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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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.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
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.
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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