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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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Sentences Handed Down In Austin Texas Area Mortgage Fraud Scheme
12 individuals convicted for their roles in a multi-million dollar mortgage fraud scheme led by Cornelius Robinson were sentenced in U.S. District Court. The overall conspiracy involved sixteen named defendants, at least 33 properties, 19 financial institutions and over $4.5 million in claimed losses. United States District Judge Sam Sparks sentenced four of five defendants who were convicted after a two week jury trial that ended on March 28, 2008. They are:
Michael Breon, 39, formerly of Austin, Texas, and a current resident of McKinney, Texas, and a straw purchaser in the scheme to 48 months in federal prison followed by five years of supervised release. Judge Sparks also ordered Breon to pay a $63,000 fine. Breon was convicted by the jury of conspiracy to make false statements related to a loan, one count of wire fraud and one count of conspiracy to commit money laundering. Breon, a licensed loan officer and mortgage broker, was employed by several different loan origination and mortgage companies during the conspiracy;
Sindhu Sukumaran, 37, wife of Michael Breon and a straw purchaser in the scheme to 18 months in federal prison followed by five years of supervised release. Sukumaran was convicted by the jury of one count of wire fraud;
Marlon Nathan Torres, 46, Hutto, Texas, a licensed real estate agent and buyer and seller of real estate in the Austin, Texas area to 24 months in federal prison followed by three years of supervised release. Judge Sparks also ordered Torres to pay a $24,000 fine. Torres was convicted by the jury of one count each of conspiracy to commit money laundering and money laundering;
Jeffery Andre Wilkins, 46, Austin, Texas, a cousin of Cornelius Robinson and a straw purchaser in the scheme to 30 months in federal prison followed by five years of supervised release. Judge Sparks also ordered Wilkins to pay a $6,000 fine. Wilkins was convicted by the jury of one count each of conspiracy to commit both wire fraud and providing false statements related to a loan, false statement related to a loan, conspiracy to commit money laundering and money laundering.
United States District Judge Sam Sparks also sentenced eight other defendants who had pled guilty to offenses related to the fraud scheme:
George H. Watson, 55, Austin, Texas, who served as the closing attorney on most of the real estate transactions involved in the scheme, to 57 months in federal prison followed by five years of supervised release. In March, Watson pleaded guilty to one count of Conspiracy to Commit both Wire Fraud and False Statements Related to a Loan;
James Douglas Atwood, 51, Austin, Texas, Cornelius Robinson‘s uncle and a straw buyer in the scheme to three years probation. Judge Sparks also ordered Atwood to pay a $6,500 fine. In February, Atwood pleaded guilty to one count of Conspiracy to Commit Provide False Statements Related to a Loan;
Russell Snead, 44, Seattle, Washington area, was a straw purchaser in the scheme to 24 months in federal prison followed by 3 years of supervised release. Judge Sparks also ordered Snead to pay a $50,000 fine. In March, Snead pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan;
Doris Ann Hill, 40, Austin, Texas, to three years probation. Judge Sparks also ordered Hill to pay a $1,800 fine. In February, Hill pleaded guilty to one count of Receiving a Commission or Gift in related to the Fraudulent Application for a Loan. For a fee, Hill, a personal banker employed at Wells Fargo Bank, agreed to provide a false verification of deposit to loan underwriters in relation to three real estate transactions involving defendant Snead;
Julius Meyers Lofton, 45, licensed real estate agent, Austin, Texas, and a straw buyer in the scheme to three years probation. Judge Sparks also ordered Lofton to pay a $1,800 fine. In February, Lofton pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan;
Roy Rivers, 52, Austin, Texas, and a straw buyer in the scheme to one year of probation. In February, Rivers pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan;
Danielle Guice Rosas, 40, Austin, Texas, and a straw buyer in the scheme to two years probation. Judge Sparks also ordered Rosas to pay a $1,200 fine. In February, Rosas pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan;
Stanley Ma, 28, Honolulu, Hawaii, and a straw buyer in the scheme to 24 months in federal prison followed by 3 years of supervised release. In February, Ma pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan.
Co-defendant Leroy Williams, 47, Austin, Texas, was sentenced on June 12, 2008. Williams was a straw buyer in the scheme was sentenced to three years probation including 30 days of home confinement after pleading guilty to one count of Conspiracy.
Sentencing for ringleader Cornelius Robinson, age 48 of Austin, is scheduled for 9:00 a.m. on August 8, 2008. Robinson was convicted on multiple counts of fraud by the jury at the conclusion of the trial in March. Robinson‘s wife, Silvia Seelig, 46, Austin, Texas is scheduled for sentencing after having pled guilty to Conspiracy to Commit both Wire Fraud and Provide False Statements Related to a Loan. Leonard Brown, 38, Houston, Texas, is also scheduled for sentencing. In March, Brown pleaded guilty to one count of Conspiracy to Provide False Statements Related to a Loan.
From September 1999 to present, the defendants participated in a scheme to defraud mortgage lenders, including federally insured financial institutions, with regard to loans acquired to purchase 33 properties in the Austin and San Antonio, Texas area. The scheme centered upon the use of real estate flips. That is, the defendants purchased property at one price and would immediately sell, or flip, the property to a straw buyer at a higher price. In doing so, the mortgage lenders were deceived as to the true nature of the transaction and the financial status of the straw buyer. The straw buyers did not make the subsequent monthly mortgage payments and all of the loans have gone into default. All of loans have been either foreclosed upon or are the subject of current foreclosure proceedings.
“Mortgage fraud damages the stability of our national housing market and hurts American homeowners. Today’s sentences make clear that those who lie, cheat and steal in these corrupt schemes will pay the price,” stated United States Attorney Johnny Sutton.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations. The case is being prosecuted for the government by Assistant United States Attorney Mark Lane.
As a matter of fact,these sort of scams has been happening since time immemorial and the public has to be vigilant.
Posted by on 07/10 at 01:18 AM
One of the convicted, Marlon Torres’ home was foreclosed on a few months ago. It was for sale before that (with undisclosed and serious foundation damage). I guess he was still trying to run a scam from behind bars. Some nerve! I hope he stays out of real estate when he gets out of prison!
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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