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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Nathan Parker, 49, Philadelphia, Pennsylvania, the ringleader of a $4 million mortgage fraud scheme, was sentenced to serve 9 years, 7 months in federal prison by United States District Judge Orinda D. Evans on charges of conspiracy to commit mortgage fraud and mail fraud.
“This case again demonstrates how mortgage fraud has seriously damaged communities in the Atlanta metropolitan area, while also stealing from lending institutions,” said United States Attorney David E. Nahmias. “Like Nathan Parker, professionals and others who engage in such criminal conduct may find themselves prosecuted, convicted, and serving significant sentences in federal prison.”
Parker was sentenced to serve 9 years, 7 months in federal prison, pay restitution of $2.453 million, and serve 5 years of supervised release.
Parker was indicted in October 2005, and pleaded guilty to the charges in April 2007. Parker‘s plea required that he make full restitution to the victim lenders.
According to United States Attorney Nahmias and the information presented in court: Parker, a mortgage broker, was the ringleader of a scheme which defrauded various commercial lenders and financial institutions of more than $4,000,000 relating to more than 20 properties. A number of people participated in the scheme, including real estate appraisers, closing attorneys, straw purchasers, straw sellers, investors, loan processors, and insiders at various verifying agencies and lenders. Parker owned and otherwise obtained run-down properties from low-income or high-crime neighborhoods in the Atlanta metropolitan area, including but not limited to Decatur, Lithonia, and Stone Mountain, Georgia, that were on the verge of foreclosure or where the owner was otherwise in the market for a quick sale. Parker co-opted real estate appraisers into highly inflating the market value of the properties. The appraisers also falsified the sales prices and size of so-called comps (comparable) properties in their appraisal reports. At least in one instance, an appraiser provided the down payment for a real estate transaction. Parker and others caused false mortgages to be created and recorded to corroborate the inflated appraisal prices.
Evidence presented at trial showed that Parker also recruited straw purchasers, causing their credit to be falsely enhanced, and inducing them to sign and submit documents containing false qualifying information. Loan applications falsely reflected that the straw borrowers wanted the property as their primary residence, because lenders charged a lower interest rate than for loans for investment purposes. The loan applications falsely reflected the source of the down payments as coming from the bank account of the straw purchaser. The loan applications attached false supporting documentation of employment, false earnings statements, deposits, employment, salaries, and assets and omitted mention of other mortgages Straw sellers and straw borrowers also assumed stolen identities to fraudulently obtain mortgage loan proceeds. In many instances, at Parker‘s direction, insiders both at financial institutions and credit agencies falsely attested to the verification of deposits. At the lenders’ offices, these same insiders would give a cursory review of the mortgage applications that Parker put together. The evidence also showed that Parker and other co-conspirators provided the down payments or earnest money payments and often paid the first few mortgage payments, giving the straw purchasers kickbacks as well as money to run through their checking accounts to make the initial payments, thereby lulling the lenders into believing the transactions were legitimate.
At the real estate closings, the sellers, buyers and closing attorneys falsely certified on closing statements the source and existence of the down payments. Parker and his cohorts also falsely represented on the closing statements fictitious second mortgages or other fictitious debts to disguise payments to co-conspirators. Sometimes these false disbursements were disclosed to the lender. Often they were not. Such misstatements and omissions significantly misled lenders, who approved the fraudulent loans. Additionally, the closing attorney issued disbursement checks that differed from the disbursements that appeared on the settlement statement, which further lulled the lenders.
The more I look at this site the more I see it as nothing more than an agent for the Feds. Did you know that two of the co defendants in this case were acquitted at trial? This has been keep very quiet. Parker deserved what he got, but the names of people who went to trial and were acquitted deserves the same type of reporting that you gave them went they were indicted. Fair? This is not the first time I bought this information to your attention.
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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