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Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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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 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.
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Wednesday, March 19, 2008
Colorado Brokers Recieve Cease And Desist Orders
Cade Emerson Lee, was issued a cease and desist order by the Colorado Department of Real Estate. This is the first formal action against mortgage brokers accused of violating Colorado’s new lending laws. The Division of Real Estate is also seeking a $20,000 fine against Lee. In addition, Adriana Arzate‘s license was summarily suspended and the Division is seeking $10,000 in fines asserting that Arzate falsified borrowers’ financial information so they could obtain loans for which they were not qualified. Cease and desist and summary suspensions are emergency measures used when the public’s safety or welfare is in danger, and immediately prohibit the individuals from acting as mortgage brokers. The Division of Real Estate asserts that Lee, a former stockbroker who was convicted of securities fraud, has been acting as an unregistered mortgage broker in the State of Colorado. Lee, who is on a probationary work release program, was found guilty of securities fraud for cheating a group of elderly investors out of four million dollars in a day trading scam. He was ordered to pay restitution. The new mortgage broker laws prohibit felons convicted of crimes involving fraud, misrepresentation or deceit from becoming licensed as mortgage brokers. Brokering mortgages without a license puts consumers at risk. The new law requires mortgage brokers to obtain surety bonds and errors and omissions insurance to safeguard the public in the event of wrongdoing. In a separate case, the Division alleges that Adriana Arzate, a licensed Colorado mortgage broker, altered borrowers’ personal information so they could acquire mortgage loans for which they did not qualify. The documents allegedly altered include verification of employment papers, falsified W2s, pay stubs, 1003 and 1008 forms that represented inaccurate incomes and job titles. The Division asserts Arzate violated her duty of good faith and fair dealing. Governor Ritter signed four mortgage broker bills into law on June 1st, 2007. The new laws, collectively named The Mortgage Broker Licensing Act, were designed to protect consumers from unscrupulous lending practices. The Governor and lawmakers responded to Colorado’s status as having one of the highest foreclosure rates in the country and highest incidence of mortgage fraud. Recent federal proposals incorporate several of Colorado’s statutory provisions. The Director of the Division of Real Estate, Erin Toll, is charged with implementing the new law. “Combating mortgage fraud and reducing Colorado’s foreclosure rate are my top priorities,” said Erin Toll, Director of the Division of Real Estate. “These are just the first of several actions we intend to take to enforce the new law,” she said.
 mortgage fraud
Nice!!! Lee did 2 refinances for us - used appraisers that overpriced the value of our home - and represented himself as a mortgage broker. He should get more than a fine, in my opinion!
Posted by on 03/25 at 05:48 PM When he refinanced your home, “not only once but twice” and “Mr. Predatory lender” bad bad mortgage guy, showed you a higher value for your home, why did you still refinance with him??? If you took that additional equity out of the inflated value, and paid off XYZ, then you are just as much a fraud as the company who refinanced you! YOU GOT OVER ON THE SYSTEM AND PUT THE MONEY IN YOUR GREEDY LITTLE POCKETS, SO SHUT UP!
YOU USED HIM TWICE!!!!!
Posted by on 09/27 at 04:09 AM Ya know what Mr. “Truth”? We didn’t know at the time that he was working with the appraisers to increase the reported value - he showed us comps of the area that seemed to agree with the appraiser’s report and we trusted him (our bad). And what did we get over on the system??? We still own our house and are making our payments and, by the way, we only refinanced to get a lower payment and DID NOT TAKE MONEY OUT!!! What, are you related to this guy or something??!!??
Posted by on 09/27 at 05:22 AM Well if he gave you a lower rate and didn’t max you out with his broker fee, max 7% 2.5 to 3 years ago current 4% max
then the value report being higher than the true market did not affect you in a negative way. I’m not saying what he did was right, only that it had no effect on your life except in a positive way. Unless he gave you a neg interest loan and now you own more than current value. Other wise stop riding the “boo hoo” band wagon!
Posted by on 09/27 at 07:20 AM I don’t recall riding the boo hoo wagon and no, our refi didn’t affect us negatively. It must have been bad for other people though, otherwise why the court actions? I am simply tired of seeing the public put their trust in people, only to receive a big kick in their collective behinds. Cade is definetely a slick talker and, to his credit, has taught me to be very wary of anyone offering assistance with anything. Live and learn, right?
Posted by on 09/27 at 01:47 PM I am so impressed at how uninformed not only the division of real estate is but the general public....
The investigation on the news paper by have was not present. The only story that they could establish was one that would sell news papers....some kind of sensation is what they were looking for.
Since most of the public was not involved nor at the trial to see or hear what went on in the Security case against Cade Emerson Lee...you see to be talking about the thinks you have read from an ill informed news paper and counting yourself knowledgeable!
This seems to be what we do as people...believe every thing you read.
That is why I am sending this blog...if you think you would know there are two sides to every story and you would seek truth. I realize it is just easier for someone to tell you half a story and make it the whole truth and nothing but the truth.....but it never is when you have just one side of the story…
Too bad we loss Paul Harvey, the guy who would tell you “the rest of the story”.
They were not all little elderly investors, they made money in many cases. I was there, I saw their payments being hand delivered. They came to court to testify for him.
I was at he’s office many times and know what kind of loans he and he’s staff got approved. Any one who has every been in the mortgage business knows that lenders, even though they are taking their beating, at that time still looked for a net tangable benefit for the borrowers. Loans where not approved by lenders if “were putting the borrower at risk”....
One should learn the truth before they pipe in on things or situations that they KNOW NOTHING ABOUT. Just because you read half a story...true or not…
it does not tell you the “rest of the story”
Posted by on 03/13 at 10:23 AM
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Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
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
MyFoxOrlando.com
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.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
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
Greeley Tribune
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.
FHA Digging Out After Loans Sour
Wall Street Journal
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
Bradenton Herald
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
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
Previous Articles
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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.
More Trial Coverage
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