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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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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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.
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
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.
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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