Thursday, October 22, 2009
Man Indicted For Stealing More Than $2.5M In Real Estate Scam
A federal grand jury has returned an indictment against a 41-year-old Mound man
Timothy Lynn Beliveau, 41, Mound, Minnesota, was charged with one count of conspiracy to commit mail fraud, two counts of mail fraud and nine counts of willful failure to account for and pay taxes for allegedly swindling 14 investors and their lenders out of more than $2.5 million through a real estate fraud scheme. Beliveau's indictment alleges that between January 2004 and July 2007, he orchestrated a scheme to defraud vulnerable homeowners and induce investors to purchase distressed real estate from those homeowners at inflated prices. The scheme created a pool of funds Beliveau then used to buy boats, motorcycles, a Florida vacation home and other personal items.
Between 2004 and 2007, Beliveau was the owner of U.S. Housing & Financial Services, a company that assisted homeowners who were close to losing their homes to foreclosure. During
that time, Beliveau also owned American Alliance Mortgage Group, a mortgage brokerage company with offices in Minnetonka, Plymouth, Roseville, Wayzata and Edina as well as in
Hudson, Wisconsin.
The indictment alleges that Beliveau's scheme victimized distressed homeowners, investors and lending institutions. Specifically, Beliveau used U.S. Housing to encourage homeowners in or near foreclosure to sell their homes to investors the company recruited. The equity in the homes was to be deposited into an escrow account, administered by Beliveau, for use, allegedly, in assisting the homeowners make monthly contract-for-deed payments to the investors. By doing so, the homeowners could buy back their homesafter a period of time. In the meantime, they were allowed to live in them.
According to the indictment, investors were told the homeowners were carefully screened to ensure their financial problems were merely situational, and that they were, therefore, unlikely to
default on their monthly contract-for-deed payments. Beliveau also represented the homeowners would receive financial counseling if they defaulted. Moreover, investors were assured,
allegedly, homeowners who fell into default would be evicted, and the monthly contract-for-deed payments would then be covered by the funds held in the escrow account or otherwise paid by U.S. Housing.
Purportedly based on those assurances, investors applied for and obtained mortgages from various lending institutions, using documentation provided by Beliveau's American Alliance
Mortgage Group. That documentation, which was sent through themail via the United States Postal Service, was fraudulent in that it reported artificially inflated values for the properties
being purchased. Those inflated values resulted in additional money being made available to deposit into the escrow account at U.S. Housing. The funds in that account were then spent by
Beliveau for his personal benefit.
Ultimately, most of the distressed homeowners were unable to make their monthly contract for- deed payments or otherwise buy back their homes. Many of the loans taken out by the
investors to purchase the homes went into default because the money supposedly in the escrow account to pay the mortgages had been used by Beliveau.
In addition, the indictment indicates Beliveau failed to pay the employment taxes withheld from American Alliance Mortgage Group employees for nine quarters between 2003 and 2005.
Beliveau allegedly collected but failed to account for or pay to the Internal Revenue Service approximately $900,000.
If convicted, Beliveau faces a potential maximum penalty of five years in prison for conspiracy to commit mail fraud, 20 years for each of the two counts of mail fraud, and five years for each of the 11 counts of willful failure to pay taxes. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the U.S.Postal Inspection Service and the IRSCriminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
mortgage fraud
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.
Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.
2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband
Untangling Mortgage Fraud in Chicago Condo Buildings
Chicago Public Radio
Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.
No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
Washington Times
According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.
Former Vegas Resident Charged with Mortgage Fraud in Nevada
National Mortgage Professional Magazine
A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...
Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.
12-Year Prison Term in Mortgage Swindle
Washington Post
A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
|
|
|
|
|
|
|
|
|
|
|