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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
South Florida Man Pleads Guilty In Multi-Million Dollar Fraud Scheme
Louis Cuomo, 30, Coral Springs, Florida, aka Anthony Louis Cuomo pled guilty to two separate conspiracies to commit mail and wire fraud, in violation of 18 U.S.C. §1349. Sentencing has been scheduled for January 28, 2009.
As previously reported by Mortgage Fraud Blog, and according to the charging document in this case and statements made during the plea, Cuomo helped operate various foreign exchange companies. He used brokers, called “introducing brokers,” to solicit and handle orders for the purchase and sale of foreign currency option contracts. The introducing brokers for foreign currency option contracts operated under the names Standard FX, Superior FX, Superior 4X, and Hamilton Edwards, and were located in Coral Springs and Plantation, Florida. Employees of these companies called prospective clients and falsely promised them high returns on their investments if they invested in options to purchase Euros. In these sales pitches, the sales teams minimized or entirely failed to disclose large up-front commissions, the companies’ poor performance history, and made other material misrepresentations and factual omissions. As a result of these misrepresentations, 75 clients suffered approximately $2.5 million in investment losses.
Louis Cuomo also engaged in mortgage fraud, involving the fraudulent purchase of homes through nominee owners. These nominee owners provided false financial information to the mortgage lender to secure the loans. A significant portion of the loan proceeds were wrongfully diverted to the conspirators.
Louis Cuomo also pled guilty to conspiracy to sell fraudulent securities to the public. In this second conspiracy, Louis Cuomo sold securities of Hema Diagnostics Systems, a privately held company in Miami-Dade County, FL, without knowledge or permission from the company, by making fictitious promotional literature for Hema Diagnostics Systems. Louis Cuomo and the other conspirators kept the investors’ monies for their own use and investors did not receive any stock in Hema Diagnostics.
R. Alexander Acosta, United States Attorney for the Southern District of Florida commended the investigative efforts of the United States Secret Service, the Federal Bureau of Investigation, the Coral Springs Police Department and the Broward Sheriff’s Office for investigating this case. The case is being handled by Assistant United States Attorneys Steve Petri, Harry Wallace and Jeffrey Kaplan.
Mortgage Fraud Blog - Guilty Plea In Multi-Million Dollar Mortgage Fraud And Telemarketing Schemes
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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Guilty Plea In Multi-Million Dollar Mortgage Fraud And Telemarketing Schemes
Anthony Affatati, 36, Parkland, Florida, pled guilty to two separate conspiracies to commit mail and wire fraud, in violation of 18 U.S.C. §1349. Sentencing has been set for January 8, 2009.
As previously reported by Mortgage Fraud Blog, according to documents filed with the court, and statements made during the plea, Anthony Affatati became involved in mortgage fraud, and purchased his Parkland, Florida home through a nominee owner, known as a straw buyer, who provided false financial information to the mortgage lender to secure the loan on Affatati’s behalf.
Affatati also operated various foreign exchange companies, and through brokers, called “introducing brokers,” solicited and handled orders for the purchase and sale of foreign currency option contracts. The introducing brokers for foreign currency option contracts operated under the names Standard FX, Superior FX, Superior 4X, and Hamilton Edwards, and were located in Coral Springs and Plantation Florida. Employees of these companies solicited prospective clients and falsely promised them high returns on their investments if they invested in options to purchase Euros. In these sales pitches, the sales teams minimized or entirely failed to disclose large up-front commissions, the companies’ poor performance history, and made other material misrepresentations and factual omissions. As a result of these misrepresentations, 75 clients suffered approximately $2.5 million in investment losses.
Anthony Affatati also pled guilty to conspiracy to sell fraudulent securities to the public. In this second conspiracy, Anthony Affatati sold securities of Hema Diagnostics Systems, a privately held company in Miami-Dade County, Florida, without knowledge or permission from the company by making his own fictitious promotional literature for Hema Diagnostics Systems. Anthony Affatati kept the investors’ monies for his own use and investors did not receive any stock in Hema Diagnostics.
Mr. Acosta commended the investigative efforts of the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service, the Coral Springs Police Department and the Broward Sheriff’s Office for investigating this case. The case is being handled by Assistant United States Attorneys Steve Petri, Harry Wallace and Jeffrey Kaplan.
Boy,,, what a ball of joy this guy brings to the consumers of Florida (and who knows where else). I hope he is taken off the streets for a very long time to protect society.
I just wish all the rest of the dirtbags who prey on society would go away too.
U.S. Attorney Targets White-Collar Crime Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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.
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.
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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