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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Twenty Individuals Charged in Multi-Million Dollar Michigan Mortgage Fraud Schemes
“Honesty and integrity in the mortgage lending business are crucial to protecting home owners, lending institutions, and borrowers. When mortgage fraud is widespread, it undermines the stability of the housing market and the ability of lending institutions to protect themselves from debilitating losses. With these charges, we are telling the fraudulent mortgage dealers: what you’re doing is a crime, and we will prosecute you for it.”
-U.S. Attorney Stephen J. Murphy
Indicted by a federal grand jury on charges of wire fraud, mail fraud and conspiracy to commit those offenses were:
Myron L. Hooker, Jr., 39, Southfield, Michigan
Peter Garland, 36 Southfield, Michigan
Nicole Jackson, 34, Southfield, Michigan
Antwan Mcrae, 31, Detroit, Michigan
Keith Lakey, 43, West Bloomfield, Michigan
Monique Bankhead, 32, Detroit, Michigan
Also charged with wire fraud and mail fraud in criminal complaints based on similar allegations arising from the investigation were:
Michael Bigbee, 27, Detroit, Michigan
Elbe White, 33, Southfield, Michigan
Tyrone Claybrook, 33, Detroit, Michigan
Chad Evans, 38, Grosse Pointe Park, Michigan
Sylvester Hickson, 56, Southgate, Michigan
Darrick McCaster, 36, Southfield, Michigan
Kara Motley, 38, Detroit, Michigan
Yolanda Lance, 33, Southfield, Michigan
Jennie Moore, 24, Farmington Hills, Michigan
Maxine Matthews, 62, Detroit, Michigan
Jerry Matthews, 34, Oak Park, Michigan
Timothy Nowc, 35, Westland, Michigan
Rex Reddick, 37, Woodland Hills, California
Jeffrey Stillman, 45, West Bloomfield, Michigan
The 20-count Indictment charges that from January, 2003, through the date of the indictment, these defendants and other conspirators devised a scheme to defraud and to obtain money from various lending institutions, banks and individuals in the Detroit Metropolitan area of Michigan through mortgage fraud. The indictment alleges that the defendants conspired to obtain fraudulent mortgage loans on numerous properties and arranged to have the illegal proceeds of the fraud split, in varying proportions among themselves.
According to the Indictment, defendants Hooker and Garland orchestrated the fraud by coordinating and directing the activities of loan officers, straw buyers, collusive sellers, real estate appraisers, and closing agents, some of whom are also charged in the indictment. For instance, Hooker and Garland obtained falsely inflated appraisals on real estate and paid straw buyers to act as purchasers of the property. To bolster the straw buyer’s credit-worthiness, false income and asset documentation was provided by Hooker and Garland. Relying on the falsely inflated appraisals and fraudulent documentation, lending institutions approved and disbursed loans. These loans often subsequently went into default leaving the lending institutions with insufficient collateral and substantial losses.
The affidavits filed in support the criminal complaints also allege mortgage fraud schemes intended to defraud financial institutions, lending companies and individuals in the Detroit Metropolitan area and elsewhere. The named defendants played various roles in the schemes including processing fraudulent loan applications, recruiting straw buyers, arranging for falsely inflated appraisals, and receiving illegal kickbacks from loan proceeds.
Daniel D. Roberts, FBI Special Agent in Charge said, “The mortgage fraud problem continues to escalate, but the FBI is committed to aggressively pursuing these cases utilizing sophisticated investigative techniques, such as undercover operations. As reflected by today’s charges, mortgage fraud generally requires “insider” involvement, so the FBI has found that undercover operations are highly effective in uncovering those criminal acts. The mortgage fraud problem is a priority for the FBI.”
Great Article! You have a great resource here. I am not sure if you have seen the news regarding the Cincinnati area “flipping” scheme but it looks to be just as large as the Michigan one. I will put a link of your blog on mine. Keep up the good work.
Jim Downing CFE
www.weeklyfraudexaminer.blogspot.com
I have some info on a mortgage co. that commits fraud. Who is the one to contact?
Posted by on 01/27 at 10:35 AM
Please note that Mr. Peter Garland is setting his sights on the State of Florida at this time, and I have had the unfortunate pleasure of having to deal with him. He also appears to be using the alias of Peter Figueroa at this time, and others that he goes by that I have uncovered in an unrelated investigation. Anyone out there aware of any other on going cases with this guy?
Posted by on 10/22 at 06:14 AM
This article is not completely true… Only two people were convicted and all the others were only questioned and dismissed. This article is very false and needs to be updated…
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...
Legal Disclaimer.
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 
mortgage fraud
