Tuesday, July 11, 2006
Three Plead Guilty in South Carolina Mortgage Fraud
Three men pled guilty in connection with a mortgage fraud scheme in South Carolina that involved over 88 properties and over $5.5 million dollars in loans. Robert Byron Green, John Raymond Hoy and Gary Joseph Hoy each plead guilty to one count of conspiracy to commit mail fraud and one count of making false statements in connection with a loan application, aiding and abetting.
Also charged in the case were appraisers Allen Dean Raitt, Jeannine Raitt and Steven C. Dubose. Prosecution of the charges against these defendants were deferred for 18 months for the purpose of allowing the defendants to demonstrate good conduct and, according to court documents, those defendants were entering a Pretrial Diversion Program.
All of the defendants were initially indicted on December 7, 2005 and charged with one count of bank fraud. Green, John Raymond Hoy and Gary Joseph Hoy were also charged with 39 counts each of making false statements to a financial institution, aiding and abetting and 9 counts of making false statements to a financial institution. The additional charges were dropped in connection with the guilty pleas.
According to the superseding indictment filed on April 4, 2006, John Raymond Hoy and Gary Joseph Hoy (dba DNR Investments, Inc.) would locate properties for sale in South Carolina and contract with the sellers to purchase the properties at or below the initial asking price and would locate potential buyers for quick resales of the properties. Green, John Raymond Hoy and Gary Joseph Hoy submitted false financial information concerning the potential buyers in mortgage loan applications. Allen Dean Raitt, Jeannine Raitt and Dubose would be retained to prepare inaccurate appraisals for the properties. The appraisals falsely stated that each of the properties had recently been purchased as a foreclosed property and had then been thoroughly updated and remodeled, or had undergone major renovations. Green, who was a loan for Branch Bank & Trust, accepted the inaccurate appraisals and loan applications for mortgage loans from Branch Bank & Trust. Applications also indicated that the applicants had proposed down payment money to be paid towards the purchase of the properties when the applicants did not have nor intend to pay such down payment money.
During the pendency of the case, Allen and Jeannine Raitt filed a motion to suppress a statement made by Allen Raitt to authorities. Dubose also filed a motion to suppress statements made by Dubose (Dubose Statement 1, Dubose Statement 2, Dubose Statement 3.)
Properties mentioned in the indictment include:
124 Glenncrest Drive, Gaston, South Carolina
319 Kingbird Street, Lexington, South Carolina
304 Deer Crossing Road, Gaston, South Carolina
64 Favor Road, Camden, South Carolina
3912 Coates Road, Kershaw, South Carolina
212 Forestbrook Lane, Gaston, South Carolina
110 Chadwood Circle, Lexington, South Carolina
153 Peak View Road, Lexington, South Carolina
372 Sweet Pea Lane, Swansea, South Carolina
1206 Whiskey Road, Leesville, South Carolina
1025 Heyward Brockington Road, South Carolina
632 Boy Scout Road, Gaston, South Carolina
1490 Charles Town Road, Pelion, South Carolina
131 Rister Road, Gaston, South Carolina
239 Riding Ridge Road, Ridgeway, South Carolina
415 George Lane, Newberry, South Carolina
207 Lantern Hill Circle, Lexington, South Carolina
153 Henry Street, Prosperity, South Carolina
271 Watts Hill Road, Elgin, South Carolina
705 Boy Scout Road, Gaston, South Carolina
335 Charm Hill Road, Lugoff, South Carolina
155 Rish Drive, Leesville, South Carolina
1797 Three Branches Road, Lugoff, South Carolina
1311 Kennedy Road, Lugoff, South Carolina
201 Wild Bird Lane, Gaston, South Carolina
170 Sheffield Road, Elgin, South Carolina
1180 Congaree Road, Hopkins, South Carolina
275 Ashley Creek Road, Elgin, South Carolina
295 Havenwood Drive, Gaston, South Carolina
1420 Windy Wood Road, Pelion, South Carolina
184 Lake Drive, Summerville, South Carolina
951 Old Scout Court, Gaston, South Carolina
120 Daniel Drive, Kingstree, South Carolina
252 Crossfield Road, Gaston, South Carolina
178 Glenncrest Drive, Gaston, South Carolina
141 Hass Lucas Road, Gaston, South Carolina
171 Charm Hill Road, Lugoff, South Carolina
355 Watts Hill Road, Elgin, South Carolina
441 Forestbrook Court, Gaston, South Carolina
271 Watts Hill Road, Elgin, South Carolina
275 Ashley Creek Drive, Elgin, South Carolina
29 Hidden Cove, Newberry, South Carolina
116 Stonearrow Street, Elgin, South Carolina
mortgage fraud
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Some Sources require Registration.
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. 
