Thursday, July 20, 2006
False Income Documents and Verifications Underlie Indictment of Missouri Couple
Ida Mathis, 52, Kansas City, Missouri, and Larry D. Wills, 50, Kansas City, Missouri, were charged in a two-count indictment returned by a federal grand jury in Kansas City, Missouri for wire fraud and money laundering as part of a fraudulent mortgage transaction.
Count One of the federal indictment alleges that Mathis and Wills, aiding and abetting one another, defrauded New Century Mortgage by submitting false documents with a $472,500 loan application in connection with the property located at 100 W. Bannister Rd., Kansas City, Missouri.
According to the indictment, Mathis represented to New Century Mortgage that she was employed by WB Enterprises, of which Wills is the sole owner and employee, and that her salary was $116,100 in 2000. Mathis allegedly included a fraudulent W-2 form, several fraudulent pay stubs from WB Enterprises and a fraudulent income tax return with the loan application.
Mathis also included a Contract for Deed signed by Mathis as the purchaser and herself as the seller of the property at 100 W. Bannister Rd., Kansas City, Missouri which indicated a sale price of $630,000 payable in monthly payments of $4,485. Mathis allegedly included in the loan application a letter from an accountant and a verification form signed by Mathis, both fraudulently claiming that she had been making substantial monthly payments on the residence. Mathis included in the loan application a payoff letter purported to be signed by Wills, which included a payoff amount of $460,631.
The indictment alleges that, on August 14, 2001, Mathis and Wills caused a wire transfer in the amount of $478,383 to be transmitted from New Century Mortgage’s bank account in Minnesota to Chicago Title Insurance Company’s bank account in Kansas City, Missouri.
Count Two of the federal indictment alleges that, on August 21, 2001, Mathis and Wills, aiding and abetting one another, engaged in a monetary transaction involving criminally-derived property. According to the indictment, Mathis and Wills caused the transfer of funds in the amount of $352,000 – derived from the wire fraud alleged in Count One – from Chicago Title Company‘s bank account in Kansas City, Missouri to Countrywide Home Loans, Inc.’s bank account in Los Angeles, California.
mortgage fraud
As a former owner of a mortgage company, I am always interested in what you share here. Too many people and loan officers think it is no big deal to slip in a little false info. Not the majority mind you, but more often than one might think. I have referenced this article my site, do often refer to you, and you are one of the few blogs on my blogroll. Thanks for your great service. Larry Cragun
Posted by
Larry Cragun on 07/21 at 06:37 AM
New Century - are they going through tough times? It sounds like ACORN has more problems with them - is that true?
Posted by on 07/26 at 01:43 PM
New Century has issues. Did anyone see the Boston Globe article, in which Brad Morrice said that New Century is now putting more thought into loans “you want to make or don’t want to make.”
So, prior to that, I guess they were putting no thought into it, right?
Posted by on 07/30 at 01:40 PM
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Some Sources require Registration.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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