Wednesday, January 07, 2009
Missouri Man Pleads Guilty To Loan And Appraisal Misreps
Craig A. Long, 36, Kansas City, Missouri, has pleaded guilty to federal mortgage fraud charges. Long pleaded guilty to one count of conspiracy to commit mail fraud and money laundering, and one count of mail fraud.
In his plea, Long admitted he conspired with Leawood, Missouri real estate agent David Kostelec and others to defraud lenders by submitting fraudulent loan applications and false real estate appraisals. In October 2008, Kostelec pleaded guilty to leading a group of conspirators who fraudulently obtained more than $12 million in home loans. Long admitted he and others obtained loans for purchase or refinancing of real property by submitting to the Federal Housing Administration and other lenders loan applications containing false information about borrower’s identities, employment and income, as well as false information about liens, occupancy and sales contracts.
Long admitted that in June 2005 he provided false information to lenders for money to finance the purchase of a house in the 3900 block of Harrison, Kansas City, Missouri. A sales contract falsely represented there was a $43,800 lien on the property. The loan application falsely stated the buyer was earning $8,500 a month as the owner of a construction company when in fact the buyer was retired and living on Social Security. Additionally, the value of the property was fraudulently inflated.
Long admitted he committed wire fraud in June 2005 by causing $99,739 obtained through fraud to be sent from Nations Title Agency via Federal Express to the Bank of America in Greensboro, N.C.
Sentencing is set for April 6, 2009. He faces a maximum penalty of 5 years and a fine up to $250,000 on the conspiracy charge and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud charge.
Kostelec is set for sentencing Feb. 2. The Internal Revenue Service - Criminal Investigation and Housing and Urban Development - Office of Inspector General worked on the case. Acting U.S. Attorney Marietta Parker is prosecuting.
mortgage fraud
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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 
