Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
imageRachel 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.



Advanced Search
Enter your Email


Powered by FeedBlitz

Dollar in the News

August 6, 2009 - Inman News
The Lowdown on Downpayment Programs

July, 2009 - Mortgage Banking Magazine
Flashpoint - FHA Fraud

June 5, 2009 - Miami Herald
Feds Get Tough on Mortgage Fraud

More Articles
-->
- Guaranty Title Owners Indicted for Fraud and Money Laundering
- Mortgage Fraudster Admits Laundering Ill Gotten Gains
- Builder Convicted In Mortgage Scheme
- Identity Thief Pleads Guilty to Mortgage Fraud
- 7 Charged in Million Dollar Mortgage Fraud Scheme
- Appraiser Indicted for False Statements
- Professor Sentenced for Mortgage Fraud Scheme
- Second Missouri Man Sentenced in Major Mortgage Fraud Scheme
- Deed Forger Sentenced in Real Estate Fraud Case
- Man Arrested for Real Estate Ponzi Scheme
-->

Syndicate

You're welcome to post our feed on your site and provide your readers with the latest Headlines! Just select "Get Widget" below . . .
  

Subscribe in NewsGator Online

Bookmark and Share

What's this?

Tuesday, November 11, 2008

Defendants Sentenced For Straw Buyer Scheme

Donald L. Jones, a/k/a “Don Jones,” 61, Grapevine, Texas was sentenced before U. S. District Judge Sam A. Lindsay to 51 months in federal prison. Jones was also ordered to pay $2,710,834.64 in restitution. Jones pled guilty in July to conspiracy to commit wire fraud. Co-defendant Robert Patterson, Jr., a/k/a Bob Patterson, 55, Dallas, Texas was also sentenced to 46 months in federal prison and ordered to pay $517,954.46 in restitution. Patterson pled guilty in July to conspiracy to commit wire fraud.

As previously reported by Mortgage Fraud Blog, Donald Jones and Robert Patterson, along with six other defendants were named in a 17-count indictment charging each of them with conspiracy to commit wire and bank fraud, and other offenses related to a mortgage fraud scheme involving forty properties and more than seventy loans.

Co-defendant Joseph B. Jackson, Sr., a/k/a “Joseph Jackson,” 63, Irving, Texas, is scheduled for sentencing on November 17, 2008. Jackson pled guilty in August 2008 to conspiracy to commit wire fraud. Donald L. Jones and Joseph Jackson represented themselves as real estate investors who owned and operated Affordable Homebuilders and the YIN Group in Irving, Texas.

Co-defendant Donald Matthew Jones, a/k/a “Mat Jones,” 35, Maui, Hawaii, is also scheduled for sentencing on November 17, 2008. Jones pled guilty in August 2008 to conspiracy to commit wire fraud. He was an employee of Affordable Homebuilders and also owned and operated home healthcare centers under the names of Private Home Health Care and Brain and Spinal Cord Injury LLC.

Co-defendant Daniel J. Sattizahn, 29, Plano, Texas, was sentenced on September 15, 2008 to 24 months in federal prison and order to pay $2,095,136.41 in restitution. Sattizahn pled guilty in January 2008 to conspiracy to commit wire fraud.

Co-defendant Catherine L. Dike, a/k/a “Cathy Dike,” and “Cathy Carter,” 59, Plano, Texas, was an escrow officer. Dike was sentenced in November 2007 to 24 months in prison and ordered to pay $1,995,968.83 in restitution. Dike pled guilty in July 2007 to false acknowledgment of appearance or oath in relation to closing documents.

Co-defendant William Barnes, 59, Desoto, Texas, who owned BCT Landscaping, pled guilty October 23, 2008 to conspiracy to commit wire fraud. Co-defendant Foday S. Fofanah, 38, Waxahachie, Texas, is scheduled for sentencing on December 15, 2008. Fofanah pled guilty in September 2008 to conspiracy to commit wire fraud. Barnes and Fofanah recruited straw borrowers.

The defendants ran a scheme to defraud mortgage lenders and financial institutions. As part of that scheme, they located single family residences in and around the Dallas, Texas area that were offered for sale, recruited straw borrowers to purchase the targeted single-family residences, inflated the sales prices of the targeted residences to an amount greater than the fair market value of the residences; prepared and submitted false and fraudulent loan applications in the name of straw purchasers to secure mortgage loans for the targeted residences in amounts substantially greater than the fair market value, obtained substantially inflated loans from mortgage lenders and financial institutions based on false and fraudulent misrepresentations about repairs that were to be made on the targeted residences, paid the original owners of the residences, and distributed the remaining fraudulently-obtained proceeds among themselves.

The properties used in the scheme were located in Irving, Texas, on Broadmoor Lane and Glenbrook Drive; in Arlington, Texas, on Shadow Ridge, Wimbledon, Racquet Club Drive, and Woodsong Trail; in Sherman, Texas, on Preston Drive and Post Oak Drive; and in Rowlett, Texas, on Beech Street and Orchid Lane.  The loans on the properties have gone into default. The total amount of fraud attributed to these defendants is estimated to be approximately $14 million.

U.S. Attorney Richard B. Roper of the Northern District of Texas praised the investigative efforts of the Federal Bureau of Investigation. U.S. Attorney Roper also thanked the Plano, Waxahachie, Desoto, Grapevine and Irving, Texas Police Departments for their participation in the arrests. The case is being prosecuted by Assistant U.S. Attorney’s Marcus Busch and Kim McCabe. 

 mortgage fraud

   

Posted by Staff Reporter on 11/11/08 at 07:28 AM
Mortgage Fraud LocationsTexas • Total comments: (1) (0) Trackbacks
  1. This is a pretty straight forward straw buyer scheme. These schemes usually get discovered when the inflated loans go into default.

    Posted by Dallas Movers  on  06/26  at  07:04 AM

Post a Comment

Name:

Email:

Location:

Smileys

Remember my personal information

Notify me of follow-up comments?

Submit the word you see below:


The trackback URL for this entry is:

Trackbacks:

Bookmark and Share Enter your Email


Preview | Powered by FeedBlitz
mortgage fraud news



Today's News

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

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

What's Your Opinion?

ORDER NOW!!

Blog Roll

TopOfBlogsReal Estate BlogsBlog Flux DirectoryBlog Directory & Search engineBlog Directory
Blogarama - The Blog DirectoryListed on BlogShares

© Copyright 2004-2009 Rachel M. Dollar

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.

TopOfBlogs Real Estate Blogs Blog Flux Directory Blog Directory & Search engine Blog Directory
Blogarama - The Blog Directory Listed on BlogShares