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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DreamLife Financial CEO Pleads Guilty in $7M Real Estate Fraud Scheme
Tony J. Daniloo, 32, Turlock, California, the former President and CEO of DreamLife Financial, a Modesto, California real-estate brokerage company, pleaded guilty to 122 charges of fraud and money laundering in connection with a scheme to defraud homeowners and lenders of millions of dollars in cash. Daniloo was indicted by a federal grand jury on August 31, 2006 and charged with 41 counts of wire fraud; four counts of mail fraud; and 77 counts of money laundering.
“Today’s guilty plea demonstrates that federal law enforcement will work to hold accountable those who would enrich themselves through real-estate fraud at the expense of innocent homeowners,” United States Attorney Kevin V. Ryan said. “Fraud in real-estate financing can deprive homeowners of their life savings. The victims in this matter were defrauded of millions of dollars, and I am pleased that the defendant is accepting full responsibility for the fraud scheme that he perpetrated.”
In pleading guilty, Daniloo admitted in open court that he defrauded real-estate lenders and clients in the East Bay and the central California valley of millions of dollars in cash that had been intended for the lenders and clients. Pursuant to a plea agreement, Daniloo pleaded guilty to all 122 counts charged in the indictment. Daniloo further admitted in the plea agreement that the loss amount for his fraud scheme was between $2.5 million and $7 million; that he derived more than $1 million in receipts from financial institutions; that he abused a position of trust; and that he served of an organizer or leader in a criminal activity.
From 2000 to 2002, Daniloo served as manager of the Dublin, California branch office of Residential Credit Corporation, a mortgage brokerage company based in Westminster, California. Daniloo admitted that while employed at Residential Credit Corporation, he created a scheme to defraud lenders by falsely claiming that liens existed on borrowers’ properties, duping lenders into funding these phony liens instead of the debts that lenders required be paid. Daniloo then fraudulently paid himself “commissions” out of this extra cash.
In 2003, Daniloo co-founded DreamLife Financial, which maintained headquarters in Modesto, California and as many as seven branch offices. Daniloo served as President and CEO of DreamLife Financial until it closed in December 2004. Daniloo admitted in his guilty plea that he defrauded lenders and clients by using phony documentation to cause large amounts of cash—cash that had been intended to extinguish his clients’ former mortgages—to be deposited instead into his personal bank accounts for his personal use. This fraud scheme resulted in many of DreamLife’s clients unwittingly ending up with two mortgages, not one.
In total, according to publicly-filed documents, Daniloo defrauded homeowners of nearly $7 million in cash that the victim homeowners had intended be used for their own cash needs.
Finally, Daniloo admitted to laundering his criminal proceeds by making numerous “lulling payments” to victim homeowners, as well as spending massive amounts of stolen money to garner publicity for DreamLife. For example, according to the indictment, Daniloo made a $1 million pledge to the athletic department at California State University at Stanislaus, in exchange for the university renaming its athletic arena “DreamLife Arena.” In 2004, DreamLife was a finalist for naming rights of the San Francisco 49ers’ football stadium at Candlestick Point.
Daniloo remains in federal custody at North County Jail in Oakland, California. His sentencing is scheduled for March 20, 2007. The maximum statutory penalty for each count in the indictment is 20 years imprisonment, a fine of $250,000, and restitution.
Roger L. Wirth, Special Agent In Charge of IRS-Criminal Investigation, said: “Mortgage fraud is a crime with many victims, including unsuspecting homeowners and lending institutions, who suffer significant losses while the perpetrators such as Mr. Daniloo pocket the proceeds for their personal benefit. IRS-CI is proud to be a part of the great team effort in this investigation and we will continue to contribute our financial expertise to help unravel complex financial crimes and money laundering schemes.”
Jean Mitchell, Special Agent in Charge of the U.S. Secret Service’s San Francisco field office, said: “This is another example of federal and state law enforcement working in a collaborative effort to stop the defrauding of innocent victims. In this era of complex criminal trends, law enforcement needs to pool its resources and expertise to combat crime.”
I was employed with Dreamlife Financial, and I was given a check that was not cashable. It was for loans that had supposedly closed. I still have the check I was given. Will I ever get paid the salary plus commissions owed?
Sincerely,
Phil Alfonso 209-430-6754
Posted by on 12/31 at 09:45 PM
Hey Whos ready to come to My new office in Downey .
Posted by on 12/26 at 11:44 PM
Hi,
In 2003, Daniloo co-founded DreamLife Financial, which maintained headquarters in Modesto, California and as many as seven branch offices. Daniloo served as President and CEO of DreamLife Financial until it closed.
dbsr
<a >financial directory</a>
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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