Tuesday, September 02, 2008
Real Estate Broker Pleads Guilty to Defrauding Clients
Rajasekhar Marni, 47, Reston, Virginia, pled guilty yesterday in United States District Court to federal wire fraud and money laundering charges in connection with a real estate fraud scheme that took place in 2005 and 2006. Marni faces up to 30 years in federal prison, 3 years of supervised release, a fine of at least $500,000, and full restitution when he is sentenced by United States District Judge T.S. Ellis, III on October 31, 2008.
According to court documents, Marni was the president of Loanworth Corporation, Inc., a Vienna, Virginia real estate firm. He defrauded three sets of clients, resulting in a loss to those victims of approximately $1.14 million. In March 2006, Marni arranged to purchase a Fairfax Station, Virginia home for $889,000. The homeowners agreed to finance Marni’s purchase. Marni had the victims transfer title to him while he signed a deed of trust setting out the terms of the loan. Marni recorded with Fairfax County documentation transferring title to the property to him but never recorded the documentation related to the loan. Marni then sold the property to a third party and used the proceeds to, among other things, buy a house for himself in Vienna, Virginia.
As part of the plea, Marni admitted to also defrauding a Lorton, Virginia couple, whom he convinced in November 2005 to transfer title to their property to Loanworth for six months while he tried to sell the property to a third party. During that time, without the homeowners’ knowledge, Marni took out loans against the property totaling $227,778. He never repaid the loans, which subsequently went into default. In June 2006, title in the home, which Marni had not sold to a third party, was returned to the original owners. Less than four months later, one of Marni’s lenders foreclosed on the home, resulting in a loss of the victims’ equity in the property.
Marni also admitted to defrauding a Silver Spring, Maryland couple of $23,000 that was to be used as a down payment on an undeveloped parcel of land.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Timothy D. Belevetz is prosecuting the case on behalf of the United States.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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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 
