Friday, November 13, 2009

Loan Officers Sentenced for Mortgage Fraud Ring

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."

mortgage fraud

1. 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

2. 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

3. 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

4. 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

5. 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.

   Posted by  on  12/13  at  08:11 AM

6. I almost did a re-finance with Intercontinental but had to cancel, and they still charged my credit card $300 for the appraisal fee, and I never even met with the appraiser!  Now I have to waste a ton of time disputing the charge, and don’t know if I’ll ever get it back.  DO NOT WORK WITH THIS COMPANY.  I wish I had been more forewarned.

   Posted by  on  07/17  at  11:28 AM

7. If I have 1 piece of advice for the 55 East 59th Street:

   Stay away from that weaselly Jew Jason!!

   Posted by  on  08/03  at  08:13 AM