Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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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Bennie Clark, indicted earlier this year for his role in a mortgage fraud scheme centered around the illegal flipping of properties has been sentenced. Clark, who pled guilty in August of 2007, must serve a total term of 24 months in prison followed by 36 months of supervised release and pay $415,504.00 in restitution. The other three defendants indicted with Clark pled guilty earlier this year and have already been sentenced.
As previously reported by Mortgage Fraud Blog, Clark, Michael Jackson (pled guilty in March, 2007, sentenced to 5 years probation and restitution in the amount of $379,604), Robert Casey (pled guilty in March, 2007, sentenced to 5 years probation and restitution in the amount of $132,929) and Donna Brown (pled guilty in March, 2007, sentenced to 4 years probation) were indicted for their involvement in a mortgage scheme involving several St. Louis, Missouri, area properties. Additionally, Brown is charged with bankruptcy fraud.
Bennie Clark worked in the mortgage brokerage field as owner and operator of World Wide Financial, LLC, providing mortgage-related services at an office located in St. Louis County. Michael Jackson was a business associate. Donna Brown worked for Clark and World Wide Financial providing loan application processing and working with title companies. Robert Casey was a straw buyer for Clark and Jackson and had a personal relationship with Brown.
The indictment alleges that between November 2002 and October 2003, these four defendants devised a scheme to defraud mortgage lenders by having a straw buyer purchase residential properties and then resell those properties at a fraudulently inflated price to a second buyer. The values were inflated by securing false appraisals. Typically, the second buyer’s loan application included false representations. The sale to the second buyer was sometimes closed on the same day as the straw buyer’s purchase of the property. The closings were often conducted in “reverse order.” In this way, the proceeds from the second buyer’s loan were used to pay for the first straw buyer’s purchase. The straw buyer would then give the proceeds of the sale to Bennie Clark.
Finally, the indictment alleges that on March 13, 2003, Donna Brown filed a bankruptcy petition under Chapter 7 of the Bankruptcy Code in United States Bankruptcy Court in the Eastern District of Missouri and failed to disclose her employment with World Wide Financial, LLC and Bennie Clark.
Bennie Clark, Lake St. Louis, Missouri, was charged with one count of conspiracy to commit fraud, three counts of wire fraud, two counts of mail fraud and four counts of money laundering. Michael Jackson, Hazelwood, Missouri, was charged with one count of conspiracy to commit fraud, three counts of wire fraud and two counts of mail fraud. Donna Brown, Lake St. Louis, Missouri, was charged with one count each of conspiracy to commit fraud, wire fraud, mail fraud and bankruptcy fraud. Robert Casey, Lake St. Louis, Missouri, was charged with one count each of conspiracy to commit fraud, wire fraud and mail fraud.
If convicted, each conspiracy count carries a maximum penalty of five years in prison and/or a maximum fine of $250,000; each wire and mail fraud count carries a maximum penalty of twenty years in prison and/or fines up to $250,000; and each money laundering count carries a maximum penalty of ten years in prison and/or a maximum fine of $250,000. The bankruptcy fraud count carries a maximum penalty of five years in prison and/or fine up to $250,000.
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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