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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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Larry C. Shaver, 63, Port Isabel, Texas; Lewis Patrick Colbert, 62, Norman, Oklahoma; and Howard Michael Wampler, 64, Blanchard, Oklahoma, have been indicted on charges of conspiracy, fraud, and money laundering in connection with construction financing for development company McSha Properties, Inc., headquartered in Norman.
The indictment also alleges that the three defendants made a false statement to Stillwater National Bank in June of 2004 in connection with the construction of Alameda Pointe Apartments,Norman, Oaklahoma. According to the indictment, an entity that was managed and partially owned by Shaver submitted a false MacTeague Construction Company invoice in the amount of $201,006.00 to Stillwater National Bank to support loan proceeds. All three are charged with money laundering in connection with these loan proceeds, which according to the indictment were deposited into the account of MacTeague Construction and distributed to the defendants.
Twelve of the fourteen counts in the indictment relate to housing projects developed by McSha Properties and funded in part through a federal tax-credit program designed to encourage the construction of affordable housing. Developers who participate in this program receive federal tax credits that can be traded in a national tax-credit market. The amount of the tax credits awarded is based on the cost to the developer of building a housing project that qualifies for the program, which is administered in Oklahoma by the Oklahoma Housing Finance Agency.
The indictment alleges that the defendants used sham construction companies and fictitious construction invoices to inflate fraudulently the cost of building low-income housing projects. This artificial inflation is alleged to have caused the sham construction companies, which were owned by top management of McSha Properties, to receive money to which they were not entitled. It also allegedly caused the federal government to allocate tax credits for these projects in excess of the credits that should have been allocated for the projects actually built. Shaver and Wampler are charged with conspiring to commit fraud from June 3, 2002, to November of 2004 through sham companies called Frankenbury, LLC, and SLEM, LLC. In a separate conspiracy count, the indictment alleges that all three defendants conspired to commit fraud between August of 2003 and August 3, 2006. According to the indictment, the second conspiracy involved sham companies called MacTeague Construction Company, LLC; WFT Contractors, LLC; and Bokohoma Construction, LLC.
The indictment includes four counts of wire fraud and six counts of money laundering relating to low-income housing tax credit projects. The wire fraud counts are based on interstate wire communications relating to loan proceeds that included money to pay false invoices from the sham companies. The money laundering counts are based on the subsequent movement of that money into the bank accounts of the sham companies and ultimately the bank accounts of the defendants.
John C. Richter, United States Attorney for the Western District of Oklahoma, made the announcement.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
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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