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
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Hassan Nagi, 31, Dearborn, Michigan, a mortgage broker, was sentenced to 20 months' imprisonment in connection with a multi-million dollar mortgage fraud scheme. Nagi was also ordered to pay restitution in the amount of $1 million dollars.pled guilty to conspiracy to commit bank fraud on December 15, 2008 before U.S. District Judge George Caram Steeh. Nagi admitted that from April 2005 to April 2008, while working as a loan officer at Superior Mortgage, Premier Mortgage Funding, and First Mortgage, he defrauded a half-dozen financial institutions in a 16-property, $1.9 million fraud scheme carried out in Detroit, Dearborn, and Dearborn Heights, Michigan. Nagi secured financing from various banks-including Countrywide Financial, Washington Mutual, Fifth Third Bank, and IndyMac-for "straw buyers" using inflated appraisals (prepared by co-defendant Ali Haidous) and falsified income documents. Nagi then split the proceeds of the fraud with his co-defendants when the mortgages were abandoned.
United States Attorney Terrence Berg announced the sentencing. Berg was joined in the announcement by Andrew G. Arena, Special Agent-In-Charge of the Federal Bureau of Investigation in Detroit.
US Attorney Berg stated, "The current economic environment demands vigorous enforcement and stiff punishment against those who obtain mortgages under false pretenses and thereby increase the cost of home ownership for all Americans. These are not victimless crimes and we will work tirelessly to ensure that those who commit fraud are brought to justice."
Co-defendant Ali Haidous, 25, Dearborn, was sentenced to one-year imprisonment on March 17, 2009. Two other defendants, Safi Bzeih, 35, and Maria Linares, 32, both of Dearborn, await sentencing on October 26. Hussein Aoun, 23, also of Dearborn Heights, is a fugitive believed to be in Lebanon. No trial date has been set.
The case is being prosecuted by Assistant U.S. Attorney Leonid Feller.
Mr. Hassan Nagi should have not pled guilty and took the blame for everyone! There many others involved in these transactions. Most of these plea bargains are done out of fear and intimidations! Everyone (the wall street banking group) knew what was going on. They encourage these type of staw purchaes!!!! They are now making a mockery of our federal legal system. These criminals are not victims! IT IS IMPOSSIBLE FOR THE BANKING INSTITUTIONS NOT TO KNOW!!! THEY CREATED THESE TYPES OF CRIMINAL/FRAUDELENT LOAN PROGRAMS. OUR GOVERNMENT IS GIVING THEM A FREE PASS.
Posted by on 10/12 at 09:42 AM
Oh, don’t I know. I was in broker’s offices when the bank’s account reps would come in with huge baskets of goodies shouting “Bring me loans, bring me loans, any loans, we’ll make ‘em work”
Posted by on 10/12 at 11:19 AM
I think the individuals themselves know the difference between right and wrong and choose to become greedy and deceive to benefit and profit for themselves on the hard work of others.
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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