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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Defendants Sentenced In Louisiana Mortgage Fraud Case
Louisiana defendants were sentenced in connection with a mortgage fraud scheme in the Lafayette, Louisiana area that involved over 50 properties.
Anthony T Grishby, mortgage broker, Lafayette, Louisiana, was sentenced to 36 months in prison and 3 years supervised release;
Howard McZeal, appraiser, Lafayette, Louisiana, operated McZeal’s Appraisal Services (indicted only on conspiracy and bank fraud charges), was fined $10,000;
Erin Broussard, secretary, Lafayette Louisiana, was sentenced to 1 year probation;
Shawn Hollier, loan processor, Leonville, Louisiana, was sentenced to 1 year probation; and
Lori Moreau, loan processor, Scott, Louisiana, also received 1 year of probation.
As previously reported by Mortgage Fraud Blog, Grishby was the president and managing partner of Infinity Mortgage Services, Inc., a mortgage brokerage in Lafayette, Louisiana that employed Broussard, Renay Matthews, Tameshia Matthews, Hollier and Moreau. According to the indictment, other businesses utilized to facilitate Grishby�s illegal loan brokerage activity included GSA Financial Services, Inc., First Premier Financial Services, First Chance Home Lending and Eminem Enterprise.
According to the indictment, from April 1, 1999 through November 30, 2001, the defendants fraudulently prepared and submitted loan applications to Bank of America via Equicredit Corporation of America for purchases of properties located in Lafayette, Carencro, Opelousas, Ville Platte, Lake Charles, Mamou, Jeanerette, Erath, Scott, Eunice, New Iberia, Loureauville, St. Martinville and Rayne, Louisiana. The fraudulent applications included false financial figures, false attachments, false social security award letters, false W-2 forms, false work histories, false VOMs and other false documents for unqualified borrowers.
Purchase transactions were represented as refinance transactions and supported by VOMs prepared and submitted by the defendants. Appraisals reflected artificially inflated valued by omitting the true selling price and falsely listing the borrower as current owner. Also, according to the indictment, McZeal doctored photographs to be used in the appraisals to hide inferior qualities and manipulated the comparable sales process by choosing home sales in different geographical regions to arrive at needed amounts. Loan proceeds were paid to fictitious creditor entities including GSA, First Premier and First Chance. As part of the scheme, Grishby set up a fax machines to send VOMs to the Infinity office in order to make them look authentic. Borrowers were assessed excessive charges for credit reports and appraisals, one borrower being charged $650 for an appraisal report that actually cost $450, according to the indictment.
The indictment references involved loans on the following property addresses:
4581 Hwy 358, Opelousas, Louisiana
501, NE Railroad, Ville Platte, Louisiana
124 Raceway, Carencro, Louisiana
W. Bernard Drive, Amaudeville, Louisiana
117 Beta Drive, Lafayette, Louisiana
15830 Highway 697, Abbeville, Louisiana
1117 Edith Street, Opelousas, Louisiana
900 Madeline Avenue, Lafayette, Louisiana
1220 Poppy Drive, Opelousas, Louisiana
109 Macon Road, Lafayette, Louisiana
1221 Peach Street, Ville Platte, Louisiana
609 N. Fontenot St., Ville Platte, Louisiana
504 S. Orange, Lafayette, Louisiana
398 Sunset Drive, Lafayette, Louisiana
4581 Hwy 358, Opelousas, Louisiana
1407 W. Peach St., Ville Platte, Louisiana
111 Rainbow Street, Carencro, Louisiana
8624 Pine Port Road, Ville Platte, Louisiana
260 Gerald St., Opelousas, Louisiana
419 Liberty Street, Eunice, Louisiana
1207 Edith Street, Opelousas, Louisiana
1600 Legion Street, Lake Charles, Louisiana
209 Chestnut Street, Mamou, Louisiana
206 N. Pellerin, Jeanerette, Louisiana
303 N. Wespoint Cir., Lafayette, Louisiana
403 Court Street, Ville Platte, Louisiana
12716 Neds Lane, Erath, Louisiana
N. Dossman, Ville Platte, Louisiana
1706 10th Street, Lake Charles, Louisiana
540 S. Pellerin, Jeanerette, Louisiana
809 Seventh Street, Mamou, Louisiana
124 Henry Drive, Opelousas, Louisiana
411 N. Reed Street, Ville Platte, Louisiana
120 Whitmore Road, Scott, Louisiana
540 S. Martin, Eunice, Louisiana
233 Brockton Drive, Carencro, Louisiana
302 Sonny Street, Lafayette, Louisiana
639 Robertson Street, New Iberia, Louisiana
1211 Sidney Blanchar, Loureauville, Louisiana
4846 River Ridge, Lake Charles, Louisiana
540 S. MLK Dr., Eunice, Louisiana
1103 Alexandria Circle, St. Martinville, Louisiana
Rachel, I have not been on online for some time and it is comforting to know htat you are still blogging about all teh fraud that is going on. with teh way that the markiet is these days we need to do any and all things possible to make our industry alittle safer. as always thanks for your work and research.
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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