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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A jury has convicted Michael D. Goodson, 39, Spring, Texas, for engaging in a scheme to defraud mortgage lenders. The properties were located in Montgomery, Bryan, Spring and Tomball, Texas. After only one hour and a half of deliberation, a federal jury found Goodson guilty of engaging in a conspiracy to commit mail and wire fraud, three counts of mail fraud and five counts of wire fraud.
During the course of the two-day trial, the United States presented evidence proving that Goodson induced numerous residential mortgage lenders across the country to loan in excess of $11 million from early 2003 into early 2005 by means of the use of false and fraudulent representations in loan applications. The conspirators falsely represented employment in the name of fictitious businesses and/or inflated salaries to the lenders on loan applications to establish the creditworthiness of the borrowers. Additional fraudulent documents were provided to the lenders by Goodson and his co-conspirators to support the applications for loans.
As previously reported by Mortgage Fraud Blog, Goodson located residential properties to purchase and negotiated a sales price at the highest value. With the high sales price, Goodson would receive a substantial payment from the seller’s proceeds at closing based on a fraudulent invoice which indicated his business was being paid for work done to the property. Goodson also recruited individuals to pose as the purchaser of the house and to represent to the lender they were buying the home as their residence. Goodson convinced the borrowers he was willing to pay them to simply lend their good credit to a legitimate real estate investment. Goodson also promised that the transaction would pose no financial risk to the borrower because he would cover all the costs of purchasing and maintaining the property, including paying the mortgage, insurance and taxes. Ultimately, however, Goodson allowed all the loans to fall into default and the properties were foreclosed by the mortgage companies.
Goodson‘s co-conspirators, Nancy Booth, also known as Nancy Campbell, age unknown, and Leslie R. Tarrance, Sr., 62, have both been convicted for their respective rolls in the scheme. Booth, a loan officer at American Mortgage Group who coordinated the loans for the purchase of properties and prepared the false and fraudulent loan documents, pled guilty in October 2006 to conspiracy to commit mail and wire fraud and to two counts of mail fraud. Tarrance, who operated Ultra Classic Custom Homes, a custom home building company, sold to Goodson eight properties at agreed upon inflated prices which were used in the fraud scheme and financially benefitted both men, pled guilty on July 17, 2007 to the conspiring to commit mail and wire fraud. Both remain free on bond pending their respective sentencing hearings. Booth and Tarrance testified during trial against their Goodson.
Sentencing has beeen set for October 29, 2007. The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole. Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole. Each of the nine counts of conviction carry a maximum fine of $250,000. Goodson has been in federal custody without bond since his arrest in March 2006 and will remain in custody pending his sentencing hearing.
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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