Friday, March 16, 2007
Minnesota Mortgage Broker Charged in Mortgage Fraud Scheme
Ronald Clark Joseph, 49, has been charged with two counts of mail fraud, one count of wire fraud, and one count of money laundering in connection to a scheme to defraud mortgage lenders out of millions of dollars in Minnesota.
The indictment states that between 2004 and 2006, Joseph, a licensed mortgage broker who worked for LHS, Inc., caused fraudulent loan applications to be provided to potential lenders. The applications allegedly 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. According to the indictment, Joseph then worked with a closing agent at the title company to disburse some of those proceeds in a manner contrary to the understanding of the lender. Payments from those proceeds were made to the property buyer and other third parties as well as to Joseph. In order to conceal the scheme, Joseph allegedly caused false settlement statements to be mailed to the lender.
The indictment states that Joseph participated in the fraud scheme as a property broker as well as a buyer and seller. Allegedly, Joseph and LHS, Inc., received substantial fees for arranging the fraudulent transactions. Moreover, the indictment states that on at least two occasions, Joseph personally purchased property and subsequently received nearly $200,000 in concealed payments. For the purpose of executing this scheme, Joseph also allegedly caused $369,329.56 to be wired from a mortgage account in New York to a title company account in Minnesota.
The indictment states that through approximately forty separate real estate transactions in which Joseph was involved, about $2.5 million in concealed payments were made.
Joseph is also alleged to have used proceeds from this fraud scheme to purchase a Cadillac automobile in January of 2006.
If convicted, Joseph faces a maximum potential penalty of twenty years in prison on each mail fraud and wire fraud charge. He faces a maximum potential penalty of ten years in prison for money laundering.
This indictment follows the recent filing of a plea agreement in a related case. Mario Augustin Lewis agreed to plead guilty to a federal information that charges him with wire fraud and money laundering in connection to the above-described mortgage fraud scheme. Lewis admits that between 2004 and 2006, he received nearly $400,000 in concealed payments through fraudulent real estate transactions. He also admits that between 2005 and April of 2006, he owned and knowingly rented out a residence used for manufacturing marijuana. The maximum potential penalties for Lewis’ crimes are twenty years in prison for wire fraud, ten years in prison for money laundering, and twenty years in prison for maintaining a drug-involved premises.
mortgage fraud
I think bad mortgage advise is equivalent to mortgage fraud.. and right now the market is full of people offering advise that in my view is not appropriate and therefore does not address the needs of the client..
Consider this… I need to remortgage a property… broker says 5.69%.. and you say I have seen a rate of 5.24% in the papers.. and the tone changes.. If you accepted the rate which was offered to you… would the conduct of the broker not be fraudulent..?
I think the lenders and their representatives need to get their act together first and foremost..
Posted by on 03/16 at 01:21 PM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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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.
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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 
