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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Former Credit Union Officer and Family Indicted in Fraud Scheme
The former executive director of the D. Edward Wells Federal Credit Union (’Wells’), along with her husband and son, were charged with embezzlement, tax fraud and other crimes relating to the failure of the credit union in the spring of 2003.
Carol Aranjo, 65, Springfield, Massachusetts, her husband, Alphonso Smith, 67, Springfield, Massachusetts, and their son, Douglas Smith, 46, Chicopee, Massachusetts, were charged in an eighty-six count Indictment with conspiracy to embezzle money from the D. Edward Wells Federal Credit Union and to prevent detection of the fraud. The three were also charged with filing false tax returns by failing to report the embezzled funds as income.
The Indictment also charges Alphonso Smith with defrauding three commercial lending institutions by submitting fraudulent loan applications and false verifications of employment in order to obtain mortgage loans. In connection therewith, the indictment alleges that, on July 23, 1999, Alphonso Smith obtained a Wells cashier’s check for $24,204.03 to pay the closing costs for the purchase of 2303 Wilbraham Road, Springfield, Massachusettss, funding the purchase with a Wells loan made without application, credit check or loan officer approval. Although it was classified on Wells books and records as a second mortgage, no mortgage was ever recorded. On March 15, 2002, Alphonso Smith applied for a loan from GMAC to refinance an existing mortgage on the 2303 Wilbraham Road property without disclosing the unrecorded Wells mortgage or arranging for it to be paid. According to the indictment, Carol Aranjo also obtained a cashier’s check classified as a mortgage loan but for which no mortgage was recorded. When she sold a condominium she owned at 60 Greenwood Terrace, Chicoppe, Massachusetts, according to the indictment, no portion of the proceeds were used to pay of an unrecorded Wells Mortgage on the property.
On February 22, 2002, according to the indictment, Douglas Smith obtained a Wells cashier’s check for $22,162.85 without making any payment for the check and utilized it to purchase 37 Lafayette Street, Springfield, Massachusetts. Alphonso Smith and Carol Aranjo gave false information about the balances in Alphonso Smith’s Wells accounts in an application for a mortgage from Wells Fargo Home Mortgage Company to finance Alphonso Smith‘s purchase of the 37 Lafayette Street property from Douglas Smith.
All three were arrested on the charges on Friday, July 7, 2006, and were arraigned before U.S. Magistrate Judge Kenneth P. Neiman. They were each released pending trial on a $100,000 unsecured bond. If convicted on these charges, each defendant faces up to 30 years’ imprisonment, to be followed by 5 years of supervised release, and a $250,000 fine.
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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