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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Saundra McFadden-Weaver was convicted by a federal jury in Kansas City, Missouri, of conspiracy and wire fraud for her role in a $400,000 mortgage fraud scheme.
As previously reported by Mortgage Fraud Blog, The indictment alleges that McFadden-Weaver, Emmanuel Kind and Ricky Hamilton participated in a conspiracy to defraud mortgage lenders. The co-defendants agreed that McFadden-Weaver would obtain a loan to purchase a home at 301 S.E. Hackamore, Lee’s Summit, Missouri, where Kind would reside and pay the mortgage and other expenses. McFadden-Weaver sought to obtain loans in excess of the listed sale price of the property in order to use the excess funds to rehabilitate a property at 2518 Benton Blvd., Kansas City, Missouri.
Hamilton agreed to broker the loan for McFadden-Weaver knowing that she did not intend to live in the Lee’s Summit residence and would have no responsibility for the property.
As part of the conspiracy, co-conspirators prepared material false and fraudulent and misleading loan applications and documents in support of the loan applications, which were submitted to MILA, a mortgage lending company with its principal office in Mountlake Terrace, Washington. MILA approved the loans, based upon that false information, including Settlement Statements, Occupancy Declarations, and other supporting documents.
Despite not having seen the property, McFadden-Weaver signed a Residential New Construction Sale Contract to purchase the Lee’s Summit home for $400,000. McFadden-Weaver signed two Uniform Residential Loan Applications, applying for loans in the amounts of $320,000 and $80,000. In the loan applications and supporting documentation, McFadden-Weaver provided false information, including false income information, the false representation that she would occupy the property as her primary residence, and the false representation that she paid a down payment of $500 with her own funds.
According to the indictment, when McFadden-Weaver closed on the loans she signed two Occupancy Declarations, one for each loan, under penalty of perjury, falsely representing that she intended to occupy the property as her primary residence.
“Had the lender known the full truth about McFadden-Weaver‘s finances or residency intentions,” US Attorney Bradley Schlozman said, “she would have either never received the loan in the first place, or she would have had to pay a much higher interest rate.”
Hamilton caused Chicago Title to pay to Trinity Mortgage a broker’s fee of $24,475 from the proceeds of the loan, of which Hamilton received a commission of $21,865.
In June 2006, McFadden-Weaver and Kind both independently sought to refinance the Lee’s Summit property in order to avoid foreclosure. “At this point,” Schlozman said, “there had been no mortgage payments made in more than five months and, according to some witnesses, no payments ever made on the property. McFadden-Weaver continued to falsely represent that she was the primary occupant of the home, even though she had not spent a day of her life there.”
McFadden-Weaver and Kind executed a contract for deed for the residence, prepared by Hamilton, in which Kind agreed to purchase the property for $430,000 in hand and $3,200 per month for the remainder of McFadden-Weaver‘s life. McFadden-Weaver and Kind falsely back-dated the document, allegedly claiming that it was signed the day after the closing.
“In the end,” Schlozman said, “the refinancing was denied, the house of cards collapsed, the bank foreclosed on the property, and the FBI moved in”.
followup to previous comment: The mormon contractor was Lynn Tuala:
LDSPro.com -Contact: LYNN TUALA, ANNA VASQUEZ 831 S NOLAND INDEPENDENCE, MO 64050 Phone: 816-833-7653 Fax: 816-833-7676 We would like to help you with your real estate
6. Independence, MO Pd aided and abided to her proceeding. Never submitting anypaperwork, and she quoted she was hired by a different mortgage financer each time.
7. Keys to my location. My neighbor’s Lamerle Ziegenhorn (maiden name) has a grandaughter that married the son/employee of Gregg’s Lock and Key. Gregg’s Lock and Key was hired (by me) to replace the locks on all doors including garage/shed after I moved in. I had (before carpet fire damage) video coverage of her son-in-law utilizing the key to illegally enter the residence.
8. Denied Letter of incarceration by the City of Independence Missouri Police Department. This request was for the proof that I was incarcerated during my last opportune time to submit a motion to set-aside-default judgement regarding my foreclosure. Not only my foreclosure, but also a falsified ex-parte filed by Lisa Beach, whom was an ex-employee at my RJ’s Restaurants LLC business DBA Suzi’s located at 408 E. Bannister Road Kansas City Missouri, 64131. As submitted to Indep Mo PD and KCMO PD Lisa Beach and her father Mike Beach illegally enterred my home (while illegally incarcerated; see next bullet item) and later informed me they were saving my property from other bands of thieves. However, I never got the bulk of the merchandise back. Including but not limited to original church documentation, employment W2’s that were all error/partial not complete for mailing 2005,2006 employees.
9. KCMO PD illegally incarcerated me while I was on my way out of town to texas delivering construction equipment that I had previously sold online. While incarcerated KCMO PD and jackson county had me listed as multiple SSN’s, multiple middle initials and spellings of my name (aliases).
10. Shortly after being placed into a KCMO paddy-wagon I was their passanger of a totaling-the-van, death defying accident. Not sure of the details. But I believe it rolled over at least 3 times on the grandview triangle 71 highway and 4-35. While receiving treatment at Saint Lukes South Plaza Kansas City location I was denied a phone call to my family informing them of the accident. I was also denied the ability to urinate.
11. While receiving a cat scan, or other type of medical assessment, I had a KCMO PD officer come in and issue me a violation for possession of a controlled substance, paraphernalia. However, I wasn’t issued this ticket at the scene or even discussed the possibility. The supposed drug paraphernalia was deductively planted by the KCMO Kansas City Missouri Police Department.
This was the KCMO South Patrol.
12. The falsified ex-parte issued by Lisa Beach, and another by Mike Beach were submitted after several attempts of retreiving stolen property estimated in the amount of $4278.26 or greater. KCMO PD South Patrol and Independence Missouri Police Department were not cooperative at assisting me in the situation. I invovled them each time I went to retrieve stolen propert from the following South Kansas City address/location: BEACH , LISA M , 117 E 113TH ST KANSAS CITY, MO 64114 13. I was assaulted and mugged, blind-sided, by supposed Tama Johnson Mormon Neighbor. In the incident I was knocked un-1conĚscious after being hit over the head with a baseball bat. The Independence Police Department wouldn’t make a report of the case due to the infraction of me having an outstanding warrant. I am unsure, but I speculate that the warrants were ID theft, falsified, or in some way, involved in harming a witness-defendant-victim to illegally get to a warrant status. NO CRIME SCENE INVESTIGATED WAS Completed. INDEP PD didn’t cooperate with securing a brutal crime in there community! 14. Therefore, a fraudulent sale of 227 W. Southside BlVD. By Common Ground Realty to Ryan C. Jennings. 15. some of my stolen property could at this point be detrimental to a set-up of a staged crime. As follows:Attachment Related to Theft of Assets: Product Asset List from theft: INDEP PD REPORT AT 227 W. Southside BLVD 1-14-2007: Rare Collection of Coins, both purchased for resale and family heirlooms. Most of which I have named and had already sent into independence police department. Some of the coins were worth a significant amount of money!.22 caliber pistol revolver brand Taurus being stolen from my house! I didn’t have the pistol registered, however my fingerprints where on the gun. The gun was part of a souvenirs collection I owned. I also had a family .22 caliber rifle that was an heirloom.Rare books that were both purchased for resale. And more importantly family a heirloom/religous collection. Some books were stolen on or before 1/14/2007 and some were placed illegally/stollen by Lynn Tuala
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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