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 Mortgage Broker Charged with Multiple Counts of Fraud
Warren Clifton Pierce was charged in a 13-count indictment in connection with a mortgage fraud scheme. The indictment, unsealed at Pierce’s arraignment, charges Pierce with one count of conspiracy to commit mail fraud & wire fraud, seven counts of wire fraud, one count of conspiracy to commit money laundering, two counts of money laundering, one count of concealing or covering up records with the intent to impede, obstruct, or influence a federal investigation, and one count of concealing or attempting to conceal documents subpoenaed by the federal grand jury. Also included in the indictment is a notice of the government’s intent to pursue forfeiture of Pierce’s property constituting or derived from the proceeds of his illegal activity . The indictment alleges the value of such illegal proceeds to be approximately $547,650.00
Warren Clifton Pierce worked as a mortgage broker in Hinds County and Rankin County doing business as Raintree County Marketing Company and Integrity Mortgage, Inc. The indictment alleges that from July, 2003 through approximately March 2007, Pierce prepared false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. If the mortgage loans were successful, Pierce received a fee for his brokerage services. The false and fictitious documents, along with the loan application containing false information, were included in loan application packets submitted to potential lenders by Pierce and others acting under his direction.
The indictment further alleges that in order to obtain funding for borrowers who were otherwise unqualified to receive mortgage loans, Pierce and others acting at his direction would fabricate various kinds of documents, including but not limited to, fictitious social security benefit statements, false income and/or employment information, false verifications of rent, or false verifications of bank funds on deposit. False entries were also included on HUD-1 Settlement Statements submitted to various lenders with the final loan packets which reflected that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower. During the time period covered by the indictment, Mark Calhoun obtained fraudulent mortgage loans totaling over $500,000.00.
U. S. Attorney Dunn Lampton stated, “Mortgage fraud remains a serious concern throughout the United States, including here in Mississippi. This office remains committed to work with the federal and state agencies participating in the Jackson Financial Crimes Task Force to identify and bring to justice those people who enrich themselves by committing crimes at the expense of borrowers and lenders. We will also vigorously prosecute any person who attempts to impede or obstruct the criminal investigations of federal grand juries or federal agents.”
Michael J. De Palma, IRS-CI Special Agent in Charge stated, “In this case, the Jackson Financial Fraud Task Force, which is comprised of a specialized group of financial investigators and federal prosecutors, identified and investigated those involved in this mortgage fraud scheme. Mortgage fraud adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities. We are committed to pursuing those involved in these schemes to ensure they are brought to justice.”
This mortgage fraud investigation has been ongoing for over two years and is a joint investigation by the Internal Revenue Service and the Federal Bureau of Investigation, assisted by other participating agencies in the Jackson Financial Crimes Task Force, including the United States Postal Inspection Service, Federal Deposit Insurance Corporation-Office of Inspector General, Housing and Urban Development-Office of Inspector General, Mississippi Secretary of State’s Office, Mississippi Real Estate Commission and Appraisal Board, Mississippi Department of Banking and Consumer Finance, Hinds County Sheriff’s Office, Madison Police Department and the Madison-Rankin District Attorney’s Office.
United States Attorney Lampton stressed that this indictment represents an accusation only and all defendants are entitled to a presumption of innocence.
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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