Wednesday, March 14, 2007
Appraiser Pleads Guilty in New Jersey Affordable Homes Mortgage Fraud Case
Michael Meehan, 47, Bellmar, New Jersey, pleaded guilty to a one-count Information which charges him with conspiracy to commit wire fraud for creating and submitting to various mortgage lenders materially false and misleading property appraisals in the names of nominee buyers.
Meehan is the fourth defendant associated with N.J. Affordable Homes, Inc. (NJAH) to plead guilty in connection with the mortgage fraud scheme. NJAH, Perth Amboy, New Jersey, purported to be in the real estate financing and investment business. The company first came under scrutiny of the U.S. Securities and Exchange Commission, which obtained a restraining order against the company in September 2005. NJAH subsequently was ordered into receivership and then bankruptcy by a federal judge.
At his plea hearing, Meehan admitted that from March 2003 through September 2005, at the direction of NJAH’s appraisal coordinator, he participated in a conspiracy to defraud various mortgage lenders by submitting materially false and misleading property appraisals. The appraisals materially overstated the value of the properties and falsely claimed that the properties had substantial improvements, such as new windows, bathrooms, siding and plumbing and electric systems, Meehan admitted.
In many cases, Meehan did not even visit the properties in question, he admitted. For example, in one appraisal Meehan stated the property had numerous improvements, which included two new bathrooms, a new kitchen and new exterior doors, windows, decking, and stairs. Meehan admitted that the property in fact was and remains vacant land.
In January 2007, Meehan’s co-conspirator Katrina Arrington, 34, Hillsdale, New Jersey, pleaded guilty to her role in the conspiracy. In October 2006, co-conspirators John Kurzel, 55, New Brunswick, New Jersey, and Lucesita Santiago, 37, Woodbridge, New Jersey, also pleaded guilty to the same conspiracy charge to which Meehan pleaded guilty. Arrington, Kurzel and Santiago each admitted that total losses to mortgage lenders exceeded $7 million. Those defendants await sentencing.
The charges to which Meehan and his co-defendants pleaded guilty carry a statutory maximum penalty of five years in federal prison and a fine of $250,000, or twice the aggregate loss to any victim or aggregate gain to the defendants.
mortgage fraud
Why is it taking so long to indict Wayne Puff? The Pinnacle ponzi scheme went into receivership just a few months ago and the guy has already been indicted.
But the even bigger criminal in this case is the Trustee, who has been (a) filing suits against all the cash investors to recover whatever limited payments they did receive and (b) blocking the property investors from selling the properties, so that they have been racking up interest charges and legal fees for a year and a half. All while the market is tanking.
Posted by on 03/15 at 05:31 PM
want to know more about wayne puff’s trial --- where ?? when will he be tried;
Posted by on 02/18 at 05:59 AM
wayne
you are a good man
stop taking dvantage of the weak
it will catch up with you(as it has)
call me if you choose
roland(jr)
Posted by on 06/25 at 06:20 PM
how dare you say Wayne is a good man???? Yeah he’s such a good man that my husband and I are bankrupt!!! and it had nothing to do with this mortgage scam!! He worked for Rosalinda homes and took $70,0000 of our money and ran off with our money!!! I hope he spend the rest of his miserable life in jail!!!!!!!!!
Posted by on 06/26 at 01:19 PM
What has happened to the criminal case in which the Trustee named the investors individually as defendants?
Posted by on 02/10 at 12:21 PM
New to the State, I purchased a new home. My realtor obtained a home appraisal, which the bank required as well. I listed my home due to employment relocation. To my surprise, I found out the home I purchased is legally a 2BR even though the appraisal used to purchase the home appraised the home as a 3BR and used 3 & 4 BR comps. This inflated the value of the home when I purchased it however, now to sell the home as a 2BR significantly reduces the value. Is this consumer fraud?
Posted by on 03/08 at 04:06 AM
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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 
