Tuesday, March 13, 2007
Closing Attorney Sentenced for Stealing Mortgage Proceeds
John M Claydon, Jr., 57, formerly of Trumbull, Connecticut, was sentenced to 60 months of imprisonment, followed by three years of supervised release. On December 22, 2006, Claydon pleaded guilty to one count of bank fraud arising from his scheme to defraud a federally insured bank in connection with residential real estate loans.
According to documents filed with the Court and statements made in court, Claydon was a practicing attorney in Fairfield, Connecticut, who performed real estate closings. In pleading guilty, Claydon admitted that he was engaged by People’s Bank to act as a closing attorney in connection with the refinancing of mortgage loans on two properties owned by friends of his. At the time, Claydon was experiencing substantial financial problems relating to his law practice. In October 2004, when Claydon received checks from the bank as part of the refinancing transactions, he converted the money – more than $1.2 million – to his own use. Only after being confronted with his failure to use the proceeds as directed and repay the underlying loans did Claydon eventually pay the bank approximately $469,050. He has not repaid the balance.
Claydon was ordered to pay restitution to his victims, which includes $3750 to the property owners, $9812.51 to People’s Bank, and approximately $720,000 to the title insurance company that paid the majority of People’s Bank’s losses.
Claydon will have a restitution obligation of approximately $2.8 million to his victims of separate crimes that are being prosecuted by the State of Connecticut. Claydon is scheduled to be sentenced for those crimes in state court later this month, where he has agreed to a sentence of 20 years of imprisonment, suspended after he serves 15 years.
mortgage fraud
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24-7PressRelease.com - USA
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Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to "General Application Misrepresentation"
Seven Are Accused Of Identity Theft And Mortage Fraud
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Seven people have been arrested in connection with an international identity-theft scheme that targeted home equity lines of credit and siphoned at least $2.5 million away from dozens of banks, including more than 10 in New Jersey, according to documents unsealed today.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
