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.
Seven men and one woman were arrested on suspicion of having provided forged documents to purchase FHA insured homes. The defendants are believed to have purchased homes using fraudulent citizenship and/or financial documentation. Those arrested include:
Edgar De La Rosa
Manuel Barron
Adela Hernandez
Ruben Martinez
Ventura Moreno
Manuel Jilenez-Galindo
Arturo Flores
Inocencio Landa-Madera
The homes were sold by participants of a mortgage fraud ring operating in Jefferson County, Colorado. Between July and September 2005, ten people were indicted as part of that operation. They were doing business out of the ReMax 100 office in Lakewood, Colorado. In three separate indictments, the alleged illegal activity was the same: real estate agents, loan officers and sales agents were accused of working together to sell single-family homes to 256 persons who, because of their citizenship and/or financial circumstances, were not qualified for home loans.
According to the indictments, the defendants in the mortgage fraud ring were able to obtain loans for the unqualified buyers by creating false documents concerning the homebuyer’s identity, employment and credit history, showing that the unqualified homebuyers were in the US legally, and then submitting these false documents to legitimate mortgage lenders. They each earned commissions or other financial remuneration for each of the fraudulent house sales.
Colorado District Attorney Scott Storey says, “The illegal activities involved in the sale and the purchase of these homes constitutes identity theft as well as mortgage fraud. All of the social security numbers used in these transactions belong to actual people. It is our job as protectors of the public trust to hold anyone who breaks the law accountable for their conduct.”
“To combat this type of crime, it’s critical that agencies work together to share information on such schemes as this,” said Jeffrey Copp, special agent in charge of the ICE Office of Investigations in Denver. ”ICE has created a local Document and Benefit Fraud Task Force composed of various agencies for this very purpose. It’s vital that the people who receive any such government benefit are positively identified. Otherwise, it’s the American taxpayer who may be required to pick up the tab for defaulted loans.” Copp heads a four-state area which includes: Colorado, Wyoming, Montana and Idaho.
All of the 191 houses involved were purchased using HUD-guaranteed loans. ”This action is evidence of our continuing commitment to make sure HUD’s programs are administered in accordance with the law and are free from fraud and abuse. I would like to complement the staff at our Denver Homeownership Center who uncovered this abuse,” said Jereon Brown, HUD Deputy Assistant Secretary. ”As much as we intend to expand the FHA program to help more families become homeowners, we will not do so at the expense of the financial integrity or reputation of the Federal Housing Administration.”
Wow, this is unbelieveable...I didn’t know that there were so many fraud stories out there in the home mortgage market.
Jord
Posted by on 03/24 at 10:38 AM
This does not surprise me at all & if anything only represents the tip of a very large iceberg in Colorado! Illegals run rampant & unchecked here & the fraud levels are astronomical ... Personally I’m glad to see it all hitting the fan! Once upon a time our industry was respected, today people see us as nothing more than crooks & it’s becuase of loser’s like these!
Posted by on 03/28 at 07:27 AM
A garden apartment has some characteristics of a townhouse: each apartment has its own entrance, and apartments are not placed vertically over one another.
Posted by on 05/16 at 12:51 AM
My Dad’s former “Caretaker” is taking advantage of my Dad. He has moved and she is saying she wants to buy the house but she has been remodeling and is now moving in and “will” pay a small amount of rent. She is definately taking advantage of him and had kept him from selling the house and has already changed things. What recourse do we children have if she has gotten him to agree to these things?
I am paying on a 2nd mortage on the house which is very difficult for me.
I did not pay the last months as I am trying to get her to just buy. I am worried I have done the wrong thing but I cannot continue these payments and I thought the house would be sold by not.
I hope you can help me with info.
sincerely, Marolyn Mills
Posted by on 07/01 at 08:53 AM
Such incidents are common in most of the countries. The bank managers must be careful about this kind of work. It is because the two parties will have to bear. Such kind of agencies are working all around the world.
=========================
peter
Posted by on 07/30 at 08:07 PM
I am a Colorado PI and a NYS real estate broker who specializes in stopping mortgage fraud and cash back deals. Need help proving this, please contact Eagle Eye Investigation at eeipi1@aol.com. We want to help stop this!
Posted by on 09/25 at 06:21 AM
It’s really amazing what people will do for money. I can’t imagine that a little commission would be worth all the hassle. They should confiscate the realtor remax business cards for this. They should be permanently banned from the association of Realtors.
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
