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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Blackfeet Tribe Member Pleads Guilty to Larceny of Grant Funds
Rex Emil Wetzel, 31, Cutbank, Montana, pled guilty to larcency of grant funds issued for a down payment on a home.
The General Assistance Program (GAP) is a federally funded aid program through the Department of Housing and Urban Development (HUD), Office of Native American Programs, to promote Indian ownership of real property by providing the funds necessary for the down payment. Tribal housing authorities apply to HUD for GAP grant funds. A qualified buyer makes application through the local housing authority. If the application is approved by the housing authority, a check for the amount of the down-payment is issued and made payable to both the buyer and the seller. The grant funds can only be used for a single purpose – for an Indian person to make a down-payment on a personal residence he or she will own and occupy.
On January 10, 2002, Wetzel made application to the Blackfeet Housing Authority (BHA) on the Blackfeet Indian Reservation for a GAP Financing Grant. Wetzel is an enrolled member of the Blackfeet Tribe. On March 18, 2002, the BHA approved Wetzel‘s GAP Financing Grant application.
On July 17, 2003, the BHA issued a GAP Financing Grant check, number 018730, in the amount of $12,000, made payable to P.M. and N.M. (the sellers) and Wetzel (the buyer). The check was delivered to the original grant applicant, Wetzel.
The check was cashed at First State Bank, Shelby, Montana, on July 21, 2003. It carried the endorsements of P.M. and N.M. The bank president told investigators that Wetzel had previously had an account at First State Bank but that it had been closed.
On or around July 21, 2003, Wetzel went to First State Bank, reopened his account, and deposited the subject $12,000 check. First State Bank assumed that all three endorsements on the backside of the check were legitimate. Wetzel requested to withdraw all $12,000, but First State Bank placed a three-day hold on the check. Wetzel withdrew $100 in cash. The check cleared through Native American Bank, Browning, Montana, and Wetzel subsequently withdrew all of the funds by means of numerous written checks.
N.M., after hearing that her husband had endorsed the check, became suspicious when Wetzel did not return with the check for her signature. She suspected that Wetzel had forged her name and converted the check to purposes for which the check was not intended. She notified the BHA of her suspicions and confirmed that if the check was negotiated with her endorsement the signature would be a forgery.
The BHA determined that the check had been negotiated but by that time the funds had been completely depleted by Wetzel through a series of transactions over a two-week period.
Wetzel faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.
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...
Legal Disclaimer.
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 
mortgage fraud
