Thursday, July 03, 2008
Missouri Announces Mortgage Fraud Indictments
In September 2006, James Sutton violated his probation from a 2005 sentence for mail fraud by purchasing more than 20 properties using his father’s social security number. As a result, Sutton pled guilty this spring to an additional felony charge of misuse of a social security number and was sentenced June 3, 2008 , to a term of 16 months in prison. In addition, Sutton‘s probation for the 2005 offense was revoked and he was sentenced to six months prison to run concurrent to the 16 months.
On June 9, 2008, Daryl W. Miller pled guilty to wire fraud for selling two properties and then, after he no longer owned these properties, taking out a mortgage against one and selling the other for a second time.
Last April, 2007, Christopher Rakel pled guilty to fraud charges involving a far-ranging scheme to defraud banks and other mortgage lenders and awaits sentencing.
On March 24, 2008 , Floyd Irons, former Vashon High School Coach, Michael Noll and John Mineo, Jr., a local restaurant operator, were sentenced to 12 months, 20 months and 12 months and 1 day in prison, respectively, on wire and mail fraud charges in connection with a million dollar mortgage fraud scheme.
On February 15, 2008 , Daniel Mann was sentenced to 15 months in prison for his participation in a mortgage fraud scheme. The scheme involved lining up properties from distressed sellers willing to take a below-market sale price for a property and matching them up with willing buyers. Mann and others arranged 100% financing for the buyers by means of false mortgage applications, which typically included lies about a buyer’s finances and intention to occupy a property. In all, the scheme involved more than 60 properties, mostly in South St. Louis and ran from 2005 through 2006. In addition to Mann, Steven Heinrichs and Tracy Westmoreland have pled guilty to related charges for their participation in this same ring and are scheduled for sentencing in July.
John Gillies, Special Agent in Charge, FBI-St. Louis stated, “The ongoing initiative, known as Operation Malicious Mortgage, reflects the FBI’s mission and efforts to identify, target, disrupt and dismantle criminal organizations and individual operations engaged in mortgage fraud schemes that target our nation’s financial institutions and have an effect on our nation’s economy.”
Operation Malicious Mortgage represents the joint collaborative efforts of the FBI, U.S. Postal Inspection Service, Internal Revenue Service-Criminal Investigation Division, U.S. Immigration and Customs Enforcement, U.S. Secret Service, U.S. Trustee Program, Department of Housing and Urban Development-Office of the Inspector General, Department of Veterans Affairs-Office of the Inspector General and Federal Deposit Insurance Corporation-Office of the Inspector General. Operation Malicious Mortgage is the most recent coordinated sweep in an ongoing law enforcement effort to combat mortgage fraud, which also included Operation Continued Action in 2004 and Operation Quick Flip in 2005.
“Misconduct like the cases described here only makes things worse for the troubled housing industry,” said Hanaway. “Federal law enforcement has responded to the crisis by stepping up fraud enforcement and emphasizing the prosecution of criminal misconduct and the aggressive collection of restitution for victims.”
An indictment is not evidence of guilt. All persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
mortgage fraud
I was wondering why it takes so long to indict these criminals. I was one of several witnesses who have been interviewed by Law Enforcement officials on the Fraud and False Loan applications signed by Ron Hertel and Robert Fowler on a mega million dollar scam. They are now in default on several big loans and we were told to just stay silent, indictments are coming. As they RW Hertel & Sons aka Verdot Group, L.P. and Atascadero Ventures, LLC with 5 Mile Bridge Winery launder monies and conceal assets the feds and banks need to act sooner rather than later to indict these criminals.
Posted by on 07/05 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 
