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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William T. Bridge, 41, San Francisco, California entered a guilty plea before United States District Court Judge William B. Shubb in connection with a widespread mortgage fraud scheme centered in the Stockton, California area. Bridge pleaded guilty today to one count of filing a false tax return and three counts of paying illegal kickbacks to a loan coordinator at Long Beach Mortgage, a former subsidiary of Washington Mutual, Inc., in connection with the funding of subprime mortgages in the Sacramento and Stockton, California areas between 2003 and 2006. Bridge also admitted that in each of the tax years 2003 through 2006 he derived more than $10,000 from criminal activity involving fraudulent loans funded by Long Beach Mortgage.
According to the indictment, and Assistant United States Attorneys Benjamin B. Wagner and Courtney J. Linn, who are prosecuting the case, Bridge admitted that in each of the tax years ending 2003, 2004, and 2005 he grossly under-reported his income from his mortgage business. For the tax year ending December 31, 2003, he reported gross receipts of $955,990 when in fact he received approximately $2,438,823. For the tax year ending December 31, 2004, he reported gross receipts of $630,070 when in fact he received $1,940,208. For tax year 2005, he reported gross receipts of $747,628 when in fact he received approximately $1,503,033. He caused a 2006 tax return to be prepared with the intent to inflict further tax losses, but did not file it. The total tax loss to the United States for tax years 2003 through 2006 exceeds $1,000,000, which sum Bridge agrees to pay as restitution.
Bridge also pleaded guilty to paying illegal kickbacks to a loan coordinator at Long Beach Mortgage in violation of the Real Estate Settlement Procedures Act of 1974 (RESPA). In connection with loans made by Long Beach Mortgage, which were secured by residential real property in the Sacramento and Stockton areas, Bridge paid a loan coordinator working for Long Beach Mortgage more than $120,000 between July 2003 and March 2007. The payments were made as part of an informal agreement between Bridge and the loan coordinator in which the loan coordinator would use his position at Long Beach Mortgage to facilitate the processing or fraudulent mortgage loan applications on behalf of Bridge.
“Today’s conviction illustrates federal law enforcement’s strong response to the mortgage fraud problem that helped fuel the subprime lending crisis in this and other regions of the country,” said U.S. Attorney McGregor Scott. “This office, with the aid of the FBI, IRS, and other state and federal law enforcement agencies, intends to use every appropriate tool, including criminal tax charges, to bring those responsible to justice.”
Bridge is scheduled to be sentenced before Judge Shubb on September 2, 2008, at 8:30 a.m. The maximum penalty for the tax offense is three years in prison, a fine of up to $100,000, or both. The maximum penalty for each of the illegal kickback violations is 12 months in prison, a fine of up to $10,000, or both. However, the actual sentence will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables, and any applicable statutory sentencing factors.
The case is the product of an extensive investigation conducted by the FBI and the Internal Revenue Service-Criminal Investigation (IRS-CI). The investigation is continuing.
I was an underwriter at Long Beach during that time and withstood constant badgering from these filthly brokers. Glad to see that one was caught, drawn and quartered, along with one of the greedy employees...I only worked there six months, the filth was too much for me to bear. I went back to prime, but of course that wasn’t much better due to the other greedy individuals.
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.
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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.
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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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