Tuesday, October 27, 2009
Couple and Their Real Estate Firm Indicted on Charges They Stole Over $600,000 from Home Sellers
Joann Smith, 44, her boyfriend, Wayne Betha, 39, Ewing, New Jersey, and their real estate company, S&B Property Management and Maintenance LLC, Trenton, New Jersey, were indicted on charges they stole more than $600,000 from home sellers in connection with 11 home sales. They are also charged with defrauding three mortgage companies of $641,800 by falsifying the earnings of applicants for three home loans.
Specifically, the couple was charged with first-degree money laundering, first-degree conspiracy, second-degree theft by deception (2 counts) and third-degree failure to file corporate tax returns, among other crimes.
Arrest warrants were issued for Smith and Betha, who remain at large.
It is alleged that between August 2006 and February 2008, the couple stole more than $600,000 from clients who agreed to have Smith sell their homes. Smith and Betha allegedly diverted proceeds of the sales into their own bank accounts for their personal use, deceiving the sellers into believing they were not entitled to all of the profits from their homes. Most of the sellers were having serious financial problems and could not continue paying their mortgages. The 11 homes are in Trenton (4 homes), Ewing, Hamilton (2 homes), Orange, Willingboro (2 homes), and Camden.
In arranging for sales of three of the homes, the couple allegedly provided false information about the salary or wages of the buyers on settlement forms filed with the U.S. Department of Housing and Urban Development (HUD) and mortgage applications, causing three mortgage companies to issue loans totaling approximately $641,800.
Smith and Betha are also charged with misconduct by a corporate official (2nd degree) and failure to file a tax return (3rd degree). No corporate business tax returns were filed with the State of New Jersey for S&B for 2005 through 2008. Smith also failed to file state personal income tax returns for those years. Betha failed to file a state personal income tax return for 2007.
The couple allegedly used a variety of schemes to fraudulently divert proceeds from the home sales into bank accounts maintained by Smith and S&B, which they allegedly used to launder the stolen funds. They represented to sellers and title companies that monies were owed to them for expenses, including property renovations and repairs that were never done and exorbitant consultant fees that they claimed the sellers had authorized. Many of the checks issued by the title companies handling the property sales were written to the home sellers, but Smith convinced the sellers to sign the checks over to her for payment of business expenses and fees.
It is alleged that, in several instances, the defendants falsely indicated on HUD forms and tax forms that the sellers directly received all of the profits from the home sales. They also omitted to tell sellers that they were agreeing in mortgage closing documents to pay large, unauthorized "seller's concessions or seller's assists" to the buyers.
The victims were not financially sophisticated. They did not understand the details of the property closings and, because of their financial woes, were anxious to be free of the obligation of paying mortgages they could no longer afford. Smith and Betha allegedly took advantage of these facts to steal the victims' profits from the home sales.
Smith sometimes wrote false notations on checks written from her account and the S&B account to make it appear that payments were made for home repairs. Other times she would write a small check to the seller and write "gift" in the memo portion of the check. Smith and Betha used the diverted funds for personal expenses, withdrawing hundreds of thousands of dollars, primarily as ATM withdrawals, checks written to cash, and checks written to Betha.
The first-degree money laundering charge carries a maximum sentence of 20 years in state prison, including a period of parole ineligibility equal to one-third to one-half of the prison sentence imposed, and a fine of up to $500,000. The defendants also could face an additional anti-money laundering profiteering penalty of up to $500,000. Second-degree crimes carry a maximum sentence of 10 years in state prison and a $150,000 fine, while third-degree crimes carry a maximum sentence of five years in state prison and a $15,000 fine.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. The indictment was handed up to Superior Court Judge Maria Marinari Sypek in Mercer County.
Attorney General Anne Milgram announced the indictment.
"These defendants are charged with preying on people who had to sell their homes due to financial hardship, taking advantage of their trust and lack of financial sophistication,"said Attorney General Milgram. "They stole from people who had little or nothing to spare."
"It is troubling that dishonest operators see these tough economic times as an opportunity to cash in on others' financial woes,"said Director Gramiccioni. "We are committed to vigorously investigating and prosecuting financial fraud."
Deputy Attorney General Francine Ehrenberg presented the case to the state grand jury. The investigation was conducted and coordinated for the Division of Criminal Justice Major Crimes Bureau by Detective Martin Farrell, Analyst Rita Gillis, and Deputy Attorney General Ehrenberg. The Mercer County Prosecutor's Office provided assistance.
The Division of Criminal Justice has established a toll-free tipline: 1-866-TIPS-4CJ for the public to report corruption, financial fraud and other suspected crimes. Additionally, the public can log on to the Division of Criminal Justice Web page at http://www.njdcj.org to report wrongdoing. All information received through the Division of Criminal Justice Corruption Tipline or Web page will remain confidential.
The Division of Criminal Justice is focusing on complex white collar crime cases, including mortgage fraud and money laundering. During the past two years, the Division has filed or resolved eight cases involving $12 million in mortgage or financial fraud. The cases include the indictment in June 2009 of Yi Feng Reid, Yu Jane Chen and other co-defendants in an alleged $1.1 million conspiracy involving the use of stolen identities to obtain mortgages, other types of loans and credit cards; the sentencing in February 2009 of Spiro Pollatos to 13 years in prison for orchestrating a $2.7 million money laundering conspiracy involving a series of mortgage fraud and investment schemes; and the sentencing in June 2009 of Michael Rumore to 15 years in prison for stealing $4 million entrusted to him as an attorney for real estate closings.
mortgage fraud
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.
Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.
2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband
Untangling Mortgage Fraud in Chicago Condo Buildings
Chicago Public Radio
Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.
No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
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.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
Washington Times
According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.
Former Vegas Resident Charged with Mortgage Fraud in Nevada
National Mortgage Professional Magazine
A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...
Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.
12-Year Prison Term in Mortgage Swindle
Washington Post
A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...
Previous Articles
|
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
|
|
|
|
|
|
|
|
|
|
|