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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Mortgage Broker And Pastor Arrested On Mortgage Fraud Charges
Shalonda McGill, a Florida mortgage broker and her husband, Rodney McGill, a pastor and popular radio show host, are facing numerous felony charges stemming from a state investigation that found the couple allegedly scammed consumers in a real estate investment scheme. Investigators said the couple has been enjoying expensive leased vehicles while sticking their “clients” with more than $1 million in mortgage debt.
The McGills were arrested on charges of Racketeering, first degree; Conspiracy to Commit Racketeering, first degree; Grand Theft, first degree; Grand Theft, third degree; and Obtaining a Mortgage by False Representation, third degree. The Department of Financial Services’ (DFS) Division of Insurance Fraud and the Office of Financial Regulation (OFR) conducted the investigation.
The McGills are being held in the Martin County Jail, with bond set for each at $1.4 million. Deputies with the Martin County Sheriff’s Department made the arrests during a traffic stop.
The McGills garnered clients through various programs including the Young Millionaire’s Group, Inc. (YMG); RSM Investment and Mortgage (RSM); and New Hope Outreach Center, Inc. (New Hope), all of which operated out of a facility located at 2110 Arch St. in Jensen Beach, Florida. Florida corporation documents identify Rodney McGill as president and Shalonda McGill as vice president of New Hope, which is incorporated as a non-profit church with the McGills listed as pastors.
The investigation found that Rodney McGill, as president of YMG, solicited listeners through a daily local radio program on WJFP Radio. He stated his purpose was to teach and mentor individuals on how to buy and sell real estate without any out-of-pocket expense, with the goal of earning $50,000 in 90 days.
In July 2006, investigators said, Rodney McGill solicited listeners of the radio show to call in and qualify, based on their credit, to become one of his “Fab 5.” Callers allegedly were assured that they would learn McGill’s real estate investing “cash-out technique.”
The McGills purchased real estate in Martin and St. Lucie counties, Florida, allegedly by preparing and submitting fraudulent loan applications, and then “flipped” the properties to the “Fab 5” for huge profits. Based on the fraudulent loan applications, four mortgages were obtained in excess of the property’s actual worth, and the McGills allegedly skimmed off the profits leaving three members of the “Fab 5” with more than $1.115 million in mortgage payments they were unable to make.
Investigators said all of the properties are either in or are facing foreclosure. The buyers all believed they were part of the “Fab 5” and were learning the McGill’s real estate investing techniques.
“It appears that these individuals used their positions in the community to take advantage of people who trusted them,” said Florida Chief Financial Officer Alex Sink, who oversees DFS. “The evidence our investigation uncovered indicates these two improved their own bottom line while financially devastating the Floridians they promised to help.”
The OFR is overseen by the Financial Services Commission, which includes the Governor, Attorney General, the Agricultural Commissioner and CFO Sink.
The investigation is ongoing into other real estate transactions in which the McGills were involved. Anyone with information is asked to contact Detective Ted Padich, (561) 837-5635, with the Division of Insurance Fraud, or Investigator Steve Brignola, (561) 837-5233, with the Office of Financial Regulation.
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...
Legal Disclaimer.
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 
mortgage fraud
