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
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An enforcement action brought by the Texas Attorney General has shut down an Austin real estate scam that targeted Hispanic home buyers.
Pursuant to a permanent injunction, Roberto Flores and Galindo Trust are prohibited from selling homes to consumers without disclosing that the property is encumbered by pre-existing liens. The court also ordered the defendants to pay more than $1.4 million in civil penalties for violating the Texas Deceptive Trade Practices Act. Flores must provide restitution to consumers who were harmed by the defendants’ unlawful scheme.
“Home ownership lies at the heart of the American dream,” Attorney General Abbott said. “Texans will not tolerate those who exploit the dream of home ownership for their own unlawful gain. We must aggressively protect those who aspire to own a home.”
Flores sold homes to consumers without disclosing that the properties were encumbered by pre-existing liens. Shriners Hospital, the original owner of the properties, sold and financed the homes to Flores, who made mortgage payments through Galindo Trust. Flores re-sold the properties, but subsequently stopped making payments to Shriners Hospital, putting the homes at risk of foreclosure. When some consumers who financed their homes through Galindo Trust tried to sell their property, they were unable to do so because of Shriners’ pre-existing liens.
Shriners Hospital, which was unaware of the fraudulent arrangement, is working with the Office of the Attorney General and Volunteer Legal Services of Travis County to help consumers get proper titles to their properties.
Flores also misrepresented to consumers that property taxes and homeowners’ insurance payments were being made on their behalf. In fact, Flores stopped paying insurers and taxes, causing insurance policies to lapse and consumers to become delinquent on their property taxes.
Attorney General Abbott offered consumers the following tips when buying a home:
• Be wary of high-pressure sales tactics and sellers who press for an immediate decision to buy a home or sign documents.
• Review all documents carefully before signing; take them to a trusted, independent person, such as a lawyer, to help review the terms if they are unclear.
• Involve a title search company in the transaction to determine who the owner of the property is and whether there are liens or outstanding debts for which the buyer could be held liable.
• Never make cash payments. Use checks or money orders. Avoid making large cash deposits upfront before closing.
• If monthly payments to the seller or financing institution include homeowners’ insurance and property taxes, check periodically with the county tax assessor and with the insurance company to ensure that accounts are current.
Consumers who believe they have been deceived in the purchase of real estate should report it to the Office of the Attorney General
We have a file number and numerous complaints with the Attorney General. We have been adding people and proof of fraud for over 3 years. The company is Tremont /Stature. We even have a ruling of fraud by the American Arbitration Association. The AG’s office, John Owens said they did not have the staff or time to go after bad builders. He said said they had over 12,000 complaints at that time. It has certainly done us no good to contact the Attorney Generals office.
Jordan Fogal
Posted by on 05/26 at 12:29 PM
Arbitration is an atrocity; and until you experience it or see the aftermath of its devastation, you cannot even imagine. Builders already have a contractual agreement with the arbitration company. The pain that builders create for American families goes beyond the obvious. Foreclosure rates escalate, and no one mentions the two reasons that we know: bad builders and arbitration clauses. Veterans, even those totally disabled, living in deplorable conditions in new houses; young married couples suffering in shock; senior citizens… all have lost their homes, their savings, their credit, and their lives as they have known them (or ever dreamed they would be). Their futures are ruined, and their families are destroyed. Most will never recover. Some are at the end of their ropes and have even said they wanted to die. It is one thing to be made homeless by an act of God, like Katrina; but it is totally different when it is caused by an unconscionable act of greed
Court are becoming antiquated.
www.cityviewmag.com/stories-the-case-of-the-vanishing-trial_85.html
Consumer confidence is at an all time low. Can you blame us? See our pictures, the real reasons for our foreclosures. We are responsible citizens and these are crooks
.
www.myspace.com/jordanfogal.
Finally, someone does some investigative journalism
www.msnbc.msn.com/id/20393984/
The Consumerist - New York,NY,USA
: We did not understand the true ramifications of arbitration, or it’s unfairness. No one who has not been caught in this snare does. ...
See all stories on this topic
Jordan Fogal
jfogal281@aol.com
713-802-9727
Posted by on 08/28 at 10:15 PM
Very usefull posting for a person who is interested in the real estate business. It revealed all the truth about how a person can get cheated.
