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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Government Drops Remaining Charges Against Sharpe James
Sharpe James, former Newark, New Jersey Mayor, was dismissed from all remaining fraud charges by the US Attorney’s Office. As previously reported by Mortgage Fraud Blog, Sharpe was convicted in April 2008 on all counts against him in a corrupt scheme to steer city-owned land to his mistress.
At the request of the U.S. Attorney’s Office, an order of dismissal with certain conditions was signed today by U.S. District Judge William J. Martini. The dismissal eliminates at this time the need for a second trial, which had been scheduled for July 8, on charges related to James‘ alleged abuse of city credit cards for personal use. In deciding to dismiss the second set of charges, Christie said he consulted extensively with the James trial team and senior members of his staff, New Jersey Attorney General Anne Milgram, whose office participated in the investigation and prosecution, and investigative agency heads. The decision was influenced considerably by the fact that a second conviction would not increase James‘ sentencing exposure under the applicable U.S. Sentencing Guidelines, which already leave James open to a sentencing range of between 10 and 15 years in federal prison, without parole.
Other related considerations were the time and resources that would be devoted to a second trial and the desire to have James sentenced as scheduled on July 29, 2008 for his convictions.
Importantly also, the dismissal preserves the right of the U.S. Attorney’s Office and/or the New Jersey Attorney General’s Office to seek a new Indictment on the dismissed charges in the event that any portion of James‘ April 16 conviction is overturned on appeal or other court action. In this regard, James‘ attorneys also waived any right of defense against those charges that might otherwise arise based on any federal or state statute of limitations.
The dismissal order further indicates that James will not seek an adjournment of the July 29 sentencing date. Riley‘s sentencing is also scheduled for July 29.
“We believe that justice was well served on the day the jury convicted the former mayor on all of the corruption charges against him and, as a consequence, by the significant prison term that he likely faces,” said US Attorney Christie.
James and Riley were originally charged in an 33-count Indictment which encompassed two alleged frauds: the scheme to steer Newark-owned properties to Riley, the mayor’s girlfriend, and James‘s use of city credit cards to travel with Riley and other women and spend on personal, often lavish, expenses.
Judge Martini divided the charges into two parts, requiring the government to try James twice. In the first trial, James and Riley were convicted on the same five charges: three counts of mail fraud related to the sale of the city lots to Riley, one count of fraud involving a local government receiving federal funds, and one count of conspiracy to defraud the public of James‘ honest services.
The jury also convicted Riley, Jersey City, New Jersey, on all of the other charges that named her only. Those additional convictions were three counts of mail fraud for Riley‘s fraudulent receipt of housing rental assistance for which she was not qualified; two counts of tax fraud for failing to report the income she received from the sale of the Newark properties; one count of corporate tax fraud, and one count of tax evasion.
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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