Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar

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Recent Posts

- Ohio Mortgage Fraudster Sentenced To 20 Months
- Missouri Man Pleads Guilty To Loan And Appraisal Misreps
- Lawyer Pleads Guilty to Stealing $4M From Real Estate Closings
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- Utah Man Indicted For Making Loan Application Misrepresentations
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- Leader Of $10M Mortgage Fraud Scheme Gets 8 Years

Thursday, August 21, 2008

Former Appraiser in Parish Marketing Scheme Sentenced

Donald Todd Yeager, 41, Ardamore, Oklahoma, a former appraiser who provided misleading and inflated appraisals of the homes to lenders in a mortgage fraud scheme involving approximately 200 residences and approximately $100 million in loan proceeds, was sentenced to 15 months and three years supervised release on one count of honest services fraud.  Yeager was sentenced by United States District Court Judge Ann Montgomery August 18, 2008, in Minneapolis, Minnesota.

Yeager was connected to the scheme arranged by the owners of Parish Marketing and Development Corp. (PMDC), a long-time Minnesota home builder. On July 31, the owners of the company, along with their son-in-law, were sentenced. The scheme resulted in a loss of between $20 million and $50 million and harmed more than 50 victims. Two additional defendants involved in the scheme were sentenced on August 6, 2008.

According to court documents, PMDC used straw buyers to purchase approximately 200 properties built by PMDC, primarily in the New Prague, New Market and Lonsdale, Minnesota area. In total, the scheme generated nearly $100 million in loan proceeds, with PMDC receiving in excess of $25 million from these loan proceeds.

According to Yeager’s plea agreement, he conducted 74 appraisals for PMDC from 2004 through 2005. These appraisals were misleading and failed to provide material information to the lenders, and were based primarily on a “value” provided by a mortgage broker and were not the product of independent professional analysis.

Yeager also improperly relied on information provided by an individual working for PMDC in making the inflated appraisals. Yeager admitted that his failure to provide honest services was driven by his own economic interest and desire to maintain future business providing appraisals for PMDC. He was paid $400 per appraisal, and received a total of approximately $30,000.

Two other defendants connected to the conspiracy have pleaded guilty to federal charges and await sentencing.

Ramiz Yousef Saadeh, 30, Apple Valley, also pleaded guilty in September 2007 to conspiracy to commit mortgage fraud. The former US Bank officer admitted providing false verifications of deposit to the home builder on behalf of straw buyers.

In June 2008, John M. Rubischko, 36, Eagan, a former mortgage broker implicated in the scheme, also pleaded guilty to mortgage fraud and identity theft charges.

This case is the result of an investigation by the Federal Mortgage Fraud Task Force, including the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The investigation has been assisted by the Minnesota Department of Commerce, the Scott County Sheriff’s Office, the Rice County Sheriff’s Office, the Le Sueur County Sheriff’s Office, and the New Prague Police Department. The case is being prosecuted by Assistant U.S. Attorney Joe Dixon.

   

Posted by Staff Reporter on 08/21/08 at 04:00 AM
Mortgage FraudMinnesota • Total comments: (2) (0) Trackbacks
  1. I was the in house review appraiser at Lydian Data Services, a due diligence company.  I reviewed two appraisal reports in conjunction with the New Market Minnesota fraud case and discovered the appraisals sent to my client were indeed fraudulent.  An SAR was filed back in late 2006 which assisted in the guilty pleas of the principals of Parrish Marketing.  Its sad about the fraud but I feel glad about the fact that all got caught and that my SAR helped.

    Posted by  on  08/21  at  11:38 AM
  2. Even if he made a deal, this sentence is too light.  18 USC series calls for 5 years and a minimum of $250,000 fine.  Bad appraisers must be held responsible for their actions or this type of appraising will continue.

    Posted by  on  08/27  at  07:43 AM

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Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

U.S. v. Miller, et al.

Thursday, December, 18, 2008

Verdict:

F. Jeffrey Miller Guilty of Conspiracy and Money Laundering

Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud

Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud

Sandra Jo Harris Not guilty- all counts



More Trial Coverage

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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.

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