Monday, March 24, 2008
Man Admits Role in Defrauding Mortgage Company
Michael Umali, 38, a.k.a.”Khadafi," pleaded guilty before New Jersey US District Judge Noel L. Hillman to one count each of conspiracy to launder money and money laundering. Umali’s co-defendant Reginald Greene, 47, a.k.a. ”Amin," who was a federal prisoner originally from Philadelphia at the time of the crime, is charged in all nine counts contained in the Indictment. Judge Hillman remanded the defendant to custody pending sentencing, which is scheduled for June 20, 2008.
At his plea hearing, Umali admitted that from July 2003 through December 2004 he agreed with Greene to open and maintain various checking accounts at M&T/Allfirst Bank. Umali admitted that he did so for the purpose of allowing Greene to deposit money gained through his scheme into those accounts in exchange for a portion of those proceeds. Umali admitted that in October 2003, Greene caused $500,478 to be deposited into two separate accounts under Umali’s control. Furthermore, Umali admitted that at Greene‘s direction he withdrew and distributed the deposited funds, via cash withdrawals, checks and wire transfers, to associates of Greene. Typically, the withdrawals were in amounts of less than $10,000 to avoid currency transaction reporting requirements. Umali admitted that the distribution of funds included a wire transfer on Oct. 8, 2003, in the amount of $50,000 to Reginald Greene, Jr., a.k.a. ”Duane Massey”, of Upper Darby, Pennsylvania.
The Indictment, which was returned on August 21, 2007, describes a scheme in which Greene and an unidentified Cendant Mortgage Corporation insider(s), attempted to cause 15 wire transfers that Cendant, now known as PHH Mortgage, directed to Sunbelt Title Agency to be misdirected to banks accounts controlled by their co-conspirators, including Umali. Seven of the 15 wire transfers, totaling approximately $845,000, were successfully misdirected. The successfully misdirected funds were transferred to the accounts of Umali and Dan Hutchinson Jr., 28, Washington, D.C., instead of Sunbelt Title Agency. Thereafter, the funds were transferred to the control and benefit of Greene, the unidentified individual(s), and their associates and relatives, including Greene‘s son.
Hutchinson and Greene, Jr., have pleaded guilty to their roles in the scheme and await sentencing. Greene is pending trial on the nine-count Indictment.
mortgage fraud
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
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