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

1. 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

2. Wow, I never knew so much fraud was going on.

   Posted by aaron  on  10/29  at  10:42 AM

3. 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

4. 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

5. 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