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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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Twelve people were indicted by an Illinois grand jury in connection with a FHA-insured mortgage scheme that involved 48 properties in the Freeport, Illinois area over a period of almost three years. The individuals indicted include not only the ringleaders and recruiters but also individuals who signed false VOEs and credit letters verifying false financial information on behalf of borrowers.
The individuals charged in the indictment are as follows:
Price Brooks, 50, Freeport, Illinois, worked at Brooks Detail Shop
Todd Ernst, 44, Freeport, Illinois - Owner of Ernst Roofing, Freeport, Illinois
Shawn Fleming, 21, Freeport, Illinois
Douglas Hastings, 39, Lena, Illinois – Owner of several businesses including Stagecoach Trail Realty & Auction, Lena, Illinois, Presidents Club (a bar in Freeport, Illinois) and Brooks Detail Shop (a car wash in Freeport, Illinois).
Edward Martins, 40, Lena, Illinois - Principal of R&J Renovations, Freeport, Illinois
Jeffrey Meyer, 50, Winslow, Illinois – Owner of independent insurance agency known as “Meyer Insurance Agency.”
Philip Miskimon, 49, Winslow, Illinois, Principal of R&J Renovations, Freeport, Illinois
Dale Nelson, 49, Freeport, Illinois – Owner of AMD Sales & Services, Freeport, Illinois, a computer sales and services business
Chad Nicks, 30, Freeport, Illinois – Owner of Planet Wireless, a cellular telephone business, Freeport, Illinois
Akia Sanders, 23, Freeport, Illinois
Julie Smith, 47, Lena, Illinois -Vice President of an independent insurance agency known as the Marvin Uecker Agency, Lena, Illinois
Tasha Thompson, aka Tasha M. Barnes, 25, Freeport, Illinois
Hastings and his wife were in the business of buying and selling residential properties in Freeport, Illinois. Miskimon and Martins were in the business of rehabilitating and selling residential properties in Freeport, Illinois as R&J Renovations.
The indictment alleges that between January 21, 2000 and October 15, 2003 the defendants conspired to defraud HUD by obtaining FHA insured mortgages based on false information and documents.
According to the indictment, Hastings and his wife purchased numerous inexpensive houses in Freeport, Illinois and elsewhere. Miskimon and Martins would cause minor repairs and improvements to be made to the houses in order to inflate the prices. Hastings then sold the houses at inflated prices that were far more than he paid for them.
As part of the conspiracy, Miskimon and Martins actively recruited buyers and would pay a $500 fee to anyone who referred them to a buyer. Sanders and Fleming each recruited several buyers. Miskimon and Martin would arrange for HUD loans for the buyers and would prepare and falsify documents necessary for buyers to meet HUD requirements including fraudulent VOEs and pay stubs. Nelson, Ernst and Brooks signed false VOEs fraudulently representing that buyers worked for their businesses. The business owners were often paid $500 to execute a false VOE. In exchange for $100 per letter, Meyer, Smith, Nelson and Nicks signed false credit letters stating that buyers had made regular payments on accounts with their businesses.
Sanders, Ernst and Thompson posed as relatives of the buyers, contributing gift funds to meet the 3% equity requirements. Hastings would actually provide the gift funds and Miskimon and Martin would deposit those funds to the account of the person posing as a relative of the buyer. Immediately after deposit, the funds would be withdrawn in the form of cashier’s checks or official bank checks made payable to the buyers and reflecting the false relative as the remitter. Copies of the checks would be placed in the buyer loan files. Then the checks would be cashed and the proceeds would be returned to Hastings.
The loan packages containing false documents were submitted to HUD approved mortgage companies that issued the loans.
The sixty-one separate counts of the indictment detail numerous loan transactions and allege conspiracy and false statements. In total, 48 properties were involved in the scheme, 40 of which have already been foreclosed by HUD.
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.
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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.
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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.
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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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