Posted by on 05/30 at 12:08 AM
Fogal:
www.chron.com/CDA/archi.....08_4557059
Above is an article from the Houston Chronicle on some Tremont Homes/Stature Construction fiscos.
If you would like to visualize their quality construction for yourself ride by Hyde Park Cresent off Waugh Dr. My house # 34 has just been completely redone: walls torn out on all three floors, sub flooring, stucco removal on two sides of the house, and of course the roof work and new carpet.They were painting the outside yesterday. Next door look at the entire back off of #33 you can see the scaffolding covering all three floors. You can go into the gate and look at the backs of these two and judge for yourself. #30, #35 #36 and several others have already completed the correct reconstruction of their homes. Do do not believe me or the mounds of tremont spins go see for yourself. Or you can go to public records at the court house and see Statue Vs Astec roofers..where they sued their own roofers and of course lost.
If you google my name you can read my sworn testimoney to congress on the defects to our home and our subdivison and see pictures of Tremont/Statue’s pattern of behavior. Also you can read my appearance before the city council describing their shadow companies mentioned in the Better Business Bureau article and Mother Jones Magazine. One might also note in the Mother Jones article the tremont lawyer who has a problem with the truth as proven by the reporter.
Some of my neighbors were able to sue and recover. My house was one of the most defective, according to the builders testimoney so they protected themselves by incerting an arbitration clause which did not allow me to sue or bring their activies into open court.. Our house has been in foreclosure 3 times now. No one has been able to inhabit our home since we had to abandon it because of defects and mold. We bought it new in April of 2002. Our foreclosures caused by bad builders are hidden among millions of others in the sub prime debacle.
Jordan Fogal
jfogal281@aol.com
Posted by on 05/31 at 08:25 AM
AAA Client plead GUILTY to HOME REPAIR FRAUD AAA maliciously slanders Victims/Single Father, 4 and 9 year old then making victims pay AAA client/Contractor Guilty of Home Repair Fraud $5,000.00 plus AAA arbitration fees. Yes AAA makes the victims pay $5,000.00 to AAA/client the criminal plus arbitration fees. AAA false statement also used against THE STATE OF ILLINOIS Winnebago County States Attorneys Office to get AAA/clients indictment charges dropped. Even with AAA fraud statement maliciously slandering single father ,4 and 9 year old was not enough Father has overwhelming amount of evidence also full investigation by one of the top 20 in the fortune 500 which will back father 100% on fraud charges. All based on facts. AAA/client PLEAD GUILTY TO HOME REPAIR FRAUD. FACT PROVE AAA MALICIOUSLY used award to give perception that father breached contract and benefited to award AAA/client $5,000.00 nominal Damages Both AAA and client profit from victim. Full story more malicious then one would make up. AAA award 5/12/2006 AAA denied all father request and complaints telling father NO ATTORNEY DARE FIGHT AGAINST AAA. Father has been fighting alone since 5/12/2006 and has been able to get Full Investigation ,Warrant issued, charges, 2nd investigation indictment and on 5/5/2008 A plea of Guilty by Indictment from AAA/client for Home Repair Fraud.. [Winnebago County Illinois Court Case 2007 CF 01469] Overwhelming facts. NO BUT ANDS OR IF ABOUT IT. Family lost over $37,000.00, B Better living conditions, been Falsely Accused, Family Name Slandered and had to Pay AAA fees and AAA client Guilty of Criminal/fraud $5,000.00 Father will now fight against Goliath
Posted by on 06/05 at 11:36 AM
Bail out builders and lenders?
Once again our government stoops to help big business and disregards it’s citizens’ welfare.
We the people are hobbled by arbitration clauses, bad builders, mortgage fraud, credit card greed and now the government wants to reward them? Our government has lost touch with the public and hears only what big business would have them believe… which they seem to accept as truth. These are the perpetrators. Our government wants to assist big business for literally destroying the middle class and our economy?
We the people have suffered the tax burden, credit card gluttony, mortgage fraud, renegade builders, arbitration clauses and now they want us to pay for what these companies literally stole from us?
Please read my testimony to the congressional sub committee. Google my name. I told anyone who would listen over three years ago what was happening and how horrible the fall out would be. I said Enron would look like a parking ticket compared to the rampid mortgage fraud. I wrote the president over 300 emails in the last four years, hand written letters and numerous faxes. I have yet to get a response. I wrote to Kay Bailey Hutchson and she thanked me for supporting the 1996 telecommunications act. I do not even know what that is? I went to Austin and walked the halls and passed out fliers.
