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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First Sentences in $20 Million Missouri Mortgage Fraud
A former mortgage broker and a former real estate appraiser were sentenced in Missouri federal court in separate but related cases involving a property flipping scheme and mortgage fraud. Their fraud was part of a larger scheme that involved nearly 300 fraudulent loans worth almost $20 million.
Avonda Nicodemus, 33, Kansas City, Missouri, a former account executive at Ameriquest Mortgage in Gladstone, Missouri was sentenced to five years of probation, including four months of electronic monitoring, and ordered to pay $1,158,501 in restitution. Under the terms of probation, Nicodemus may not work as a loan broker or in the mortgage business.
Peggy Snodgrass, 40, Independence, Missouri, who operated a real estate appraisal business in Raytown, Missouri, was sentenced to five years of probation and ordered to pay $1,149,188 in restitution.
Nicodemus and Snodgrass are the first defendants sentenced in the mortgage fraud scheme in which six defendants have pleaded guilty. The largest mortgage fraud case ever prosecuted in the Western District of Missouri, the scheme encompassed 289 fraudulent loans totaling $19.6 million, with a total actual loss of approximately $11.8 million for the financial institutions that were defrauded.
Brent Michael Barber, 41, of Belton, Missouri, pleaded guilty on February 23, 2006, to 104 counts contained in two federal indictments. Those indictments, as well as a third federal indictment for which Barber was convicted by a jury, involve separate schemes to defraud mortgage lending companies of millions of dollars.
Barber admitted that he recruited people to purchase rental properties, assuring them that he would find renters for the properties and sell the properties a short time later, so that the victim-investors would have no financial risk and a guaranteed quick profit. Then he provided false information on the loan documents and arranged for inflated appraisals in order to receive approval for the loans. Many of the buyers would not have qualified for the loans if true information had been given to the lenders.
During the first conspiracy, from May through October 1999, Barber was a client of Ameriquest Mortgage. During that period, he conspired with co-defendants Nicodemus, Roderick Neil Criss, 34, Kansas City, Missouri, who was the branch manager, and Cauncey Calvert, 35, Kansas City, Missouri, who was an account executive, to defraud Ameriquest.
As a result of that conspiracy, Ameriquest Mortgage approved 66 fraudulent loans totaling $4 million.
Snodgrass pleaded guilty on February 17, 2005, to her role in that mortgage fraud conspiracy. Snodgrass admitted that she provided artificially inflated appraisals on properties for which Barber was seeking mortgage loans from Ameriquest, Countrywide Home Loans and Hamilton Mortgage. In return, she received fees and other benefits.
Between June 9, 1999, and November 1, 2000, in response to requests from co-conspirators, Snodgrass prepared 75 false and fraudulent appraisals, inflating the values of the properties, misrepresenting the work she had done to prepare the appraisals, and at times misrepresenting the condition of the properties. For example, Snodgrass prepared and submitted a fraudulent appraisal for property at 29 E. 32 St., Kansas City, Missouri, for $73,000 in response to a request from a co-conspirator. Snodgrass stated that she personally inspected the property and that it was in good to average condition with no observable external depreciation. In reality, the house had failed city codes inspections and was on track for demolition based on findings that the building was dangerous and a nuisance, that the foundation and siding were cracked, and that the frame, guard rail, roof, gutters, porch, soffit, and fascia were damaged, decayed, or deteriorated.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
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...
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...
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...
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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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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