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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Fifteen people were indicted in the Northern District of Georgia last week on charges that they participated in a complex mortgage fraud scheme. The indictment includes one count of conspiracy, 17 counts of bank loan fraud, 13 counts of wire fraud, 10 counts of mail fraud, 17 counts of bank fraud, 20 counts of money laundering and seeks forfeiture of criminally derived proceeds and property. Those indicted and there alleged roles were:
John Bello, straw buyer/borrower
David R. Bobo, appraiser
William Chavis, recruited straw borrowers for Reti Relocation Services, Inc.
Calvin D. Dalton, president of Reti Relocation Services, Inc.
Larry D. Frazier, real estate broker doing business as Larry Frazier Realty
John Hyacinth, recruited straw borrowers for Reti Relocation Services, Inc.
Paul Jaretsky, Jr, appraiser
Reginald Kemp, recruited straw borrowers for Reti Relocation Services, Inc.
Rhonda Kent, recruited straw borrowers for Reti Relocation Services, Inc.
George W. McRee, Jr, mortgage broker
Rashid Muhammad, recruited straw borrowers for Reti Relocation Services, Inc.
Martin Rosenthal, mortgage broker
James F. Stovall, III, attorney, partner in King Taylor & Stovall and principal of Stovall Legal Group LLC
Constance Zielins, straw buyer/borrower
Leonard Zielins, straw buyer/borrower
According to the indictment, the defendants engaged in a conspiracy where they would acquire residential properties and then arrange to sell the properties on the same day they were acquired or shortly thereafter. They would obtain fraudulently inflated appraisals and arrange for the purchase of the properties at inflated prices in the names of straw buyers, falsely representing that Reti Relocation Services, Inc. held title to the properties. They would prepare and submit – or pay or induce straw borrowers to sign and submit – documents containing false qualifying information to financial institutions and mortgage companies, including misrepresentations as to the borrowers’ intent to use the property, down payment and provision of funds to close. They would also enter into an agreement with the straw borrower providing that the straw borrower would not be responsible for any loan payments on the loan obtained in their name. Straw borrowers were paid to lend their names and credit to the transactions.
The loan payments were not made and the defendants would resell or attempt to resell properties to other unqualified straw borrowers when the payments were delinquent or foreclosure was imminent.
The scheme is alleged to have operated between April 2000 and June 2001.
The indictment details false statements and information for transactions concerning the following properties:
The Federal 15 just indicted for Mortgage Fraud are the tip of the iceberg. Consumers, in the main, have no idea that this type of thing goes on, but they can be radically affected by it if they buy a home in aa area rampant with flipping. It can have a terrible downside short-term effect on homeowners who are considering selling in that same area. Consumers need to be alert to unusually high transaction volume, vacant homes springing up, moving or rental trucks constantly in the residential area or an increasing number of rentals homes in an area. These could be signs of a flip neighborhood. Be sure to do your own indpenedent research before buying a home.
Posted by on 04/18 at 01:03 PM
anyone have a copy of the indictment? Jim Stovall is a well regarded lawyer in Atlanta so it would be interesting to see what these people got into
Posted by on 04/19 at 06:58 AM
The indictment is on Mortgage Fraud Blog and is linked to from the article.
Excellent work by our Federal Investigators. What a bunch of chicken shit rat bastards.
Nice write up, thanks
Posted by on 04/21 at 09:19 AM
I just cannot believe Jim Stovall would do anything illegal. Of course, with federal indictments that try them all together, I guess it doesn’t really matter if he’s innocent or guilty since a fraud seems to have occurred.
Posted by on 06/07 at 06:16 PM
I for one believe that it’s very possible to get caught up in something that you where not made aware of. I say this because this happened to my brother. He had just rec’d his appraisers license and we where all so proud of him. The work started pouring in and things looked good. His kids where proud! A phone call for more appraisals came in and my brother of course took the work, who wouldn’t? He did the appraisals 37 appraisals just like he did the other 150. All the same formulas on all of his appraisals. The way he was taught to do them. Several months later he was contacted that something was wrong and they where going after “The Big Guy” as a scheme was being uncovered. They took away my brothers appraisal license, hence NO WORK… Stripped of what he worked so hard for. Had to re-mortgage his home several times, to live, and ultimately had to file bankruptcy. All this without even being found guilty. Now several years later he is being told to plea bargain, after being Indited for Mortgage fraud. All this for answering a phone call asking him to do appraisals. Maybe the “BIG GUY” has a list of new appraisers and targets them. I don’t know that answer. I just know that as I sit here typing this I see a loving Father and Brother being torn to shreds, as well as his family. He faces a long battle against the courts to prove his innocence.
Can it be that YES he was just doing his job and was in NO WAY aware of what was taking place. He was NEVER paid a dime extra for these appraisals.
Well I can go on and on into great detail, but I will stop and PRAY that this all works out and that the “BIG GUY” who started this fraud will pay dearly for bringing my brother into this.
Think about it, this could be you or a family member being indited for a crime you did not commit. Before you make HARSH judgement you should know the facts.........
Lori Jaretsky
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According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
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According to Anne Mitchell, who is viewing the trial:
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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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