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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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Jason Keigley, Indianapolis, Indiana, has been found guilty in Hendricks County Superior Court of swindling money from seniors through a fraudulent investment and mortgage scheme.
Keigley was convicted of the following charges: the offer or sale of an unregistered security, transacting business as an unregistered Broker Dealer, and fraud in connection with the offer or sale of a security, all class C felonies. Keigley was also found guilty of loan broker fraud, a class D felony.
Indiana Secretary of State Todd Rokita and Hendricks County Prosecutor Patricia Baldwin joined forces to file criminal charges and pursue prosecution of Keigley for violations of the Indiana Securities Act and Indiana Loan Broker Act. Charles Williams of Rokita’s Prosecution Assistance Unit and Hendricks County Deputy Prosecutors Rhett Stuard conducted the investigation. Tyler Starkey presented the State’s case at trial. A jury found Keigley guilty on all four counts.
Keigley worked as a loan originator for an Indiana mortgage company in 2004, and during his employment, he also operated his own business, 1st Place Mortgage. The Secretary of State’s office found that Keigley convinced a Hendricks County couple to invest in his company which, unbeknownst to them, was an unregistered security. He also told them their investment was in an interest-bearing account, available to them upon request, while at the same time establishing a reverse mortgage for the couple. Some time after Keigley brokered the reverse mortgage loan and the couple had bought Keigley‘s investment, the couple requested their investment funds and only a small portion was returned.
No account has ever been located and Keigley could not account for any of the missing funds. In addition, the victims were hit with foreclosure on their home as a result of Keigley‘s failure to fulfill the obligations of the reverse mortgage. Investigator Charles Williams was able to save the couple’s home from foreclosure through his investigative efforts.
Sentencing was initially set by the Court for March 17. Keigley faces a maximum sentence of eight to 13 years for all charges.
“Hoosiers simply will not tolerate mortgage fraud in our state,” Rokita said. ”Indiana can reverse the ill effects of mortgage fraud by educating and protecting home buyers from this type of damaging, criminal activity. Every home buyer has a duty to do their homework, and my office provides a variety of valuable investment and mortgage information resources.”
Prosecutor Baldwin agreed with Rokita and echoed his sentiments.
“In Hendricks County, we take it seriously when unscrupulous people attempt to defraud innocent citizens, and we will continue to vigorously prosecute those cases,” Baldwin said.
“Our Securities division is charged with protecting investors,” said Chris Naylor, Indiana’s Securities Commissioner. “We believe a two tiered approach can help prevent future cases of fraud. Educating Hoosiers about prudent investing and mortgage practices coupled with bringing enforcement actions and criminal prosecutions against companies and individuals engaged in fraud are powerful tools to protect our citizens. This will ultimately restore consumer confidence and promote business development.”
The Secretary of State’s Prosecution Assistance Unit (PAU) initiated this investigation and worked with Prosecutor Baldwin to file charges and prosecute Keigley. Rokita created the PAU in 2004 to facilitate local law enforcement’s prosecution of alleged Securities Act and Loan Broker Act violations by creating a stronger partnership between the Statehouse and county courthouses. Since its inception, the PAU has helped law enforcement throughout the state file charges in 27 high-profile investment fraud cases, earning a 26 to 1 conviction-to-dismissal record and obtaining more than 200 years of sentenced jail time for white collar criminals.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
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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