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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Dentist And Assistant Sentenced For Mortgage Fraud
Terrance D. Stradford, 46, a.k.a Wayne Sellers, Staten Island, New York, and Christina Hachadoorian, 35, Burlington City, a.k.a. Christian Hachadoorian, C.L. Doorian and Crystal Doorian, a Staten Island, New York dentist and his former employee, were sentenced for their roles in a scheme to fraudulently obtain $1.36 million in mortgages and spending the proceeds on luxury items including the purchase of a 46-foot yacht, a North Carolina residence and a GMC Yukon Denali. Stradford was sentenced to ten years in prison, and Hachadorrian was senteced to six months, followed by six months house arrest.
In October, 2007, Stradford was convicted of all 24 counts by a jury in less than two hours of deliberation. Hachadoorian had previously plead guilty and testified against him at his trial.
As previously reported by Mortgage Fraud Blog, the 23-count Indictment charges Stradfrod and hachardoorian with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, three counts of wire fraud and 18 counts of money laundering. The Indictment also contains a forfeiture allegation serving notice that the United States will seek forfeiture of all property, both real and personal, derived from proceeds of the scheme.
The Indictment describes a scheme in which the defendants used fraudulent documents, made false statements, established fictitious companies and opened back accounts in the companies� names to fraudulently obtain mortgages secured by a property at 412-414 Commerce Lane, West Berlin, New Jersey. (the �Commerce Lane property�).
According to the Indictment, in October 1999, Stradford formed a limited liability company called 412-414 Commerce Lane, LLC (�412-414 LLC�). In forming the entity, Stradford named himself the sole owner and listed �C.L. Doorian� as a corporate agent. In December 1999, Stradford, acting through 412-414 LLC, purchased the Commerce Lane property for $337,500 with a first mortgage in the amount of $310,000 held by American Business Credit Inc. (the �ABC Mortgage�). In September 2002, Stradford encumbered the Commerce Lane property with a second mortgage in the amount of $244,756 (the � M.W. Mortgage�).
In June 2004, Stradford used the Commerce Lane property as collateral for a $500,000 mortgage loan from Quantum Corporate Funding, Ltd., (�Quantum�). In obtaining the loan, Stradford provided fraudulent documents to Quantum, including income tax returns containing a fake social security number and a commitment for title insurance which falsely indicated that there were no current mortgages on the Commerce Lane property, according to the indictment. According to the Indictment, Stradford and Hachadoorian spent the proceeds of the Quantum loan on themselves, which included the June 2004 purchase of a 1998 Maxum 46’ yacht using the aliases �Wayne Sellers� and �Christian Hachadoorian.�
In furtherance of their scheme, the defendants created a fictitious title company named Burlington Title Agency, LLC, and opened bank accounts in the names of Burlington Title Agency, LLC, A.B.C., LLC and Commonwealth Medical Supply, LLC, in July 2004.
In August 2004, Stradford used the Commerce Lane property as collateral for a $585,000 mortgage loan from Eastern Savings Bank (the �Eastern loan�). The proceeds of the loan were purportedly to be used for the refinancing of the ABC mortgage and the purchase of medical equipment from Commonwealth Medical Supply. According to the Indictment, the defendants provided fraudulent documents to Eastern Savings Bank, including title insurance commitment documents purportedly from Burlington Title Agency that falsely indicated the only mortgage on the Commerce Lane property was a mortgage held by American Business Company, when in fact, American Business Credit, Inc., was the actual issuer of the ABC mortgage and both the ABC mortgage and the M.W. mortgage remained as liens on the Commerce Lane property.
At closing, Eastern Savings Bank disbursed the loan proceeds to accounts in the names of Burlington Title Agency, LLC, A.B.C., LLC, and Commonwealth Medical Supply, LLC, which unbeknownst to Eastern Savings Bank, were controlled by the defendants. According to the Indictment, the defendants spent the proceeds of the Eastern loan on themselves, including the August 2004 purchase of a property in Belmont, N.C.
In September 2004, the defendants repeated the scheme to obtain a $275,000 mortgage loan from Asset Funding Group, LLC. At closing, the loan proceeds were wire-transferred into the Burlington Title Agency account. The Indictment alleges the defendants spent the funds on themselves, which included the purchase a 2005 GMC Yukon Denali.
The defendants are each charged in Count One of the Indictment, which alleges a conspiracy to commit wire fraud, which carries a statutory maximum penalty of five years in prison and a fine of $250,000 or twice the aggregate loss to the victims or gain to the defendants. Counts Two through Four charge both defendants with wire fraud, which carries a statutory maximum penalty of 30 years in prison and a fine of $1 million. Count five charges the defendants with conspiracy to commit money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000. Counts Six through 23 charge both defendants with money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000.
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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