Tuesday, September 12, 2006
Capital Enhancement Club Scheme Results in Home Equity Scam Sentences
Kevin Lawrence Wright, 39, Washington County, Utah and Michael Stephen Hurst, 44, Davis County, Utah, were sentenced in connection with their operation of an equity-skimming investment scheme. Wright was ordered to serve 20 days in jail and both men were placed on probation for 2 years and ordered to work 500 hours of community service. The two have already paid $143,410 in restitution and were each ordered to pay a $1,000 fine. Wright and Hurst both pleaded guilty on July 17 to one third-degree felony count of securities fraud.
“Utah’s housing market is booming and unfortunately con artists are eager to take advantage of people during this boom. We are grateful that the prosecutors and investigators in this case did everything possible to make sure this crime did not pay,” said Utah Attorney General Mark Shurtleff.
“We urge all citizens to beware of investment opportunities involving real estate; there are many schemes being offered where the only ones to benefit are the crooks,” added Utah Department of Commerce Executive Director Francine A. Giani.
According to court papers, Wright and Hurst persuaded Brad Nielsen to purchase a home in Bluffdale, Utah for $590,000 but obtain loans for $810,000. Nielsen was told he would then be given $75,000 as a reserve for making house payments. Wright claimed that the remaining equity would be invested into a mutual fund called the Capital Enhancement Club. Wright and Hurst told the investor that he could earn 8-10% profit on the mutual fund and as much as 30% in a high-yield fund.
After the home was purchased, the investor did not receive the $75,000 to put into savings and no money went to the Capital Enhancement Club. Instead, Wright used part of the money to pay off a debt and Hurst used some of the funds for a diamond investment scheme. The investor was never told that Wright had 3 unpaid judgments totaling $327,000 and also owed $56,000 for delinquent state income taxes.
“They are both very dishonest individuals and I am hoping that other victims will come forward to make sure they are held accountable,” says Nielsen.
mortgage fraud
I was a vitim of equity skimming the problem these people had they did not know the judge if they knew the judge they would have gotten away with it like my case. So the rule is if you are going to break the law know the Judge.
Posted by on 09/14 at 03:24 PM
Or if you want to break the law is to have enough money to buy the judge…
Posted by on 01/12 at 08:18 AM
Usefull content…
Thanks :D
Can I post it in my blog?
Posted by on 02/26 at 07:55 PM
hi this is koyali and what here is a warning to the laptop really i do not understand please tell me more details.I know some information that is now a days so many computers are available in the market that is pc computers but most of the people need laptop computers because it is carried who want to go so i will provide information about laptops visit that.
=============
koyali
<a >Home Loans</a>
Posted by on 02/22 at 11:48 PM
Why is it that crooks like this are still selling real estate in St George to unsuspecting people? One would think his Realtors license would berevoked permanently. Two months is not long enough. If he was caught on this deal I wonder how many others?
Posted by on 11/02 at 03:13 AM
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
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The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
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U.S. Attorney Targets White-Collar Crime
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In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
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During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
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A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
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Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
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At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
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The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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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 
