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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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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A Missouri real estate entrepreneur was convicted by a federal trial jury for orchestrating a property flipping scheme and mortgage fraud conspiracy.
Brent Michael Barber, 41, of Belton, Missouri, was found guilty for his role in a conspiracy to defraud two mortgage lending companies of hundreds of thousands of dollars.
“Brent Barber manipulated people, took advantage of those who were vulnerable, and used deceit to enrich himself at the expense of others,” said Todd P. Graves, United States Attorney for the Western District of Missouri. “He forged documents and lied on loan applications in an unsuccessful property-flipping scheme, and with this jury verdict, he is being held accountable for his unlawful actions.”
Following the presentation of evidence in Barber’s trial, the jury in U.S. District Court deliberated for approximately six hours before returning its verdict in the trial that began on November 28, 2005.
Barber was found guilty of charges contained in an October 7, 2004, federal indictment. Co-defendant Vernon David Williams, 58, of Kansas City, pleaded guilty to conspiracy and wire fraud on July 18, 2005.
Barber was involved in the business of buying and selling real estate, and did business under the names KC Properties and KC Securities LLC. Williams was a loan employee of mortgage brokerage companies in Merriam, Kansas and Lee’s Summit, Missouri.
The jury found that Barber conspired with Williams to defraud MILA, Inc., a mortgage lending company with its principal office in Mountlake Terrace, Washington, and Finance America LLC, a mortgage lending company with its principal office in Irvine, California, from July 24, 2004, to September 16, 2004.
As part of that conspiracy, Barber and Williams attempted to borrow $285,000 from MILA in connection with the fraudulent purchase of a duplex at 3741 Locust in Kansas City, Missouri. In furtherance of the conspiracy, Barber created a trust in the name of the true owner in order to conceal the additional transfer (the “flip”) of the property on the day of closing for a greater price, knowing that MILA would not have approved the loan if it had known the seller acquired the property the same day it sold the property.
“If his plan had gone as he hoped,” Graves said, “he would have made a $40,000 profit. The fact that he didn’t get away with it, doesn’t expunge his criminal behavior.”
Barber and Williams prepared and provided material false, fraudulent and misleading loan applications and other documents regarding the loans.
“Barber created a phony trust to conceal the fact that he was flipping property – buying low then immediately selling at a profit to a person who was unemployed and couldn’t afford to pay the mortgage,” Graves said. “He knew the mortgage firm wouldn’t approve the transaction, so he tried to conceal it behind false and fraudulent documents.”
In addition to the fraudulent purchase of the property at 3741 Locust, the jury also found Barber guilty of his involvement in a second fraudulent real estate transaction in August 2004, in which he and Williams attempted to receive a $158,251 loan from Finance America on behalf of another person to purchase property at 1013 Brookside Drive, Raymore, Missouri.
Barber was found guilty of submitting a fraudulent loan application that contained false employment and income information. Rent checks were provided as proof that the proposed borrower had paid rent for the last several months. The submissions were each sent in the form of a facsimile transmission and a wire transfer, Graves said. Williams admitted that he and Barber both participated in the wire transfer, which ultimately caused Finance America to fund the loan by having the money sent from Deutsche Bank Trust Co. to United Missouri Bank in Kansas City on August 18, 2004.
Under federal statutes, Graves explained, Barber may be subject to a maximum sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Williams may be subject to a maximum sentence of up to 10 years in federal prison without parole, plus a fine up to $500,000.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
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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