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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Richard N. Garries, 45, Newport News, Virginia, has been found Guilty by a federal jury sitting in Newport News. Garries was convicted on all 24 charges of a Second Superseding Indictment, filed in April of 2009. The charges related to an elaborate mortgage fraud scheme, including conspiracy, wire fraud, mail fraud, money laundering, structuring and making materially false statements charges.
Garries and co-defendant Terrance K. Boothe were both Indicted in May 2008 as part of Operation Malicious Mortgage, a nationwide crackdown on mortgage fraud ranging from March to June of 2008. Overall, more than 400 defendants were involved in Operation Malicious Mortgage.
In August 2008 a Superseding Indictment was filed soley against Garries, after Boothe pled Guilty to count one of the indictment, charging him with Conspiracy to Commit Mail and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The maximum penalties for Boothe are a term of twenty (20) years of imprisonment, a fine of $250,000, full restitution, a special assessment, and three (3) years of supervised release. At the time of this posting, Boothe is scheduled to be sentenced June 19th, 2009.
According to court records and evidence introduced at trial, from the summer of 2005 to May 2008, Garries conspired with others to make money through the resale - or "flipping" - of residential properties to buyers he brought in through false promises that the properties had been renovated, renters had been arranged for the properties, buyers would not have to spend their own funds, and that buyers would be provided with cash back at closing.
Garries was employed as a mortgage loan broker / loan originator for Security First Funding Corp. ("Security First"). In this capacity, Garries assisted clients in finding and obtaining mortgage loans. Garries performed these services out of his personal residence. Security First paid Garries a set commission for each loan he secured. Boothe worked for Garries as a loan processor in Garries' residence in Newport News, Virginia. Boothe assisted Garries in processing loans and was paid by Garries through the commissions Garries received for closing each loan.
As part of the loan approval process, Garries required clients to provide their financial information, including employment, monthly income, assets and debts in a loan questionnaire. Boothe would use this information to complete a loan application for the client and send the application to mortgage loan companies in an effort to obtain financing.
To secure mortgage loans for buyers, evidence showed that Garries inflated the buyers' income levels and bank account balances on loan applications and provided them with money to make it appear the buyers had more funds available to qualify for a loan and/or to have the necessary funds to proceed with closing on the property. Garries arranged for buyers to use lenders selected by him to obtain loan financing, for which Garries received a commission. Garries also structured over $200,000.00 in various bank accounts he controlled.
At the time of the offense Garries was on probation from a previous federal conviction for wire fraud for which he received a 25 month sentence. Following his release, Garries, who is originally from New York, lived in Newport News. While on supervised probation, he made numerous false statements to his probation officer concealing income and assets.
The trial began on May 6, 2009, in the United States Courthouse in Newport News. Following the presentation of more than 25 witnesses and 300 exhibits over two weeks, the jury found Garries guilty on all 24 counts of the indictment. Sentencing is scheduled for Aug. 31, 2009, at 2:30 p.m. in the Newport News Courthouse. Garries faces a maximum sentence of 20 years on the conspiracy, wire and mail fraud, and money laundering convictions, a maximum sentence of eight years on the structuring conviction, and a maximum of five years on the conviction for making a false statement.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the jury returned its verdict before United States District Judge Rebecca Beach Smith.
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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