Tuesday, July 08, 2008
Mortgage Fraud Defendant Sentenced To Probation
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.”
mortgage fraud
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
Posted by on 08/13 at 11:34 AM
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Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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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 
