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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New York Business Owner Indicted for Appraisal Fraud
D & T National Appraisals, Inc., and its CEO, Donato Odato, 54, 166-11 Cryders Lane, Whitestone, New York, have been variously charged with second- and third-degree forgery, criminal possession of a forged instrument, first- and second-degree falsifying business records, first- and third-degree identity theft, first-degree scheme to defraud and fifth-degree conspiracy. Odato faces up to seven years in prison if convicted. The corporate defendant faces a fine of up to $10,000 for each felony count conviction or double the amount of the illegal gain.
District Attorney Brown said that, according to the indictment, Odato, as the chief executive officer of D & T National Appraisals, Inc., recruited licensed appraisers over the Internet and offered them positions with his company as part of a ruse to steal their personal identity information. Thereafter, it is alleged he would forge the names of the prospective job seekers on numerous appraisals that he filed in connection with residential mortgage applications for the purchase of Queens County, New York, properties.
It is further alleged that Odato took advantage of the Internet’s anonymity, as well as his own background as a former licensed assistant appraiser, to fraudulently induce lenders and other real estate professionals to use his company’s claimed appraisal services. It is alleged that instead of actually doing the appraisal work, Odato would simply concoct information on real estate values from various sources and then inflate the values to match mortgage applications.
The alleged scheme came to light when financial institutions began reaching out to the appraisers who allegedly had their identities stolen and advised them that their services would no longer be needed due to their inappropriate and highly inflated valuations of properties based on falsified data. The appraisers, in turn, contacted the Queens District Attorney’s Office to report the identity theft.
The defendants were arraigned before Acting Queens Supreme Court Justice James P. Griffin who released Odato on $100,000 bail and set a return date of January 14, 2008.
District Attorney Brown said, “The arrests are the result of a nine-month investigation which alleges a pattern of fraud committed by the defendants in the sale of numerous homes in Queens County and elsewhere in the United States and resulted in artificially high appraisals of the properties. This type of mortgage fraud has the potential to needlessly cost lenders and purchasers millions of dollars, as well as undermine the credibility of the entire real estate market. I want to acknowledge the hard work of all the investigative agencies involved. Without their team efforts, we would not have been able to have uncovered and pursued these allegations.”
Secretary of State Cortes-Vasquez said, “We at the Department of State are pleased to have been able to assist the Queens District Attorney in bringing about today’s indictment. As we all recognize, abuses in the real estate industry have caused serious problems afflicting many New Yorkers. As an integral partner of Governor Spitzer’s HALT (Halt Abusive Lending Transactions) Task Force, the Department of State has been working closely with the Department of Banking to uncover illicit transactions involving real estate brokers, mortgage brokers and home inspectors as well as appraisers. Anyone who intentionally defrauds homeowners and potential buyers deserves to be prosecuted to the full extent of the law. Today’s indictment is a reminder that they will be.”
I am currently unemployed from one of the top ten mortgage bankers, because I REFUSED TO do fraud for my employer. I have working in mortgage banking for over 20 years. I have seen it all, and know for a FACT that the blame is that of the mortgage lenders, closing their eyes and encouraging fraud. No one tells you where to go it fraud is required of gainful employment, who are we supposed to report it to? No one seems to care or police this industry. It is NOT the fault of the prospective homeowner, they are trusting and believe the lies I heard come out of the mouths of loan officers.
Posted by on 11/24 at 01:48 PM
To report known fraud you can start by contacting the Office of the Attorney General for your state and the District Attorney for your county. I’m sure they’ll be happy to hear what you have to say. It would be helpful to have proof to backup any accusations, although, obtaining proof is often not possible before leaving your place of employment. Those who are honest and ethical are often forced to leave their employment in order to avoid being involved in fraudulent schemes. It’s sad to think the reputations of so many people involved in real estate, banking and title insurance industries have been irreparably tarnished by those willing to participate in fraudulent schemes. Dishonest participants have already made their millions and NOW the government has finally taken notice? Where are the investigators who are supposed to monitor such illegal behavior? Is anyone out there paying 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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