Wednesday, June 27, 2007
Three Colorado Appraisers Lose Licenses
Julie M. O’Gorman, Loveland, Colorado, grossly overvalued eight properties, most of which were in the Greeley, Colorado area. These eight properties are the subject of charges previously filed against O’Gorman. The Colorado Department of Real Estate’s emergency suspension of O’Gorman‘s appraiser license was precipitated by her appraisal of the Los Leones Ranches in Walsenburg, Colorado for a conservation easement.
Conservation easement valuation requires specialized expertise which the Board asserted O’Gorman did not have. A conservation easement is a legal agreement which prevents the development of a parcel of land to protect natural resources. Conservation easements entitle a landowner to significant state and federal tax credits based upon the appraised value of the land. The greater the valuation, the greater the tax benefit to the property owners.
Albert Fajt, Pueblo, Colorado, also had his license permanently revoked and a fine of $46,000 imposed. The Board filed charges against Fajt on October 26, 2006 alleging 113 violations of Colorado law. The Board asserted that Fajt overvalued 13 properties in the Pueblo, Colorado area by as much as 75%. In addition, Fajt failed to disclose seller concessions and cash provided to buyers at closing. Fajt agreed to permanently surrender his license in exchange for the Board staying $36,000 of the fine. Should Fajt attempt to reapply for licensure, the remaining $36,000 will automatically and immediately become due.
In a separate case, the Board alleged appraiser James Esters, Pueblo, Colorado overvalued eight Pueblo, Colorado properties. The Board assessed a $24,000 fine. Esters agreed to permanently surrender his appraiser license and pay $7,500, the balance of the fine becoming due should he attempt to reapply for licensure.
Overvaluing property contributes to the state’s rising foreclosure rate. “We will aggressively pursue appraisers who demonstrate a pattern of overvaluing properties,” said Erin Toll, Director of the Division of Real Estate. “We will be taking a particularly close look at valuations in Greeley and Pueblo, counties with extremely high foreclosure rates.”
mortgage fraud
Julie M O’Gorman runs FRRECI.com She trains her multi-office staff to appraise properties just like herself. I would be interested to know of the status of her business, and fellow overvaluating appraiser staff.
Posted by on 07/11 at 06:01 AM
Hello. Have you heard of the “money merge account” as a way to pay down a 30 year mortgage in 10-12 years? As touted by United First Financial of Utah and other brokers (CMG), $3500 buys you a computer program that manages your HELOC so that all deposits pay down your mortgage as long as you keep the equity loan at zero.
If you Google the term on financial message boards, you’ll notice the word scam appears, but if you dig deeper, it seems to be a serious program. I’ve asked a few bankers and brokers, but they’ve never heard of this method. Any thoughts on this?
Thanks for a reply.
hgoldie
Posted by on 07/28 at 01:58 PM
If you’re interested in news about mortgage fraud, as well as news and analysis about the mortgage meltdown, check out our blog: The Fox Real Estate Report at 1031netex.wordpress.com.
Thanks.
Posted by on 04/20 at 02:58 PM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
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.
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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.
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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 
