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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Marc Dreier, 58, New York, NY, the Managing Partner of New York law firm Dreier LLP, was arrested on charges stemming from a $100 million fraud against various hedge funds. The criminal Complaint alleges, in summary:
Dreier is the founder and managing partner of Dreier LLP, a law firm of more than 250 attorneys with its principal office in New York City and additional offices in Los Angeles and elsewhere in the country. In early October 2008, Dreier told personnel at a Connecticut hedge fund that a New York City real estate development company (the “Developer") had a “note program” by which the Developer sold promissory notes to investors. Dreier stated that certain investors who had originally purchased such notes wanted to sell them because they needed cash due to the recent financial crisis; that he represented both the selling investors and the Developer; and that the Connecticut hedge fund could purchase those notes at a significant discount. Dreier subsequently sent the hedge fund purported audited financial statements of the Developer and certain of its affiliates. In late October 2008 the hedge fund wired approximately $13.5 million to an account controlled by Dreier (the “Dreier Account") in payment for a $25 million dollar face value note purportedly issued by the Developer.
Dreier also negotiated with another, New York-based hedge fund in October 2008; that hedge fund too agreed to buy notes purportedly issued by the Developer and ultimately wired approximately $100 million to the Dreier Account in payment for the purported notes. During the course of the negotiations with the New York hedge fund, Dreier arranged a conference call with hedge fund personnel and an individual represented to be the Developer’s CEO. However, the Developer’s CEO has advised, among other things, that the Developer did not issue any of the notes described; that his signature on certain of the purported promissory notes was a forgery; and that he did not participate in a conference call with the New York hedge fund.
On December 2, 2008, Dreier was arrested in Toronto, Canada, by the Toronto City Police for impersonating an employee of a Canadian entity in connection with the sale to a third hedge fund of notes with a face value of over $40 million. Criminal Investigators of the United States Attorney’s Office arrested Dreier on the U.S. charges at LaGuardia Airport when he returned to New York. Dreier is expected to be presented before a United States Magistrate Judge in the Southern District of New York.
The Complaint unsealed charges Dreier with one count of securities fraud and one count of wire fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense.
Lev L. Dassin, the Acting United States Attorney for the Southern District of New York praised the work of the Criminal Investigators of United States Attorney’s Office and thanked the United States Securities and Exchange Commission for its assistance in the case.
“Marc Drier allegedly used his law license and his access to institutional investors to perpetrate a brazen fraud,” said US Attorney Dassin. Mr. Dassin added that the investigation is continuing.
Assistant United States Attorneys Raymond J. Lohier, Jonathan R. Streeter, and Anna E. Arreola are in charge of the prosecution. The charges and allegations contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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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