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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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 In addition, Sutton‘s probation for the 2005 offense was revoked and he was sentenced to six months prison to run concurrent to the 16 months.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.
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.
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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