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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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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ID Theft Admits to Using Stolen IDs to Obtain Loans
Eric Bronche Thomas, 42, Gardena, California pleaded guilty to computer intrusion, use of a false identity document and misuse of a social security number. Thomas is the third member of an identity theft ring that used personal information fraudulently obtained from Experian and other companies to apply for fraudulent loans.
Two other members of the identity theft ring – Calvin Son Guidry, 32, Inglewood, California, and John Wayne Avery, 52, Los Angeles, California – pleaded guilty earlier this year to conspiracy to commit identity theft. Guidry additionally pleaded guilty to the use of a false identity document.
When entering their guilty pleas, Thomas, Guidry, and Avery admitted working together to obtain personal data – including names, dates of birth and social security numbers – and to use that data to fraudulently apply for loans. Thomas admitted to establishing a real estate company and using that company to obtain access to Experian credit reports, from which he harvested personal information from unsuspecting victims. With the personal information, Thomas and Guidry applied for loans from various lending institutions and created counterfeit identity documents. Avery and other members of the ring would then use the identification documents to claim the loan checks.
In addition to the loan fraud scheme, Thomas also admitted to applying for a Best Buy credit card using a false social security number after the loan fraud case had been filed. Thomas has agreed to forfeit several residences that he had purchased using stolen identities.
The government estimates that the actual loss associated with the identity fraud tied to Thomas, Guidry, and Avery is more than $300,000. At least 30 people were victimized.
Sentencing for Thomas is set for August 28, 2006 at which time he faces a maximum possible sentence of 35 years in federal prison. Guidry is scheduled to be sentenced on October 16, 2006 and faces a maximum possible sentence of 20 years in federal prison. Avery is scheduled to be sentenced on November 27, 2006 and faces a maximum sentence of five years in federal prison.
There can be little doubt that there will continue to be a rise in this type of ID theft case.
While the financial industry as a whole is probably further ahead than most industries (thanks in part to GLB and SOX) there is still a tendency for companies to “spend more on their coffee service” than on information security.
The type of hole that was left for these three to exploit is a definite red flag for failed or non-existent policies and procedures, not necessarily technology.
Posted by on 07/19 at 06:42 AM
Why didn’t I think of that? Steal an identity, issue a big loan and then disappear in the world and never to be heard from again. Simple, huh?
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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