Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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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Mississippi Announces Indictments In Operation Malicious Mortgage
U.S. Attorney Dunn Lampton announced that during “Operation Malicious Mortgage” from March 1, 2008 through June 18, 2008, eleven (11) individuals have been charged, pleaded guilty, or have been sentenced in federal court in connection with mortgage loan fraud schemes investigated by the Jackson Financial Crimes Task Force.
As previously reported by Mortgage Fraud Blog, David Kennedy and LaVonne Hamilton, two former mortgage brokers in Jackson, Mississippi, were each sentenced April 04, 2008, by Chief U.S. District Judge Henry T. Wingate for their respective roles in separate mortgage fraud schemes. David Kennedy was sentenced to serve 24 months in federal prison followed by 3 years of supervised release. LaVonne Hamilton was sentenced to serve 16 months in federal prison followed by 2 years of supervised release. In November 2007, Kennedy and Hamilton each pleaded guilty to conspiracy to commit money laundering of the proceeds from their individual mortgage fraud schemes. Kennedy and Hamilton conspired with others to submit false information to mortgage lenders and secure fraudulent mortgage loans for others by using interstate wires. From the proceeds of these fraudulent loans, Hamilton and Kennedy and their various co-conspirators received numerous fees, commissions and other profits to which they were not entitled.
As a result of the fraudulent information submitted to the various mortgage lenders by Hamilton, Kennedy and their co-conspirators, fraudulent mortgage loans exceeding $835,000 were collectively disbursed.
As previously reported on Mortgage Fraud Blog, Bryan Barry, a former mortgage broker in Jackson, Mississippi, was indicted and pleaded guilty before U.S. District Judge Daniel P. Jordan, III, to conspiracy to commit wire fraud and four (4) counts of wire fraud in connection with his role in a similar but separate mortgage fraud scheme. As a result of the fraudulent information submitted to the various mortgage lenders by Barry, fraudulent mortgage loans exceeding $492,900 were collectively disbursed. Barry‘s sentencing is scheduled for July 17, 2008.
On May 9, 2008, Todd Phillips, a former real estate developer in McComb, Mississippi pleaded guilty before U.S. District Judge Tom S. Lee, to conspiracy to commit bank fraud, in connection with his scheme to defraud over twenty (20) banks in Mississippi with fraudulent loans totaling approximately $14.5 million. According to charging documents filed in the case, from March 2003 through January 2006, Phillips operated Todd Phillips Investments, Inc., and Statewide Realty Holdings, LLC, and obtained fraudulent loans to fund the purchase and development of real property throughout the state. In order to fraudulently obtain the loans, with the help of his co-conspirators Phillips repeatedly pledged encumbered parcels of real property as collateral, fabricating title opinions, forging cancellations of deeds of trust, and providing other false information to conceal from the lenders that the properties were already encumbered.
On June 17, 2008, criminal charges also were filed against Phillips‘ attorney, Dwayne G. Deer, and against Phillips’ office manager, Dawn Stinson, for their respective roles in the scheme. Deer is charged with conspiracy to commit bank fraud and Stinson is charged with misprision of a felony. Todd Phillips is scheduled for sentencing on August 15, 2008.
As reported by Mortgage Fraud Blog, on May 27, 2008, a federal grand jury returned a 25-count indictment against Mark J. Calhoun and his daughter April Calhoun in connection with a mortgage loan fraud scheme. According to the 25-count indictment, Mark Calhoun worked as a mortgage broker as an employee of Professional Mortgage Consultants Corporation and as the operator of New World Mortgage d/b/a Silver Cross Financial Group, LLC where April Calhoun was employed. The indictment alleges that from September, 2004 through July, 2006 Mark Calhoun prepared false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. During the time period covered by the indictment, Mark Calhoun obtained fraudulent loans for approximately 40 borrowers totaling over $ 8.5 million.
According to the indictment, Mark Calhoun and April Calhoun conspired to create fictitious creditors to which these borrowers allegedly were indebted. These fictitious creditors were actually companies under the control of Mark Calhoun and April Calhoun, who received funds for these fictitious creditors from the loan closings. The investigation is continuing and other charges are expected in the near future. The Calhouns‘ trial is set for August 5, 2008. This investigation is ongoing and other charges are expected in the future.
