment would be refunded if the loan did not close.
During the course of the scheme, the conspirators collected over two million dollars in advance payments. Stallings spent most of the money on living expenses, the purchase of a $53,000 vehicle for cash and a $200,000 deposit on a $2.4 million dollar mansion.
A sentencing hearing for Christopher Stallings is scheduled for February 21, 2008. Michael Wyatt, another conspirator who was convicted after a trial in October 2007, is scheduled for sentencing on April 21, 2008.
U.S. Attorney Tom Colantuono stated, “The substantial sentence imposed on this defendant should serve as a warning to those who would engage in financial fraud through the Internet. Financial fraud causes the victim to lose more than just money. The fraud in this case had a devastating impact on its victims, who lost homes, businesses, and their reputations. This office is committed to prosecuting those who would use the Internet to commit financial crimes.”
mortgage fraud
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24-7PressRelease.com - USA
US consumers looking to refinance their homes or to secure a home loan to purchase their dream homes would be well advised to educate themselves...
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Because she had title insurance, Kunda will probably get back her money from the 2007 purchase, but the incident highlights cracks in the real estate market and the risk from international scammers who are growing more sophisticated.
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Sarasota attorney John Yanchek is expected to plead guilty to mortgage fraud next week, statements from a federal prosecutor and the judge presiding over the high-profile criminal case seem to indicate.
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Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared with the year-ago period.
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In a state that leads the nation in mortgage fraud, Tampa had the second most cases of suspicious loan activity of any Florida city, according to a report released this morning from the Reston, Va.-based Mortgage Asset Research Institute.
Mortgage Fraud Jumps by 45% on Fewer Loan Applications in U.S., Per... MARI
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Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to "General Application Misrepresentation"
Seven Are Accused Of Identity Theft And Mortage Fraud
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Seven people have been arrested in connection with an international identity-theft scheme that targeted home equity lines of credit and siphoned at least $2.5 million away from dozens of banks, including more than 10 in New Jersey, according to documents unsealed today.
Suthers Cracks Down On Mortgage Fraud
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Suther’s office also indicted 10 individuals last March in an $11 million mortgage fraud ring involving 34 local properties...Several other investigations of mortgage fraud are ongoing.
Previous Articles
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
More Trial Coverage
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
