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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First Financial Title Agency of Arizona and its president, Tom Paschen, were fined $20,000.00 and $10,000.00, respectively, for knowing violations of the laws regulating escrow agents in Arizona. First Financial’s license was revoked because of its violations of statutes regulating escrow agents and because of its unsafe financial condition. In 2002 and 2003, First Financial’s former escrow officer, Victoria Cervantes, facilitated a series of fraudulent loan transactions for the benefit of real estate agents, Carmen Cantu and Betty Barbee.
The Arizona Department of Financial Institutions’ investigation focused on loan files in which Cervantes knowingly notarized false documents and signatures, used a family member as a fraudulent buyer in one transaction, caused the unauthorized disbursements of loan proceeds, and facilitated the closing of loans with straw or fraudulent buyers. After a multi-day administrative hearing, Administrative Law Judge Daniel Martin concluded that the evidence of Cervantes’ conduct, as an employee of First Financial, clearly proved that First Financial violated the statutes establishing its fiduciary duties to its customers and its responsibility to ensure proper accounting of escrow funds and to ensure against errors and fraud. Judge Martin also found that First Financial failed to maintain proper internal controls to operate its business in a lawful manner.
In addition to the imposition of a civil money penalty, First Financial was ordered to pay the Arizona Department of Financial Institutions’ remaining examination fees of $23,000.00. The Arizona Department of Financial Institutions’ extensive examination of First Financial commenced after receiving a complaint from a woman who lost her home through one of the fraudulent transactions and additional information from the Arizona Attorney General’s Office and the Arizona Department of Real Estate. The three agencies worked together to trace Cervantes’ activities, resulting in the administrative action against First Financial and the ultimate indictment and conviction of Cervantes, the real estate agents, and a loan officer.
In a separate administrative action brought by the Arizona Department of Financial Institutions, Cervantes, who is now a convicted felon, was removed from the escrow industry and the Superintendent’s final order prohibits her from working in the escrow business. By law, as a result of the final order against Cervantes, she may not be employed by any financial institution or enterprise regulated by the Arizona Department of Financial Institutions, without the Superintendent’s prior approval.
The Superintendent has the statutory authority to remove, suspend or prohibit a person from participating in the business of a regulated entity if found to be unfit, dishonest or convicted a crime involving fraud and deceit. “The statute is designed to weed out the worst actors and help our licensees police themselves through notice of the prior bad conduct,” says Superintendent Felecia Rotellini. “We expect our licensees to operate their businesses with sufficient quality controls to discourage and discover fraudulent conduct. We also know that it is difficult to detect fraud amongst employees and so we are doing everything we can to hold the individuals accountable as well.” Additional removal actions are planned and the Arizona Department of Financial Institutions is focusing more of its resources on the examination and investigation of mortgage fraud.
Hello, has anyone ever heard of the company Freedom Foreclosure Prevention Services (FFPS ) based in Mesa, Arizona? I am trying to find out if they are properly licensed to operate business. I am thinking of joining their team to train as a “Certified Loss Mitigation Specialist” in order to help people from loosing their homes. Thanks, Shannon
Posted by on 09/02 at 06:04 PM
What did you find out about FFPS? I am on the same search. Well I am trying to find people are working with FFPS.
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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