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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”This is one of the largest money laundering scheme that I have seen as Nassau’s District Attorney. I would like to thank the New York State Banking Department for their assistance during the course of this investigation. My office will be prosecuting this case vigorously, and as always, will work to obtain full restitution on behalf of the victims.”
- Nassau County District Attorney Denis Dillon
Eight individuals who conspired to bilk lending institutions and homeowners out of $12 million dollars were charged by the Nassau County District Attorney’s office.
Charged three counts of grand larceny, one count of money laundering and one count of conspiracy were:
Joseph W. LaForte, 34, Staten Island, New York and Miami Beach, Florida;
James LaForte, Jr., 28, Staten Island, New York (brother of Joseph W. LaForte)
Tina LaForte, 56, Staten Island, New York (mother of Joseph W. LaForte and James LaForte, Jr.)
James LaForte, 59, Staten Island; New York (father of Joseph W. LaForte and James LaForte, Jr.)
Tara Gibson, 33, Staten Island, New York and McKinney, Texas (sister of Joseph W. LaForte and James LaForte, Jr.)
Jaime Lynn Guli, 27, Staten Island, New York
Francis Alfieri, 27, of 18 Hillis Street, Staten Island, New York
Michael O’Leary, 29, Staten Island, New York was also charged in a separate felony complaint with money laundering and conspiracy)
According to District Attorney Denis Dillon, “The charges are based on allegations that the defendants conspired to steal over $12 million from various lending institutions by forming a corporation, which appeared to be a law firm. They used that corporation to act as attorneys for banks at mortgage closings and then would launder the proceeds through related entities and back to themselves. The corporation they formed, LaMattina & Associates, Inc. opened a bank account to handle the banks’ funds, which was entitled the LaMattina & Associates, Inc., Joseph LaMattina Settlement Trust Account.”
“None of the eight individuals charged are attorneys,” said Dillon. “Instead, James LaForte contacted Joseph LaMattina, a Staten Island attorney and relative and arranged to make him Secretary of the corporation and use his name. No charges have been brought against Mr. LaMattina at this time. The other corporate officers were, Joseph W. LaForte, its first President, followed by Tina LaForte and Tara Caminiti (now Gibson), Vice President.”
“Once the corporation was formed, it made arrangements to represent the banks at mortgage closings,” said Dillon. “They opened an office at 220 Old Country Rd., Mineola, New York where most of the closings took place. The banks would wire the funds into the Joseph LaMattina Settlement Trust Account and LaMattina & Associates, Inc. was then supposed to write checks to either the borrower or on the borrower’s behalf. They then began moving millions back and forth between related entities. Instead they used these fund for their own benefit.”
“The Grand Larceny in the First Degree count charges that the defendants stole over $1.5 Million in the beginning of August from First Continental Mortgage and Investment Corp., by removing the funds wired into the Settlement Trust account rather than disbursing them at the borrower’s direction,” said Dillon. “The Second Count, Grand Larceny in the Second Degree, accuses the defendants of stealing $350,000 from Coastal Capital Corp. located in Greenvale, NY in the same manner on August 1, 2005. The Third Count, Grand Larceny in the Second Degree, charges the defendants of stealing over $720,000 from Credit Suisse First Boston Financial Corp. The funds were wired into the Settlement Trust Account on August 10, 2005, the closing was never held and the defendants removed the money to other accounts and eventually to themselves.”
“The Money Laundering Count alleges that the defendants moved over $4 Million to GMC Land Services, Inc. of Florida and over $9 Million to Key Land Services,” said Dillon. “In August the defendants issued three Certified Checks totaling over $1.7 Million to Hillis, Inc. and used those funds to buy bank checks, which they used to make purchased or cashed,” said Dillon. “The felony complaint also charged that Francis Alfieri laundered $578,000 through his bank account and that James LaForte, Jr., Joseph W. LaForte, Frank Alfieri and Michael O’Leary cashed bank checks totaling $610,000 at Page Avenue Check Cashers, where Michael O’Leary was employed.”
“The stolen funds were used to make mortgage payments on real estate owned by the defendants, to buy a 2005 Bentley and Corvette,” said Dillon. “They also used the funds to make mortgage payments of $100,000 and more on real estate they owned. The complaint also alleges that James LaForte Jr. caused a bank check in the amount of $331,851.55 to be issued to a 22 year old female residing at his address.
“The individual homeowners in theses cases were also victims,” said Dillon. “The initial complainant was a homeowner who had just sold her house. After she moved out and the buyers moved in, the checks bounced. In addition, the check sent to pay off her mortgage also bounced. It left her in the position of owing money on a mortgage on a house she no longer owned. Over thirty homeowners were similarly effected.”
Seven of defendants face up to eight and one-third to twenty five years in prison on each of the Grand Larceny in the First Degree and Money Laundering in the First Degree Charges. Michael O’Leary faces up to eight and one-third to twenty five years in prison on the money laundering charge.
The investigation is continuing and anyone with additional information should contact the Special Investigations Bureau at (516) 571-2100.
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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