On June 13, 2008, criminal charges were filed against David Strain, a former real estate investor, alleging conspiracy to commit money laundering associated with his role in a mortgage fraud scheme. The charges allege that from July 2004, through January, 2005, Strain and others successfully obtained fraudulent loans totaling over $990,000.00 by creating false documentation and making false entries on documents submitted to the lenders to obtain the loans, including false entries showing that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower. The charges allege that Strain and his co-conspirators used interstate wires, either by means of facsimiles or by causing funds to be wire transferred to financial institutions, to accomplish the purposes of the conspiracy and caused various financial transactions to occur from the proceeds of the fraudulent mortgage loans. This investigation is ongoing and other charges are expected in the near future.
On June 17, 2008, criminal charges for conspiracy and bank fraud were filed against James Wynn Threatt, a former real estate investor, for his role in a mortgage fraud scheme. The charges allege that from January, 2003 through March, 2006 Threatt conspired with others to successfully obtain fraudulent loans by creating false documentation and making false entries on documents submitted to the lenders to obtain the loans. The charges also allege that Threatt and others used encumbered parcels of real property as collateral, fabricating title opinions and providing other false information to conceal from the lenders that the properties were already encumbered. This investigation is ongoing and other charges are expected in the near future.
In a separate matter, John A. Allen, a recently disbarred Jackson attorney, was criminally charged for bankruptcy fraud, wire fraud, and money laundering associated with his scheme to defraud former clients. According to the charges filed by U.S. Attorney Dunn Lampton, John A. Allen fraudulently concealed approximately $21,925.00 from the trustee charged with control of a debtor’s property and from the creditors and the United States Trustee in connection with a Bankruptcy Case in the Bankruptcy Court for the Southern District of Mississippi. Allen is also charged with using interstate wires to execute a scheme to breach his fiduciary duty to a different client and defraud the client by concealing his conversion of his client’s funds for his personal use. Allen is also charged with money laundering related to the financial transactions associated with the wire fraud scheme.
United States Attorney Lampton stressed that in each case the charges represent an accusation only and all defendants are entitled to a presumption of innocence.
The Jackson Financial Crimes Task Force includes the United States Attorney’s Office of the Southern District of Mississippi, Internal Revenue Service, Federal Bureau of Investigation, United States Postal Inspection Service, Federal Deposit Insurance Corporation-Office of Inspector General, Housing and Urban Development-Office of Inspector General, Mississippi Secretary of State’s Office, Mississippi Real Estate Commission and Appraisal Board, Mississippi Department of Banking and Consumer Finance, Hinds County Sheriff’s Office, Madison Police Department and Madison-Rankin District Attorney’s Office.
U. S. Attorney Dunn Lampton stated, “Mortgage fraud remains a serious concern throughout the United States, including here in Mississippi. These prosecutions are part of our continuing efforts to bring to justice those people who are enriching themselves by committing crimes at the expense of borrowers and lenders.” U.S. Attorney Lampton noted that during “Operation Malicious Mortgage”, criminal cases involving fraudulent loans totaling over $27 million have been in various stages of criminal prosecution in the Southern District of Mississippi.
Frederick T. Brink, FBI Special Agent in Charge stated, “Mortgage fraud has become a significant and growing national crime problem which necessitates a unified investigative effort of local, state and federal agencies. The FBI and each agency member of the Mortgage Fraud Task Force, working collaboratively, enhance each agency’s resources and maximize their investigative effectiveness, as proven by this multi-jurisdictional effort announced today.”
Michael J. De Palma, IRS Special Agent in Charge stated, “Mortgage fraud, like many financial crimes, adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities. IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
dwayne g. deer did not get what he deserved. what about the 14 million he defrrauded. did he file bankruptsy on this when he he filed?? does or did the irs look into this?? what about his wife does she have the money? they are liveing high on the hog. Why hasnt anything been seiezed? the house the vehicles (that were paid for reAL quick) they have moveed four times in the past year. this takes money-doesnt it so many questions left unanswered and or not looked at. they said the drugs made him do the fraud. he was on drugs years before he became a attorney.. yes he got disbarred but it shows he is still practiceing in biloxi ms. how can this be??
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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