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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 Prior Employees of Ameriquest Sentenced In Missouri Mortgage Fraud
Sentenced Range from One to Three Years for Conspirators of Brent Barber
Three mortgage company employees were sentenced in Kansas City, Missouri for their role in a property flipping scheme and mortgage fraud that involved nearly 300 fraudulent loans worth almost $20 million.
Roderick Neil Criss, 35, Kansas City, Missouri, formerly the branch manager at Ameriquest Mortgage in Gladstone, Missouri, and president of Express Mortgage, was sentenced to three years and one month in federal prison without parole. The court also ordered Criss to pay $4,553,188 in restitution.
Cauncey Calvert, 36, Kansas City, Missouri, formerly an account executive at Ameriquest Mortgage, Express Mortgage and Mid Capital Mortgage, was sentenced to one year and six months in federal prison without parole. The court also ordered Calvert to pay $9,146,578 in restitution.
Robert Dale Beckley, 34, Kansas City, formerly an employee of Express Mortgage and Mid Capital Mortgage, was sentenced to one year and one day in federal prison without parole. The court also ordered Beckley to pay $7,988,077 in restitution.
Each of the three defendants pleaded guilty to participating in a conspiracy led by co-defendant Brent Michael Barber, 42, Belton, Missouri, that resulted in the largest mortgage fraud case ever prosecuted in the Western District of Missouri. “Many of the properties involved in the property-flipping schemes are in the downtown and midtown areas of Kansas City,” Bradley J. Schlozman, United States Attorney for the Western District of Missouri, said. “These fraud schemes encompass 289 fraudulent loans totaling $19.6 million.”
Barber pleaded guilty on Febrary 23, 2006, to 104 counts contained in two federal indictments. Those indictments, as well as a third federal indictment for which Barber was convicted by a jury, involve separate schemes to defraud mortgage lending companies of millions of dollars. Barber is scheduled to be sentenced on October 30, 2006.
Barber pleaded guilty to the conspiracy count contained in each of the two federal indictments. He also pleaded guilty to 52 counts of interstate transportation of funds obtained by fraud and two counts of money laundering contained in the first indictment. He also pleaded guilty to 46 counts of interstate transportation of funds obtained by fraud and two counts of money laundering contained in the second indictment.
Barber recruited people to purchase rental properties, assuring them that he would find renters for the properties and sell the properties a short time later, so that the victim-investors would have no financial risk and a guaranteed quick profit. Then he provided false information on the loan documents and arranged for inflated appraisals in order to receive approval for the loans. Many of the buyers would not have qualified for the loans if true information had been given to the lenders.
During the first conspiracy, from May through October 1999, Barber was a client of Ameriquest Mortgage, Gladstone, Missouri. During that period, he conspired with co-defendants Criss, Calvert and Avonda Nicodemus, 34, Kansas City, Missouri, all account executives, to defraud Ameriquest. Nicodemus also pleaded guilty to his role in the conspiracy and was sentenced to probation.
As a result of that conspiracy, Ameriquest Mortgage approved 66 fraudulent loans totaling $4 million.
A second conspiracy began in October 1999, when Barber approached Criss and Calvert and suggested they set up a mortgage broker business to broker mortgage loans, giving Barber’s loans precedence. Criss and Calvert agreed, launching Express Mortgage, Inc., through which Barber conspired with Criss and Beckley to defraud lending institutions. Criss and Beckley have pleaded guilty to their roles in the conspiracy.
As a result of that conspiracy, lenders approved 233 fraudulent loans totaling $15.6 million.
In two separate but related cases, real estate appraisers Peggy Snodgrass, 40, Independence, Missouri, who operated a business in Raytown, Missouri, and Phillip Thomas, 50, Kansas City-North, Missouri, have pleaded guilty to providing artificially inflated appraisals on properties for which Barber was seeking mortgage loans.
In addition, Barber admitted he engaged in additional fraudulent real estate transactions involving both commercial and residential properties. These transactions involved more than $2.7 million of additional loss.
Under federal statutes, Barber may be subject to a maximum sentence of up to five years in federal prison without parole for each of the two conspiracy counts, plus a fine up to $250,000; up to 10 years in federal prison without parole on each of the 98 counts of interstate transportation of funds obtained by fraud, plus a fine up to $250,000; and up to 10 years in federal prison without parole for each of the four money laundering counts, plus a fine up to $250,000.
Under the terms of the plea agreement, Barber also agreed not to appeal the jury’s guilty verdicts in another federal indictment. On December 2, 2005, Barber was found guilty of three counts contained in an October 7, 2004, federal indictment.
That case involved a property flipping and mortgage fraud scheme while Barber was involved in the business of buying and selling real estate, doing business as KC Properties and KC Securities LLC. Vernon David Williams, 58, Kansas City, Missouri, was an employee of mortgage brokerage companies in Merriam, Kansas, and Lee’s Summit, Missouri. Williams pleaded guilty to his role in the scheme and was sentenced to probation.
The jury found that Barber conspired with Williams to defraud MILA, Inc., a mortgage lending company with its principal office in Mountlake Terrace, Washington, and Finance America LLC, a mortgage lending company with its principal office in Irvine, California, from July 24, 2004, to September 16, 2004.
Under federal statutes, Barber may be subject to a maximum sentence of up to 15 years in federal prison without parole for that conviction, plus a fine up to $750,000. Williams may be subject to a maximum sentence of up to 10 years in federal prison without parole, plus a fine up to $500,000.
I got a 30 year re-finance from Ameriquest in 2003 and later found out penilities for paying off early. It has been transfered to two other companies sense then. In all this time my principle of $90,000.00 is only down to $87,000.00 in 4 years
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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