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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Kansas City Real Estate Investor Pleads Guilty In $17.5M Mortgage Fraud
Jeffrey Tyler Wine, 28, real estate investor, Kansas City, Missouri was charged by information and pleaded guilty to a federal information that charges him with mortgage fraud conspiracy and money laundering in connection with a $17.5 million mortgage fraud scheme that involved 280 residential properties.
“Not only were dozens of financial institutions directly victimized,” United States Attorney Bradley J. Schlozman said, “but this type of fraud scheme ultimately impacts all consumers. When unscrupulous individuals lie on loan applications and misrepresent the condition of properties, they undermine the integrity of the real estate market and the local economy suffers as a result. We will prosecute criminals who steal with the stroke of a pen as aggressively as we prosecute those who carry a gun.”
By pleading guilty, Wine admitted that, from November 2001 to May 2005, he conspired with others to defraud mortgage lenders by inducing them to loan victim-investors $17,558,440 to purchase 280 residential properties. Wine was in the business of purchasing, rehabilitating, managing and selling residential properties in the metropolitan area through various business entities that he created and operated, including Sunrise Equities, Inc.; Sunrise Assets, LLC; Sunrise Investments Holdings, LLC; Brooklyn Properties, LLC; Arsenal Investments, LLC; sunrise St. Louis, LLC; Woodland Properties and Larch Investments.
According to Schlozman, Wine acquired residential properties at reduced rates at foreclosure sales, tax sales and bankruptcy sales. After rehabbing the properties (which at times was done in a shoddy manner doing poor quality work), they were advertised for sale as investment properties with no money down. Victim-investors were told that Sunrise Equities would provide the down payment and closing costs for the sale, secure renters for the property and manage the properties for the first year after purchase, including all maintenance costs and tenant contracts. Victim-investors were also told that Sunrise Equities would ensure that mortgage payments were paid even if the properties were not rented, and that a positive cash flow from the properties was guaranteed.
Co-conspirators, who included mortgage brokers, prepared false and fraudulent loan applications and supporting documents to submit to mortgage lenders in the names of victim-investors. Sometimes Wine and co-conspirators provided money to the victim-investors to deposit into their bank accounts to mislead the lenders regarding the buyers’ assets. They also furnished money for the victim-investors to take to closing to pay the buyers’ closing costs.
While Wine and co-conspirators managed the rental properties, they submitted false monthly reports to victim-investors of rent received, expenses incurred, and income earned, and paid to the victim-investors the amount of income reflected. This induced victim-investors to purchase additional properties.
Wine also pleaded guilty to money laundering, admitting that he engaged in a monetary transaction involving criminally-derived property, by drawing upon the funds obtained by fraud to purchase a 400-ounce gold bar for $177,000 on May 24, 2005.
Under federal statutes, Wine could be subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
If anyone is interested in making an offer to purchase the 30 unit property that Mr. Wine lost. Turn-Key Properties LLC is representing the bank that has it now. We will be presenting offers to the bank on this forclosed property. Please feel free to call us at 816-313-8876
The property is located at 502-520 Maple, Kansas City, MO.
Posted by on 11/17 at 06:35 AM
Ha. Wow Jeff, I didnt think you’d do something like this. What do I say to lily?
Posted by on 04/14 at 09:05 PM
Jeffrey Tyler Wine was a saint and was a loving caring person who offered good advice and guidance. He was a legit businessman always taking care of things.I was never the one to ignore his cry for help. To Nadia, Jeffrey loved you very much and would never do anything to hurt you.To those of you who he has spoken with before the incident and claim to be his friends and partners in business should shamefully embarassed.
Posted by on 05/24 at 10:08 AM
Jeff Wine was a Saint and a good business man. He was honest man.He was always taking care of things.i never once ignored his cry for help.I suppose, to those of you who were supposed to be his partners, I hope god sheds light upon you and your scandals.
Posted by on 05/26 at 10:19 AM
I never said he was a bad person. He is a great person. I knew him for about four years when all of this happened. He ALWAYS looked out for me, he was like a bestfriend to me. I miss him alot, and hope everything works out for him.
Posted by on 05/29 at 07:27 PM
hang em high
Posted by on 06/14 at 10:14 AM
Disregarding any comments when I wrote that Ms.Lady especially since I don’t know you.I was simply putting my “2cents” in.I don’t care who listens.For all I care, alot of families are out here hurting because of some insane man trying to play the role of god,and I hope people realize there are more out here like him hurting the community.If I have something to say it’s going to come out and have plenty to say.Hey Jeff, do you wan to be free?It’s not up to me to say how much of an asshole Jeff really was, whether he was a good or bad person but I know God will save him.
Posted by on 06/23 at 01:42 PM
I knew Jeff very well and he was very giving, but he also was a mess and everybody knows that. I want say what he did to me when I worked for him.
Posted by on 11/29 at 11:56 AM
Then why don’t tell everybody just what is they’re offering...because frankly I don’t care...I haven’t done any research, and real estate isn’t my profession. Clearly I was 20, very young when I wrote the blog from before about the man in the article, so following me and arguing with me would just be a big waste of your time and mine. This article is something I found nearly three years ago and I’ve moved on with my life from all the mess.
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...
Legal Disclaimer.
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 
mortgage fraud
To those of you who he has spoken with before the incident and claim to be his friends and partners in business should shamefully embarassed.
