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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
New York Investor Indicted in $10M Real Estate Scheme
Wilson James Baston, JR., a/k/a ”Wil James,” a/k/a ”Will James,” was indicted by a Federal Grand Jury in Manhattan, New York. As reported by Mortgage Fraud Blog, Baston was arrested on a Complaint issued on June 7, 2007, and is presently in federal custody pending trial. The Indictment alleges that over the past five years, Baston defrauded victims out of millions of dollars through Will James Equity Partners, Inc., which purported to be a real estate investment program which purchased distressed properties in the New York City area as investment vehicles for long and short-term investors.
According to the Indictment:
From 2002 to the present, Baston recruited over seventy investors through false promises of guaranteed short-term, high rates of return on investments in distressed properties, with additional guarantees on the principal investment. Baston recruited investors in Will James Equity Partners, Inc., through a variety of means including word-of-mouth referrals, classified advertisements in newspapers such as the New York Times, and promotional literature. According to a promotional brochure, Will James Equity Partners, Inc., purchased so-called pre-foreclosure properties using funds from a variety of equity partners, with terms determined on an individualized, venture-by-venture basis. The brochure stated that, equity partners are securitized by first mortgages on the property; paid interest at above market rates; and receive their full equity loan in a balloon payment together with an agreed upon bonus at the sale of the renovated property. Baston documented the terms of these investments in Promissory Notes, in which he promised to pay interest rates, often as high as twenty or thirty percent, to the investors along with a guaranteed return on their principal balance within short periods of time, often thirty days or less.
On many occasions, Baston initially repaid both the invested principal and interest as promised, which served to entice his investors to continue investing in Will James Equity Partners, Inc., and in most cases, to invest additional, larger sums of money. To make these initial payments to new victims, Baston used monies from other investors, rather than from purchasing, renovating, and flipping or reselling preforeclosure properties as he had described to investors. Because the victims believed these initial investments to be successful, many victims thereafter agreed to roll-over their invested funds into new investments, or often invested additional, larger sums of money in the scheme.
Once the victims invested a significant amount of money in Will James Equity Partners, Inc., Baston ceased paying them the promised interest and did not return their principal. Eventually, when the victims began to complain to Baston that he had deceived them, Baston employed a variety of lulling tactics and avoided responding to their calls and inquiries. The defendant specifically instructed his remaining staff members to deflect inquiries from victims in order to avoid them. When Baston was unable to avoid these victims, he gave false explanations as to why they had not been paid. Despite his claims to victims that Will James Equity Partners, Inc., had financial difficulties and was unable to pay back its current investors, Baston continued to recruit new investors in Will James Equity Partners, Inc., by falsely representing the enterprise’s success. In some instances, Baston paid the most vocal victims with the funds he received from these newer investors.
The Indictment alleges that Baston obtained over $10 million from his victims pursuant to this scheme, and charges him with eleven counts of mail fraud and six counts of wire fraud. If convicted on all counts charged in the Indictment, the defendant faces a maximum of 85 years imprisonment.
I’m currently in the same position I invested along with thousands of other people in Gaddell enterprises a investment company that took 1,000 dollar initial investment and was suppose to give us a return of 30,000 to 40,000 or more in our return. The company is currently under FBI investigation for fraud. What can we do the get back our investment?
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...
Legal Disclaimer.
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 
mortgage fraud
