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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Captured Fugitive Sentenced in New York Mortgage Fraud
Hilany Will Serve 2-6 years
Sam Hilany, a.k.a. Nahum Hilany, 35, West Hempstead, New York was sentenced to 2-6 years in prison. Hilany pled guilty on July 13, 2005 to attempted grand larceny scheme to defraud.
“Hilany was the principal architect behind a large identity theft and mortgage fraud scheme that was brought to light after an investigation by our Criminal Frauds Bureau. He stole $3,136,800 in a scheme that included real estate investors, an attorney, a title closer and an appraiser.” According to Nassau County District Attorney Denis Dillon “This elaborate identity theft and mortgage fraud scheme involved stolen identities, paid ‘straw borrowers,’ falsified employment, income and asset information, and false property appraisals.”
In one incident, by erecting a street level facade at the site of a structure that had been destroyed by fire, the defendants were able to obtain a $324,000 mortgage on a building that was merely a burnt out shell. Hilany was both the purchaser and seller of most of the properties in the scheme, and he was the principal beneficiary of the proceeds from these transactions. The companies in whose names the properties were bought and sold were in fact corporate names used by Hilany. It was Hilany who found the properties, did the contracts, arranged for the falsified appraisals, and set up the closing dates.
In describing the events surrounding the capture of Hilany, Dillon said,
In June of 2004, Hilany was officially charged by my office. At the time the charges had been filed Hilany had already fled the jurisdiction. We then notified the International Alert System that Hilany was a wanted fugitive. Based upon the entry of that alert, on October 19, 2004, our office and the task force were notified by Homeland Security that Hilany was listed as a passenger on Lufthansa Flight 498 from Frankfurt, Germany do to arrive at 5:21 p.m. Mexico City, Mexico. Coordination between the task force, Interpol and Mexican immigration was initiated, and the intent was to have Mexico expel Hilany to the United States, as he is a U.S. citizen. At 10:40 p.m. our office and the task force was notified that expulsion of Hilany from Mexico to the United States had failed. However, Hilany was placed on Lufthansa Flight 499 departing at 8:45 p.m. from Mexico City back to Frankfurt, Germany. Immediately, a second coordination began this time with the German Authorities to detain Hilany upon his arrival in Frankfurt, Germany. Under tremendous time constraints, our office and the Fugitive Task Force put together the necessary paperwork in order for German authorities to take Hilany into custody. Upon exiting the plane in Frankfurt, Germany, on October 20, 2004, Hilany was taken into custody by the German Border Police. He was subsequently remanded pending extradition hearings. On December 29, 2004, Hilany waived extradition and was cleared for deportation. He was brought back to Nassau County to face the charges on January 28, 2005.
“In addition to Hilany’s guilty plea, he has waived his right to appeal and is required to make full restitution in the amount of $3,136,800,” said Dillon.
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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