Wednesday, March 21, 2007
Colorado Federal Housing Fraud Snares Eight
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.”
mortgage fraud
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.
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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.
Posted by on 11/10 at 10:51 PM
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Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
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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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