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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Illinois Real Estate Agent Indicted in Theft of Client Proceeds
Robert ‘Bear’ Taylor, 46, real estate agent, Charleston, Illinois was indicted by a federal grand jury and charged with two counts of wire fraud in connection with allegations that he diverted the proceeds of a sale of a client’s real estate and that he obtained a loan from the same client to be secured by property that he did not own. Taylor was a licensed real estate agent doing business as Century 21 Bear Real Estate in Charleston, Illinois.
The indictment alleges that Taylor used interstate wires to defraud a former client of more than $500,000. According to the indictment, in April or May of 2003, Taylor entered into a listing agreement to sell the property located at 15009 East County Road, 420 North, Charleston, Illinois listed at $199,000. The client moved to Germany and executed a power of attorney allowing Taylor to handle the sale. In August of 2003, a contract of sale for $185,000 was entered into with a buyer whereby they also agreed to purchase certain personal property of the seller for $10,000 and pay $1,000 per month rent to live in the East County Road property until the October closing. Taylor is alleged to have deposited the $10,000 payment and the proceeds check of $170,519.08 to his personal account (rather than his trust account.) Taylor then allegedly represented to his client that the closing had not yet occurred because the buyers had been unable to sell their other home and that the buyers would like to remain in the property and pay rent until closing. The seller agreed. Over the next 90 days, according to the indictment, Taylor spent almost all of the sales proceeds and continued to forward ‘rent’ to his client.
The indictment also alleges that, in January of 2005, Taylor fraudulently obtained a $330,000 loan from the same client via an overseas wire transfer by promising to give the client a mortgage on certain property (1515-1517 University Drive, Charleston, Illinois). He falsely represented to the client that someone had offered to purchase the property for $385,000 when, in fact, the purchase offer was only for $214,000 and had long since expired. In fact, the indictment alleges Taylor did not own the property and could not mortgage it. The indictment also alleges that Taylor attempted to avoid detection of his scheme by falsely telling his client via an international e-mail that he had invested the proceeds of the sale of the client?s home in other real estate, when, in fact, he had spent the money on himself.
Taylor will be issued a summons to appear in federal court in Urbana, Illinois for arraignment at a later date. If convicted, each count carries a maximum statutory penalty of 20 years imprisonment and a fine of $250,000.
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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