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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Damon Clark, 32, Grand Rapids, Michigan and Reginald Tardy, Jr., 31, Ferndale, Michigan, each pled guilty in late September 2009, of one count of Racketeering and were sentenced by Judge David Hoort in Montcalm County Circuit Court. Clark was sentenced to 15 months to 20 years in prison, Tardy was sentenced to 18 months to 20 years in prison and they were ordered to pay restitution totaling $131,113. A third man, Brian VanFarowe, Grand Rapids, Michigan fled the country before charges were formally issued.
As previously reported on Mortgage Fraud Blog, during 2005, mortgage loan officers Tardy and Clark and real estate investor VanFarowe conducted a mortgage foreclosure scam that targeted the Hispanic community in Grand Rapids. The targeted buyers often spoke or wrote little English and had a limited understanding of the mortgage process.
Promising them the dream of home ownership, Tardy and Clark prepared loan documents for the buyers using falsified financial information to ensure a mortgage could be obtained. The pair acquired generous appraisals for VanFarowe's properties and used the falsified loan applications to secure mortgages for the buyers which exceeded the actual property value. At the closings, VanFarowe presented invoices alleging that legitimate services had been rendered by T.Dot Financial, a company owned by Tardy and Clark. These invoices were fraudulent because they were kick-backs to the loan officers provided for finding a buyer and getting the fraudulent loan application approved. Because VanFarowe did not object to the invoice, the mortgage company permitted payment from loan proceeds. As loan officers, Tardy and Clark had a duty under law to remain at "arms length" in arranging mortgage applications. They used the fraudulent invoices to hide the fact that they personally benefited from the inflated sale and fraudulent mortgage applications. As a result of the scheme, the buyer ended up owning property with a mortgage greater than the actual value of the home, while Tardy, Clark and VanFarowe illegally walked away with thousands of dollars. The buyer, whose loan application was based on false income information, did not have the financial means to pay the mortgage and ended up in foreclosure.
"These men took advantage of families pursuing the American dream of homeownership," said Michigan Attorney General Mike Cox. "Today we are holding them accountable."
My husband and I move around a lot, but we always make sure to get personal references from people we know...and then ask the loan officer for their references. We most recently used Intercontinental Capital Group to finance our house in Jersey and were very satisfied. My husband’s office manager recommended them to us.
Posted by on 11/13 at 07:03 PM
ICG did the financing for my condo in Phoenix last month and did a great job. I heard about them a few months ago when they first opened an office out here. I knew some people who borrowed from them in New York and were very satisfied. You made a good, informed decision!
Posted by on 11/20 at 04:25 PM
I heard some sketchy things about Intercontinental Capital Group, because I was thinking about financing a condo with them. Does anyone know if there’s any truth to them?
Posted by on 12/03 at 07:42 PM
Well, I’m a firm believer that there is no situation where everyone one will be happy. But what we were told when we met with ICG was that they’re a large bank and like many banks in this market have had to make some cuts and the staff that was cut decided to take revenge. So the lesson is...don’t believe everything you hear!
Posted by on 12/03 at 07:45 PM
I went to Intercontinental Capital with my daughter and her new husband to help them finance their first home. The loan officer answered all their questions and gave them time to think it over. If they’re a scam, they’re certainly covering it up well. We got the loan and had no problems since.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
Couple Loses $850,000 in Alleged Ponzi Scheme Boston Herald
Al and Susan McIlvene of Kittery Point, Maine, can remember the exact moment in November when they realized they might lose their entire life savings of $850,000, reports the Portsmouth Herald.
Mortgage Fraud Charges Filed Against Former Bakersfield Realtor, Her father KGET.Com
A former Bakersfield real estate agent and her father face 15 felony counts each of money laundering, conspiracy and grand theft in connection with an alleged multi-million dollar mortgage fraud scheme, newly filed court charges show.
Witness: Mortgage Name Not the Same Clarion Ledger
A former Clinton homeowner was called to testify Wednesday as prosecutors to try to prove a Ridgeland-based mortgage broker and two associates were behind a $9 million mortgage fraud scheme.
Man Accused of Money Laundering, Theft in Moorpark Home Purchase Case VC Star
A man suspected of grand theft and money laundering in connection with the 2005 purchase of a $1.8 million home in Moorpark was arrested this week while trying to enter the United States from Mexico, authorities said Wednesday.
Special Prosecutor for Leary Rejected Journal Gazette
An Allen Superior Court judge denied a request to appoint a special prosecutor in the case of Todd Leary, a former Indiana University basketball player and radio commentator charged with 17 felonies in connection with a mortgage funds scheme.
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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