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.
mortgage fraud
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Some Sources require Registration.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
