Thursday, July 28, 2005
Eight Indicted in Chicago Mortgage Fraud Scheme
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.
The indictment alleges:
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.
Properties referenced in the indictment include:
2010 S. 4th Avenue, Maywood, Illinois
1640 S. Trumbull, Chicago, Illinois
4324 S. St. Lawrence, Chicago, Illinois
5029 Harbor Lane, Richton Park, Illinois
2111 S. Central Park, Chicago, Illinois
6048 White Birch Lane, Matteson, Illinois
4324 S. St. Lawrence, Chicago, Illinois
4721 W. Superior, Chicago, Illinois
4829 S. Champlain, Chicago, Illinois
mortgage fraud
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Mortgage Scam Ends with Prison
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2 Indicted in Mortgage Scam Face New Charges
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No Contest Plea Entered in Real Estate Fraud Case
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Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
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Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
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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 
