Monday, July 14, 2008
Loan Processor Received More Than 3 Years For Approving Fraudulent Loans
Marcus Wiseman, Bethesda, Maryland, was sentenced to a term of 41 months, 5 years supervised release and restitution in the amount of $375,861, for processing and approving loans for two other individuals when he knew that the loan applications contained false representations. Restitution payments were ordered joint and several with Jeffrey Martin.
Wiseman restitution payments were ordered to the 2 following victims: $174,451 to Countrywide Home Loans; and $201,410 to National City Mortgage Company.
As previously reported by Mortgage Fraud Blog, Marcus Wiseman was indicted by a federal grand jury in Pittsburgh, Pennsylvania on ten counts of Conspiracy, Wire Fraud, and Accepting Bribes by an Employee of a Financial Institution.
According to Indictment presented to the Court, Wiseman, while employed at two different financial institutions, processed and approved loans for two other individuals when he knew that the loan applications contained false representations. In addition, the indictment alleges that Wiseman accepted payments from those two individuals related to the processing of these fraudulent loans.
According to the indictment, two individuals identified only as RH and JM, applied for loans through Guaranty Residential Lending Corporation and Accubank. They provided false documents in connection with the loans, including false appraisals that materially overstated the values of the properties and false income documents, such as W-2’s, that grossly overstated the borrower’s income.
Wiseman was an employee of Guaranty Residential Lending Corporation and later of National City Mortgage (parent of Accubank). He processed and approved the loans knowing that the loan packages contained material misrepresentations. Wiseman was paid by RH and JM for processing and approving the fraudulent loan packages.
The indictment alleges that on or about February 25, 2002, Wiseman signed an underwriting disposition with respect to property located at 7234-36 Thomas Boulevard, Pittsburgh, Pennsylania. Public records reflect that the property was purchased by Jeffrey L. Martin from HUD on 8/9/01 for $26,900 and then sold the property to Loretta Martin on 2/23/02 for $245,000. The transaction is identified as an intra-family transaction.
The indictment also references five separate payments to Wiseman, totaling $35,000, for processing fraudulent loan applications.
On November 18, 2005, the US Attorney for the Western District of Pennsylvania charged Jeffrey Martin with five counts of wire fraud by Information and, on February 15, 2006, Raymon Harris was charged with three counts of wire fraud by Information, both in connection with some of the same transactions underlying the Wiseman indictment. In those informations, the government alleges that Martin and Harris, provided false information in connection with obtaining loans. Martin plead guilty on November 30, 2005 and Harris plead guilty on March 7, 2006. Both are currently scheduled to be sentenced on September 7, 2006.
The Wiseman indictment refers to the following properties:
34 Kenny Way, Pittsburgh, Pennsylvania
7770 Thon Drive, Pittsburgh, Pennsylvania
519 Wallace Avenue, Pittsburgh, Pennsylvania
7419 Race Street, Pittsburgh, Pennsylvania
Also identified in the Thomas information are properties located at 290 Hansell Street, Pittsburgh, Pennsylvania and 4924 Dearborn Street, Pittsburgh, Pennsylvania.
Also identified in the Harris information is a property located at 3504 Shadeland, Pittsburgh, Pennsylvania.
Assistant United States Attorney Brendan T. Conway, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of two hundred and seventy-five years in prison, a fine of $9,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
mortgage fraud
Well hopefuly they can put a claim on the companies Surety Bond
Posted by on 07/17 at 08:41 AM
What was the source of this info? I can’t find it on the USAO/DOJ website.
Posted by on 07/22 at 06:16 AM
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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.
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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 
