Thursday, January 24, 2008
Florida AG Sues 19 Foreclosure Rescuers
National Foreclosure Management, Inc., American Home Rescue, Inc., National Property Holding Group, LLC,, The Mortgage Practice, Inc., Southeast Capital Mortgage Company, Barrister Title Services, Inc., GMC Land Services of Florida, Inc., doing business as Richmond Abstract, Inc., Bernard Williams, Wyman F. Roberts, Lakeisha Marion, Anna Silva, Albert Nae, Linda Rubinchik, Rhona Oliver, Tracy Needleman, Gina Rock, John Sarlo, Dianna Brown-Flournoy, and Reina Roman have all been named defendants in a suit by Attorney General Bill McCollum.
Beginning in October 2004, National Foreclosure Management – which now does business as American Home Rescue, Inc. – selected homeowners who had substantial equity in their homes but were in the process of being foreclosed upon. The company would offer to hold the titles to the homes for a year, refinance the debt, and provide cash and credit repair counseling to the homeowner, all while allowing the homeowner to remain in the house. The company claimed it would deed the property back at the end of the year after the foreclosure had been avoided and the homeowner’s credit was repaired.
Once the company had obtained the title to the house, the Attorney General’s lawsuit alleges the company would strip the equity from the homes by refinancing them at inflated prices and by assessing fraudulent fees and costs, leaving little or nothing for the homeowner to recoup. The home would then be sold outright to an investor or a straw buyer who would lease the home back to the homeowner at a rental rate far exceeding the original mortgage payment, virtually ensuring the homeowner’s eventual eviction. According to the lawsuit, the homeowners would end up with neither the titles to the homes nor the equity that rightfully belonged to them.
The complaint, filed with the Office of Financial Regulation, seeks restitution to the affected homeowners, dissolution of the rescue foreclosure companies, and revocation of the mortgage brokers’ licenses revoked. Don Saxon, Commissioner of the Office of Financial Regulation, expressed gratitude to Attorney General Bill McCollum and Chief Financial Officer Alex Sink for their continued support and commitment to protect consumers.
“Mortgage fraud is a destructive crime that can destroy a family’s future in an instant, and we need stronger laws to protect Florida’s consumers,” said Chief Financial Officer Sink, who oversees the Department of Financial Services and who heralded today’s actions as essential to the fight against mortgage-related fraud. “It is downright disgraceful that some would use trickery to steal the dream of homeownership from a struggling Floridian.”
The lawsuit is the first filed by the Attorney General’s Mortgage Fraud Task Force, created to investigate these various schemes and, where appropriate, seek solutions to protect consumers. The task force has been in operation since September and is comprised of 25 lawyers and investigators in the Attorney General’s Office, stationed in locations throughout the state.
In addition to the lawsuit, McCollum announced a multi-pronged initiative to combat mortgage-related fraud, specifically fraud involving “rescue foreclosure” scams. As part of the litigation and legislation-based initiative, the Attorney General filed the lawsuit asserting that the South Florida-based National Foreclosure Management and multiple affiliates defrauded at least 80 homeowners out of approximately $1.7 million in home equity. These allegations were investigated by a new task force developed by Attorney General McCollum to target mortgage-related fraud, an effort bolstered by proposed legislation to strengthen provisions against mortgage rescue scams.
“The Attorney General’s Office is taking action against unscrupulous individuals who attempt to take advantage of our citizens when they are desperate to protect their homes,” said Attorney General McCollum. “We are tackling this growing problem from several directions to help keep families in the homes they’ve worked so hard to achieve.”
In addition to filing the lawsuit, the Attorney General announced the filing of the “Foreclosure Rescue Fraud Prevention Act,”. The proposed legislation will ensure that, among other things, homeowners are properly informed about their rights when they are signing a contract with a foreclosure rescue entity.
“When people are on the brink of losing their homes, they are desperate for any assistance available and all too often they trust a wolf in sheep’s clothing,” said Senator Fasano. “We must strive to protect Florida’s homeowners from such a dangerous situation.”
“This legislation is designed to protect homeowners from individuals who attempt to prey upon them in their time of distress,” said Representative Ford. “We must make every effort to shelter our citizens from this blatant form of deception.”
