Thursday, July 16, 2009
Real Estate Investor Indicted and 2 Guilty Pleas in Separate Mortgage Fraud Schemes
Reginald Davis, 41, West Palm Beach, Florida, and formerly of Dallas, has pled guilty to conspiracy to commit mail fraud and wire fraud before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, Davis admitted he conspired with another individual, identified as a real estate investor, to make false statements in mortgage loan applications in order to obtain mortgage loans for Davis to purchase two residential properties in Collin and Dallas counties. Prosecutors allege that both Davis and the real estate investor benefitted from the proceeds of the two mortgage loans, valued at $895,000.00, Davis was indicted by a federal grand jury on Apr. 6, 2009.
In a separate case, Jeanelle Richardson, 37, Plano, Texas, pleaded guilty to conspiring with an individual to commit mail fraud and wire fraud in connection with a similar mortgage fraud scheme.
Richardson admitted to conspiring with a real estate investor to commit mail fraud and wire fraud in connection with a similar mortgage fraud scheme. Richardson admitted that she and the real estate investor conspired to make false statements in mortgage fraud applications in order for Richardson to purchase three residential properties in Dallas and Collin counties valued at over $1.8 million. Both Richardson and the real estate investor benefited from the proceeds of the mortgages. Richardson was indicted by a federal grand jury on Apr. 6, 2009.
In both Davis' and Richardson's cases, prosecutors allege the false statements included such things as overstated employment income on the part of the borrowers and representations that the borrowers intended to occupy each home as their primary residence.
Richardson and Davis each face up to five years in federal prison at sentencing. Sentencing dates have not yet been set.
Micaiah Pruitt, 42, of Dallas, Texas, was indicted in a separate case on June 11, 2009, and charged with conspiracy to commit mail fraud and wire fraud, mail fraud and wire fraud, and money laundering with his connection to the schemes involving Davis and Richardson.
Prosecutors allege in the indictment that Pruitt is actually the real estate investor whom conspired with Davis and Richardson in their unrelated mortgage fraud cases. Pruitt entered a not guilty plea on June 26, 2009, before Judge Bush and is currently set for a pre-trial conference on Aug. 3, 2009, before U.S. District Judge Richard A. Schell. If convicted, Pruitt faces up to 150 years in federal prison and a fine of up to $2 million. It is important to note that a grand jury indictment is merely a charge, and not evidence of guilt.
mortgage fraud
Seems to me not everyone gets caught in this game..I know of a couple who have left their mark of foreclosures spaning several states..and yet still manage to get a JUMBO loan…
Posted by on 07/16 at 03:28 PM
please dont feel bad for micaiah pruitt. he has taken advantage of a lot of people. if he gets 150 years, he deserves it...this is not the first time he has attempted to scam to get ahead..
Posted by on 09/01 at 01:41 PM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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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 
