Thursday, October 16, 2008
Detroit Announces Formation Of A Mortgage Fraud Task Force
Acting United States Attorney Terrence Berg announced the formation of a multiagency task force set up to take aim on the escalating problem of mortgage fraud in the Eastern District of Michigan.
As mortgage fraud continues to have significant consequences that affect the housing market, law enforcement has stepped up its commitment to fighting this insidious crime. To increase the resources being dedicated to investigate and prosecute mortgage fraud, Berg announced that 16 federal, state, and local agencies and three financial institutions have joined forces to coordinate their efforts, share information, and target the most significant violators committing fraud in connection with mortgage lending and the housing market, all of which have a significant impact on Michigan’s economy.
Acting United States Attorney Berg said, “With Metro Detroit being at the top of nearly every list in terms of mortgage fraud and home foreclosures, we need a full-court press that brings all the federal, state, and local law enforcement agencies, the regulators and the major banks together to go after the big mortgage fraud players. I want to commend the leadership of the FBI in Detroit for taking the initiative on this project, and also recognize the participation of our private sector partners. I am very encouraged by the commitment of the Task Force members.”
The agencies participating in the Mortgage Fraud Task Force, which held their first meeting October 2, 2008 in the U.S. Attorney’s Office, include Federal Bureau of Investigation, Wayne County Register of Deeds – Deed Fraud Unit, Wayne County Sheriff’s Department, Wayne County Prosecuting Attorney, Washtenaw County Clerk/Register of Deeds, Oakland County Register of Deeds, State of Michigan Office of Financial Regulation, State of Michigan Attorney General’s Office, U.S. Department of Housing and Urban Development – Office Inspector General, United States Postal Inspection Service, Internal Revenue Service, Federal Deposit Insurance Corporation – Office of Inspector General, U.S. Department of Agriculture- Office of Inspector General, Small Business Administration- Office of Inspector General, the U.S. Trustee Program, Flagstar Bank, JP Morgan Chase Bank, and Bank of America.
The Task Force will concentrate their efforts in the distinct area known as “fraud for profit” or “industry-insider”. This fraud involves the skimming of equity, falsely inflating the value of the property through false appraisals and the issuance of loans on fictitious properties. Based on existing investigations and mortgage fraud reporting, roughly 90 percent of all reported losses involve collaboration or collusion by industry insiders.
The Task Force and its partners recommend that potential and existing homeowners follow the below-listed tips to protect against mortgage fraud:
1. Get referrals from real estate and mortgage professionals. Check licenses of the industry professionals with state, county, or city regulatory agencies.
2. An outrageous promise of extraordinary profit in a short period of time should signal a problem. If it sounds too good to be true, it probably is.
3. Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques.
4. Get written information that includes recent comparable sales in the area, and other documents such as tax assessments to verify the value of the property.
5. Understand what you are signing. Check your information against the information in the loan documents to ensure they are accurate and complete. If you do not understand something, asks questions, or seek the assistance from an attorney.
6. Make sure the name on your application matches the name on your identification.
7. Review the title history to determine if the property has been sold multiple times within a short period. It could mean that this property has been “flipped” and the value falsely inflated.
8. Never sign any loan documentation that contains blanks. This leaves you vulnerable to fraud.
Additional information can be found on the FBI’s website at http://www.fbi.gov, search Malicious Mortgage Fraud.
To report illegal activity related to mortgages in Detroit or anywhere in Michigan; please call the Detroit Metro Mortgage Fraud Hotline at 313-237-4530, on the internet at http://www.tips.fbi.gov, or the Wayne County Register of Deeds’ Deed Fraud Hotline at 313-2245869.
mortgage fraud
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
More Trial Coverage
|
|
|
|
|
|
|
|
|
Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
