Tuesday, January 30, 2007

Oklahoma Cash Back Case Nets Four Guilty Pleas

Theresa Ann Campbell, aka Ann Campbell, 67, Edmond, Oklahoma, pled guilty to one count of conspiracy to commit wire fraud in connection with the mortgage fraud scheme at the Oak Tree Subdivision in Oklahoma in which the participants are alleged to have inflated the purchase price of homes to obtain cash back at closing in the guise of false remodeling or repair costs.  The guilty plea relates to her conduct with respect to property at 5916 Morning Dove Lane, Edmond, Oklahoma.

Campbell was a prominent real estate agent in the Edmond, Oklahoma area, licensed for more than 25 years. She will face an additional investigation by the Oklahoma Real Estate Commission. Penalties if she is deemed to have violated the real estate code include potential license revocation, fines, probation or continuing education.

Others charged in cases related to sales at the Oak Tree Subdivision are:

Dalton Joe Alford, 35, Oklahoma City, Oklahoma, pled guilty to engaging in a monetary transaction in criminally derived property (money laundering). The crime that he is being charged with involved a check in the amount of $57,750.00. The maximum sentence in this case is 10 years imprisonment or $250,000 or both. Alford is required to pay restitution of $172,500 to the victims of this crime.

Toney Charles Mykel, 40, Edmond, Oklahoma, pled guilty to misprision of a felony, admitting that he had knowledge of a felony and concealed the commission of the felony. Mykel is required to pay restitution in the amount of $405,489 to his victims. The maximum sentence 3 years imprisonment or a fine of $250,000 or both. 

Anthony Jew, 38, Oklahoma City, Oklahoma, pled guilty to engaging in a monetary transaction in criminally derived property (money laundering). The crime for which he pled guilty involved a check for $15,847.50. The maximum sentence in this case is 10 years imprisonment or $250,000. Jew is required to pay restitution of $449,409 to various victims.

Previously an additional seven people were indicted in the U.S. District Court for the Western District of Oklahoma on allegations that they inflated the purchase price of homes to obtain cash back at closing in the guise of false remodeling or repair costs.  Those indicted were:

Brandon L. Baum, real estate salesman and owner of Secorum Investments, LLC.

Gayle L. Caldwell, owner of Access Marketing Services Inc., Edmond, Oklahoma

Joseph Conrad Therrien, home buyer

Charles E. Caldwell Jr., husband of Gayle L. Caldwell and mortgage broker with United Lending, Oklahoma City, Oklahoma

Teresa M. Therrien, home buyer.

Rusty Real Therrien, home buyer and husband of Teresa Therrien.

Timothy J. McDaniel, home buyer.

(referenced by their initials in the indictment as home buyers but not charged were D.J.A. and F.B.)

According to the indictments:

Baum would tell his clients (potential home buyers that he represented as a real estate agent) that they could receive substantial funds at closing under the guise of repair costs that they would be able to use for their personal benefit so long as they agreed to purchase the homes at an inflated price. Seller’s agents that represented certain ‘hard to sell’ properties in the Oak Tree Subdivision, Edmond, Oklahoma, would negotiate with Baum.

Brokers at United Lending, including Charles E. Caldwell, Jr., would facilitate the submission of fraudulent loan applications for the potential homeowners that could not qualify for the loans.  False information would be provided on the loan applications.  In some cases, Baum, Charles Caldwell Jr., Joseph Therrien and Rusty Therrien would provide temporary loans to buyers for down payments with the understanding they would be reimbursed at closing from the purported remodeling or repair costs, marketing services fees and other undisclosed disbursements.  The buyers in those cases would falsely represent the sources of the down payments.

Baum would present the sales contracts to the sellers agents at prices far above those listed on the MLS.  The sellers agents would then present the contracts to the sellers by which the sellers would agree to ‘pay for’ the purported remodeling, repair and other charges. Once the purchase terms had been approved by buyer and seller, the seller’s agents would, in many case, increase the MLS list price to an amount equal to or above the agreed inflated purchase price to avoid detection by the lenders. 

At closing, the title companies were directed by Baum, sellers’ agents and the sellers to issue checks from the sales proceeds to various entities for purported remodeling, repair costs, marketing service fees or other fees.

T.C.M. was an associate of Baum and controlled bank accounts that Baum used to funnel money back to defendants, buyers and others after closing.  The title company checks issued to the various entities for purported remodeling, repairs and other fees would be deposited and Baum would direct T.C.M. to issue checks or obtain cashier’s checks payable to buyers, those who advanced down payment funds and others.  In one case, Secorum was used to funnel these charges back to the buyer.

Properties referenced in the indictment:

1000 Irvine Drive, Edmond, Oklahoma

1709 Irvine Drive, Edmond, Oklahoma

5813 Dundee Terrace, Edmond, Oklahoma

5916 Morning Dove Lane, Edmond, Oklahoma

6125 Stonegate, Edmond, Oklahoma

1208 Troone Drive, Edmond, Oklahoma

mortgage fraud