Monday, April 28, 2008
Mortgage Fraud Orchestrators Sentenced
Richard Weldon Crowder, II, and Gary Mark Mills were sentenced by United States District Judge Jose E. Martinez to 108 months and 46 months imprisonment, respectively. Co-defendant Karen Lynn Sullivan was sentenced to 50 months’ imprisonment. The defendants were sentenced for their roles in a multi-million dollar mortgage fraud conspiracy.
According to the criminal information, Crowder is a former licensed mortgage broker and the former owner of America’s Best Mortgage Services, Inc., located in Coconut Creek, Florida. Mills is a former title attorney and the owner of Four Star Title Inc., located in Deerfield Beach, Florida. Sullivan is a former loan officer for Wachovia Bank.
The defendants are scheduled to appear again in court on May 29, 2008, at 10:00 a.m. for a hearing to determine the amount of restitution they must pay to the victims in this case.
As previously reported by Mortgage Fraud Blog, to effectuate the mortgage scheme, Crowder identified residential properties, including luxury condominiums in South Beach, Florida, that were available for purchase. He then recruited buyers for the properties, representing that he could obtain 100% financing for their purchase. After finding a purchaser, Crowder would apply for equity lines of credit on their behalf with Wachovia. To induce Wachovia to issue the equity lines of credit, Crowder and Mills prepared fraudulent HUD-1 settlement forms. The forms falsely stated the buyers already owned the properties and also significantly understated the amount of the first mortgages on the properties. The fraudulent HUD-1 settlement forms were then given to Sullivan, who used the forms to facilitate the issuance of equity lines of credit from Wachovia.
Simultaneously, or shortly after obtaining the equity lines of credit from Wachovia, Crowder applied for the first mortgages on the properties. These applications overstated the buyers’ assets and income, and also included false verification of deposit forms prepared by Sullivan. To further induce the lenders to issue the loans, Mills prepared documents falsely representing that the buyers were using their own money for the down payments and closing costs. In fact, the buyers were using funds from the fraudulently obtained Wachovia equity lines credit or funds provided by Crowder. In total, the defendants caused the fraudulent purchase of seventeen (17) different luxury condominiums at The Continuum on South Beach and at The Point in Adventura using more than $37,000,000 in fraudulently obtained mortgage loans.
mortgage fraud
Rae:
Do you need a helper in CT?
Posted by on 04/29 at 11:47 PM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Don't Miss the Newest Fraud Flick  |
 
|
Some Sources require Registration.
Illinois Files Suit Against Countrywide, But Who Is Really To Blame?
WalletPop - VA
I don't accept the argument that it's the mortgage company's fault for offering attractive mortgages. At the end of the day, if a buyer couldn't afford a house, he shouldn't have bought it. And with very few exceptions, home buyers are well aware of what they can and cannot afford. It's simple math: Money in, money out.
How the Bear Stearns Fraud Case Unfolded
NPR - USA
The FBI showed up on the doorstep of Bear Stearns executive Matthew Tannin on a Friday night early last fall. Agents wanted to talk to him about possibly providing some evidence against his boss at Bear Stearns, hedge fund manager Ralph Cioffi. Tannin's response was brief, "Talk to my lawyer."
State Takes Steps To Improve Its Efforts To Curtail Mortgage Fraud
South Carolina Now - South Carolina
Just a few short years ago, two studies showed South Carolina among the nation’s leaders in cases of mortgage fraud. Mortgage fraud is one of the fastest-growing crimes in the United States, according to the S.C. Department of Consumer Affairs’ 2007 Mortgage Fraud Report.
“Fool Me Once …”
National Mortgage News - Washington, DC
Now that the cascade of foreclosures has reduced the number of lenders involved in originations, loan modifications and short sales have become hot topics. Both are usually a pretty simple matter, but in these times, unwary lenders must be vigilant to avoid being "fooled" a second time. It’s something that can be all too common without an effective fraud detection system in place when dealing with borrowers in trouble.
Appraiser Independence and Congressional Action
National Mortgage News - Washington, DC
Last year, the House of Representatives passed a bill (H.R. 3915) that includes a ban on improper influence on appraisers. Coercion, extortion, instruction, intimidation, threat of non-payment and bribery are all mentioned as specific acts, which would be banned under the law. The bill has not been brought up by the Senate although the Senate is actively pursuing related legislation on mortgage finance matters and FHA authorizations.
Bear Stearns Defendants Showed Disregard for E-Mail Risks
Bloomberg - USA
The risks of putting sensitive information in e-mails were disregarded by two ex-Bear Stearns Cos. hedge fund managers indicted for fraud who allegedly exchanged incriminating messages, former prosecutors said.
Tough Economy Fertile Ground For Crop Of Scams
Chicago Tribune - United States
Popular Web sites in which people chat freely with each other are increasingly used by crooks to create a dialogue, build trust, then introduce an investment that may be a complete scam.
Con Artists Are Stealing Homeowners' Identities, Properties
Los Angeles Times - CA
In an up-and-coming scam noted by the FBI, a swindler establishes a line of credit in his name based on the equity in a property, then drains the house dry. In another ploy, the con man steals the house by changing the title over to his name and selling it out from under the owner.
Attorney General Fights Mortgage Fraud
DetNews.com - Detroit, MI
The mortgage foreclosure problem affects all 50 states, but the situation in Michigan is made more acute because of our state's job losses, plant closings and high unemployment rate.
FBI Investigating Kalamazoo Man For Possible Mortgage Fraud
MLive.com - MI
Rodney Hixon has a habit of overpaying for houses. Some people are wondering why. In May 2006, Hixon paid $128,000 for a 1,081-square-foot four-bedroom, one-bathroom house at 732 Roskam Court in Kalamazoo's Edison neighborhood. It was an extraordinary price in a neighborhood where homes were going for $40,000 to $80,000, and on a street where city tax records show the average market value for a home was $32,200 in 2006.
Previous Articles
|
|
|
|
|
|
|
Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
Blog Directory
