Wednesday, April 23, 2008
5 Sentenced To Federal Prison For Mortgage Fraud
Virginia Rose Novrit, 67, Hilton Head, South Carolina, Clarence Lorenzo Davis, 68, Hilton Head, South Carolina, Gregory Jerome Wings, Jr., 25, Atlanta, Georgia, Olympia D. Ammons, 31, St. Louis, Missouri, and Ronald Denzil Martin, Jr., 37, Lithonia, Georgia, were sentenced on charges of conspiracy, bank fraud, wire fraud, and money laundering related to a multi-million dollar mortgage fraud scheme.
According to United States Attorney Nahmias and the information presented in court: From late 2004 through early 2006, Novrit, Davis, Wings, Ammons, and Martin participated in a mortgage fraud scheme that involved millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw borrowers. The straw borrowers were paid as much as $600,000 per property from fraudulently obtained loan proceeds through shell companies. Novrit and Davis together obtained mortgage loans totaling more than $4 million within a six month period to purchase eight properties. Wings obtained mortgage loans totaling over $1.2 million to purchase a single property by providing the lender with false qualifying information. Wings also recruited a number of other unqualified buyers into the scheme and obtained a share of the fraudulently obtained loan proceeds from those transactions for doing so. Ammons was a loan originator for Ace Mortgage Funding, a national mortgage brokerage firm. Ammons brokered fraudulent mortgages totalling over $7 million. Martin was paid $75,000 to act as a straw buyer and submit a fraudulent loan application for one property.
United States Attorney David E. Nahmias said, “These defendants and their co-defendants are responsible for causing millions of dollars in losses to mortgage lenders by artificially inflating the sales prices on million dollar homes and submitting fraudulent loan applications to fund the purchases of these homes. In cooperation with federal, state, and local law enforcement agents, we will continue to vigorously investigate and prosecute mortgage fraud schemes in the metro Atlanta area.”
Novrit was sentenced to 3 years, 5 months in prison to be followed by 4 years of supervised release, and ordered to pay $839,585 in restitution. Novrit was convicted by a jury on November 26, 2007, after a three week trial.
Davis was sentenced to 4 years, 3 months in prison to be followed by 4 years of supervised release, and ordered to pay $839,585 in restitution. Davis was convicted by the same jury on November 26, 2007.
Wings was sentenced to 10 years, 2 months in prison to be followed by 4 years of supervised release, and ordered to pay $8,577,845 in restitution. Wings pleaded guilty on September 7, 2007.
Ammons was sentenced to 5 years, 3 months in prison to be followed by 4 years of supervised release, and ordered to pay $7,549,044 in restitution. Ammons pleaded guilty on October 2, 2006.
Martin was sentenced to 1 year, 1 day in prison to be followed by 3 years of supervised release, and ordered to pay $423,595 in restitution. Martin pleaded guilty on May 16, 2007.
Four other defendants have already been sentenced to prison terms in related cases, and five more defendants await sentencing.
mortgage fraud
Dang, over 10 years for G Money....
Posted by on 04/27 at 10:04 PM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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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 