I have been to Washington three times now. I am just a grandmother. I am not educated like the people who have allowed big business and greed to have this country on the brink of financial ruin. What should happen is the absurd bonuses should be returned. That would be enough to cover the approximate 11 billion Fannie Mack and Fanny May are whining about. Yes make Big Business pay back what they have been siphoning off the public. We have no voice. Our government has turned a deaf ear.
Senator McCain’s camp,said we are a nation of whiners...but the biggest of them all is big business. We are to busy trying to pay our bills and yours. We do not have time to whine.
Please google my name for the truth without the spin.
Jordan Fogal
jfogal281@aol.com
Posted by on 07/12 at 05:51 PM
The FBI Investigate and charge Martha Stewart while AAA boldly shows overwhelming evidence of corruption, against all America. AAA money from profits has paid off and sold America down river.
AAA trashes your constitutional rights.
Fact Oath of Office
I do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter: So help me God
AAA uses money, power, and greed. Fact Just ask AAA if they have ever in there history charged anyone with perjury. The Answer Is [NO] Why? I ask and I quote From AAA “ everyone lies”. Facts AAA has Rule, Ethics and there are Laws you say. Smoke and Mirrors. You must abide by the Rules, Ethics and Laws not AAA. AAA has immunity without accountability they can and have literally created false statement on awards with false dates not even on a contract[smoke] to point guilt at the victims [ mirrors]. AAA then can award nominal damages to the criminal. The award then can be used to protect the criminal by pointing blame in another direction. Fact Home Repair fraud sky rockets with mandatory AAA Arbitration. At the same time AAA sky rockets to #1, AAA clients more bolder to commit fraud cause more consumers to be forced in AAA Mandatory arbitration. Fact No Buts AND OR about it. No matter what the facts or evidence against AAA they can just laugh at America. AAA then boldly uses immunity and unjust laws to trash our constitution
Posted by on 09/11 at 07:35 PM
.
AAA Promotes, Awards and protects the criminal while trashing and destroying America. Non - profit, Honor, Respect, Rule, Ethics, Oaths, Truth, Justice, are just a perception made with smoke and mirrors. Facts Look for your self. The FBI Investigate and charge Martha Stewart while AAA boldly shows overwhelming evidence of corruption, against all America. AAA money from profits has paid off and sold America down river.
AAA trashes your constitutional rights.
Fact Oath of Office
I do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter: So help me God
AAA uses money, power, and greed. Fact Just ask AAA if they have ever in there history charged anyone with perjury. The Answer Is [NO] Why? I ask and I quote From AAA “ everyone lies”. Facts AAA has Rule, Ethics and there are Laws you say. Smoke and Mirrors. You must abide by the Rules, Ethics and Laws not AAA. AAA has immunity without accountability they can and have literally created false statement on awards with false dates not even on a contract[smoke] to point guilt at the victims [ mirrors]. AAA then can award nominal damages to the criminal. The award then can be used to protect the criminal by pointing blame in another direction. Fact Home Repair fraud sky rockets with mandatory AAA Arbitration. At the same time AAA sky rockets to #1, AAA clients more bolder to commit fraud cause more consumers to be forced in AAA Mandatory arbitration. Fact No Buts AND OR about it. No matter what the facts or evidence against AAA they can just laugh at America. AAA then boldly uses immunity and unjust laws to trash our constitution. Facts with 2 small children I am more non-profit. Just look and you to will be amazed. I will fight AAA any time eye to eye. Law to Law but when I win they will cry like rich spoiled brats immunity without accountability. The Boldly #1 in America AAA awards criminal found guilty by indictment of criminal fraud Illinois Case# 2007 CF 1469 causing victims single father, and 2 small children to pay $5,000.00 nominal damages and worse AAA trashes victims family name to to give false perception for award. Come kick my ass AAA and you will find Honor And Respect has no fear. God is my witness.
Posted by on 09/11 at 07:45 PM
I’m glad Texas is taking case of these real estate people. I think they should garnish their wages until they pay back everything they have taken. Take their real estate business cards while they are at it, they shouldn’t be needing them anyways. These are criminals plain and simple.
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...
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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 
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