The proposed legislation offers the following key provisions:
-- A five-day right of cancellation period that allows the consumer to cancel the agreement with the foreclosure rescuer;
-- Requirements that foreclosure rescuers include in the contract clear and conspicuous notice to homeowners of this right of cancellation as well as a recommendation that the homeowner contact the lender or mortgage servicer prior to the signing of the agreement and a provision that states the consultant is prohibited from accepting any form of payment until all services are completed;
-- Definitions of such terms as “Equity Purchaser,” “Foreclosure Consultant,” “Foreclosure-related Services,” and “Foreclosure Rescue Transaction”; and
-- That all violations of this act are defined as an unfair and deceptive trade practices and are subject to the penalties included in Part II of Chapter 501, Florida Statutes.
The legislation is filed under Senate Bill 992 and House Bill 643.
mortgage fraud
GMC Land Services of Florida, Inc., doing business as Richmond Abstract, Inc., is/was owned by Joe Laforte, he is the same person named on an article by the title of “Civil Lawsuits Precede New York Money Laundering Charges” posted on this site on Friday, November 04, 2005. When is he and everyone else involved in this scam going to do time?
If the AG can’t find info on them maybe they should turn to the electronic storage companies that people in this industry use to store their files. I don’t know what took the AG so long to file this law suit, Richmond was shut down by the Feds back in 2005 and the owners walked away to the next title company down the road.
Posted by on 01/25 at 12:14 PM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
FBI Builds Its Case in Flipping Schemes
Herald Tribune
Craig Adams, orchestrator of one of the largest real estate fraud rings in Florida history, has secretly spent more than a year and a half as an FBI informant, helping build cases against the people he once recruited into his schemes, the Herald-Tribune has learned.
Recent Appraisal Rules Open Door to Shady Middlemen
Tampa Bay Online
The changes, which took effect in May, were designed to prevent the appraisal-related fraud that helped drive housing prices to unsustainable heights.
Is 'Forensic Mortgage Analysis' Legitimate?
King5.com
Richard Hagar works at American Home Appraisals and does fraud profiling...He says the latest scam snaring homeowners are companies or individuals offering a 'forensic mortgage analysis.'
Sylvania Lawyer Charged in Thefts From 2 Clients
Toleda Blade
A Sylvania lawyer who has his office in Temperance and has long practiced in the Toledo area appeared in Lucas County Common Pleas Court yesterday on charges that he stole from clients.
Ex-IU Player Charged in Realty Funds Scheme
Journal Gazette
Former Indiana University basketball player and current radio announcer Todd C. Leary faces 17 felony charges in connection with a scheme to misappropriate real estate title funds.
More Real Estate Licenses Revoked in 2009
KMJ Now.Com
A staggering number of real estate licenses were revoked here in the Golden State in 2009, many, the result of loan modification scams.
FTC Wants to Bar Upfront Fees by Mortgage-Relief Firms
E Credit Daily
The Federal Trade Commission today proposed a new rule banning upfront fees by companies promoting mortgage modification services to rescue distressed homeowners from foreclosure.
Mortgage Fraud Conspirator Sentenced to Jail
ABC Local
One of three defendants in a Yucca Valley mortgage fraud case has been sentenced to prison.
Heath Man Awaiting How Much He Owes Scam Victims
Newark Advocate
Attorneys on Monday started the process of sorting out how much a Heath man owes to the people he admitted to scamming.
Filings of Suspected Mortgage Fraud Leveled Off
Mondaq.Com
On January 22, 2010, the Financial Crimes Enforcement Network (FinCEN) reported that filings of Suspicious Activity Reports (SARs) during the first six months of 2009 for check fraud increased for all of the industries required to file SARs under the Bank Secrecy Act (BSA), as compared to the first six months of 2008.
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Follow Anne on Twitter.
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... Read More...
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... Read More...
Tuesday, January 19, 2010
F. Jeffrey Miller - Prosecution Witness Testimony Overview
Witness Jennifer Kelly, Independence, Missouri, was the first witness called by the Government. According to the testimony Jennifer Kelly provided in court:
She and her family moved into a Miller Enterprises home with a lease/purchase agreement. The Government presented the Residential Contract for Sale of Real Estate, signed by the Kellys on... Read More...
Monday, January 18, 2010
F. Jeffrey Miller Trial - Government Calls First Witness
Builder Looking For Toys Car, motorbikes, etc. for Down Payment. New Homes avail. 913-634-**** Cell phone
This was the newspaper ad answered by a homebuyer and witness, Rick Hayes, discussed during the opening day of testimony for previously convicted homebuilder, F. Jeffrey Miller.
Witness testimony began on January 13, 2010, Topeka, Kansas.... Read More...
Monday, October 26, 2009
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...
|
|
|
|
|
|
|
|
|
|
|