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Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar PictureRachel 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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Monday, April 17, 2006

Fifteen Indicted in Georgia Mortgage Fraud Scheme

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:

1510 Portmarnock Drive

5740 Preserve Circle

1029 Deer Hollow Drive

119 Kennemer Court

15410 Laurel Grove Drive

4692 Bishop Lake Road

15455 Laurel Grove Drive

300 Banyon Brook Point

535 Brightmore Downs

420 Crepe Myrtle Terrace

100 English Oak Court

360 Tree Lake Court

12425 Preserve Lane

2645 Francis Road

5825 Sunset Maple Drive

240 Holcombe Hill Lane

12373 Sunset Maple Terrace

605 Oak Farm Lane

647 Braidwood Drive

5655 Brookstone Drive

3005 Foxhall Overlook

1133 Fairwood Close

1373 Downington Lane

8460 Caney Creek Landing

6239 Braidwood Way

1588 Grandwood Trail

905 Fieldstone Way

1392 Downington View

5635 Forkwood Drive

5575 Brookgreen Drive

811 Hillcrest Lane

601 Villa Estate Lane

2015 Walnut Creek Crossing

820 Stonehaven Lane

6006 Fairlong Circle

630 Braidwood Drive

341 Ironhill Trace

622 Braidwood Pointe

5607 Forkwood Drive

1313 Benbrooke Lane

6209 Benbrooke Drive

1204 Benbrooke Court

5595 Forkwood Drive

8010 Royal Saint Georges Lane

6266 Benbrooke Way

5586 Forkwood Drive

5561 Brookgreen Drive

5580 Snowberry Drive

5607 Brookstone Drive

664 Transart Parkway

1050 Fairwood Run

1407 Coventry Court

5720 Brookstone Walk

6255 Braidwood Way

5809 Fairwood Walk

6303 Braidwood Overlook

457 Braidwood Walk

 mortgage fraud

   

Posted by Rachel Dollar on 04/17/06 at 03:30 AM
Mortgage Fraud LocationsGeorgia • Total comments: (7)
  1. 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
  2. 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
  3. The indictment is on Mortgage Fraud Blog and is linked to from the article.

    Posted by Rachel Dollar  on  04/19  at  01:29 PM
  4. 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
  5. 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
  6. 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

    Posted by  on  09/11  at  04:56 PM
  7. How much time did these guys get?

    Posted by  on  01/11  at  11:35 AM

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TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

Follow Anne on Twitter.

Thursday, February 18, 2010

F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted

The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question:

Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan?

Judge Julie Robinson responded by admonishing the jurors to read all of the instructions.

The jury presented its' verdict...

Read More...

Thursday, February 18, 2010

F. Jeffrey Miller Trial Continued Testimony

As reported by Anne Mitchell, who viewed the trial:

Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...

Read More...

Wednesday, February 10, 2010

F. Jeffrey Miller Trial Coverage Continued - Witness Testimony

Steve Middleton Testimony - Coverage Provided by Anne Mitchell

The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...

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Monday, February 01, 2010

F. Jeffrey Miller Trial Coverage - Continued Witness Examination

According to Anne Mitchell, who is present in court for the trial:

Next Witness: Kelly Sanford

Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...

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Wednesday, January 27, 2010

F. Jeffrey Miller Trial - Prosecution Witnesses Continued

According to Anne Mitchell, who is viewing the trial:

January 13, 2010

Witness: Rick Hayes

Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...

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Legal Disclaimer.
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.

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