Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Oregon Pair Indicted in Mortgage Fraud Involving Five Million in Loans
A federal indictment was unsealed in Oregon alleging that Clifford J. Brigham and Melodie MacDuffee defrauded mortgage lenders out of approximately five million dollars between October 2004 and August 2005. The charges include Mail Fraud; Wire Fraud; Money Laundering; and Social Security Fraud.
MacDuffee, an Oregon resident, was arrested without incident in Southeast Portland. Brigham, who was recently a Washington resident and an Oregon resident prior to that, is in the custody of the U. S. Bureau of Prisons on prior charges.
U.S. Attorney Karin Immergut stated that, “We all pay the price for mortgage fraud. This scheme was all the more brazen because it was allegedly undertaken while Mr. Brigham was on release pending appeal from his 2003 conviction for another loan fraud scheme.”
According to the indictment, Brigham and MacDuffee used false pretenses to obtain millions of dollars worth of home loans – and then diverted loan proceeds to themselves. The defendants used “straw purchasers” to obtain nearly all of the loans. Specifically, the indictment alleges, Brigham and MacDuffee paid people who had good credit ratings to apply for home loans, telling these people that they did not have to repay the loans. Brigham and MacDuffee paid these straw purchasers thousands of dollars for each loan application submitted, in effect purchasing credit histories from people with good credit ratings.
Brigham and MacDuffee also allegedly falsified loan applications submitted in the names of the straw purchases in various ways, including inflating both the reported income earned and assets owned by the loan applicants; falsely declaring the loan applicants’ intent to occupy the property; and falsely declaring that the loan applicants would contribute to the down payment for the loan.
The alleged scheme included purchases of property in Washougal, Washington, and three Oregon cities, namely Beaverton, Redmond and Portland. The property in Washougal, Washington was featured in a “Parade of Homes” and included a view of the Columbia River Gorge. In all, BRIGHAM and MacDuffee obtained over 25 home loans, totaling over five million dollars. Between January and August of 2005, they diverted hundreds of thousands of dollars of the loaned money to themselves. Brigham also took up residence in a million dollar home purchased with fraudulently obtained loans.
The indictment alleges that Brigham committed these crimes while on release from custody pending appeal of a 2003 conviction in federal court on six counts of loan-related fraud. If proven, this allegation will mandate an increased sentence for any crime for which Brigham is convicted.
Each of the twenty fraud charges alleged in the Indictment carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.
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.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
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 
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