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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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Jeffrey D. Stadelmann, 47, Menomonee Falls, Wisconsin, has been indicted on charges of wire fraud in connection with a fraud scheme he is alleged to have conducted between March 2002 and March 2008. If convicted of this charge, Stadelmann would face a maximum term of imprisonment of 20 years and a fine not to exceed $250,000.
The indictment alleges that Stadelmann and his associate Donna Lonzo, 44, formerly of Menomonee Falls, Wisconsin conspired to defraud Countrywide Home Loans in connection with mortgage loans that they allegedly used to buy a $2 million vacation home in Boulder Junction, Wisconsin. According to the indictment, between November 2005 and January 2006, Stadelmann and Lonzo conspired with another individual having the initials "W.B." to have W.B. apply for and obtain, in W.B.'s name, the $1.8 million in mortgage loans used to purchase the vacation home. The indictment alleges that the three conspired to have W.B. falsely state that he was the borrower and to falsely overstate W.B.'s assets in the loan applications so that W.B. could obtain the mortgage loans, for which otherwise would not have qualified, for Stadelmann's and Lonzo's benefit. The indictment further charges Stadelmann with one count of money laundering. According to the indictment, in October 2006, W.B. obtained over $258,000 in funds from Countrywide through a fraudulent application for a second mortgage on the Boulder Junctionproperty. Stadelmann allegedly then caused W.B. to wire $200,000 of those funds from W.B.'s bank account to Stadelmann's bank account. If convicted of this charge, Stadelmann would face a maximum term of imprisonment of 10 years and a fine not to exceed $400,000.
The indictment also alleges that Stadelmann fraudulently obtained over $2.4 million from over 50 investors and private-party lenders based on false pretenses. The indictment alleges that Stadelmann, among other things, obtained money from investors on the false pretense that he would invest their money but that he instead converted their money to his own use and used some of the money to pay other investors. The indictment also charges Stadelmann and his associate Lonzo, with conspiracy to commit wire fraud. If convicted of this charge, Stadelmann and Lonzo would each face a maximum term of imprisonment of 5 years and a fine not to exceed $250,000.
The indictment was announced by United States Attorney Michelle L. Jacobs.
The public is cautioned that an indictment is merely the formal method of returning charges against an individual and does not constitute evidence of his guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
How does an individual get help to recover a mortgage payment that was lose by the lender? We have tried for months and had no success. We have gone as far as the state attorney general office. Most often the comment is the company is too big to tackle. How can we let these lending institutions become so arrogant that they can steal for the little guy?
Posted by on 11/15 at 09:06 AM
Or how do you like that if a person doesnt know 100 % of the mortgage laws,you can be sent to jail. AND the banks that got bailed out,the c e o getting million dollar bonuses......And they were the ones making all of the fat cash on the subprime bs.....GO figure....lol
Posted by on 11/15 at 02:20 PM
My concern is not for the mortgage company in this case. Chase has lost a loan payment and will not attempt to find it. Documentation has been provided that the wire transfer was made. Chase claims it was returned, but there is no trail. A thousand dollar payment is significant to a person who is struggling to make ends meet.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
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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