Monday, January 14, 2008
Appraiser Sentenced To Prison For Mortgage Fraud
Darryl L. Cooper, 27, Decatur, Georgia, was sentenced by United States District Judge Thomas W. Thrash, Jr., for a scheme to defraud mortgage lenders by creating fraudulent appraisals that reflected completed construction. The appraisals supported $4.7 million in fraudulent loans for purchases in the names of out-of state “investors” of incomplete homes from builder/coconspirator Jeffery Alan Teague.
Cooper was sentenced to 1 year, 6 months in federal prison to be followed by 3 years of supervised release, and was ordered to pay restitution of $4,720,500. His sentenced was reduced substantially due to his cooperation in the investigation. Cooper pleaded guilty to a one-count criminal information on November 7, 2007, on a charge of mortgage fraud conspiracy. Teague was sentenced on October 26, 2007, to 15 years, 8 months in prison and ordered to pay $7,803,701 in restitution for his part in this fraud, following his August 3, 2006, arrest by the FBI and his plea of guilty to the charge on November 27, 2006.
According to information presented in court, Cooper was recruited by coconspirator/builder Teague of ”The Pacific Group, Inc.,” d/b/a ”Value Homes Ltd.,” to prepare fraudulent appraisals reflecting photographs and $5 million in appraisal valuations for 15 completed houses in the Greenleaf Subdivision of Forsyth County, when Teague had not completed the construction of these homes. A California lender relied on Cooper‘s fraudulent appraisals which reflected completed construction to make $4.7 million in mortgage loans secured by these properties, which in fact had no value whatsoever. Many of the borrower/purchasers from California, New York and Florida also relied on the Cooper appraisals, rather than inspecting the properties before closing on their loans.
United States Attorney David E. Nahmias said of the case, “This case highlights the problems created by mortgage fraud in which the appraiser conspired with the builder to misrepresent that construction on homes was complete, compounded by out-of-state ‘investors’ who sign for loans without inspecting the properties. The partially built houses in this case may be subject to condemnation, as the portions completed were not built to code, leaving mortgage lenders with little security for their loans and ‘investors’ with nothing to resell, and neighborhoods full of vacant and uninhabitable houses.”
mortgage fraud
The article neglects to state that the original owner, Donald Hairston, Sr. along with members of his family, cheated many contractors who built the Greenleaf Subdivion and is being sued himself by the people who bought into those properties.
Posted by on 01/18 at 10:01 AM
Oh my gosh! I can’t believe I missed this one. Several months ago I had a phone conversation with Teague and I had a “feeling”. We can’t operate on feelings without proof but I guess I asked all the right questions because he never called back.
I remember the name because I went to school with a “Jeff Teague”. I remember the story because it has been a long running flag for us when people say, “a group of investors from California”.
Thank you so much Rachael and team for what you do for our industry.
Posted by on 01/24 at 03:12 PM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
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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
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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
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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.
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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 
