Monday, February 04, 2008
Georgia Closing Attorney Sentenced to 3 Years
Raymond Joseh Costanzo, Jr., 63, Clayton, Georgia, was sentenced by United States District Judge Beverly B. Martin on charges of bank fraud and conspiracy related to a multi-million dollar mortgage fraud scheme.
Costanzo was sentenced to 3 years, 5 months in prison to be followed by 4 years of supervised release, and ordered to pay $7,843,184 in restitution. Costanzo pleaded guilty to these charges on October 17, 2006, and has also surrendered his license to practice law.
As previously reported by Mortgage Fraud Blog, and according to United States Attorney Nahmias and the information presented in court: From late 2004 through early 2006, Costanzo participated in closing millions of dollars in fraudulently inflated mortgage loans for unqualified straw borrowers. These straw borrowers were paid as much as $600,000 from fraudulently obtained loan proceeds through shell companies. Costanzo himself obtained mortgage loans totaling over $1.5 million by providing the lender with false qualifying information, and he also falsified down payments. Costanzo received $250,000 in scheme proceeds from this transaction, and arranged for disbursements of fraudulently obtained loan proceeds to co-conspirators from this and other loans.
United States Attorney David E. Nahmias said, “Such blatant fraud by a licensed professional and real estate market ‘gatekeeper’ cannot be tolerated. Closing attorneys are the lenders’ eyes and ears at the closing table and must guard against mortgage fraud. The integrity of closing attorneys is essential in the effort to prevent mortgage fraud. Attorneys who choose to be part of the fraud problem rather than part of the solution should understand that their future may be in a federal prison.”
mortgage fraud
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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.
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