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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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Three Arrested in Alleged Theft of Leads from Former Employer
Neal Elbaum, 29, Hollis Hills, New York and Ralph Donza, 32, were arrested and charged with Commercial Bribing, Unlawful Duplication of Computer Related Material, and Unlawful Possession of Personal Identification Information. Co-defendant Carlos Orellano, 38, Great Neck, New York, was also arrested and charged with Commercial Bribe Receiving and Computer Tampering. The defendants were arrested in connection with a theft of proprietary information from Old Merchants Mortgage, Inc., of Lake Success, New York the former employer of Elbaum and Donza and current employer of Orellano.
Ralph M. Donza
It is alleged that in the summer of 2005, Donza contacted information technology expert and former co-worker Orellano. In July, 2005, Donza and Elbaum allegedly met with Orellano and Elbaum paid Orellano thousands of dollars to obtain the name and access codes to a computer account in the Old Merchants Mortgage computer system, which would provide access to Old Merchants Mortgage’s leads on potential mortgage customers. Elbaum and Donza had started their own mortgage company in Garden City, New York - Old Commonwealth Mortgage, LLC. - of which Elbaum is listed as the President. Investigators believe that it was their intention to use the stolen information from Old Merchants Mortgage to profit Old Commonwealth Mortgage. Orellano provided the requested information to Elbaum and Donza.
Carlos Orellano
In January, 2006, Old Merchants’ changed their computer system used for receipt and storage of its mortgage leads and once again, it is alleged that Elbaum gained access to the new accounts. Old Merchants Mortgage discovered the unauthorized access and the involvement of Orellano in the theft. They hired investigators who recorded a telephone conversation between Orellano and Elbaum in which Elbaum admitted having access to Old Merchants Mortgage’s accounts, his concerns about getting caught, and his desire to obtain more leads from his old employer.
Old Merchants Mortgage estimates that it had paid in excess of $1.3 million for the computer mortgage leads that the defendants had unlawful access to.
Neal S. Elbaum
On Thursday, April 6, 2006 a search warrant for the defendants’ business, Old Commonwealth Mortgage, LLC. was secured by Judge Frank A. Gulotta and was executed the following day. Documents, records, computers, and related equipment were seized from the defendants’ Garden City, New York office.
Two of the defendants were arraigned Saturday, April 8, 2006 in Hempstead. Bail was set at $5,000 for Elbaum, and $2,500 for Donza. Orellano was arraigned on April 10.
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Posted by on 07/27 at 03:59 AM
Now, these people should receive a serious punishment because what they did is not normal at all. I hate people who do such things. Congratulations to the authorities!
Posted by on 10/30 at 10:20 PM
Actually, we can know that a quick flip of an house ownership is an easy signs of fraud. For instance, the fraudster buys a property. The fraudster receives a house appraisal with a certain inflated house price. A straw man who’s unconnected to the fraudster buys the house at a highly inflated house price. So, those fraudsters earn a huge profit.
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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