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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Some Sources require Registration.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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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. 
