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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A website that claimed to offer a method to consumers whereby they could pay off a 30-year mortgage in full, and make a quarter of a million dollars, all in a matter of months, was shut down by consent order.
Following the filing of a lawsuit by New York Attorney General Eliot Spitzer’s office in September 2005, Jeffrey Augugliaro, Malverne, New York was ordered to immediately pay over $200,000 to consumers who were victimized by a mortgage payment scam he perpetrated through his business, Brixdale, Inc. The judgement entered in State Supreme Court in Mineola, New York required him to pay additional restitution of over $700,000 to affected Brixdale consumers and to make a payment of $100,000 to a charitable organization designated by the court.
The judgment also requires Augugliaro to shut down all his businesses and websites, permanently bars him from operating any further internet operations, and unless a $100,000 performance bond is posted, bars him from operating any type of consumer business in New York state.
Using the website, brixdale.com, Augugliaro promised consumers that by allowing him to take control of the electronic transfers of their monthly mortgage payments, consumers could not only pay off an entire 30-year mortgage in full, but could also easily make a quarter of a million dollars, all in a matter of months. Nationwide, about 3,000 consumers signed up.
The lawsuit alleged that the Brixdale scam was an illegal pyramid scheme, whereby consumers were encouraged to recruit others to sign up. Those new members, in turn, had to recruit new members to perpetuate the scheme. Consumers were lured into making “extra” mortgage payments, but rather than making the mortgage payments as promised, Augugliaro siphoned off some of the funds himself and to pay commissions to others. As a result, hundreds of thousands of consumers’ dollars were drained from the Brixdale account.
In another scam, Augugliaro set up a business named People Helping People and a purported charitable organization named the American Cancer Aid Foundation, and solicited donations for cancer prevention research on the internet. Donors were promised two free airline tickets worth up to $1,600 that they could use to fly anywhere in the world. The lawsuit charged that none of the money solicited was ever donated to charity, but was misappropriated by Augugliaro and his associates. Furthermore, there were no free airline tickets, and consumers received nothing for their donation.
The Court has designated that the $100,000 ordered to be paid to a charitable organization be distributed to the American Cancer Society, whose mission is consistent with the purported purposes of the organizations, namely cancer prevention, treatment and service. In addition, evidence suggested numerous consumers who donated money to the defendants’ fake charity thought they were donating to the American Cancer Socirty.
The “free” airline ticket scam was also promoted through other businesses run by Augugliaro, and was offered on his websites, massmarketingprogram.com and jamco.com
Augugliaro recruited individuals to work for him in promoting his airline ticket scams by falsely promising that they could earn as much as $30,000 per month working at home by recruiting others. At one point, he had as many as five thousand “directors” worldwide who promoted his scams. These directors set up their own websites to promote the “free” airline tickets, placed advertisements on the internet, and in some cases sold fake tickets on e-Bay. The lawsuit alleged that thousands of consumers were defrauded, including cancer victims.
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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