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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
A 14-count indictment charging nine Conroe, Texas residents for their alleged involvement in a fraudulent loan scheme designed to secure “refinance” loans for unqualified buyers of mobile homes and lots sold by the Emerson Manufactured Homes was recently unsealed following the arrest of the defendants.
Keith Steven Raybon, 44, owner of Emerson Manufactured Homes, Ltd. (”Emerson”); Michael Davis, 42, employee of Emerson;
Michael David Grimes, Sr., 59, employee of Emerson;
Jeannie Nelson, 32, licensed Texas mortgage broker and Executive Vice President of Royal Lion Mortgage, Inc.;
Kandy Powell, 39;
Hollys Devayne Heasley, 78, operator of Monopoly Company (”Monopoly”), a real estate appraisal business;
Holly Heasley Arbuckle, 46, Heasley‘s daughter and employee of Monopoly;
Patricia Lennon, 42, operator of Ameristar Residential Appraisal Services; and
Heather Adams, 33, employee of Old Republic Title Company of Conroe.
Each of the defendants were indicted by a federal grand jury and charged with conspiracy to commit mail fraud and wire fraud, and 13 counts of wire fraud.
“Mortgage fraud victimizes more than the lending institutions,” said Roderick Beverly, Special Agent in Charge of the Houston office of the Federal Bureau of Investigation. ”Excessive foreclosures, such as those seen in this investigation, impact all of us through lower home values and increased property taxes. To continue to combat mortgage fraud effectively we need the help of the community. If you suspect mortgage fraud please report it to the Houston office of the Federal Bureau of Investigation (FBI) by calling 713-693-5000.”
All nine defendants were taken into federal custody by investigating agents. Four defendants, Raybon, Davis, Powell and Nelson appeared before U. S. Magistrate Judge Calvin Botley and have been ordered released on $100,000 personal recognizance bond. The other five defendants will remain in federal custody pending their appearance before Judge Botley.
The indictment alleges the nine defendants were involved in a fraudulent loan scheme devised and executed between April 2001 and June 2002, to obtain loans to enable borrowers to purchase mobile homes and lots sold by Keith Steven Raybon through Emerson Manufactured Homes, Ltd.
The scheme allegedly involved, among other things, Emerson‘s advertising of mobile homes with low payments, and employees of Emerson telling borrowers they could qualify for mortgages because Emerson Manufactured Homes owned the mortgage company.
According to the indictment, the defendants created documents to vest title to the mobile home and lot in the borrower’s name and create a lien in favor of Emerson in a “pre-closing” transaction designed to support fraudulent loan applications to “refinance” the property which were submitted to ABN Amro Mortgage Group, Inc., (”ABN”), a subsidiary of Standard Federal Bank, Troy, Michigan. Refinancing a loan precludes the need for a down payment and permits the closing costs to be “rolled in” to the loan, effectively providing 100% financing for the borrower. Inflated real estate appraisals for these properties were also allegedly submitted to ABN. In some case, funds were then deposited into borrowers’ bank accounts, according to the indictment, so the borrower could appear to qualify for loans. In yet others, money orders were allegedly purchased by the defendants and sent to ABN to keep mortgages current for borrowers unable to meet their obligations in an effort to hide the borrowers’ inability to pay their mortgages.
The loan proceeds from the lender were disbursed by the title company, according to the indictment, to pay Emerson an allegedly inflated price for the mobile home and lot, and significant fees to Royal Lion and the appraisers for each completed loan.
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...
Legal Disclaimer.
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 
mortgage fraud
