Thursday, September 18, 2008
Appraiser Tries to Sever Case From Remaining Defendant
James Darneil Gaither, Columbus, Ohio, was indicted in August, 2007 along with eight others charged with conspiracy, tax evasion, wire fraud, bank fraud and money laundering for their roles in a mortgage fraud scheme that involved more than 500 properties and more than $25 million in mortgage loans in the central Ohio area between 2003 and 2006. Gaither was an appraiser who allegedly helped prepare exaggerated appraisals of the properties. Seven defendants have plead guilty. Trial for the remaining two defendants, Gaither and Jonathan Boyd, is scheduled to begin Monday, November 17, 2008.
In early 2008, Giather filed a motion to sever his case from remaining codefendant Boyd arguing that the additional charges of tax fraud facing Boyd created enough difference in the cases so as to warrant his severance. The Court disagreed with Gaither and concluded on September 8, 2008, that it was undisputed that Gaither and Boyd‘s charges of conspiracy, wire fraud, and bank fraud arose from the same series of events. Joinder of tax and non-tax offenses in a single indictment is proper where the government charges a defendant with “failure to pay income tax on the proceeds of the scheme to defraud.” (United States v. Wirsing, 719 F.2d 859, 863). Here, according to the government, Boyd failed to pay taxes on the proceeds of the mortgage-fraud scheme in which Gaither participated. Thus, there was a sufficient nexus to permit joinder.
As previously reported by Mortgage Fraud Blog, the defendants included in the 68 count indictment are:
Donald F. Green, 48, Columbus, Ohio. Green sold rental properties he owned as part of the scheme.
Shawn A. Griffin, 37, Cleveland, Ohio, a real estate investor who recruited unwitting buyers.
George T. “Terry” Jordan, 50, Canal Winchester, Ohio, a licensed real estate agent who helped arrange the sales.
Aryeh M. Schottenstein, 33, Oak Park, Michigan, a real estate investor who helped recruit individual and organizational investors.
Jeffrey M. Lieberman, 56, Bexley, Ohio, a real estate appraiser who helped prepare exaggerated appraisals of the properties.
Dwayne L. Carter, 37, Columbus, Ohio, a loan officer who helped arrange the sales.
Jonathan L. Boyd, 38, Columbus, Ohio, a loan officer who helped arrange the sales.
Kenyatta Johnson, 37, Michigan, a loan officer with ABN AMRO who helped arrange the sales.
mortgage fraud
Any honest appraiser has known for a while that this mortgage crisis was only a matter of time. What is really frustrating is that I notified the FBI over 5 years ago and they didn’t care.
I contacted Senator Chris Dodd’s office about 2 years ago and got what can we do?
It seems to me that those who have been involved in any type of fraud as lenders should never be able to get a license to lend again. The likes of the Chris Dodds’ of the world need to spend some time in jail with the CEO’s of Fannie, Freddie, WaMu and the like.
But that is just my opinion.
Why would an honest appraiser have any knowledge of what’s really happening in the market?
Posted by on 09/26 at 01:24 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 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
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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
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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
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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
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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 
