Friday, November 13, 2009
Misrepresentations Lead to Mortgage Fraud Charges
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 Junction property. 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.
mortgage fraud
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.
Posted by on 11/16 at 05:36 AM
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Some Sources require Registration.
Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.
Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.
2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband
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Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.
No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
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According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.
Former Vegas Resident Charged with Mortgage Fraud in Nevada
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A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...
Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.
12-Year Prison Term in Mortgage Swindle
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A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
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 released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
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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 
