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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The following defendants were named in a thirteen count indictment handed down in Chicago, Illinois in connection with allegations that they engaged in a mortgage fraud scheme that involved approximately $6.2 million in loans. The indictment alleges mail fraud, wire fraud and making false statements in connection with loan and credit applications:
Shaun Cross, did business as Crosswell Financial and bought and sold residential properties and acted as a real estate broker. Cross is also alleged to have owned Title First, a company that held itself out as a title company and escrow agent.
Evelyn Allen, operated Dreamkeepers, Glenwood Illinois, a loan processing business
Latonya Allen, operated Dreamkeepers, Glenwood Illinois, a loan processing business
Jennifer Richardson, a loan processor for Hamilton Financial, Oak Brook, Illinois.
Azureeiah O’Connor, a loan officer for Express Mortgage and Home First Mortgage, Chicago, Illinois.
Erica Davis Wells, referred loan applicants to Cross;
Stephanie Scott, referred loan applicants to Cross;
Lynelle Wells, employee of TCF Bank, Chicago with authority to open accounts and to verify deposits and bank statements.
Monique Hobson, owned a company named MDH Enterprises and verified employment for one of Cross’ loan applicants.
From September 2000 through November 2002, according to the indictment, the defendants obtained over $6.2 million in mortgage loan proceeds in connection with approximately 35 loans by submitting false and fraudulent loan applications and inflated appraisals on behalf of straw buyers.
Cross would paid money to loan officers and processors at mortgage brokerage companies for finding lenders to fund loans and would arrange to act as broker for the sale of certain residential properties, including foreclosed properties. Cross and Evelyn Allen would identify residential properties being offered for sale by HUD and arrange to purchase the properties for cash. Cross, Erica Davis Wells, Scott and other’s would arrange for the purchase or properties using straw buyers.
Cross, Hobson, Lynelle Wells and others would prepare and cause to be prepared fraudulent documentation to be provided to the lenders including false loan applications, false and inflated appraisals, false verifications of employment, false verifications of rent, fraudulent verifications of deposit and false and fraudulent earnest money checks.
Evelyn Allen, Latonya Allen, O’Connor and Richardson, all employed or acting as loan officers/processors, would knowingly secure funding for completed fraudulent loan packages in exchange for money. Contrary to the representations contained in certain loan application packages, Evelyn Allen, Latonya Allen, O’Connor and Richardson had not met personally with the loan applicants and knew the applicants were not the real parties interested in purchasing the properties and did not intend to pay the mortgages on the properties.
Erica Davis Wells, Hobson and others falsely verified employment and rent information on behalf of loan applicants, knowing the information to be false.
Cross would arrange for Title First to be used as closing and escrow agent, knowing that Title First was not a legitimate title company and would not take steps to property distribute loan proceeds or secure the interest of the lender.
Between September 2000 through November 2002, according to the indictment, the defendants fraudulently obtained approximately 35 loans totaling approximately $6.2 million and caused lender losses of approximately $4.3 million related to approximately 13 properties.
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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