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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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Illinois Foreclosure Rescue Company Fined and Shut Down
Following a lawsuit brought by Illinois Cook County State’s Attorney Richard Devine, a fraudulent mortgage lending company has been fined $250,000 and banned from doing business in Illinois.
Bold Funding, Inc. and its owner-operator, Bruce Wagner, were found to have violated Illinois law by falsely promising to secure private funding for loans to save the homes of persons who were in foreclosure for a fee ranging from $300 to $6,670.
In Civil Court on April 18, 2006, Judge Julia Nowicki ordered Bold Funding and Bruce Wagner to refund $115,858 in application fees to 74 former customers who never received any funding from the Defendants. Bold Funding and Bruce Wagner were also fined $250,000, and the Defendants were permanently banned from providing any services in Illinois related to residential mortgage loans.
“The taking of monies from vulnerable homeowners in foreclosure under false pretenses is reprehensibleX,” Devine said. ”Any company which purports to help homeowners who are in foreclosure must follow the law and fulfill its promises to assist its customers.”
In 2004, Bold Funding maintained its “headquarters” at a commercial post office box at 40 E. Chicago Ave., Chicago, Illinois. Bold Funding also operated a website at http://www.boldfunding.com and sponsored hundreds of commercials on local and out-of-state radio stations. On its website and radio commercials, Bold Funding claimed that it could save homes from foreclosure even after a Sheriff s sale. Homeowners in foreclosure sent thousands of dollars to Bold Funding under the belief that Bold Funding would secure funding to refinance their mortgages and save their homes. The Defendants did not arrange or provide any funding. Neither Bold Funding nor Bruce Wagner ever possessed an Illinois residential mortgage broker’s or lender’s license.
On November 10, 2004, the Cook County State’s Attorney’s Office Consumer Fraud Division filed its lawsuit against Bold Funding and Bruce Wagner charging the Defendants with violating the Illinois Consumer Fraud and Deceptive Business Practices Act. This lawsuit was initiated after the State’s Attorney’s Office received numerous complaints from citizens regarding Bold Funding. Bold Funding and Bruce Wagner could not identify anyone who actually received any funding through the efforts of the Defendants. The court heard testimony from one victim who testified that she lost her home, and another victim who testified that he had to file for bankruptcy to save his home after the Defendants failed to obtain funding for him.
Consumers with questions or complaints about other foreclosure “rescue” businesses may contact the Cook County State’s Attorney’s Office, Consumer Fraud Division, at (312) 603-8700, or online at www.statesattorney.org.
I remember hearing about the collapse of Bold Funding on the news when it all went down in 2004. It was probably the largest, most sophisticated foreclosure scam I’ve ever heard about, before or since then. $116,000 or so in refunds doesn’t begin to compensate all of the victims. And now the owner, it seems, fled to another state and is trying to start his own talk show!
Posted by on 01/23 at 03:34 PM
is the “Bruce Wagner” that went to prison in Virginia a few years ago for defrauding investors and mortgage holders for whom he was collecting payments and forwarding those payments to them, less a collection fee? Star Mortgage or a firm with a similar title was the company he ran.
Posted by on 08/16 at 12:23 PM
Regarding my earlier comment about the Bruce Wagner of Star Mortgage in VA who went to jail, I should have stated that the charges were embezzlement and misuse of funds, in the amount of $87,000. At his bankruptcy hearing, when lawyers for several creditors questioned him about other sources of money and were those in his name, so that those could be attached as part payment for the money owed-- he took the Fifth Amendment!
Sorry that I wasn’t clearer in my first posted comment; I still wonder if this Bruce Wagner is the other Bruce Wagner of Virginia
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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