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.
Larry ‘Rocky’ Hensley, Cincinnati, Ohio was sentenced to 16 months in prison, followed by three years supervised release and ordered to perform 600 hours of community service.
Hensley previously pled guilty to money laundering, conspiracy to commit fraud, and failure to file an income tax return in connection with a flipping scheme in Cincinnati, Ohio that has resulted in over three dozen convictions.
Hensley was indicted on July 6, 2005 in the Southern District of Ohio on 21 counts including wire fraud, mail fraud, bank fraud, money laundering, failure to file tax return and conspiracy.
According to the plea agreement, Hensley controlled and partially owned Creekview Investments LLC, which he used to acquire and sell residential properties.
From October 1, 2000 through December 31, 2003, Hensley and his coconspirators would recruit home buyers via newspaper solicitations advertising 100% financing with no money down. Hensley would either locate and purchase the property then find the buyer or would first find the buyer then purchase the property and flip it immediately at an inflated cost. In order to secure financing, Hensley and his co-conspirators would prepare a loan application for the buyers that included the following false statements: (1) that the buyer possessed funds available for the down payment and (2) that the buyer intended to use funds from his or her checking account to make the down payment. Hensley and his coconspirators fabricated false supporting documents, including false bank statements and would falsify the HUD-1 to reflect that the buyer had provided a down payment when the down payment was, in fact, provided by Hensley. Loan proceeds were paid to Creekview from the closings.
According to the plea agreement, prior to July 13, 2001, Lucius Jenkins responded to a Creekview newspaper advertisement and provided his loan information over the telephone to a Hensley coconspirator. Jenkins believed he was applying for a ‘No-Money Down, 100% Financed Loan.” Approximately one month after the initial call, Jenkins received a call from a Hensley coconspirator indicating he was pre-approved for a loan. Jenkins located and decided to purchase property at 4128 Chambers Street, Cincinnati, Ohio. Hensley’s coconspirator then prepared and forwarded a false loan application to ABN AMRO that stated, among other things, that Jenkins had an account at Provident Bank with a balance of $11,135. A false bank statement was fabricated to support this information.
On July 13, 2001, Hensley purchased the property at 4128 Chambers Street, Cincinnati, Ohio for $41,000 in the name of Creekview and Jenkins purchased the property from Creekview for $57,000. The down payment was provided by way of a check from Creekview although the HUD indicated it was provided by Jenkins.
By way of the plea agreement, Hensley also admitted to laundering proceeds of $412,059.14.
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
