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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Self-Proclaimed “Honorable Lady of San Francisco” Defrauded Mortgage Lenders
Judy "Miu Wan" Yeung, 58, Mountain View, California, was convicted of one count of conspiracy to commit wire fraud, eight counts of wire fraud, and three counts of witness tampering.
The jury, after deliberating for one day, found that Yeung engaged in a mortgage fraud conspiracy between approximately December 2004 and January 2007. Yeung, together with two mortgage brokers, recruited five individuals to submit loan applications in their names in order to obtain loans totaling more than $6.5 million. Evidence at trial established that Yeung had bad credit and could not have obtained these loans in her own name. Yeung engaged in these transactions in order to purchase investment properties in Gilroy, California, when real estate prices were still rising. Yeung also fraudulently refinanced her San Francisco, California residence in Balboa Terrace, in order to obtain cash from mortgage lenders and to pay off existing loans. Testimony at trial established that Yeung obtained more than $624,000 in cash from these fraudulent transactions.
Per the indictment, Yeung's scheme involved the submission of false information and forged documents to mortgage lenders, including Washington Mutualand J.P. Morgan Chase. For example, the loan applications in each case grossly exaggerated the income, assets, and creditworthiness of the individuals posing as borrowers for Yeung. In addition, evidence at trial established that Yeung induced others to forge letters from Hang Seng Bankthat falsely verified assets held by the borrowers. The forged letters were then used in support of the loan applications. Some of the individuals posing as borrowers testified at trial. They stated that Yeung had promised to pay the mortgages obtained in their names and that, in two cases, Yeung promised to pay them a reward of $20,000 to $40,000.
Several of the witnesses stated that Yeung touted herself as the "Honorable Lady of San Francisco," and she even provided business cards reflecting that title. Some witnesses testified that they believed Yeung when she told them that she could further their careers and, in some cases, would use her political connections in San Francisco, California to do so.
In addition, the jury found Yeung guilty of three counts of witness tampering. Two of the "straw buyers" whom Yeung had recruited testified at trial that Yeung told them to lie to the FBI agents who were investigating the case.
The guilty verdict followed a three week jury trial before U.S. District Court Judge Susan Illston.
Two mortgage brokers were charged in connection with the case, which was referred to the FBI by the San Francisco District Attorney's Office. They have pleaded guilty to wire fraud conspiracy charges and are awaiting sentencing.
Yeung is released on a secured bond. The sentencing of Yeung is scheduled for May 14, 2010, before Judge Susan Illston in San Francisco. The maximum statutory penalty for each count in violation of Title 18, United States Code, Section 1349, is 30 years and a fine of $1,000,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
"The conviction of Ms. Yeung should be taken as affirmation that our efforts to uncover and prosecute those engaged in mortgage fraud, at whatever level of their involvement are serious and ongoing," United States Attorney Joseph P. Russoniello said. "Mortgage fraud has weakened our economy nationally and done irreparable damage to households, neighborhoods, and communities throughout this district. Unscrupulous mortgage brokers often encouraged many borrowers who knew or should have known better to exaggerate their qualifications for a loan they couldn't afford on a home whose value was overstated, often due to the complicity of unprincipled real estate appraisers. With unwarranted confidence that any risk of default could be passed on to unwary investors, many lenders, including some major banks, which had been pressured to relax their lending standards so as to expand the prospect of home ownership to persons otherwise financially unqualified, made loans that will never be repaid."
"To all those homeowners who stay in their homes and struggle each month to meet their contractual obligations, we owe a responsibility to ferret out, wherever possible, the perpetrators and abettors of this massive fraud," U.S. Attorney Russoniello added. "The Obama Administration through the United States Department of Justice has made the prosecution of mortgage fraud a priority of its white collar crime enforcement program and this office is committed to using its resources to the fullest to meet this mandate. We continue to work with the FBI, other federal investigative agencies and our state and local partners to effectively bring those responsible for misconduct in this district to justice."
Susan E. Badger and Jeffrey Rabkin are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Helen Yee and Elizabeth Garcia. The prosecution is the result of a three-year investigation by the Federal Bureau of Investigation.
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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