Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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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.
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?
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
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 
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