Wednesday, February 07, 2007

Missouri Broker and Three Others Indicted on Flipping Charges

Bennie Clark, Michael Jackson, Robert Casey and Donna Brown were indicted for their involvement in a mortgage scheme involving several St. Louis, Missouri, area properties. Additionally, Brown is charged with bankruptcy fraud.

Bennie Clark worked in the mortgage brokerage field as owner and operator of World Wide Financial, LLC, providing mortgage-related services at an office located in St. Louis County. Michael Jackson was a business associate. Donna Brown worked for Clark and World Wide Financial providing loan application processing and working with title companies. Robert Casey was a straw buyer for Clark and Jackson and had a personal relationship with Brown.

The indictment alleges that between November 2002 and October 2003, these four defendants devised a scheme to defraud mortgage lenders by having a straw buyer purchase residential properties and then resell those properties at a fraudulently inflated price to a second buyer. The values were inflated by securing false appraisals. Typically, the second buyer’s loan application included false representations. The sale to the second buyer was sometimes closed on the same day as the straw buyer’s purchase of the property. The closings were often conducted in “reverse order.” In this way, the proceeds from the second buyer’s loan were used to pay for the first straw buyer’s purchase. The straw buyer would then give the proceeds of the sale to Bennie Clark.

Finally, the indictment alleges that on March 13, 2003, Donna Brown filed a bankruptcy petition under Chapter 7 of the Bankruptcy Code in United States Bankruptcy Court in the Eastern District of Missouri and failed to disclose her employment with World Wide Financial, LLC and Bennie Clark.

Bennie Clark, Lake St. Louis, Missouri, was charged with one count of conspiracy to commit fraud, three counts of wire fraud, two counts of mail fraud and four counts of money laundering. Michael Jackson, Hazelwood, Missouri, was charged with one count of conspiracy to commit fraud, three counts of wire fraud and two counts of mail fraud. Donna Brown, Lake St. Louis, Missouri, was charged with one count each of conspiracy to commit fraud, wire fraud, mail fraud and bankruptcy fraud. Robert Casey, Lake St. Louis, Missouri, was charged with one count each of conspiracy to commit fraud, wire fraud and mail fraud.

If convicted, each conspiracy count carries a maximum penalty of five years in prison and/or a maximum fine of $250,000; each wire and mail fraud count carries a maximum penalty of twenty years in prison and/or fines up to $250,000; and each money laundering count carries a maximum penalty of ten years in prison and/or a maximum fine of $250,000. The bankruptcy fraud count carries a maximum penalty of five years in prison and/or fine up to $250,000.

mortgage fraud

1. hello, I am hoping someone could give me advice, on what I can do with a broker who seems to be well I dont want to say fraudulent, but seemingly unethical? some examples bought a house in a nieghborhood for 1.3 mil, where the most expensive house gos no more than 900,000, will go complete appraisals take pict. but appraiser lives on other island,has people working in office with her and telling people these are loan offficer when they have no licence,will construct people with loans who dont really have the qualifications for a mortgage, borrow them some money with intrest then turn around refi them they pay back.I dont know if this is illegal, but it seems unethical and immoral, please respond, as i am very concerned for people who dont realize what this person is doing,and the trouble it could cause. thank you.  sara

   Posted by  on  02/07  at  07:25 AM