Friday, January 11, 2008
Minnesota Man Sentenced to 4 Years For Fraud
Mario Augustin Lewis, 37, Minneapolis, Minnesota was sentenced to serve four-and-a-half years in prison and ordered to pay $437,814.41 in restitution by U.S. District Court Judge John R. Tunheim.
Lewis pleaded guilty earlier this year to one count of wire fraud and one count of money laundering in connection with a mortgage-fraud scheme involving Ronald Joseph of Credit River Township, Jill Lehn of Prior Lake and Isadore Stewart.
Lewis also pleaded guilty to one count of maintaining a drug-involved premise in connection with a marijuana growing operation that was discovered in one of the houses Lewis purchased as part of the scheme, according to the United States Attorney’s Office.
Lewis was an employee of LHS, Inc. Lewis admitted that between 2004 and 2006, he received more than $400,000 in concealed payments as a result of real-estate transactions, according to the U.S. Attorney’s Office.
The mortgage scheme involved fraudulent loan applications that misrepresented the terms of the proposed transactions by overstating property purchase prices, among other things.
Joseph, an owner of LHS, Inc., Lehn, a closing agent and Stewart have all pleaded guilty and are awaiting sentencing.
According to the U.S. Attorney’s Office, between 2004 and 2006, the scheme involved about 40 separate real-estate transactions in which lenders were provided with fraudulent loan applications on behalf of the buyer.
Among other things, the fraudulent loan applications misrepresented the terms of the proposed real-estate transactions by overstating the actual property price and concealing payments that were made from the loan proceeds to the buyers and other individuals.
After the loans were approved based on false documentation, loans proceeds were provided to a title company.
The conspirators then worked with Lehn as a closing agent to disperse some of the proceeds to the property buyer and other third parties including Joseph and Lewis.
In total, the real-estate transactions were worth about $18 million in loan proceeds and produced about $3 million in fraudulent, concealed payments.
The mortgage-fraud scheme was initially uncovered based on a drug investigation by the West Metro Task Force that found the marijuana grow operation at one of the houses Lewis purchased through the scheme.
mortgage fraud
Real success in the market takes time and money. Unfortunately “most people view the market as the place where the miracle of great and quick riches can be performed with little effort”.
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
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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
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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
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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
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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
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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
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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
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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.
More Trial Coverage
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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 
