imageRachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar

Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.



Advanced Search
Enter your Email


Powered by FeedBlitz

Dollar in the News

June 5, 2009 - Miami Herald
Feds Get Tough on Mortgage Fraud

January 18, 2009 - New York Times
Loan Fraud Seen on the Rise

November 18, 2008 - Willamette Week
House of Gain

More Articles

Quick Links

Categories

Monthly Archives

Syndicate

You're welcome to post our feed on your site and provide your readers with the latest Headlines! Just select "Get Widget" below . . .
  

Subscribe in NewsGator Online

What's this?

Recent Posts

- Mortgage Fraud Scheme Leads to 83 Count Indictment
- Beazer Homes Settles Accusations of Mortgage and Accounting Fraud
- Closing Agent Indicted for Misappropriating Funds
- Falsified Loan Apps Lead to Criminal Charges
- 4 Indicted For Using Stolen Identities to Obtain Loans
- New Jersey Man Indicted for Mortgage Loan Misreps
- Florida Man Sentenced for Role in $30 Million Mortgage Fraud Scheme
- Ohio Man Charged in Straw Borrower Scam
- Loan Mod Company Ordered to Cease & Desist
- Former Mortgage Broker Pleads Guilty in $1.6 Million Mortgage Fraud Scheme

Friday, July 11, 2008

Guilty Plea In Vermont Mortgage Fraud Case

Richard Shumway, 51, Brewerton, New York, pleaded guilty on June 30, 2008 in United States District Court in Burlington, Vermont, to a federal wire fraud charge. Chief U.S. District Judge William K. Sessions III continued Shumway‘s release on conditions pending sentencing, which is set for November 3, 2008.

As previously reported by Mortgage Fraud Blog, on January 3, 2008, a federal grand jury in Burlington, Vermont, returned a two-count indictment charging Shumway with mail fraud and bank fraud. Both charges stem from the activities of TSC Funding, a South Burlington-based mortgage brokerage business Shumway owned and operated in the 1990s until 2005. According to the indictment, Shumway skimmed a total of nearly one million dollars from more than 200 loans he brokered by means of payments taken outside of closing, without the knowledge of the borrower. As part of the scheme, Shumway arranged for Gerald Mullaney, formerly a licensed real estate appraiser in the Albany, New York area, to prepare falsified appraisals for the homes the borrowers were purchasing. This enabled Shumway to induce the borrower to take out a larger loan than necessary to buy the home, and also enabled Shumway to divert some of the proceeds of each loan to his own benefit. Shumway misled borrowers into believing the extra fees were to be paid to the lending institution to obtain a lower interest rate. Shumway was aided in this scheme by Nazzara Bernardo of Syracuse, New York, the owner of the title company that processed the closing paperwork on each loan and served as escrow agent.

Shumway faces up to 20 years of imprisonment and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The actual sentence will be determined with reference to federal sentencing guidelines.

Gerald Mullaney has already pled guilty to bank fraud and is awaiting sentencing. Bernardo has pled guilty to conspiracy and is also awaiting sentencing.

This case was investigated by the Burlington, Vermont office of the Federal Bureau of Investigation.

Shumway is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Gregory Waples.

   

Posted by Staff Reporter on 07/11/08 at 02:49 AM
Mortgage Fraud • Total comments: (4) (0) Trackbacks
  1. Mortgage fraud is a big problem here in the UK, lots of big brokers have been fined for miss selling, falsifyinn income. Looks like the bubble has burst now.

    Posted by  on  07/14  at  04:08 AM
  2. My wife and I purchused a new double wide a few years ago, We were told to sell our home, use it as a down payment ect, we tried to back out but we foolishly listen to salesmansay we can afford it and not to worry, it took almost a year for us to get approved and the whole thing was very suspicious, the loan was done through TSC funding and the owner Rick Schumway was convicted of fraud and stole over $8400.00 from us. Also the person who did our appraisal has been convicted as well, and I believe the man who did our closing. We cannot afford this house and we are in forecloser, if we only have this loan due to fraudulant activities can we get out of it? I don’t believe the bank was aware of this as they are not the original lender, what can happen from here being that Shumway and his pals frauded us and probably the bank as well?
    Thanks,
    Tom Seymour

    Posted by  on  09/30  at  03:56 AM
  3. So, what the hell happened to the guy on November 3rd? No reports after that? Did the guy get away with it or what? Amazing!

    Posted by  on  12/09  at  03:55 AM
  4. he will be sentenced now on Jan 29th.

    Posted by  on  01/26  at  01:24 PM

Post a Comment

Name:

Email:

Location:

Smileys

Remember my personal information

Notify me of follow-up comments?

Submit the word you see below:


The trackback URL for this entry is:

Trackbacks:

Enter your Email


Preview | Powered by FeedBlitz
mortgage fraud news



Today's News

Some Sources require Registration.

 

Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.

Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.

Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.

Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.

Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.

Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.

Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.

Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”

Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.

Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...

Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

Update - US v. F. Jeffrey Miller, et al.

Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.

Vanatta has been in custody for over 2 years.  Vanetta filed a motion for his release pending sentencing. That motion was denied.

Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.

Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.

The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.



More Trial Coverage

What's Your Opinion?

ORDER NOW!!

Real Estate Blog Top SitesBlog Flux DirectoryBlog Directory & Search engineBlog Directory
Blogarama - The Blog DirectoryListed on BlogShares

© Copyright 2004-2007 Rachel M. Dollar

Legal Disclaimer.
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.

Real Estate Blog Top Sites Blog Flux Directory Blog Directory & Search engine Blog Directory
Blogarama - The Blog Directory Listed on BlogShares