Tuesday, January 30, 2007
North Carolina Manufactured Home Salesman Sentenced for Conspiracy
Donald W. Gupton, President of Donald W. Gupton, Inc., CRE Properties, LLC, and M & G Properties II, Inc. was sentenced to 75 months in federal prison (75 months on Count 1 and 60 months on Count 2, to be served concurrently) after pleading guilty to conspiracy to commit mail fraud, wire fraud and making material false statements as well as conspiracy to commit money laundering.
According to filed documents and information disclosed in court proceedings, Gupton, Richard D. Meador and Donald Scott Carroll falsified information on loan applications, provided false trade-in information and titles, provided false gift letters, and false down payment information on loan applications for prospective applicants in connection with the sale of manufactured homes. This was done so the buyer/borrower would have a lower debt to income ratio qualifying them for a loan. Between 1999 and 2002, the conspirators sold in excess of 150 manufactured homes resulting in HUD mortgages exceeding $11,000,000. The total loss to all lenders is estimated to exceed $19,000,000.
Gupton used the proceeds from the fraudulent loan activity to purchase real and personal property for himself and to purchase properties placed in the names of CRE Properties, LLC and M & G Properties II, Inc. The proceeds were also used to pay employee commissions, bogus gift funds and business expenses.
Both Meador and Carroll were sentenced on September 20, 2006. Meador received a sentence of 53 months’ imprisonment, three years’ supervised release and ordered to pay restitution in the amount of $1,270,299.74, while Carroll was sentenced to 30 months’ imprisonment, three years’ supervised release and ordered to pay restitution in the amount of $1,476,830.59. On November 27, 2006, each of the corporations was placed on probation for five years and ordered to pay restitution in the amount of $7,500,292.72, jointly and severally. The corporations were also ordered to forfeit all property and Donald W. Gupton, Inc. was ordered comply with the consent judgment handed down in state proceedings.
North Carolina United States Attorney George E. B. Holding states “The U. S. Department of Justice places high priority ensuring that taxpayer funded programs do not fall prey to fraud and abuse.”
Kenneth M. Donohue, Inspector General for the U. S. Department of Housing and Urban Development, Office of Inspector General stated, “This joint prosecutorial effort by the U. S. Attorney’s Office, HUD’s Office of Inspector General, Internal Revenue Service’s Criminal Investigation Division and the North Carolina Real Estate Commission has helped send a strong message that those who seek to unlawfully profit by defrauding programs within HUD will be vigorously investigated and prosecuted.”
“Every year, fraudulent schemes victimize individuals and businesses from many walks of life, including struggling low-income families lured into home loans they cannot afford and legitimate lenders are saddled with over-inflated mortgages loans,"said Charles E. Hunter, Special Agent in Charge, IRS-Criminal Investigation Division. ”This investigation shows IRS Criminal Investigations committed to not allowing those responsible to gain financially from their fraud.”
mortgage fraud
I was one of the victims in this case. I lost my home because the price was so over-inflated that when I needed to move and sale my home, I could not because so much was owed on the home. I tried to do a short sale with the mortgage company, GMAC, but they would not even listen. When I had to move to be near my job in Durham-Raleigh area, I had to leave my home. I ended up in foreclosure and then bankruptcy-chapter 13 first and then chapter 7. Now I am 61 and facing retirement and my home in Henderson is empty, vandalized and some theives stole the heat pump. I would love to have my home back but I don’t know how to go about it. I understand some people were given the deeds to their homes. I am alone and facing retirement. I paid much to have a home of my own and then lost it because of the inflated land-home package appraisal and survey. Is there anyone who could help me get my home back. Please respond if you know how I can do this.
Posted by on 07/02 at 05:36 PM
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Posted by on 05/28 at 01:04 AM
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Posted by on 09/18 at 02:20 AM
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The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
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A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
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In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
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Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
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Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
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At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
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The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
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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 
