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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David Coleman, a Methuen, Massachusetts mortgage broker who allegedly preyed upon financially distressed homeowners by representing himself to be attorney and a bankruptcy expert who offered to file bankruptcy petitions to save consumers’ homes from foreclosure has had a temporary restraining order filed against him by Massachusetts Attorney General Martha Coakley. The temporary restraining order prohibits Coleman, his company Mortgage Finders of New England and his employees from contacting individuals to offer foreclosure related services or assisting individuals with filing for bankruptcy. As part of its lawsuit, the Attorney General’s Office is also seeking a permanent injunction against Coleman, restitution for consumers, civil penalties and attorney’s fees.
According to the complaint, filed in Essex Superior Court, Coleman would target vulnerable homeowners on the brink of foreclosure by combing newspapers for victims’ contact information in foreclosure notices. He would then allegedly make unsolicited calls to the homeowners where he would offer to save their homes from foreclosure by assisting them in filing for bankruptcy in exchange for a $1,000 cash fee upfront. The complaint further states that Coleman held himself out to consumers as a bankruptcy expert and an attorney, even though he does not hold a license to practice law in Massachusetts or in any other state. Homeowners would meet Coleman at the Bankruptcy Courts located in Boston or Worcester and offer unauthorized legal advice and assistance in connection with the filing of bankruptcy petitions. After convincing the homeowners to file for bankruptcy, Coleman would decide under which Chapter of the Bankruptcy Code to file for bankruptcy and allegedly filled out the petitions without consulting homeowners. In many instances, the bankruptcy petitions were deficient and dismissed because they were incomplete or lacked the proper information. Homeowners allege that when they attempted to contact Coleman about these deficiencies, he was either not reachable or, if reached, he brushed off consumers’ concerns.
This is the first lawsuit the Attorney General’s Office has filed alleging violations of the regulations it promulgated in 2007 that regulate foreclosure-related services. The complaint specifically alleges that Coleman violated the Attorney General’s regulations by taking an advance fee for foreclosure-related services and for advertising foreclosure related services without conspicuously disclosing the precise goods and services offered. Coleman also allegedly violated the regulations by failing to describe precisely how he would delay the foreclosure or address a default. Additionally, the complaint alleges that Coleman violated regulations that govern mortgage broker conduct by making false and misleading statements to consumers and in his advertisements.
“Due to the bad advice Mr. Coleman allegedly gave these consumers, the foreclosures on their homes could still proceed despite the fact that the homeowners paid hundreds of dollars to Coleman for services that they thought would allow them to avoid foreclosure and save their homes,” said Attorney General Coakley. “This case is just one example of why the regulations we put into place last year to regulate foreclosure-related services were needed.”
A preliminary injunction hearing is scheduled for December 16, 2008, in Essex Superior Court in Lawrence, Massachusetts at 2:00 p.m.
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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