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.
Joseph Kriz, 45, Wilton, Connecticut, pleaded guilty on August 4, 2008, before United States Magistrate Judge William I. Garfinkel in Bridgeport, Connecticut to one count of conspiracy to commit bank fraud, one count of fraud in loan and credit applications, and one count of mail fraud. The charges stem from a three-year mortgage fraud scheme through which Kriz and others defrauded federally insured financial institutions, real estate sellers, individuals who sought to refinance existing mortgages, and title companies.
According to documents filed with the Court and statements made in court, Kriz practiced as a real estate attorney in Westport, Connecticut, was a licensed mortgage broker and was a principal of Aspetuck Building & Development, LLC. Kriz and several co-conspirators sought to develop various properties that they had purchased in order to flip the properties, once they were developed, for substantial profit. In pleading guilty, Kriz admitted that, between approximately January 2005 and March 2008, he and his co-conspirators altered and created false documents to obtain financing for the properties, which far exceeded the value of the property underlying the mortgages. In one instance, Kriz and his co-conspirators commissioned a false appraisal of a property that falsely added to the finished square footage, thereby augmenting the value of a property for which Kriz and his co-conspirators sought financing. Kriz also admitted that he converted funds from the sale of his clients’ homes, or from the refinancing of his clients’ homes, for his own and his co-conspirators’ benefit rather than pay off the underlying mortgages on the properties as he had promised his clients. During many of the property refinancings that he handled, Kriz mailed to a title insurance company a title policy that represented that the new mortgage was the primary lien on the property. However, Kriz had converted the new mortgage to fund his and his co-conspirators’ development projects, and the existing mortgage remained the primary lien on the property.
As a result of this fraudulent conduct, Kriz defrauded banks and his clients of more than $8 million.
Kriz is scheduled to be sentenced by United States District Judge Janet C. Hall on October 23, 2008, at which time Kriz faces a maximum term of imprisonment of 65 years and a fine of up to approximately $16 million.
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Rahul Kale.
“Kriz is scheduled to be sentenced by United States District Judge Janet C. Hall on October 23, 2008, at which time Kriz faces a maximum term of imprisonment of 65 years and a fine of up to approximately $16 million.” It’s good that the government make their part in this case. The people should be aware of the anomalies that are happening ant those that about to happen. This kind of problem is very common today. Mortgage fraud is a very big problem in the real state industry. For us to be saved in this problem, we should be aware in order to avoid ourselves from being a victim of mortgage fraud.
Posted by on 08/07 at 12:23 AM
Now that Joseph has pleaded guilty he might get away with rigorous imprisonment, however he shouldn’t be let free and not much consideration should be give n to his plead. He is responsible for what he did. He has breached the trust of many.
-------------------------------------------
Shane Oliver
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
