Tuesday, June 05, 2007

Four Plead Guilty in Alabama Mortgage Fraud Scheme

All four defendants indicted in connection with an Alabama mortgage fraud scheme have plead guilty:

Darlene Hill, Mobile, Alabama - Real Estate Investor;

Joycelyn Easter, Mobile, Alabama - Loan Closer;

Kathy Fryee, Eight Mile, Alabama - Notary; and

Antonio Harrison, Mobile, Alabama - Loan Officer.

Darlene Hill, plead guilty to one count of wire fraud and one count of submitting a fraudulent loan application. According to the plea agreement, Hill set up a company called Harris Title, and later, Rankin and Associates, to do fraudulent loan closings and admitted to recruiting others to work for her and close the fraudulent loans. Hill also set up a company called Sylvan Ross Properties to purchase properties using “credit investors”, or individuals with high creditor scores recruited to act as straw borrowers for Hill. The straw borrower in return was paid a fee for their services. Hill admitted to submitting a fraudulent loan application to Regions Bank dba Regions Mortgage. After procuring the fraudulent loan, Hill would assume the mortgage payments and then flip the property, in other words, sell the property, for a profit.

In an effort to generate more funds, Hill would also conduct multiple transactions, where she would sell the property to another straw borrower and fail to pay off the mortgage. The benefits of the multiple transaction were twofold, Hill would receive the fee for the second mortgage transaction, as well as free up the initial straw borrower for future purchases.

Jocyelyn Easter plead guilty to one count of wire fraud and one count of submitting a fraudulent loan application. Easter was recruited to close loans for Sylvan Properties and knew of, or became aware of, the mortgage fraud scheme, yet continued to close loans.

Kathy Frye plead guilty for her participation in the Hill mortgage fraud scheme. Frye was recruited to work at Harris Title and knew, or became aware that Sylvan Properties was a company set up by Hill to purchase properties using “credit investors”. Frye notarized the transaction and did nothing to preclude, prohibit or otherwise stop them from closing in violation of federal law.

Antonion Harrison plead guilty to one count of wire fraud and one count of submitting a fraudulent loan application. Harrison was recruited by Hill to work at Carteret Mortgage as a loan broker and process applications on Hill‘s behalf. After some time. Harrison left Carteret Mortgage and began working for Allfund Mortgage, continuing to process applications for Hill. Harrison, knew, or became aware of, the scheme that was underway. Harrison admitted to submitting a fraudulent loan application to Regions Bank dba Regions Mortgage and was paid outside of closing.

Each of the defendants has agreed to cooperate with the US Attorney’s Office and law enforcement.

mortgage fraud

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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. 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. Previous Articles

TRIAL COVERAGE

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All Foreclosure Information and Resources Housing Storm Calculated Risk Mortgage Lender Implode-O-Meter Home Gain Blog Rain City Guide Real Estate Tomato Blood Hound Blog Appraiser Active Fraud, Phishing and Financial Misdeeds The Collar - US News and World Report Georgia Bankruptcy Blog Fighting Fraud Newsday Real LI Matrix