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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Minnesota Builder, Wife and Son in Law Plead Guilty
Parish Marketing and Development Corporation (PMDC), and its owners, pleaded guilty in federal court to conspiring to commit mortgage fraud and money laundering charges arising from their scheme involving approximately 200 residences and approximately $100 million in loan proceeds. PMDC and its owners acknowledged obtaining more than $25 million for PMDC from the scheme.
PMDC, its owners, Michael Alan Parish, 62, and his wife, Ardith Ann Parish, 61, and a PMDC agent, Christopher David Troup, 39, all of Eagan, Minnesota, pleaded guilty to participating in the conspiracy.
According to their pleas, all four defendants acknowledged participating in the mortgage fraud scheme, by which PMDC utilized straw buyers to purchase approximately 200 properties built by PMDC, primarily in the New Prague, New Market and Lonsdale, Minnesota area. In total, the scheme obtained nearly $100 million in loan proceeds, with PMDC receiving in excess of $25 million from these loan proceeds.
On September 20, 2007, Melissa Smith, Ohio, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Smith admitted to acting as a straw buyer for the scheme, purchasing 46 residences for approximately $20 million from October 2004 through January 2007.
The four defendants today also acknowledged completing loan applications for the straw purchases, which included false information, executing loan documents in the names of the straw buyers, and manufacturing and providing false documentation, such as false representations of employment and false verifications of deposit, for the straw buyers for purposes of obtaining loan proceeds to purchase the properties from PMDC.
On September 5, 2007, Ramiz Yousef Saadeh, a former US Bank officer, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Saadeh admitted providing false verifications of deposit to the home builder on behalf of straw buyers.
The four defendants today also admitted providing false information that resulted in appraisals that overstated the amount for which the residences could have been sold at the time of the transaction in a normal, arms-length transaction. These appraisals supported a higher sales price to the straw buyers, allowing PMDC to obtain additional funds from the loan proceeds.
On October 11, 2007, Donald Todd Yeager, Oklahoma, appeared in federal court and pleaded guilty to honest services fraud. Among other things, Yeager admitted providing misleading and inflated appraisals to the home builder.
The four defendants today also admitted that the straw buyers did not view the residences they were purchasing, did not negotiate the purchase price of the residences, and, often times, did not execute the sales documents and loan documentation, which were instead signed by the defendants pretending to be the straw buyers.
On September 7, 2007, Kristopher Kenton Robbins, a closing agent and licensed notary public, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Robbins admitted allowing signatures of the straw buyers to be signed by others.
Pursuant to the scheme, the four defendants admitted that the straw buyers – the nominal owners of the residences – made no payments on the mortgages that were taken out in their names. Instead, PMDC made all payments or allowed mortgages to go into foreclosure. Often times, PMDC utilized proceeds from the sale of one residence to a straw buyer to make monthly payments for the mortgages held on other residences in the names of other straw buyers.
In addition to the mortgage fraud conspiracy count, PMDC, Michael Parish and Troup also pleaded guilty to a money laundering count.
According to the terms of the plea agreements, the defendants will be sentenced based on determinations made by the court regarding the full extent of loss, the number of victims and the defendants’ respective roles in the scheme. Pursuant to the terms of the plea agreements, the government contends the scheme may have resulted in a loss of as much as $50 million (depending on the value of the residences) and has 50 or more victims.
According to the plea agreements, depending on the determinations made by the court, the federal sentencing guidelines call for a sentence of between 11 and 14 years imprisonment for Michael Parish, a sentence of between nine and 11 years imprisonment for Troup, and five years imprisonment for Ardith Parish, who was deemed to be a minor participant.
Pursuant to the plea agreements, the government will also seek an order of full restitution for the victims of the fraud.
During the hearing today, the government noted that the investigation – which has now resulted in guilty pleas from the home builder and seven individuals in the past eight weeks – has progressed extremely rapidly in an effort to address the impact of the fraud on the community. The government and the defendants indicated that they would jointly seek the appointment of a receiver to assist in the maximization of the value of the properties and PMDC’s assets so as to minimize the impact on the community and the losses to the victims.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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