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
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Two More Charged in Cincinnati Federal Flipping Investigation
A loan originator and a loan processor have agreed to plead guilty after being charged by information in connection with the ongoing investigation into mortgage fraud in the Greater Cincinnati area of Ohio.
Ike Bronson, a former loan originator at Seven Hills Financial mortgage brokerage, was charged by information and has agreed to plead guilty to bank fraud, conspiracy and filing a false tax return. A hearing for acceptance of his plea has been set for January 12, 2006.
The information alleges that, on or about January 31, 2003, Kevin Vallandignham purchased property at 2540 Queen City, Cincinnati, Ohio for $85,000. Bronson prepared Vallandignham’s loan application that indicated the source of down payment was the borrower’s checking/savings account. According to the HUD-1 settlement statement Vallandignham brought a down payment of $6,695.70 to the closing. In fact, according to the information, Bronson brought the down payment and signed the loan application as loan originator knowing that it was false. Also submitted to the lender was a false appraisal supporting the inflated sales price of $85,000.
In his plea agreement, Bronson admitted that he engaged in a flipping scheme to defraud lenders that operated between January 1, 2002 and February 14, 2005 by knowingly submitting false documents in support of loan applications to lenders as well as false HUD forms. Bronson furthered the scheme by acting as a loan originator and recruiter. He recruited buyers to purchase properties at inflated values and was aware the buyer did not bring the down payment to the closing. He was also aware that the buyer often received a non-disclosed ‘kickback’ out of the closing. As a loan originator at Seven Hills Financial, Bronson prepared loan applications that overstated borrower’s income and assets. He also knew that the appraisals grossly overstated the property values in order to generate higher loan amounts.
The plea agreement references the May 21, 2003 purchase by Cory Owens of 138 Kinsey Street, Cincinnati, Ohio for $85,000. Bronson prepared the loan application which indicated the source of the down payment was Owens‘ “cash on hand.” Although the HUD indicated that Owens brought a down payment of $4,732.57 to the closing, it was actually brought by Bronson, according to the plea agreement. The appraisal was also inflated.
The plea agreement also states that Bronson willfully filed a false tax return for 203. During that year, according to the plea agreement, he received payoffs from fraudulent loan proceeds made payable to his shell company, LCI Financial.
According to the plea agreement, the United States and Bronson agreed that he caused an actual or intended loss to various financial and lending institutions of $728,865 and failed to report $131,217 of income on his tax return, thereby understating his tax liability by $40,440.
Bryan Young, a loan processor who, according to his plea agreement, processed loans for Cathy Yocum, was also charged by information and has agreed to plead guilty to bank fraud and conspiracy. A hearing for formal entry of the plea is set for January 12, 2005.
In his plea agreementYoung admitted that he engaged in a flipping scheme to defraud lenders that operated between May 1, 2001 and December 31, 2001 by knowingly submitting false documents in support of loan applications to lenders as well as false HUD forms. Young furthered the scheme by servicing as the loan processor for some of the flipped properties, according to the plea. During the course of his work, according to the plea agreement, he conspired with others to submit false loan packages to various financial institutions. He knew that borrowers were not bringing down payments to closing but rather that co-conspirators were bringing the down payments. He admitted to processing approximately 15 to 20 loans that contained false documents including false loan applications. Young was paid $300 to $350 by his employer for each loan he processed and also received monthly cash payments ‘under the table’ from Cathy Yocum for whom he processed the fraudulent loans, according to the plea agreement. Click here to read the Mortgage Fraud Blog article on the charges against Yocum.
The information refers to Christian Larson’s August 31, 2001 purchase of 114 N. 10th Street, Hamilton, Ohio from Ronald Trester for $85,000. Click to review the Mortgage Fraud Blog articles on Ronald Trester’s guilty plea and sentencing. Young acted as the loan processor for the loan. The HUD-1 reflects the borrower brought $9,744.28 to the closing supported by a loan application that reflected a bank account balance of $39,000 as source of the down payment. In reality, according to the information, the borrower did not have those funds and did not provide them to make the down payment.
According to the plea agreement, the United States and Young agreed that he caused an actual or intended loss to various financial and lending institutions of $255,370.
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.
Defaulted Loans May Haunt Seniors On Line WSJ.Com
A little-noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.
Oregon to Help Homeowners Prevent Foreclosures CBS State
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.
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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