Monday, September 24, 2007
Georgia Attorney Pleads Guilty In Mortgage Fraud Scheme
James F. Stovall III, 56, Roswell, Georgia, pleaded guilty in federal district court to charges of conspiracy to commit bank, mail and wire fraud, bank loan application fraud, money laundering, and wire fraud.
United States Attorney David E. Nahmias said of the case, “We unfortunately continue to see some real estate professionals, such as attorneys and appraisers, who serve as gatekeepers of the system, instead ignoring their professional duty to participate in mortgage fraud schemes. Given the well-known troubles in the mortgage industry and related financial markets, we will continue to aggressively investigate and prosecute such professionals who, out of pure greed, are willing to promote such fraud schemes in North Georgia.”
As previously reported by Mortgage Fraud Blog, and according to the information presented in court: Stovall, a real estate attorney, participated in a mortgage fraud scheme involving property flips orchestrated by one of his clients, “Reti Relocation Services, Inc.” From April 2000 to June 2001, Reti flipped some 50 properties in the metro Atlanta area in such subdivisions as Brookstone in Acworth, Windward and Seven Oaks in Alpharetta, and Towne Lake in Woodstock. Reti would acquire properties and on the same day resell or flip them to straw borrowers who were paid for participating in the transactions. Reti paid recruiters for locating straw borrowers, loan officers for preparing and submitting false loan applications and false qualifying documents, and appraisers for preparing fraudulent appraisals with inflated values that were submitted to lenders. Stovall closed nearly all of the same day fraudulent flips and, in doing so, failed to advise his clients, the lenders, of those flips, prepared false HUD-1 settlement statements that were submitted to the lenders, and moved the proceeds of the scheme through his escrow account and to off-shore bank accounts. The fraudulent scheme involved the submission of false qualifying information and documents through the mails and the wire transfer of scheme proceeds. In the overall scheme, financial institutions and lenders were fraudulently induced to make loans totaling over $20 million.
The indictment, details false statements and information for transactions concerning the following properties:
1510 Portmarnock Drive
5740 Preserve Circle
1029 Deer Hollow Drive
119 Kennemer Court
15410 Laurel Grove Drive
4692 Bishop Lake Road
15455 Laurel Grove Drive
300 Banyon Brook Point
535 Brightmore Downs
420 Crepe Myrtle Terrace
100 English Oak Court
360 Tree Lake Court
12425 Preserve Lane
2645 Francis Road
5825 Sunset Maple Drive
240 Holcombe Hill Lane
12373 Sunset Maple Terrace
605 Oak Farm Lane
647 Braidwood Drive
5655 Brookstone Drive
3005 Foxhall Overlook
1133 Fairwood Close
1373 Downington Lane
8460 Caney Creek Landing
6239 Braidwood Way
1588 Grandwood Trail
905 Fieldstone Way
1392 Downington View
5635 Forkwood Drive
5575 Brookgreen Drive
811 Hillcrest Lane
601 Villa Estate Lane
2015 Walnut Creek Crossing
820 Stonehaven Lane
6006 Fairlong Circle
630 Braidwood Drive
341 Ironhill Trace
622 Braidwood Pointe
5607 Forkwood Drive
1313 Benbrooke Lane
6209 Benbrooke Drive
1204 Benbrooke Court
5595 Forkwood Drive
8010 Royal Saint Georges Lane
6266 Benbrooke Way
5586 Forkwood Drive
5561 Brookgreen Drive
5580 Snowberry Drive
5607 Brookstone Drive
664 Transart Parkway
1050 Fairwood Run
1407 Coventry Court
5720 Brookstone Walk
6255 Braidwood Way
5809 Fairwood Walk
6303 Braidwood Overlook
457 Braidwood Walk
Stovall pleaded guilty to one count of conspiracy to commit bank, mail, and wire fraud, bank loan application fraud, and money laundering, and one count of wire fraud. He could receive a maximum sentence of five years in prison and a fine of up to $250,000 on each count.
Sentencing has not yet been scheduled. He will be sentenced by United States District Judge Thomas Thrash.
mortgage fraud
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Posted by on 12/24 at 02:44 AM
thank you…
Posted by on 02/11 at 05:51 AM
thanks you very mach
Posted by on 04/10 at 05:56 AM
Thanks you very mach.
Posted by on 05/22 at 04:53 AM
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The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
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In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
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A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
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Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
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At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
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The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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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 
