Tuesday, July 22, 2008

Oregon Man Sentenced To 10 Years For Straw Buyer Scheme

Clifford J. Brigham, 60, Portland, Oregon, was sentenced to 10 years in federal prison according to media reports after being found guilty by a jury of mail and wire fraud, money laundering and Social Security fraud. The Judge also ordered Brigham to pay more than $279,000 in restitution.  As previously reported by Mortgage Fraud Blog, the jury verdict was returned on November 7, 2007, after a seven day trial before U. S. District Judge Anna J. Brown. The charges stemmed from a multi-million dollar mortgage loan fraud scheme perpetrated by Brigham and his codefendant, Melodie MacDuffee. MacDuffee pled guilty in January 2007 and is awaiting sentence.

Brigham‘s fraud centered on a mortgage loan scheme known as a straw buyer scheme. Brigham paid people with good credit, the straw buyers, to complete mortgage loan applications and purchase homes, telling the buyers he would make the mortgage payments for them. Brigham then structured the purchases of the homes to divert hundreds of thousands of dollars to himself and sham businesses he controlled.

Brigham obtained nearly 30 loans totaling over $5 million dollars, but he never made a single loan payment as promised. Brigham, meanwhile, earned nearly $400,000 from the sales,

which spanned eight months in 2005. Brigham also moved into one of the houses, a million dollar house in Washougal that overlooks the Columbia Gorge. The house was featured on the Parade of Homes in 2004.

Brigham conducted the fraud scheme while on release pending appeal for a previous Federal conviction for loan fraud. He now faces a mandatory sentencing enhancement for committing the crimes while on release.

In all, Brigham was convicted of 17 counts of mail and wire fraud, 3 counts of money laundering, and one count of Social Security fraud. The jury acquitted Brigham of two counts of mail fraud and one count of wire fraud.

Brigham has a history of investigations with state regulators spanning nearly twenty years. The Oregon Department of Justice has repeatedly obtained injunctions to prevent Brigham from conducting illegal businesses.

U.S. Attorney Karin Immergut stated that, “For nearly 20 years Brigham has held himself out as a legitimate businessman. The charade is over. The jury’s verdict establishes that Brigham is a con man.”

The Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service joined forces to investigate this case, with the assistance of the Oregon State Department of Consumer and Business Services.

“The jury sent a clear message to Clifford J. Brigham that his criminal behavior will not be tolerated,” said Kenneth J. Hines, the IRS Special Agent in Charge for the Pacific-Northwest. “Federal law enforcement is not going to sit on its hands and allow flimflam artists to victimize the American public by trying to steal from us the dream of home ownership.”

“Given the mortgage crisis in this country, the FBI will aggressively pursue those who target and exploit this type of victim,” said Acting Special Agent in Charge Daniel Nielsen, Portland FBI. “Working families deserve a chance at home ownership without the risk of falling into a scam such as this.”

“This case demonstrates that even in this age of sophisticated technology, the U. S. Mail and commercial carriers are still used, and at times misused to convey items of value,” said Ronald Verrochio, Inspector in Charge of the Postal Inspection Service in Seattle. “As Postal Inspectors, it is our job to preserve the sanctity of the mail and prevent its misuse for fraudulent purposes. It is vital to leverage resources and work with other agencies in a task force approach. We are more effective in combating these complex white collar crimes by working together.”

The case was prosecuted by Assistant United States Attorneys Dwight C. Holton and Kemp Strickland. For further information, you can contact Gerri Badden, Public Information Officer, at 503-727-1033.Clifford J. Brigham, 60, was convicted by a jury last year in U.S. District Court in Portland of 21 counts of fraud and money laundering.

mortgage fraud

1. Mr Tran was a profesional Scam. He trapped several people good credit and promised that his company R and K Real Estate Inc will take care all payments. But each house he got CASH back money and used Mr Liem D Tran to cash money out for him. He made up several false documents , hyper the InCOME ...

   He defrauded several Million dollars and cash back around 100 K to 150 K per house.

   He was an agent for
   HSBC credit Card. He abused his posion and made several false documents to submit to Banks....

   Hope You concern and investigation about Mr Phong Dinh Tran

   Posted by  on  07/23  at  07:15 PM

2. To add on to Phong D Tran’s story.  He has put many people on the street, including me in a couple months.  He and his “crew” have came up with many scams including Identity theft, mortgage fraud, social security fraud, and other white collar crimes.  He has made millions with not working one day.  I have contacted the police, FBI, banks, and many more.  No one said that they would help me out.  So if you are caught in a scam, good luck with the law being on your side.

   Posted by  on  07/24  at  09:13 PM

3. Mortgage fraud is an epidemic that continues to be around and it can take form in many different ways (foreclosure rescue schemes, illegal flipping, etc). One form of mortgage fraud is a “straw buyer” scheme. This is how it works: The participants The most important piece to this scheme is the buyer.
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   Cindy

   Posted by  on  08/24  at  11:05 PM