Tuesday, June 30, 2009

Florida Man Sentenced for Role in $30 Million Mortgage Fraud Scheme

Ronald Luczak, 37, Cape Coral, Florida, has been sentenced to 22 years in federal prison for his role in a large mortgage fraud scheme. Luczak must also pay approximately $5.9 million in restitution to his victims. He had pleaded guilty to wire fraud and money laundering charges on September 10, 2008.

According to court documents, and as previously reported on Mortgage Fraud Blog, between September 2005 and December 2006, Luczak and his company, Cape Coral Equity and Development (CCEDG), obtained more than $30 million worth of mortgages on at least 37 Cape Coral properties. Despite that CCEDG was responsible for making the mortgage payments, CCEDG recruited 33 "straw buyers" and reported on the mortgage applications that the straw buyers were purchasing the properties. CCEDG also falsely inflated the properties' values, fraudulently reported the purported buyers' incomes, provided false schedules of real estate and assets supposedly owned by the buyers, falsely reported the buyers' occupations and employment, and falsely stated that the buyers intended to use the properties for their primary residences. Luczak paid the straw buyers' mortgage obligations with other straw buyers' mortgage proceeds in a Ponzi-type arrangement.

Luczak and CCEDG personally received more than $5.8 million from the scheme.

Luczak's wife, Lisa Luczak and Sandra Mainardi, a New Jersey loan processor, previously were sentenced to 46 months each for their part in the scheme.

This case was investigated by the Internal Revenue Service (IRS), with the assistance of the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney David Haas.

mortgage fraud

1. A few less “Professionals” to destroy the world economy.

   Posted by  on  06/30  at  01:18 PM

2. Where else but in America can you steal $30million dollars and get 46 months in prison and only pay $5.9M to the victims?  The US real estate market is full of fraudsters, con artists and swindlers.  Each new case reported is just the ‘tip of the iceberg’ of the true reality of the dilemna. A few less ‘professionals’ such as these is what this world needs most.  Bank robbers who get away with almost nothing ,in comparison, receive sentences much heavier than mortgage fraudsters. This story is not 3 or 4 people stealing $30M. Every facet of the process is corrupt and organized in perpetrating real estate fraud. So, there are many other key players in the scheme who are not charged or reported on. Banks obviously do not read the contracts they are submitted or they are just as guilty as the rest of them.  The USA is a SCAM.

   Posted by  on  06/30  at  07:51 PM

3. Fred, Fred, Fred.  Did you just fall off the turnip truck?  Do you have any clue at all of how our system here in the USA compares with the pervasive corruption throughout virtually every European, Asian, Russian, South and Latin-American, and African nation?  the worst of our greed and graft are laughably minor by comparison.  It’s the nature of the human species, fear, greed, and envy are the fabric of all societies, so get over it.  Do-gooders can never make more than a dent in the lesser nature of man; not that they shouldn’t try, but in the end, it’s up to the individual to be responsible for themselves, which means to read the fine print.  the only surprise here is that the banks and lenders themselves aren’t also indicted as willing co-conspiritors rather than being treated as though they somehow “didn’t know” and were (oh no!) decieved.  JMO-YMMV

   Posted by  on  07/10  at  01:11 PM

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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. 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. Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty. Follow Anne on Twitter. Thursday, February 18, 2010 F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question: Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan? Judge Julie Robinson responded by admonishing the jurors to read all of the instructions. The jury presented its' verdict... Read More... 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... Read More... 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... Read More... 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... Read More... 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... Read More... More Trial Coverage

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All Foreclosure Information and Resources Housing Storm Calculated Risk Mortgage Lender Implode-O-Meter Home Gain Blog Rain City Guide Real Estate Tomato Blood Hound Blog Appraiser Active Fraud, Phishing and Financial Misdeeds The Collar - US News and World Report Georgia Bankruptcy Blog Fighting Fraud Newsday Real LI Matrix