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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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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A former real estate broker, loan officer, closing attorney and Ecuadoran immigrant pleaded guilty in New Jersey to their roles in a conspiracy to “flip” properties in Union County, New Jersey and defraud the HUD of more than $300,000.
Mario Mendoza, 41, Union, New Jersey, was formerly a real estate broker with Weichert Realtors in Union.
Kenneth DiPrenda, 42, East Hanover, New Jersey, was formerly a loan officer at AMS Mortgage in West Patterson.
Linda Serrano, 44, Union, New Jersey, is a private-practice attorney.
Myrium Vaca, 45, Elizabeth, New Jersey, is an Ecuadoran national and worked, at times, for Mendoza.
Mendoza, DiPrenda and Vaca, each pleaded guilty to separate one-count criminal Informations which alleged conspiracy to submit false statement to HUD. Serrano pleaded guilty to a one-count Information which alleged the submission of false statements to HUD.
According to the Informations, the conspirators fraudulently induced HUD to insure certain mortgage loans made to unqualified borrowers, enabling Mendoza, DiPrenda, Serrano, Vaca and their co-conspirators to earn hundred of thousands of dollars in profits from the sales of properties financed by the fraudulent loans.
According to the Informations to which the defendants pleaded guilty, HUD was defrauded by more than $300,000. The fraud took place between approximately December 1999 and July 2001
As part of the alleged conspiracy, the defendants and others solicited and recruited individuals who, with false identification, purchased homes in Union County, New Jersey and elsewhere. Many of the homes were being sold by Mendoza’s clients at Weichert. Those clients were unwittingly duped into selling their homes to unqualified borrowers who were using fake identification.
According to the Informations, DiPrenda, a loan officer, assisted in qualifying the borrowers for HUD-insured loans. Further, Mendoza, Vaca and others falsified documents for the borrowers’ loan files and then submitted the files to banks and, soon thereafter, HUD. The false documents included gift letters, credit explanation letters, W-2 form and employment records.
As part of the conspiracy, Mendoza often told sellers that their properties were being sold for a price that, unbeknownst to them, was far lower – often by tens of thousands of dollars – than the amount that was ultimately financed through the fraudulently secured HUD loans.
Serrano, as the closing agent, would complete two separate HUD-1 closing forms so that the seller would not know that the property was being sold for thousands more than the agreed upon price. One HUD-1 would show the decreased purchase price that would be given to the seller at the closing. The other HUD-1 would show the more accurate inflated price that would ultimately be forward to HUD.
According to the Informations, when the defendants did not sell the properties using two HUD-1s, they would assist unqualified borrowers, all of whom fraudulently used others identification, qualify for HUD-insured loans by fabricating documents on their behalf.
During their plea hearings, defendants Mendoza, DiPrenda and Vaca admitted to their roles in the conspiracy. Among other things, Mendoza admitted recruiting borrowers to use fake identifications to purchase properties he was selling for his clients at Weichert.
DiPrenda admitted falsifying documents, such as false credit explanation letters, in order to qualify unqualified borrowers for HUD-insured loans.
Vaca admitted to providing false gift letters, letters purporting to provide thousands of dollars to assist her relatives purchase homes, when in fact she neither provided the monies, nor was related to borrowers.
Serrano admitted preparing a materially false HUD-1 at Mendoza’s direction.
The defendants each face maximum penalties of five years in prison and a $250,000 fine. Sentencings are scheduled for June 28 and 29, 2006.
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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