Friday, January 18, 2008

Sixteen Indicted In Texas Mortgage Fraud Scheme

A federal grand jury returned an indictment charging sixteen individuals with conspiracy to commit fraud and conspiracy to commit money laundering for their roles in a multi-million dollar mortgage fraud scheme. Those charged include:

Cornelius Robinson, 47, Austin, Texas, leader and organizer of the conspiracy;

Silvia Seelig, 45, Austin, during the conspiracy was a licensed real estate agent and an alleged straw buyer;

George H. Watson, 55, Austin, a licensed attorney specializing in real estate transactions. Watson served as the closing attorney on numerous real estate transactions associated described in the Indictment;

James Douglas Atwood, 51, Austin, Cornelius Robinson‘s uncle and an alleged straw buyer;

Michael Breon, 39, Austin, an associate of Cornelius Robinson and an alleged straw buyer. Breon, a licensed loan officer and mortgage broker, was employed by several different loan origination and mortgage companies during the conspiracy;

Sindu Sukumaran, 36, wife of Michael Breon and an alleged straw buyer;

Doris Ann Hill, 40, Austin, a personal banker employed at Wells Fargo Bank. For a fee, Hill allegedly agreed to provide a false verification of deposit to loan underwriters in relation to real estate transactions.

Julius Meyers Lofton, 45, Austin, licensed real estate agent and an alleged straw buyer;

Roy Rivers, age 52 of Austin, friend of Cornelius Robinson and James Atwood and an alleged straw buyer;

Danielle Guice Rosas, 40, Austin, an alleged straw buyer;

Stanley Ma, 27, Honolulu, Hawaii area and an alleged straw buyer;

Leonard Brown, 38, Houston, Texas, and an alleged straw buyer who also allegedly provided a false verification of employment in association with Onyx Consulting and defendant Ma;

Russell Snead, 43, Seattle, Washington area, an associate of Cornelius Robinson and an alleged straw buyer;

Marlon Nathan Torres, 45, Hutto, Texas, an associate of Cornelius Robinson;

Jeffrey Andre Wilkins, 46, Austin, a friend of Cornelius Robinson and an alleged straw buyer; and,

Leroy Williams, 46, Austin, an alleged straw buyer.

The Indictment alleges that 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 25 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.

Each defendant faces up to 30 years in federal prison upon conviction of the fraud conspiracy charge; up to 20 years in federal prison upon conviction of the money laundering conspiracy charge. In addition to the conspiracy charges, the indictment contains several substantive charges including wife fraud, false statements and receipt of commission or gift for procuring loans.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.

The properties involved include:

10920 Preston Trails, Austin;

3306 Pennsylvania, Austin;

4708 Heflin Lane, Austin;

5403 Pendleton, Austin;

3109 Val Drive, Austin;

1174 Graham, Austin;

5200 Meadow Field; San Antonio;

5205 Meadow Field; San Antonio;

5216 Meadow Field; San Antonio;

5221 Meadow Field; San Antonio;

5228 Meadow Field; San Antonio;

301 Lightsey, Austin;

5100 Woodmoor, Austin;

1207 Harvey, Austin;

3700 Govalle, Austin;

5011 Nixon, Austin;

3303 Hickory Creek Cove, Austin;

7412 Albert Lane, Austin;

3900 Pawnee Pass, Austin;

2507 Givens Avenue, Austin;

2904 Cherrywood, Austin;

10415 James Ryan Way, Austin;

3513 Josh Lane, Austin;

1709 Enfield, Austin;

601 Explorer, Lakeway;

12605 Lyndon, Austin;

27013 Masters Parkway, Spicewood;

4412 City Park Road, Austin;

1345 Upper ELgin River Road, Elgin, all of Texas.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted for the government by Assistant United States Attorney Mark Lane.

mortgage fraud

1. Great write up. I’m adding part to my blog with a link to this blog.

   Hope you’re having a great week.

   Joe

   Posted by  on  01/18  at  11:39 AM

2. I were evicted from my home 28425 brooks lane in Southfield, mi 48034 on 9/24/2008. Mortgage fraud had already been shown to me by oakland county register deeds on 10/1/2007 and registered on public record. an realator of keller williams realty by the name of melissa romano came to the residents and harassed on an number of occasion wanting to know when would i be out. i moved out on 9/24/2008 and learned that an quit claim deed from mers to wells fargo were registered on 9/4/2008 without my knowledge. later i learned that on 11/24/2008 a conveant deed were record from wells fargo to a couple whom imediately moved in the residents which are clearly deed and or mortgage fraud.

   Posted by  on  02/28  at  08:46 AM