Thursday, October 20, 2005
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.”
mortgage fraud
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
Posted by
Jim Downing on 10/25 at 04:25 AM
Wow, I never knew so much fraud was going on.
Posted by
aaron on 10/29 at 10:42 AM
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…
Posted by on 09/20 at 09:57 AM
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Mortgage Scam Ends with Prison
The Morning Call
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Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
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Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
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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 
