Friday, April 04, 2008

Jury Convicts 5 In Austin Texas Area Mortgage Fraud Scheme

Cornelius Robinson, 47, Austin, Texas, was convicted after a nine-day trial.  Robinson was the leader and organizer of the fraud scheme. Robinson was convicted of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud, five substantive counts of wire fraud, 9 substantive counts of false statements related to a loan, one count of aiding and abetting the receipt of commissions or gifts from loans by a bank employee, conspiracy to commit money laundering and 7 substantive counts of money laundering. Robinson was acquitted of one false statement charge;

Michael Breon, 39, formerly of Austin, Texas, and a current resident of McKinney, Texas, was a straw purchaser. Breon was convicted of conspiracy to make false statements related to a loan, one count of wire fraud and one count of conspiracy to commit money laundering. Breon, a licensed loan officer and mortgage broker, was employed by several different loan origination and mortgage companies during the conspiracy. Breon was acquitted of conspiracy to commit wire fraud;

Sindu Sukumaran, 36, wife of Michael Breon and a straw purchaser. Sukumaran was convicted of wire fraud. Sukumaran was acquitted of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud and conspiracy to commit money laundering;

Marlon Nathan Torres, 45, Hutto, Texas, a licensed real estate agent and buyer and seller of real estate in the Austin area. Torres was convicted of one count each of conspiracy to commit money laundering and money laundering. Torres was acquitted of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud and one substantive count of false statement related to a loan;

Jeffrey Andre Wilkins, 46, Austin, Texas, a cousin of Cornelius Robinson and a straw purchaser. Wilkins was convicted of one count each of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud, false statement related to a loan, conspiracy to commit money laundering and money laundering.

United States District Judge Sam Sparks has scheduled sentencing for June 20, 2008.

The five defendants which went to trial were the last of sixteen defendants who were indicted on January 8, 2008 by the Federal Grand Jury in Austin, Texas. Eleven co-defendants pleaded guilty to related charges prior to trial. These co-defendants are set for sentencing on June 6, 2008. The co-defendants include:

Silvia Seelig, 45, Austin, and wife of Cornelius Robinson who during the conspiracy, was a licensed real estate agent and a straw buyer;
George H. Watson, 55, Austin, a licensed attorney who specializes in real estate transactions. Watson served as the closing attorney on most of the real estate transactions described in the Indictment;
James Douglas Atwood, 51, Austin, Cornelius Robinson‘s uncle and a straw buyer;
Doris Ann Hill, 40, Austin, a personal banker employed at Wells Fargo Bank. For a fee, Hill agreed to provide a false verification of deposit to loan underwriters in relation to three real estate transactions involving defendant Snead;
Julius Meyers Lofton, 45, Austin, licensed real estate agent and a straw buyer;
Roy Rivers, 52, Austin, straw buyer;
Danielle Guice Rosas, 40, Austin, straw buyer;
Stanley Ma, 27, Honolulu, Hawaii, straw buyer;
Leonard Brown, 38, Houston, Texas, provided a false verification of employment in association with Onyx Consulting and defendant Ma;
Russell Snead, 43, of the Seattle, Washington area, straw buyer; and,
Leroy Williams, 46, Austin, straw buyer.

From September 1999 to present, the defendants participated in a scheme to defraud mortgage lenders, including federally insured financial institutions, with regard to loans acquired to purchase 25 properties in the Austin and San Antonio, Texas area. The scheme centered upon the use of real estate flips. That is, the defendants purchased property at one price and would immediately sell, or flip, the property to a straw buyer at a higher price. In doing so, the mortgage lenders were deceived as to the true nature of the transaction and the financial status of the straw buyer. The straw buyers did not make the subsequent monthly mortgage payments and all of the loans have gone into default. All of loans have been either foreclosed upon or are the subject of current foreclosure proceedings.

mortgage fraud

1. You can expect more of these fraud cases to come up in the months ahead.  As politicians crack down and the crisis deepens, people want justice and justice will prevail.  Unfortunately, it gives all us good brokers out there a bad name.  I think in the long run, the industry will rebound but it will take many, many years.
   Warm Regards,
   Rob
   

   Posted by  on  04/06  at  10:55 AM

2. can i please get the contact information of the prosecuting attorney and the firm in they work for. thank you.

   Posted by  on  04/07  at  01:14 PM

3. Dude, the prosecuting attorney is Mark Lane.  He works for the FBI.

   Posted by  on  05/29  at  05:16 PM