Tuesday, November 06, 2007

Mortgage Fraud Fugitive Wanted

Edward Batayeh, a.k.a. Ed Bhataybh, 40, Concord, California, has been indicted on charges that he executed a mortgage fraud scheme to defraud financial institutions of over $13 million and committed tax evasion. The defendant, the Executive Vice President and CFO of CHL Mortgage Group fled from FBI Special Agents last November, 2006, and should be considered armed and dangerous.

According to the indictment, Bateyah is alleged to have conspired from March 2000 to December 2004 to defraud four financial institutions (noted below) by double banking fraudulent loans by selling variations of the same loan to multiple investors without the investors knowledge. Bateyah allegedly carried out the conspiracy by sending fraudulent loan packages (that included mortgage notes, Deeds of Trust, loan applications and verifications of employment) to financial institutions without the property owner’s knowledge. The defendant and others also allegedly obtained properties in the name of the CHL employees, and then obtained multiple fraudulent loans on these properties. Recently, Batayeh sent a false resume using the name of Ed Bhataybh to Aurora Loan Services, Inc., one of the previously defrauded financial institutions. Batayeh is also charged with tax evasion for failing to pay his taxes from 2001 through 2004.

The indictment alleges the following four counts of bank fraud:

6/30/04 - 10/14/04

Gateway Bank

$6,272,860

7/03 - 7/04

Aurora Loan Services, Inc.

$1,740,000

7/04 - 10/04

First Collateral

$2,684,905

4/26/04 - 8/30/04

First Horizon Home Loan Corp.

$2,341,438

The maximum statutory penalty for each count of conspiracy, in violation of 18 U.S.C. § 371, is 5 years and a fine of $250,000. The maximum statutory penalty for bank fraud, in violation of 18 U.S.C. § 1344(1), is 30 years in prison, and a fine of $1,000,000, plus restitution. The maximum statutory penalty for submitting a false document to a federally insured financial institution, in violation of U.S.C. § 1001(a)(3) is 5 years in prison and a fine of $250,000. The maximum statutory penalty for tax evasion, in violation of 26 U.S.C. § 7201 is 5 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

An indictment contains only allegations against an individual and, as with all defendants, Bateyah must be presumed innocent unless and until proven guilty.

mortgage fraud

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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. 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. Previous Articles

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