Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
imageRachel 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.



Advanced Search
Enter your Email


Powered by FeedBlitz

Dollar in the News

August 6, 2009 - Inman News
The Lowdown on Downpayment Programs

July, 2009 - Mortgage Banking Magazine
Flashpoint - FHA Fraud

June 5, 2009 - Miami Herald
Feds Get Tough on Mortgage Fraud

More Articles
-->
- Guaranty Title Owners Indicted for Fraud and Money Laundering
- Mortgage Fraudster Admits Laundering Ill Gotten Gains
- Builder Convicted In Mortgage Scheme
- Identity Thief Pleads Guilty to Mortgage Fraud
- 7 Charged in Million Dollar Mortgage Fraud Scheme
- Appraiser Indicted for False Statements
- Professor Sentenced for Mortgage Fraud Scheme
- Second Missouri Man Sentenced in Major Mortgage Fraud Scheme
- Deed Forger Sentenced in Real Estate Fraud Case
- Man Arrested for Real Estate Ponzi Scheme
-->

Syndicate

You're welcome to post our feed on your site and provide your readers with the latest Headlines! Just select "Get Widget" below . . .
  

Subscribe in NewsGator Online

Bookmark and Share

What's this?

Tuesday, February 19, 2008

Second In Command Sentenced In Massive Georgia Fraud Scheme

Leslie Rector, 35, Atlanta, Georgia, was sentenced to federal prison for his participation in a massive mortgage fraud scheme that targeted the Atlanta, Georgia metro housing and condo market from 2000 through part of 2003. 

Based upon convictions for conspiracy, loan fraud, mail and wire fraud, and money laundering, Rector was sentenced to 7 years in prison to be followed by 3 years of supervised release, and ordered to pay restitution in the amount of $40.226 million.  Rector was convicted on March 14, 2007, following an eight week trial.

As previously reported by Mortgage Fraud Blog, Co-defendants who went to trial with Rector and were also found guilty of multiple felony charges include: Phillip E. Hill, 51, Sumatra, Florida, convicted of conspiracy, loan fraud, mail and wire fraud, and money laundering; Marcus Alcindor, a/k/a Christopher Alcindor, 42, St. Lucia, convicted of conspiracy, loan fraud, mail and wire fraud, and money laundering; Barbara Brown, f/k/a Barbara Eubanks, 34, Marietta, Georgia, convicted of conspiracy, loan fraud, mail and wire fraud, and money laundering; Fred Farmer, 59, Roswell, Georgia, convicted of conspiracy, loan fraud, mail and wire fraud, and money laundering; Christine Laudermill, 40, convicted of conspiracy, loan fraud, wire fraud, and money laundering; Robert Powers, 45, Cumming, Georgia, convicted of conspiracy, loan fraud, mail and wire fraud, and money laundering; David Thomas, 46, Hammond, Louisiana, convicted of conspiracy, loan fraud, and money laundering; Dean Thomas, 42, Atlanta, Georgia, convicted of conspiracy, and money laundering and David Van Mersbergen, 46, Atlanta, Georgia, convicted of conspiracy, loan fraud, and money laundering.

In addition to the defendants found guilty at trial, several other individuals pleaded guilty to mortgage fraud charges related to the same scheme before trial.  These defendants include: William Chavis, 45, Atlanta, Georgia; Michael Flake, 31, Stone Mountain, Georgia; Wesley Golden, 57, Atlanta, Georgia; Christopher Halcomb, 45, Cumming, Georgia; Cortney Jackson, 49, Detroit, Michigan; Wayne Jenkins, 49, Atlanta, Georgia; Rashid Muhammad, 36, Syracuse, New York; Julian Perez, a/k/a Tony Perez, 49, Roswell, Georgia; Brant Petree, 23, of Marietta, Georgia; Theodore Tagalakis, 36, Atlanta, Georgia; and Andrew Wolf, 45, Alpharetta, Georgia. 

According to United States Attorney Nahmias and the information presented in court: Leslie Rector was Phillip Hill‘s right-hand-man when it came to running Hill‘s many corporations and orchestrating the massive mortgage fraud scheme that targeted the Atlanta area from 2000 through 2003.  Rector helped Hill oversee the other participants in the conspiracy, loan fraud, wire and mail fraud and money laundering activity related to mortgages obtained in the sale of over 50 homes and over 250 condominiums in eight Atlanta-area condominium complexes.  Each property was sold at an inflated price to a straw purchaser who applied for a mortgage loan based upon the inflated price.  Such a fraudulent transaction is called a mortgage flip. The straw purchasers who participated in these mortgage flips were paid a kickback out of the excess loan proceeds for the use of their name and credit.  The victim-lenders granted the loans based upon numerous false representations and documents regarding the credit qualifications of the straw purchaser as well as false representations that the straw purchaser had paid a down payment, would reside in the home, and would be responsible for the loan payment.  In addition, the lenders were induced to make the loans based on fraudulently inflated appraisals.  Some of the properties were flipped more than one time. After Hill ran out of funds at the end of the conspiracy, Rector started to advance money to Hill and others to facilitate more property flips. 

“The mortgage fraud scheme in which this defendant participated resulted in multi-million dollar losses to lenders and had an even more devastating impact on individual homeowners and many whole neighborhoods,” said United States Attorney David E. Nahmias.  “This sentence, along with the other sentences imposed in this case, as substantial as they are, cannot compensate the many persons hurt by the corrupt actions of these fraudsters.  But we hope that this sentence again demonstrates to those who might consider participating in mortgage fraud that such crimes may lead them straight to many years in a federal prison.”

Rebecca A. Sparkman, Special Agent In Charge, Internal Revenue Service Criminal Investigation said of the case, “The financial impact of mortgage fraud has been a very real and frequent threat to the asset most important to the taxpayers of the Atlanta metropolitan area - our homes. Mortgage fraud is a serious offense and today’s sentencing sends a clear message that the punishment will be as serious as the crime.”

 mortgage fraud

   

Posted by Staff Reporter on 02/19/08 at 03:31 AM
Mortgage Fraud LocationsGeorgia • Total comments: (1) (0) Trackbacks
  1. I must appreciate your work. It is really too good to read. from last couple of days i was searching for something interesting and this post is really nice.

    Thanks for this nice post.

    Handy Saputra

    Posted by  on  02/19  at  10:13 AM

Post a Comment

Name:

Email:

Location:

Smileys

Remember my personal information

Notify me of follow-up comments?

Submit the word you see below:


The trackback URL for this entry is:

Trackbacks:

Bookmark and Share Enter your Email


Preview | Powered by FeedBlitz
mortgage fraud news



Today's News

Some Sources require Registration.

 

Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.

Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.

2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband

Untangling Mortgage Fraud in Chicago Condo Buildings
Chicago Public Radio
Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.

No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.

Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.

CITIZEN JOURNALISM: Mortgage Fraud High in Area
Washington Times
According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.

Former Vegas Resident Charged with Mortgage Fraud in Nevada
National Mortgage Professional Magazine
A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...

Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.

12-Year Prison Term in Mortgage Swindle
Washington Post
A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...

Previous Articles

TRIAL COVERAGE

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.



More Trial Coverage

What's Your Opinion?

ORDER NOW!!

Blog Roll

TopOfBlogsReal Estate BlogsBlog Flux DirectoryBlog Directory & Search engineBlog Directory
Blogarama - The Blog DirectoryListed on BlogShares

© Copyright 2004-2009 Rachel M. Dollar

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.

TopOfBlogs Real Estate Blogs Blog Flux Directory Blog Directory & Search engine Blog Directory
Blogarama - The Blog Directory Listed on BlogShares