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

1. 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

2. 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

3. 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