Tuesday, November 06, 2007
Missouri Broker Indicted for Defrauding Lenders
Christopher Rakel, 29, St. Louis County, Missouri, was charged in a two-count indictment alleging a far-ranging scheme to defraud banks and other mortgage lenders and money laundering.
According to the indictment, Rakel, a mortgage broker with Tri-State Mortgage, facilitated the purchase of dozens of fraudulent real estate transactions, primarily in South St. Louis, Missouri, during 2005 and 2006. Rakel would prepare fraudulent loan applications and other documents to assist buyers in obtaining millions of dollars in financing they could not otherwise obtain. The indictment alleges the mortgage fraud scheme involved dozens of properties, and a number of co-conspirators, including investors, mortgage brokers and appraisers.
The properties listed in the indictment include:
6902-04 Pennsylvania;
124 W Courtois;
2020 Wyoming St.; and
3402 Montana St., all of St. Louis, Missouri.
If convicted, Rakel faces imprisonment of up to 15 years and a fine of up to $500,000. The government will also seek restitution for the lenders victimized by the scheme.
“Mortgage fraud is, unfortunately, rampant in our community,” said US Attorney Hanaway. “In addition to the lenders duped in this scheme, the neighborhoods in which these homes are situated must struggle with the vacant and dilapidated housing stock that is the unfortunate by-product of this type of crime. This indictment shows the continuing commitment of my office to fight mortgage fraud through prosecution and aggressive pursuit of restitution for its many victims.”
Hanaway commended Internal Revenue Service Criminal Investigation for their investigation resulting in the money laundering charge and the Federal Bureau of Investigation for their investigation of the bank, wire and mail fraud charges. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.
mortgage fraud
Hey check out Mike Randle and Relentless Enterprises, didnt they do the same thing and no one did anything?
Posted by on 12/03 at 12:17 PM
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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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