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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Texas Housing Scam Enjoined from Further Operations
A permanent injunction was issued that shut down a Texas housing scam that allegedly defrauded primarily Hispanic consumers out of tens of thousands of dollars in the Dallas, Texas area.
The lawsuit filed by Texas Attorney General Greg Abbott in April 2005 under the Texas Deceptive Trade Practices Act (DTPA), has resulted in a permanent injunction and default judgment against Dallas-based FCI Equities, Inc. and several individuals who participated in a scheme that involved the sale of homes without valid property titles.
The court imposed fines of $103,000 toward consumer restitution against the operation and its associates, to be paid by the operation’s lead proprietor, Jose Demetrio Murrugarra of Dallas, Texas. Jose Menjarez, a Dallas man who posed as an attorney to offer legal services to victims of the housing scam, was charged with $10,900 in civil penalties and restitution for consumers for his part in the deceptive scheme.
“It is a disgrace that these scam artists preyed on consumers’ dreams of putting down roots in Texas by exploiting their lack of knowledge about the home-buying process,” Attorney General Abbott said. “Housing scams like this are a flagrant violation of the law, and I am determined to shut them down.”
The Attorney General’s lawsuit claimed that FCI Equities and other defendants told primarily Hispanic consumers they could buy homes in the Dallas, Texas area between $20,000 and $40,000. The scam was carried out under the direction of Freddrick Ray Cartwright, owner of FCI, and was fronted by Murrugarra. Also named in the lawsuit was Menjarez for misleading consumers into believing that he was authorized to provide legal services to help them recoup losses to FCI.
Murrugarra allegedly met most of the victims through a small Mexican restaurant he owned. He convinced the consumers he or other defendants owned all the properties being offered outright and would produce a valid title after the sale was completed. Sales were often carried out quickly using handwritten agreements. The homes, most of which were in the Oak Cliff area of Dallas, Texas, were generally paid for in cash.
After consumers bought the homes, they discovered their titles were not valid because the homes were in foreclosure, had been condemned, or had liens for substantial unsatisfied debts that were often in excess of the properties’ market value. As a result, consumers were evicted from homes they thought they had legitimately purchased. Often, consumers spent thousands of dollars remodeling and repairing the homes before facing eviction. The injunction indicates Cartwright, Murrugarra and other participants in the scam knew the titles were not valid when they sold the properties.
When consumers confronted Murrugarra or Cartwright about the faulty titles and demanded refunds, the defendants either dismissed their concerns or falsely promised to provide an unencumbered title. The defendants never provided a refund to any of the consumers.
The court prohibited Menjarez from practicing law without a license. While the lawsuit did not allege his direct involvement in the FCI Equities scam, it did accuse Menjarez of exploiting victims of the scam by offering to handle legal cases against Murrugarra and other defendants through his group, Centro de Asesoría y Liderazgo Latino Americano (Latin American Assistance and Leadership Center). Menjarez allegedly charged $700 per consumer to draft legal affidavits related to the real estate scam and appear in court with consumers who were trying to prevent foreclosure on the properties.
Other defendants named in the suit as participants in the housing scam were Bettie Sue Bailey; Francis Carroll of Dallas; and R.I.C.H. Business and Building Systems of Dallas.
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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