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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Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
