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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Brent Barber, Belton, Missouri will spend the remainder of his time awaiting trial in a jail cell. Although Barber was free on bail with three separate indictments pending, On May 20, 2005, Chief U.S. Magistrate Judge John Maughmer ordered Barber into custody for violating the terms of his release.
As a condition of his release on bond, Barber was allowed to remain active in the real estate business but was required to allow a court-appointed monitor to access his financial accounts and real estate transactions. At a hearing May 20, 2005, prosecutors informed the judge of a transaction Barber allegedly engaged in during April. According to testimony, Barber persuaded a homeowner to sign over approximately $20,000 in excess proceeds after his home was auctioned off at a foreclosure sale. Although the judge did not make any express findings of fraud at the hearing, he revoked Barber’s bond for misrepresenting himself and failing to keep the monitor fully appraised of his activities.
In the three pending cases, Barber is accused of defrauding mortgage lenders and real estate buyers in a scheme that recruited “investors” to apply for real estate loans payable to Barber using inflated appraisals on dilapidated properties. Most of the properties were located east of Troost Avenue in Kansas City, Missouri. In total, the scheme allegedly involved approximately 223 loans worth $15M that were approved during 2000 and 2001.
It was also alleged that, in some cases, employees of mortgage companies assisted Barber in the scheme. Eariler this month two Ameriquest employees involved in the scheme plead guilty: Avonda Nicodemus and Chauncey Calvert, both of Kansas City, Missouri.
Barber faces a total of 133 counts in the three separate cases pending in federal court in Kansas City, Missouri. The charges include conspiracy, interstates transportation of money obtained by fraud and money laundering. The original indictment, including 62 counts, was filed on August 12, 2004. He was released on a $50,000 bond in October after a second indictment was lodged that included four additional counts. A third indictment alleging an additional 67 counts was lodged in February, 2005. Prosecutors recently filed a motion to consolidate the three cases into one.
In support of its motion to consolidate, the government argues that each of the three cases against Barber involves real estate and mortgage fraud, and the first and third involve a continuing pattern of conduct from 1999 through mid 2002.
In the first filed case, the conduct continued from May 1999 into December 1999. The scheme involved soliciting and obtaining individuals (victim-investors) to “lend” defendant Barber their credit by purchasing real estate and obtaining loans in the names of the ‘victim investors.’ Barber and others made false representations to induce the victim-investors to agree, including that Barber would obtain renters for the properties and sell the properties within a short period of time, that the victim-investors would pay no money or down payment for the properties, and that the victim-investors would have no financial or other obligations in connection with the properties; false loan applications and supporting documentation were prepared and submitted; inflated appraisals were prepared and submitted; and the loans were approved in reliance on the false and fraudulent representations. Co-defendants Chauncey Calvert and Avonda Nicodemus plead guilty and the remaining co-defendant, Roderick Criss, also has indicated a desire to plead guilty and cooperate against Barber.
The conduct alleged in the second filed case occurred in mid-2004 and continued until after the date of the first indictment. It involves two discreet transactions: the attempted purchase of 3741 Locust, Kansas City, Missouri, and the attempted purchase of 1013 Brookside Drive, Raymore, Missouri. Neither loan closed as the lenders discovered the frauds before closing. Many of the elements of the scheme in this case are the same as in the other cases: misrepresentations were made to the sellers and buyers; false loan applications and supporting documentation were prepared and submitted to the lenders regarding the borrowers’ financial conditions, and the lenders relied on the false information in approving the loans; and trusts were created in sound-alike-names to conceal the identity of the seller in subsequent flip sales. Co-defendant Vernon David Williams in that case has indicated a desire to plead guilty and cooperate against defendant Barber.
The third filed case is virtually identical to the first case although with different victim lenders. The conduct occurred between October 1999 and at least mid 2002, following immediately upon the conduct charged in the first filed case. The conduct started when the first lender victim discovered the fraud, forcing Barber and his coconspirators to move on to other lenders. Co-defendants Roderick Criss and Robert Beckley have both indicated a desire to plead guilty and cooperate against defendant Barber. Click here to view the third Indictment.
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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