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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Mark Turkcan, Kirkwood, Missouri, was charged in an 11 count indictment alleging fraudulent activities connected with his position at First Bank Mortgage, causing a loss of $35 million to a St. Louis Bank.
According to the indictment, the losses began as early as 1987 when Turkcan, 55, was employed by Sheahan Financial, which, along with Clayton Savings and Loan, was purchased by First Bank. The substantial losses that Turkcan incurred at Sheahan were from on hedge positions taken on behalf of Sheahan, and were concealed at Sheahan. In 1990, First Bank purchased Clayton Savings and Loan and Sheahan Financial without knowing abut the losses concealed on the books of Sheahan, causing First Bank to overpay in the purchase. After the purchase of Sheahan in 1990, Turkcan became President of First Bank Mortgage. He continued to buy and sell mortgage backed securities as part of his job. However, losses from the unauthorized and unapproved borrowings continued and ultimately rose to approximately $35 million. They were covered up and concealed from First Bank by destroying or changing records and posting profits on the books and records of the Bank. To cover the losses, Turkcan borrowed against the mortgage backed securities of First Bank Mortgage. These loans were also concealed from First Bank. To conceal the true nature of these transactions, Turkcan created false and fictitious trade tickets and Bear Stearns confirmations.
The indictment alleges that ultimately these losses rose to a level of approximately $35 million, which First Bank had to pay Bear Stearns.
Turkcan was indicted by a federal grand jury on eight felony counts of wire fraud, one felony count of misapplication of bank money, one felony count of making false bank entries (counts 9 and 10); and one felony count of causing the filing a false annual report (count 11).
If Turkcan is convicted, each wire fraud count carries a maximum penalty of 30 years in prison and/or fines up to $1 million; counts 9 and 10 each carry a maximum of 30 years in prison and/or fines up to $1 million; and count 11 carries a maximum of 20 years and/or fines up to $5 million. Restitution is mandatory on all counts.
“The indictment alleges that Mark Turkcan, as President of First Bank Mortgage, a division or wholly owned subsidiary of First Bank, misapplied monies of the Bank, which caused them to pay loans, interest, commissions and other fees of more than $35 million to Bear Stearns, due to concealment of unauthorized and unapproved borrowings made on behalf of First Bank Mortgage,” said U.S. Attorney Hanaway.
U.S. Attorney Hanaway commended the First Bank‘s officers and employees for bringing this information to the U.S. Attorney’s Office, and the FBI for their expeditious investigation of this case.
The case is being handled by First Assistant Michael W. Reap of the U.S. Attorney’s Office for the Eastern District of Missouri.
The charges set forth in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty.
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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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