mortgage fraud news   mortgage fraud news with Interthinx
mortgage fraud news
mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news mortgage fraud news
mortgage fraud news
Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar PictureRachel 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.



Advanced Search
Enter your Email


Powered by FeedBlitz

Dollar in the News

August 6, 2009 - Inman News
The Lowdown on Downpayment Programs

July, 2009 - Mortgage Banking Magazine
Flashpoint - FHA Fraud

June 5, 2009 - Miami Herald
Feds Get Tough on Mortgage Fraud

More Articles

Quick Links

Categories

Monthly Archives

- California Loan Brokers Ordered to Pay Penalties
- Forty Indicted in Major East Texas Mortgage Fraud Scheme
- Judgment Rendered in Real Estate Scheme
- New York FBI Shines Light on Potential Rental and Real Estate Scams
- Fraudster Pleads Guilty to Land Fraud Scheme
- Mortgage Fraud Charges Filed Against Investment Co. & Employees
- Former Attorney Sentenced for Multi Million Dollar Mortgage Fraud
- Real Estate Investor Pleads Guilty to Loan Fraud Scam
- Former Administrator Could Face Mortgage Fraud Charges
- Police Officer Arrested for Mortgage Fraud
-->

Syndicate

You're welcome to post our feed on your site and provide your readers with the latest Headlines! Just select "Get Widget" below . . .
mortgage fraud news mortgage fraud news rss feed mortgage fraud news rss feed Mortgage Fraud Feed Burner
Motgage fraud feed burner
Subscribe in NewsGator Online
Feed Burner Mortgage Fraud News
Bookmark and Share mortgage fraud news

What's this?

Tuesday, December 11, 2007

Law Firm, Lender & Broker Settle Kickback Allegations

Reiner & Bendett, P.C., a Farmington, Connecticut law firm, Absolute Mortgage Solutions, LLC, an East Hartford, Connecticut lender, and Access America, LCC, DBA Century 21 Access America, a Wethersfield, Connecticut broker, will pay $700,000 in fines, forfeitures and restitution to settle allegations they engaged in illegal kickback and inducement schemes. Of the money, $125,000 will pay restitution to about 500 Absolute consumers who overpaid for certain mortgage-related services as a result of one of the schemes.

In an October 2007 lawsuit filed on behalf of the Department of Consumer Protection (DCP) Commissioner and the Insurance Department, it was alleged that Reiner, which also sells title insurance, used sham service, rental and other agreements to conceal $142,200 in kickbacks and unlawful inducements between 2002 and 2005. In exchange, Absolute and Access allegedly steered title insurance business to the law firm. Connecticut law prohibits title insurance agents from paying for referrals.

“This law firm used service and other sham contracts to camouflage kickbacks and sidetrack state law,” Attorney General Richard Blumenthal said. “Consumers were overcharged because of this underhanded scheme. Reiner and Absolute conspired to conceal illegal payments as fake fees, secretly forcing consumers to cover the cost of kickbacks. The law firm hid illicit payments to Access in phony ‘marketing’ and ‘rental’ agreements. These steering schemes increased consumers’ costs and denied choice, while unjustly enriching the lawbreakers.”

“Each of about 500 consumers will receive $200 early in the New Year. These firms will rightly give back their ill-gotten gains to compensate consumers and help the state fight similar schemes. I will fight to enforce state laws banning kickbacks and other anticompetitive practices that increase costs to consumers,” Blumenthal added.

Insurance Commissioner Thomas R. Sullivan said, “This type of practice is not only harmful, but it puts yet another burden on homebuyers by adding unnecessary expense to real estate transactions involving title insurance.”

DCP Commissioner Jerry Farrell, Jr., said, “Today’s settlement should serve as a very strong message to the real estate community that behavior of this sort is clearly against the law and will be prosecuted. It is of particular concern to me as the licensor of real estate salespeople and brokers to hear that this has occurred, and if we find other examples they will be equally and vigorously investigated.”

Reiner agreed to pay mortgage broker Absolute $200 per customer to perform certain closing services, including ordering a title search, assembling closing documents, assuring insurance was in place and coordinating the closing. Reiner paid Absolute $76,200 in 2004 under the agreement.

Consumers, however, had already paid Absolute for the same and other services. Blumenthal and Sullivan charged that the arrangement was a ruse to conceal illegal payments to Absolute for steering customers to Reiner for their title insurance.

Under the settlement announced today, about 500 Absolute customers are eligible to receive $200, returning unnecessary fees charged them to underwrite the kickback scheme. Consumers will be notified by mail how to apply for the refund.

Reiner used two other bogus agreements to conceal $66,000 in kickbacks to Access between 2002 and 2005. One contract called for Reiner to pay Access for nonexistent “marketing” services. Under a second oral agreement, Reiner paid Access to “rent” space in Access offices for closings and other business.

Of the $700,000, $125,000 will compensate Absolute consumers, $425,000 will be deposited into the state’s General Fund and the remainder used for consumer education by the Attorney General’s Office, DCP and the Insurance Department.

The agreement caps a two-year joint investigation by the Insurance Department and the Attorney General’s Office. The investigation was prompted by unusual market activity reported to the Insurance Department. DCP and the Banking Department also participated.

 mortgage fraud

   

Posted by Staff Reporter on 12/11/07 at 05:43 AM
Mortgage Fraud LocationsConnecticut • Total comments: (2) (0) Trackbacks
  1. Situations like these can be avoided if there is a direct and continuous contact between the seller and the buyer, especially if both parties are given enough time to scrutinize details of the estate. If people could only realize the perks of their mobile’s network service, they might be saved from these kinds of fraud. For the buyers, try to ask your network. For the agents, you still have to ask your network

    Posted by  on  12/11  at  08:44 AM
  2. Good. This helps the parties to transactions that are acting honestly. One sad note for the borrowers that paid too much at closing, AND included those fees in the loan amount: they will be paying finance charges on those fees for the life of the loan. That adds up!

    Posted by  on  12/13  at  04:08 AM

Post a Comment

Name:

Email:

Location:

Smileys

Remember my personal information

Notify me of follow-up comments?

Submit the word you see below:


The trackback URL for this entry is:

Trackbacks:

Previous entry:



Advanced Search
-->
Enter your Email


Preview | Powered by FeedBlitz
mortgage fraud news



Today's News

Some Sources require Registration.

 

Marco Island Man Arrested in Ohio on Grand Theft Charge
Naples News
A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000.

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.

Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty.

Follow Anne on Twitter.

Thursday, February 18, 2010

F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted

The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question:

Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan?

Judge Julie Robinson responded by admonishing the jurors to read all of the instructions.

The jury presented its' verdict...

Read More...

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...

Read More...

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...

Read More...

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...

Read More...

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...

What's Your Opinion?

ORDER NOW!!

Blog Roll

TopOfBlogsReal Estate BlogsBlog Flux DirectoryBlog Directory & Search engineBlog Directory
Blogarama - The Blog DirectoryListed on BlogShares

© Copyright 2004-2010 Rachel M. Dollar

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.

TopOfBlogs Real Estate Blogs Blog Flux Directory Blog Directory & Search engine Blog Directory
Blogarama - The Blog Directory Listed on BlogShares