Monday, November 26, 2007
Mortgage Fraud Investigation Results in 3 Indictments
Harold Stafford, Miles Jackson Black and Jeffrey Dunn Hathcock were indicted by a federal grand jury for conspiracy, wire fraud and bank fraud. In addition, Harold Stafford was charged with money laundering.
The fifty-one count Indictment alleges that from January 2005 through October 21, 2005, Stafford, Black and Hathcock engaged in a mortgage fraud scheme that involved the purchase of approximately twenty-two luxury homes (see individual addresses below) in Hendersonville and Gallatin, Tennessee by unqualified straw buyers. Stafford, Black and Hathcock caused the submission to mortgage lenders of false mortgage loan applications that overstated the straw buyers’ income, falsely stated that the homes would be the straw buyers’ primary residences, and failed to disclose other recent home purchases by the same straw buyers.
If convicted, Stafford, Black and Hathcock each face up to 30 years in prison, a $1,000,000 fine, and supervision for up to five years. However, any sentence following conviction will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case is being investigated by the United States Secret Service, the Internal Revenue Service Criminal Investigation Division and the 18th Judicial District Drug Task Force. The prosecution of this case is being supervised by Amul R. Thapar, United States Attorney for the Eastern District of Kentucky. Edward M. Yarbrough, United States Attorney for the Middle District of Tennessee has recused himself from this case due to his prior representation of an individual in matters related to this prosecution. The United States is represented in the case by Assistant United States Attorney Byron Jones.
Stafford, Black and Hathcock made their initial appearances before the United States Magistrate Judge today. Their next appearances before the United States District Court have not yet been set.
An indictment contains only charges and need not be supported by proof of guilt beyond a reasonable doubt. The defendant is presumed innocent and is entitled to a fair trial at which the United States has the burden of proving guilt beyond a reasonable doubt.
1143 Fairview Village Lane, Gallatin;
104 Dorr Drive, Goodlettsville;
107 Secretariat Lane, Hendersonville;
1134 Isaac Franklin Drive, Gallatin;
744 Plantation Way, Gallatin;
1015 Island Brook Drive, Hendersonville;
1033 Dorset Drive, Hendersonville;
1043 Dorset Drive, Hendersonville;
110 North Country Club Drive, Hendersonville;
1160 Fairvue Village, Gallatin;
1014 Island Brook Drive, Hendersonville;
139 Candill Drive, Hendersonville;
1047 Island Brook Drive, Hendersonville;
102 Kinwood Court, Hendersonville;
1028 Heathrow Drive, Hendersonville;
1232 Chloe Drive, Gallatin;
245 Hidden Valley Drive, Hendersonville;
112 North Country Club Drive, Hendersonville;
792 Plantation Way, Gallatin;
1583 Jacobs Drive, Gallatin;
1059 Isaac Franklin Drive, Gallatin;
100 Danwood Court, Hendersonville; all of Tennessee.
mortgage fraud
So how do you find out just what your mortgage broker received in TOTAL
COMMISSIONS? I think I got bagged by my broker on my last mortgage. Nothing seems to have turned out the way he told me it would. Perhaps he is guilty of mortgage fraud? How can I check it out? Thanks for your help.
Posted by on 11/27 at 03:43 PM
Rachel: I am a real estate agent who lives in Fairvue Plantation in Gallatin, TN. We have been greatly affected by this investigation since 2005. I have many people who are asking me about this. How can I learn more about the people involved and the case hearings? Can the public attend the Court hearings involved in this case? How can we find out when the hearings will take place and where?
Posted by on 12/02 at 08:12 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 
