Tuesday, February 05, 2008
Minnesota Broker Sentenced to 5 Years
Ronald Clark Joseph, 49, Prior Lake, part-owner of LHS Mortgage, Inc., was sentenced to 63 months in federal prison by United States District Court Judge Donovan Frank for his role in a mortgage fraud kickback scheme.
As previously reported by Mortgage Fraud Blog, on July 2, 2007, Joseph pleaded guilty to one count of mail fraud and one count of money laundering. Joseph, a licensed mortgage broker, devised and implemented a scheme to defraud mortgage lenders out of millions of dollars between 2004 and 2006. He caused fraudulent loan applications to be provided to potential lenders that misrepresented the terms of the proposed transactions by, among other things, overstating property purchase prices. After a loan was approved, loan proceeds were provided to a title company. Joseph then worked with a closing agent at the title company to disburse concealed payments from the loan proceeds to property buyers and third parties, including himself.
Joseph and LHS Mortgage, Inc. were involved in approximately 40 separate real estate transactions, involving more than $18 million in loan proceeds and $2.5 million in concealed kickbacks. Joseph is the fourth defendant in the case to be prosecuted and sentenced.
A LHS Mortgage, Inc. employee, Mario Augustin Lewis, 37, Minneapolis, Minnesota, was sentenced to four-and-a-half years in prison.
Isadore Stewart, 40, Stillwater, Minnesota, a buyer who obtained concealed kickbacks on three properties, was sentenced to 18 months imprisonment.
In addition, the closing agent involved in the scheme, Jill M. Lehn, 40, Prior Lake, Minnesota, was sentenced to two years in prison. Lehn benefitted from a departure from the applicable guidelines that was granted by the district court based on Lehn‘s ongoing cooperation with law enforcement in its investigation of mortgage fraud.
“The sentence sends a clear message to those involved in the mortgage industry that fraud will not be tolerated and will be met with significant punishment,” said acting U.S. Attorney
Frank J. Magill. “This office recognizes the significant, detrimental impact mortgage fraud has had on our communities and is aggressively pursuing those responsible.”
mortgage fraud
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
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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. 
