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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Clarence Lewis III has been found guilty of devising a scheme to defraud residential mortgage lenders by misstating information material to the lending decision. Lewis was found guilty of engaging in a mail and wire fraud conspiracy and four counts of wire fraud following a bench trial. Lewis was originally indicted on October 27, 2008 in the Southern District of Texas, Houston Division and charged with conspiracy, wire fraud, money laundering and engaging in transactions involving criminally derived property.
Lewis held a mortgage broker license and operated Motown Mortgage Group in addition to holding a realty broker license and operating Lewis & Associates Realtors. Lewis used both companies during his scheme to defraud residential mortgage lenders. He and his co-conspirators recruited individuals with good credit to apply for the mortgage loans, many of whom were promised money for signing loan documents and attending the real estate closing at the title company where the mortgage notes were signed. Lewis further induced them to act as borrowers by stating he would make sure the mortgage notes were paid and he would ensure the property was managed until it could once again be sold. From January 2002 to Jan. 16, 2008, Lewis is alleged to have obtained more than $12,000,000 in fraudulently obtained loans.
Lewis and his co-conspirators caused loan packages containing false and fraudulent statements to be prepared and forwarded to the lenders to induce the lenders to loan 100% of the sales price. Some documents were altered and others were fabricated in an effort to support the false and misleading statements on the loan applications. In addition, Motown Mortgage Group ordered appraisals on these properties and represented to the lenders that each appraisal was conducted by an independent licensed appraiser when, in fact, many of the appraisals were prepared by an unlicensed individual who had unlawfully appropriated the license of two appraisers and used their licenses without their knowledge.
Lewis negotiated the sales price with sellers of the property which involved increasing the sales price rather than lowering it. The sales price included funds which were transferred to Lewis' assumed name bank account, Astro Construction. From this account, Lewis would provide funds to the borrowers and others who participated in the transaction.
Lewis was found guilty of conspiracy to commit mail and wire fraud and as well as four counts of wire fraud. Each count carries a possible maximum penalty of up to 20 years imprisonment and up to $250,000 fine. Lewis was taken into custody after the court rendered its verdict. Sentencing is scheduled for Aug. 17, 2009, at 2:30 pm.
THIS PERSON IS NOT THE ONLY ONE IN HOUSTON WHO IS A SCAM ARTIST.PINE VILLAGE NORTH TOWNHOMES IS A GOOD EXAMPLE OF PROPERTY FLPPING AND FALSE APPRAISALS FOR LOANS,THIS PERUVIAN WONDER ALONG WITH A SCAMER IN MONGOMERY COUNTY ANDA LAWER IN HOUSTON DID THE DEED.THIS PERSON, LETS CALL HIM GEORGE D THEN HAD CONTROL OF THE VOTES AND PLACED HIS FRIENDS ON THE D.O.D. ONE IS HIS SWEETHEART WHO HAS A CRIMAIAL RECORD OF WELLFARE FRAUD AND TEXAS WORKFORCE FRAUD.(CHECKS TOTALING $2955.) NOW FOLKS, I WANT YOU TO SPEND TIME AND YOUR MONEY TO GATHER THIS INFORMATION , GIVE IT TO THE “AUTHORITIES” AND THEY DONT DO A DAM THING.504 TOWNHOMES GO INTO DISREPAIR.HARRIS COUNTY APPRAISAL DISTRICT KEEPS RAISING APPRAISALS FOR TAX.LAST WEEK EVERYONE IN PINE VILLAGE GOT A LETTER REDUCEING VALUES BY UP TO $40,000.THERE ARE COMPANIES THAT WILL PROTEST YOUR PROPERTY APPRAISAL BEFOR THE HARRIS COUNTY DISTRICT BUT NO ONE WILL TELL ME WHO THEY TALK TO.BY THE WAY FOLKS,SEVERAL BANKS, B OF A WELLS FARGO CITI WERE TOLD OF THIS AND DID NOTHING.WHY SHOULD THEY,WE ARE PAYING FOR THIS!!!! I AM GOING TO BUY A LOT OF INK FOR MY PRINTER, SOME PICTURES I WILL SEND TO MRS DOLLAR AS PROOF OF MY STATEMENTS.I WILL ALSO SEND A LOT OF PAPER TO THE OBAMA COMMISION ON FRAUD. GEORGE UBER USN RET.
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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