Tuesday, April 25, 2006
Eight Indicted in New York Mortgage Fraud Ring
A Kings County, New York Grand Jury handed down an 83-count indictment charging eight individuals Enterprise Corruption and other felonies in connection with a mortgage fraud scheme that operated in New York since approximatley 2001. Those charged were:
Louis Sandella, 43, Commack, New York;
Michael Sandella, 41, Hauppauge, New York;
Danielle Moss, 36, Commack, New York;
Kim Moss Fontanez, 33, Lindenhurst, New York;
Geraldine Moss, 60, West Babylon, New York;
Gary Shaw, 68, Northport, New York;
Ida D’Angelo, 38, Dix Hills, New York; and
Andreas Perdikos, 41, New Jersey.
All the individuals, except Andreas Perdikos who remains at large, were arraigned April 25, 2006 before Judge John J Walsh.
The indictment alleges that a criminal enterprise, named the ”Sandella Group” operated principally in Brooklyn, Queens and Suffolk Counties, New York since at least 2001. Defendant Louis Sandella is named as the Group’s leader.
The members of the Sandella Group are accused of stealing millions of dollars from banks and other financial institutions by submitting false and forged documents to secure mortgage loans. The Sandella Group paid people to pose as legitimate real estate buyers. False information about these straw buyers’ employment, income and financial assets were provided to the lending institutions to obtain the loans. The loan originators were also provided false real estate appraisal reports which often misrepresented the physical conditions of the properties, the market value of comparable properties and the identities of the individuals who prepared the reports. Through these reports – prepared by a member of the Sandella Enterprise – the value of individual properties used in the fraudulent mortgage transactions were inflated by $100,000 or more.
A transaction set out in the indictment as an example of the Sandella enterprise’s scheme concerns the January, 2004 sale of a house in Flatbush, Brooklyn. Although the true purchase price of the property was $310,000, the Sandella Group falsely told the bank that the purchase price was $450,000, and applied to the bank for loans totaling that amount. The criminal enterprise gave the bank false information about the financial condition of a “straw buyer” that it recruited as a front man in the transaction, and submitted a forged appraisal report. The group then pocketed the bulk of the inflated amount, and allowed the loan to go into default.
The charges included in the indictment are: Criminal Enterprise, Grand Larceny, Scheme to Defraud and Falsifying Business Records
If convicted of the top count, the defendants face prison sentences of up to 25 years.
Properties listed in the indictment include:
753 Marcy Ave, Brooklyn, NY
756 Marcy Ave, Brooklyn, NY
18 Monroe Ave, Massapequa, NY
150 East Fulton St, Long Beach, NY
199 Commack Rd, Deer Park, NY
39 Benjo Dr, Amityville, NY
317 Winthrop St, Brooklyn, NY
508 Jamaica Ave, Brooklyn, NY
4116 Avenue J, Brooklyn, NY
95 E 31st St, Brooklyn, NY
69-31 66th Place, Glendale, NY
1327 Prospect Place, Brooklyn, NY
137 E Riviera Dr, Lindenhurst, NY
59 Remsen Ave, Brooklyn, NY
94 E 31st St, Brooklyn, NY
258 Jefferson Ave, Brooklyn, NY
mortgage fraud
Can I find out if Hawthorne Abstract corp has gotten any other illegal mortgages. There is one for 5805 18th Ave Brooklyn,for $350,000.00 on the house without my husbands knowledge. He is part owner,He received pre dated pre notarized documents weeks after the mortgage was recorde. The papers were all wrong. Now there are investigations on all parties,the notaries,the appraiser and MortgageIT, but I don’t think Hawthorne,because they don’t have a license. It seems that they can’t be touched. I don’t understand this. They have cauesed SO much damage.
Posted by on 04/16 at 10:01 AM
Hawthorne Abstract Corp. is not off the hook yet, Their Appraiser Mr. Albert Perez was fined $2,000 for his part in getting a lower price for Hawthorne to get a loan for my in-laws from Mortgage IT.A homeowner’s policy that was suppose to be for a renter policy and quite a few other dealings.Even the notary through Hawthorne wanted my husband to sign blank doc.that were pre dated 22 days before. The mortgage was even recorded with blank spaces because my husband refused to sign them.But my in-laws still got $350,000 without my husband,(an owner) permission. Great job!!! These people are playing with peoples lives.
Posted by on 05/11 at 07:29 AM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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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.
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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 
