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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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Loan Officer Sentenced for Falsifying Loan Application Information
Linda Carnagie, 61, Bennett, Colorado, was sentenced to serve 41 months in federal prison for conspiracy to defraud the United States, conspiracy to commit money laundering, wire fraud, and false statements. Following the prison term, Carnagie was ordered to spend 3 years on supervised release. Carnagie was also ordered to pay restitution totaling $206,693, forfeit $41,205, which represents the proceeds of her illegal activities, and pay a $2,100 special assessment to a victims of crime fund.
Linda Carnagie was indicted by a federal grand jury in Denver and was found guilty following a jury trial on December 1, 2006. On March 6, 2006, Judge Krieger acquitted Carnagie of the conspiracy charges, however, on July 22, 2008, the United States 10th Circuit Court of Appeals reversed the acquittal, re-instating the jury's guilty verdicts.
According to the indictments, as well as evidence presented during the trial, Linda Carnagie was an independent contractor who worked with Highland Mortgage of Evergreen, Colorado. Starting in February 1999, and continuing through July 2004, Carnagie conspired with others to defraud the United States. As part of the scheme, she falsified information in loan applications and supporting documentation submitted to mortgage companies and to FHA/HUD for the purpose of obtaining mortgage loans and FHA/HUD mortgage insurance.
Carnagie and others working with her would illegally assist buyers who could not qualify for an FHA-insured mortgage legitimately by falsifying the borrowers' social security numbers, verifications of employment, and prepare and submit false income information, including false W2's (wage and tax statements), pay stubs, prepare false credit reports, and other false documents. The defendant and others would take the false information about the borrowers and then submit it to the mortgage companies, and thereafter forwarded to FHA/HUD, for the purpose of falsely representing that the borrowers were financially qualified to undertake their mortgage obligations.
"This prison sentence should serve as a deterrent to those in the mortgage industry not to commit fraud," said Acting U.S. Attorney David Gaouette.
"Mortgage fraud erodes our economy, and directly threatens the financial health of the communities in which we live," said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
"The sentencing of Linda Carnagie should send a strong message to anyone connected with fraudulently originating FHA insured loans that the United States Department of Housing and Urban Development, Office of Inspector General, will not tolerate such activity and will aggressively investigate loan fraud," said Kenneth Donohue, the U.S. Department of Housing and Urban Development Inspector General.
This case was investigated by the HUD Office of the Inspector General and IRS Criminal Investigation.
Carnagie was prosecuted by Assistant U.S. Attorneys Patricia Davies, Linda McMahan, and Matthew Kirsch. Assistant U.S. Attorney Martha Paluch provided substantial assistance with the 10th Circuit Court of Appeals brief.
My xwife is a mortgage broker here and she does not have a problem with making a bad loan,by comming up with false paperwork.Anything to make a dollar!!!!!!!!!!
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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