Friday, September 12, 2008

Real Estate Investor Sentenced For $5M Mortgage Fraud Conspiracy

Eric Kendall Taylor, 37, Lee’s Summit, Missouri, was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole. The court also ordered Taylor to pay $1,418,844 in restitution.

On August 25, 2006, Taylor pleaded guilty to conspiracy and to money laundering. Taylor was in the business of investing in residential properties in Kansas City and Lee’s Summit, Missouri.  He used the business name C and K Co. to create false second mortgages on properties and to obtain loan proceeds.  He also used the fictitious business names Pinetree Consulting, T & M Management, T & M Enterprise, and W & W Enterprise, to create false employment and income information, documentation, and verification.

Taylor admitted that he participated in a conspiracy to defraud mortgage lenders of more than $5 million and to transfer money taken by fraud across state lines. Eric Taylor acquired residential properties after foreclosure and at reduced prices, then recruited straw buyers to purchase that real estate and obtain mortgage loans for the properties, or purchased properties in his own name. He prepared false and fraudulent loan applications and supporting documentation for submission to mortgage lenders in the names of the straw borrowers, caused inflated appraisals to be prepared in relation to the properties, and submitted false and fraudulent loan applications, appraisals, documentation and other representations to mortgage lenders.

In order to further the conspiracy, Taylor purchased a false Social Security number and false payroll stubs during the summer of 1999 to submit to mortgage lenders to document the false information he planned to submit on loan applications. In July 2000, he created false payroll stubs and false W-2 forms, falsely showing he was employed by a fictitious company at a fictitious salary. In 2001, Taylor arranged for and set up a business telephone line at the home of a relative to list on loan application as the telephone number of his employer. When a mortgage lender called the business telephone number, the relative confirmed the information or took a message and notified Taylor.

Between the summer of 1999 and Sept. 23, 2005, mortgage lenders approved 23 fraudulent loans totaling $5,158,368.

On September 19, 2001, Taylor deeded the residential property at 2903 S.W. 13th Terr., Lee’s Summit, to his mother and co-defendant Doris J. Taylor, 61, Kansas City, Missouri. Doris Taylor was in business as a real estate broker under the name Doris J. Taylor Realty; she also invested in residential properties in Kansas City and Lee’s Summit. Eric Taylor had purchased the property previously and obtained a loan by fraud in connection with that purchase.

Between September 28 and December 5, 2001, Doris Taylor applied for, and Eric Taylor caused to be applied for, a mortgage loan from National City Mortgage, also doing business as Commonwealth United Mortgage Co., for approximately $332,350 in connection with her purchase of the Lee’s Summit property.  In the loan application and supporting documentation, Doris Taylor provided false information, including false income information, false asset information, false tax returns, the misrepresentation that she had owned the property since October 2000, and an inflated appraisal.

National City Mortgage approved the loan in reliance on the misrepresentations contained in the loan application.  On or about December 17, 2001, National City Mortgage sent a $331,859.19 check, drawn on the firm’s account Citibank in Buffalo, New York, to Realty Title Co. in Independence. The check was deposited in the account of Realty Title Co. at Hillcrest Bank in Independence.

Doris Taylor pleaded guilty to money laundering on December 13, 2006, and awaits sentencing.

mortgage fraud

1. For IndyMac business depositors and individual customers
   
   
   If you are a consumer or a business, particularly a small business, who has been hurt in the FDIC takeover of IndyMac Bank on July 11, 2008, please visit www.fdicbusinessalert.com and send an email to info@fdicbusinessalert.com. 
   
   Major media have expressed a sincere interested in hearing your story and trying to help. 
   
   Here’s why you might want to take a moment to write:
   
   •Your story might just help you achieve a better outcome if you are among the 10,000 depositors who lost funds in the FDIC/IndyMac takeover.
   •Your story could have a major impact on the way the FDIC implements takeovers on Fridays with no advance notice to the very consumers and depositors they say they are trying to help. 
   •Your story could change the way national legislators in our Senate and House of Representatives allow the FDIC to supervise banks at the disadvantage of depositors. 
   •Your story could impact the information you receive regarding the IRS and the tax treatment of your “loss”.  Example: Please look at your bank statements and the language the FDIC has used.  If the FDIC takes away 50% of your funds and then restores half of it as an “advance dividend,” do you have a “loss” or a “taxable event”?
   
   Please take a moment to write.  Thank you.
   info@fdicbusinessalert.com

   Posted by  on  09/12  at  04:02 PM