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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Christopher Rakel, 29, St. Louis County, Missouri, has been sentenced to a term of 2 years probation, this term maybe terminated after 1 year if the defendant has complied with all conditions of probation.
As previously reported by Mortgage Fraud Blog, Rakel pled guilty to fraud charges involving a far-ranging scheme to defraud banks and other mortgage lenders.
Rakel, a mortgage broker with Tri-State Mortgage, facilitated the purchase of dozens of fraudulent real estate transactions, primarily in South St. Louis, Missouri, during 2005 and 2006. Rakel prepared fraudulent loan applications and other documents to assist buyers in obtaining millions of dollars in financing they could not otherwise obtain. The mortgage fraud scheme involved dozens of properties, and a number of co-conspirators, including investors, mortgage brokers and appraisers.
Rakel pled guilty to one felony count of conspiracy to commit bank, wire and mail fraud, and one felony count of money laundering. He appeared before United States District Judge Charles A. Shaw.
Rakel faced a maximum penalty of 15 years in prison and/or a fine of up to $500,000. The government also sought restitution for the lenders victimized by the scheme.
“Misconduct like this only makes things worse for the troubled housing industry,” said Hanaway. “Federal law enforcement has responded to the crisis by stepping up fraud enforcement and emphasizing the prosecution of criminal misconduct and, hopefully, the aggressive collection of restitution for victims.”
I am so glad to hear about the times that people who are involved in real estate fraud get caught. It is a nice change to see the ones who are hurting other people get the penalty they deserve.
Posted by on 07/08 at 10:32 AM
Millions of dollars in fraudulent loans and ZERO jail time???? No wonder mortgage fraud is so rampant. Another worthless judge on the bench!
Posted by on 07/08 at 04:41 PM
2 years probation. Youv’e got to be kidding me. This guy stole more money with a pen and paper than any bank robber. Beam me up Scotty.
Posted by on 07/09 at 12:33 PM
2 years probation is really too much punishment for a broker. The Feds are finally understanding that the “street level” players were only puns for the major lenders and Wall Street investors. I believe that the Feds are changing directions and are now targeting the major players. If they get enough small guys to sing, they will get the RIGHT ONES! This federal judge just might be best ever in his district. It took b_lls to make the right call on the one. I pray that God will continue to lead and guide him in his court.
Posted by on 07/09 at 04:41 PM
whooper, may God bless you during your illness, I pray God will restore your brain function as quickly as possible.
Posted by on 07/09 at 06:41 PM
Issues are that the investigators are still looking at pre-2006, pre-2005 cases. True, many of these cases need to be investigated. But the real issues and recent forclosure crisis is caused in majority by loans that were written in the past 24 months. The loans written previous to that that are in default are the sub prime 2/28 type adjustable, and the majority of these loans were written per guidelines from the investors.
Posted by on 07/10 at 04:48 AM
I have a problem similar to this. Me and my wife were checking into a refinance when I got pulled out of town for work. She persued the matter and was talking to someone from St. Louis Financial LLC out of West Port in St. Louis. When it came time to close on the deal, they told my wife that they would send the paper work to me and have me review and sign. At the last minute they had a traveling notary bring paper work to my home and told my wife to sign my name that this was ok and they had done this before. when I had returned home and reviewed the contract and saw that we were being taken. I have raised all kinds of hell about it. my attourney sais I have to repay the loan even though the contract is no good. I will have to go after the mortgage broker for the fraud. If any body has had a similar problem like this and is looking for some answers. Please feel free to contact me at brian-marie@sbcglobal.net
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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