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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Multi-Million Dollar HELOC, Identity Theft and Computer Intrusion Ring Busted
Four men in three states are charged with engaging in an international conspiracy to deplete millions of dollars from U.S. victims’ home equity lines of credit using personal information obtained through identity theft and unauthorized computer access. The four men arrested are Derrick Polk, 45, Los Angeles, California, Oludola Akinmola, 37; Oladeji Craig, 39, Brooklyn, New York and Oluwajide Ogunbiyi, 32, Springfield, Illinois, who were expected to make initial appearances in federal courts in Newark, Buffalo, Los Angeles, and Springfield.
The arrests bring to eight the number of individuals charged to date in New Jersey with participation in the scheme, in which the defendants conspired to deplete available funds from home equity lines of credit belonging to identity theft victims, either by engineering fraudulent wire transfers or by gaining unauthorized access to the victims’ on-line bank accounts.
The defendants are part of a multi-national identity theft ring that operates in the United States, the United Kingdom, Canada, China, Japan, Vietnam, and South Korea, among other places. The defendants and their co-conspirators have acquired identity information of thousands of victims and used that information to conduct numerous fraudulent schemes, including depleting their victims’ home equity line of credit (HELOC) accounts. The Complaints charge that co-conspirators have withdrawn more than $2.5 million from HELOC accounts belonging to innocent customers of banks and credit unions, and have attempted to withdraw at least approximately $4 million more in ultimately unsuccessful transfers from HELOC accounts.
The Complaints charge that the defendants and their co-conspirators initiated the HELOC fraud by gaining access to confidential customer and account information used by customers of banks, credit unions, and credit card issuers to conduct financial transactions in the United States. This information included account holder names, addresses, dates of birth, account numbers, Social Security numbers, and account balances. Other account information frequently obtained by the co-conspirators during the course of the fraud included mothers’ maiden names, security question answers, on-line user names, passwords, and other data used by banks and lending institutions to service and secure customer accounts.
According to the Complaints, the defendants and their co-conspirators compromised confidential customer account information relating to several large and small banks, credit unions, and credit issuers throughout the United States. The larger institutional victims identified in the Complaint included Citibank, JPMorganChase, Wachovia, Washington Mutual, and Bank of America, among others. Dozens of smaller banks and credit unions have also been victimized, including the Navy Federal Credit Union, Pentagon Federal Credit Union, U.S. Senate Federal Credit Union, the State Department Federal Credit Union, and at least approximately eleven New Jersey-based financial institutions.
Each of the defendants is charged in a three-count complaint with conspiring to possess personal identification information with the intent to commit wire fraud (Count 1); conspiring to commit wire fraud (Count 2); and conspiring to gain unauthorized access to computers (Count 3). If convicted of charges in the complaint, each defendant would face a maximum of 50 years’ imprisonment and up to $1.5 million in fines. The investigation to date has resulted in separate complaints brought between August and October 2008 against Hakeem Olokodana, 41, and Yomi Jagunna, 44, both of Queens, New York; Abayomi Lawal, 45, Brooklyn, New York, and Daniel Yummi, 40, New York. These four men were also charged with conspiring to identify HELOCs with large balances and to acquire all of the confidential customer information necessary to transfer money out of victim accounts.
To further the fraud and to avoid detection, co-conspirators routinely traded confidential customer information such as Social Security numbers, mother’s maiden names, and online banking passwords over e-mail; impersonated bank customers through a process known as “social engineering”; used technology to disguise caller identification information; and changed customer address information in bank files. Proceeds from the scheme, which currently exceed at least approximately $2.5 million, made their way to conspirators in Japan, Nigeria, Canada, South Korea, among other countries. In connection with this morning’s arrests, agents of the Federal Bureau of Investigation also executed three search warrants in Illinois and New York. Additional search warrants have been executed in New York and California in furtherance of the investigation. “Home equity lines of credit are an expanding front in the battle against mortgage fraud,” Christie said. “Home owners should carefully review their statements to make sure their hard-earned equity is not disappearing from under their noses.” “Mortgage fraud affects the soundness of our credit markets,” Christie said. “We must be vigilant against those who would threaten the American dream of home ownership.”
A criminal Complaint is merely an accusation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
ISN’T IMMAGRATION WONDERFULL!!!! PEOPLE FROM OTHER PLACES IN THE WORLD COME TO AMERICA TO FEED AT THE TABLE OF CRIME!!! AND SO MANY GET AWAY WITH IT.A LONG,LONG JAIL TIE FOR THESE PEOPLE.
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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