Monday, October 31, 2005

Two Indictments in Cincinnati Mortgage Fraud

Two men were indicted in connection with allegations that they engaged in a $2.3 million dollar mortgage fraud scheme in Greater Cincinnati, Ohio over the course of several years. The fraud scheme has already resulted in 30 guilty pleas.

Troy Scott Clements and Ralph Edward Mitchell were named as defendants in a twenty one counts indictment including charges of conspiracy, bank fraud, money laundering and mail fraud.

According to the indictment, Clements was a private mortgage lender in Southwest Ohio and operated under trade names of American Funding, T.C.T. Contracting and Troy Clements, Trustee. American Funding’s offices were co-located with the offices of Airline Union’s Mortgage Company, a Cincinnati, Ohio mortgage brokerage. Mitchell worked as a loan officer for Airline Union during 2001, 2002 and 2003.

The indictment alleges that , beginning prior to April 20, 2001, Clements, Mitchell and their co-conspirators would recruit home buyers via, among other means, newspaper solicitations or bulk mailing advertisements for 100% financing with no money down.  Generally, Clements would allow buyers to locate property that he would review for potential value and, if he determined he could ensure it could be refinanced for the final buyer, he would then purchase the property as Troy Clements, Trustee. Clements would then resell the property to the client borrower and have the client sign a note and mortgage to American Funding in an amount higher than what Clements paid for the property – the increase was referred to as an ‘investor fee.’ Clements would then direct employees of Airline Union to arrange for a refinance loan from a legitimate mortgage lender.  False documents were created to support the applications including false retirement statements, VODs, VOMs, VOEs, debt payoffs and appraisals. 

The indictment alleges than financial institutions were defrauded of over $2.3 million and over $1.5 million was laundered.

Property transactions detailed in the indictment include:

322 Millville Avenue, Hamilton, Ohio

5956 Flaig Drive, Fairfield, Ohio

5417 French Court, Cleves, Ohio

9895 Arborwood, Cincinnati, Ohio

5337 Globe Avenue, Cincinnati, Ohio

7421 Bernard Avenue, Cincinnati, Ohio

3918 South Fordham Place, Hamilton, Ohio

19 Eland Court, Fairfield, Ohio

3956 Trevor, Cincinnati, Ohio

2871 St. Rt. 132, New Richmond, Ohio

3426 Miami Court, Cincinnati, Ohio

7942 Albritton Place, West Chester, Ohio

6747 Plum Street, Goshen, Ohio

160 Arlington Drive, Franklin, Ohio

819 Central Avenue, Newport, Kentucky

2182 Harrison Avenue, Cincinnati, Ohio

6925 Buckingham Place, Cincinnati, Ohio

Both defendants were arrested and released on their own recognizance.

mortgage fraud

1. I think your information is not entirely true.  You mistakenly grouped all of the unrelated cases in Cincinnati, into this indictment.

   Posted by  on  11/10  at  08:45 AM

2. Clements pled guilty on September 22, 2006 at his pretrial hearing. Per 9/23/2006 Cincinnati Enquirer article and 9/24/2006 call from Postal Inspector.

   Posted by  on  09/25  at  06:33 AM

3. I owned a property on West Tower that Troy Clements was involved in.  I worked with an FBI investigator for some time back in 2003-2004 regarding this matter yet it was never mentioned in this indictment.  Troy was doing this to people way before he was part of Airlines Union.  What about all of those cases or was there not enough eveidence there? Also, my understanding is that he received 24 months in prison for this back in Feb. 2007.  Why is he not in prison right now? Our lives were ruined because of this man and I want to see Justice!

   Posted by  on  06/06  at  08:51 AM

4. I am a real estate agent working with a relatively new client whom is trying to sell her home which she purchased in 2003 from Troy Clements. While recently speaking with a different real estate agency she found out that Clements was arrested for fraud. According to the Hamilton County Auditors Website she paid $72,000 for the home which Clements paid $67,000 for 2 days prior. She has called for payoff and the lender told her she still owes $74,000. Something is not adding up. If she has been on time with her payments (which she said she has) then the payoff should be somewhat lower than purchase price! I have asked her to find the purchase contract so that I can help her resolve this issue. Until then, is there somewhere she can go or to someone she can report to have her case investigated?

   Posted by  on  03/16  at  05:22 PM

5. After reading comments 3 and 4 above I had to comments myself. I have known Troy for over 20 years. He started working when he was about 15 years old and had nothing. No matter where he was working he worked hard and was never afraid to take a chance.Randi(comment #3)Troy was doing what long before......helping people get loans that could not without his help. What Troy got in trouble for was a parallel to Pete Rose. They reviewed 100’s of loans, found a few that were less than perfect and made him an example.Angela
   (comment #4) many mortgage lenders have fees for early payoff.It is likely the case here, nothing to do with Troy. Beyond that if client bought a house for $72,000 and she new the purchase price how is the fact that Troy bought it for $67,000 relevant. In any other business he would be considered a finacial guiness. In the lending business they call him a crook, a pathetic double standrad that is supposed to protect “the american dream”
   Think About it.

   Posted by  on  09/04  at  03:55 PM