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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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Missouri Real Estate Investor Previously Convicted on Bank, Wire Fraud Charges
Raymond Zwego, Jr. expects to be a witness for the government when the case against him and 10 other defendants including former Jackson County, Missouri Executive Katheryn J. Shields and her husband, Philip F. Cardarella goes to trial according to his Motion for Release on Bond filed with the court. In that motion, he states that he is not a flight risk as revealed by his ‘pretrial history’ and that he pesents to threat or detriment to society ‘if properly supervised.’
The government’s response to that Motion avers that as Zwego‘s detention is based on a stipulated probable cause finding the he violated conditions of supervised release, there is therefore no set of conditions that would assure his appearance at trial or the safety of the community. That response further states that the the offense charged against Zwego represents one of many such mortgage fraud offenses committed while he was on supervised release and that the estimated loss associated with his mortgage fraud offenses exceeds $1 million. The report states ‘[w]hen a defendant is willing to commit new crimes while on supervised release, there is little reason to believe that he will refrain from committing new crimes if he is released on bond pending trial.’ The bank fraud conviction that resulted in the supervised release violation, according to the response, was Zwego’s federal conviction; his prior convictions being a 1994 wire fraud conviction in Kansas and a 1979 conviction for making false statements to financial institutions and interstate transportation of forged securities. Zwego also has prior state convictions for theft and stealing.
The Kansas City Star reported that the Shields-Cardella case is similar to other Zwego deals and that the FBI is looking into as many as 60 more questionable home sales.
Zwego is charged in all 12 counts of the indictment, including one charge of conspiracy and 11 counts of wire fraud. The maximum sentence for the conspiracy charge is 5 years imprisonment while each of the wire fraud charges carry maximum sentences of 20 years imprisonment.
According to Shields it’s all the Bush Administration, they are out to get her.
She states it’s all “political terrorism.” a “political witch hunt”
That rascally president is even going after poor Katheryn the Grate. Even with everything else he has to do, fighting terrorism and all, he finds time to go after some political nobody in the Midwest.
You know what I am not just a loan officer but I am also the wife and mother of a family that was victimized by Raymond Zwego Jr. Here’s what I am not getting this man has caused MANY MANY FAMILIES IN THE KANSAS CITY AREA TO LOOSE THERE HOMES, YET THERE IS NOTHING SHOWING THE GOVERMENT PROBING INTO WHAT HE HAS DONE. My husband and I went to a guy whom I valued as a friend from a previous employer to help us find a home. We entered into a Lease-Purchase Agreement with Mission North Investment owned and operated by Mr. Zwego in April 2006. We had until April 2007 to purchase the home. As tenants we paid our rent on time, a matter of fact my husband and I discussed making January 2007 payment at the same time we made our December 2006. Good thing I actually listened to that little voice inside screaming ‘NO NO NO.’ The night of December 28, 2006 my husband and I come home to find a Fed Ex letter up against our front door. We recieved a letter from an attorney who is located in Texas and hired by Rhonda Hawkins, the owner or a.k.a THE STRAW BUYER. Informing us that Mr. Zwego’s services are no longer needed and to forward our January 2007 rent payment to this attorney along with a copy of the Lease-Purchase Agreement. DING DING BIG BELLS GO OFF. My husband and I drive thru our subdivision writing down other addresses that we had seen prior Mission North Investment Co. signs in. Well, before I became a loan officer I worked in the title industry doing title searches. I came back to my office and guess what, we diligently paid as agreed on our rent/mortgage payment as promised, but the money was being pocketed...Yes, by Mr. Zwego. Nice guy right? NOT! Well, I started probing more and more, last count I had heard because of this one man something like 100+ properties were foreclosed upon. Forcing innocent families out into the street. We went to a local news station to air this story, and we have yet to hear that there is anymore investigating going on in these incidents. So if Shields believes that is political terrorism all I have to say is “BOO HOO, at least he is serving time for the way he wronged you and your family. So step up lady and help to make sure that he faces time for what he has done to everyone else. Everyone that owns a house in the North Kansas City area just be just as up set, guess what a foreclosure does to they property value of your home and I know in Bristol Park we were looking at anywhere from 6 to 9 houses that got foreclosed on. Oh, yea one more thing, the guy was still on probation from wire fraud that he committed in the ninties, he had sixteen days left on his probation.
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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