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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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Jury Finds Oregon Man Guilty of Straw Borrower Scheme
Clifford J. Brigham, 60, Portland, Oregon, was found guilty by a jury of mail and wire fraud, money laundering and Social Security fraud. The jury verdict was returned on November 7, 2007, after a seven day trial before U. S. District Judge Anna J. Brown. The charges stemmed from a multi-million dollar mortgage loan fraud scheme perpetrated by Brigham and his codefendant, Melodie MacDuffee. MacDuffee pled guilty in January 2007 and is awaiting sentence.
Brigham‘s fraud centered on a mortgage loan scheme known as a straw buyer scheme. Brigham paid people with good credit, the straw buyers, to complete mortgage loan applications and purchase homes, telling the buyers he would make the mortgage payments for them. Brigham then structured the purchases of the homes to divert hundreds of thousands of dollars to himself and sham businesses he controlled.
Brigham obtained nearly 30 loans totaling over $5 million dollars, but he never made a single loan payment as promised. Brigham, meanwhile, earned nearly $400,000 from the sales,
which spanned eight months in 2005. Brigham also moved into one of the houses, a million dollar house in Washougal that overlooks the Columbia Gorge. The house was featured on the Parade of Homes in 2004.
Brigham conducted the fraud scheme while on release pending appeal for a previous Federal conviction for loan fraud. He now faces a mandatory sentencing enhancement for committing the crimes while on release.
In all, Brigham was convicted of 17 counts of mail and wire fraud, 3 counts of money laundering, and one count of Social Security fraud. The jury acquitted Brigham of two counts of mail fraud and one count of wire fraud.
Brigham has a history of investigations with state regulators spanning nearly twenty years. The Oregon Department of Justice has repeatedly obtained injunctions to prevent Brigham from conducting illegal businesses.
U.S. Attorney Karin Immergut stated that, “For nearly 20 years Brigham has held himself out as a legitimate businessman. The charade is over. The jury’s verdict establishes that Brigham is a con man.”
The Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service joined forces to investigate this case, with the assistance of the Oregon State Department of Consumer and Business Services.
“The jury sent a clear message to Clifford J. Brigham that his criminal behavior will not be tolerated,” said Kenneth J. Hines, the IRS Special Agent in Charge for the Pacific-Northwest. “Federal law enforcement is not going to sit on its hands and allow flimflam artists to victimize the American public by trying to steal from us the dream of home ownership.”
“Given the mortgage crisis in this country, the FBI will aggressively pursue those who target and exploit this type of victim,” said Acting Special Agent in Charge Daniel Nielsen, Portland FBI. “Working families deserve a chance at home ownership without the risk of falling into a scam such as this.”
“This case demonstrates that even in this age of sophisticated technology, the U. S. Mail and commercial carriers are still used, and at times misused to convey items of value,” said Ronald Verrochio, Inspector in Charge of the Postal Inspection Service in Seattle. “As Postal Inspectors, it is our job to preserve the sanctity of the mail and prevent its misuse for fraudulent purposes. It is vital to leverage resources and work with other agencies in a task force approach. We are more effective in combating these complex white collar crimes by working together.”
The case was prosecuted by Assistant United States Attorneys Dwight C. Holton and Kemp Strickland. For further information, you can contact Gerri Badden, Public Information Officer, at 503-727-1033.
Pls see the following blog as a counterpoint to your news as reported by the Mortgage Bankers Association today. Let’s keep the crisis in perspective!
Denise Beeson
Posted by on 11/12 at 03:31 PM
I am realizing this article is too interesting. The money will much need for man. The above scheme will new and it will reach the people very quickly. It will help to avoid the scarcity of money.
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Tom2000
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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.
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Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
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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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