Wednesday, October 15, 2008
Ohio Mortgage Broker, Deal-Maker and Buyer Are Guilty Of Mortgage Fraud
Robert Huff, a deal maker, Carol Smith, a mortgage broker, and Gerald Sizemore, a buyer, were found guilty of mortgage fraud involving a newly constructed house in 2003 located at 35895 Sedge Circle, Solon, Ohio.
After a two-day trial, Robert Huff, 46, with residences in Solon and Strongsville, Ohio, was found guilty of two mortgage fraud related crimes—Theft by Deception and Securing a Writing by Deception—for his fraudulent conduct as a deal-maker. Huff faces a maximum sentence of 10 years in prison. Carol McGlothin, aka Carol Smith, 67, Aurora, Ohio, pled guilty to Theft by Deception, and faces a maximum sentence of 5 years in prison, for her role as an unlicensed mortgage broker; she prepared a fraudulent loan application while working with Huff to close this deal. She was employed by Country Home Mortgage of Ohio, which is now out of business, and received $11,000 in “broker fees.”
Deal-maker Huff brought Gerald Sizemore, 40, Sandusky, Ohio, into this deal as the buyer. Sizemore testified against Huff after he pled guilty to submitting a fraudulent loan application that was used to purchase this new house from a former Solon real estate developer, Edward Emery. For Emery‘s conduct in this case and numerous other similar cases, he was sentenced to 34 months in prison, and he testified against Huff. Also testifying against Huff was Shirley Rogers, 72, Independence, Ohio. She operated Regency Title agency and acted as the loan “closer” and escrow agent for this deal. She previously pled guilty to a number of felonies for her role in facilitating this and other fraudulent transactions.
Also participating in this scheme was James Sims, 59, Akron, Ohio, the owner of Country Home Mortgage of Ohio. He previously pled guilty to a felony in this case, and he testified against Huff. Sims was also found guilty in another Solon mortgage fraud case filed by Prosecutor Mason.
Finally, Robert Hawes, 33, Cleveland, Ohio, pled guilty for his conduct in assisting Huff in this case. Dealmaker Huff used Hawes to assist him in providing a bogus down payment in order to close the loan. Hawes, who is presently awaiting sentence in federal court for drug trafficking, also testified against Huff. Sims will be sentenced on October 8, 2008. Rogers will be sentenced in October, 2008, but a date has not been set. Huff and Smith will be sentenced on October 29, 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.
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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 
