Monday, October 05, 2009

2 Men Plead Guilty to Mortgage Fraud Scheme

Ricky Dean Unruh, 43, Wichita, Kansas, and Steven Ray Spencer, 48, Carl Junction, Missouri, pleaded guilty in federal court to their roles in a $1.2 million mortgage fraud scheme.

The mortgage fraud schemes involved a total of 20 houses with home mortgage loans ranging from approximately $200,000 to $500,000. The amount of loan proceeds returned to the borrowers ranged from less than $30,000 to more than $100,000. Some of the home purchasers subsequently defaulted on the loans, and the homes have been foreclosed or are in the process of being foreclosed.

Unruh waived his right to a grand jury and pleaded guilty before U.S. District Judge Richard E. Dorr on Wednesday, Sept. 30, 2009, to a three-count information that charges him with mortgage fraud. Spencer also pleaded guilty yesterday to the charges contained in a Nov. 20, 2008, federal indictment.

Unruh was involved in the purchase of three homes in Ozark, Missouri, for a total mortgage amount of $1,149,158. Unruh admitted that he participated in a conspiracy to obtain mortgage loans for the purchase of homes based on false loan applications, and to return approximately $238,500 of the total loan proceeds to the purchasers of the homes without the lender's knowledge and outside the closing of the home purchase.

The members of the conspiracy included Charles M. Davis, 34, Rogersville, Mo., and Scott Allen Kassebaum, 42, and his wife Cheryl Joan Kassebaum, 43, both of Ozark, Mo., who have each pleaded guilty in a separate but related case. Davis is a former mortgage broker who was the owner of Master Marketing Consultants. The Kassebaums are former mortgage brokers and co-owners of Metro Consulting Group.

Spencer admitted that he was involved in two separate conspiracies to obtain mortgage loans for the purchase of homes based on false loan applications, and to return a significant portion of the loan proceeds to the purchasers of the homes without the lender's knowledge and outside the closing of the home purchase. Spencer's role in each conspiracy was to be a purchaser/borrower, to execute loan applications that he knew were false, to solicit other purchasers/borrowers for the scheme, and to receive and, on occasion, to facilitate the return to other purchasers/borrowers of a significant portion of the loan proceeds without the lender's knowledge and outside the closing of the home purchase. Spencer knew that the loan applications were false in that the loan applications included overstatements of income and understatements or omissions of liabilities, falsely represented that the purchaser/borrower intended to reside in the home to be purchased, and, in some cases, stated a false place of employment for the purchaser/borrower.

One conspiracy that involved Spencer also included co-defendants Davis and Shanda Lynn Moore, 45, Springfield, Mo., who has pleaded guilty to her role in the mortgage fraud conspiracy. The second conspiracy also included co-defendant Randall Lee Hall, 59, Springfield, who has pleaded guilty to his role in the mortgage fraud conspiracy and to wire fraud. Hall admitted that the economic loss attributable to his criminal conduct is at least $217,556.

Spencer admitted that the aggregate amount of the loan proceeds obtained through false loan applications and returned to himself or other purchasers/borrowers, without the lender's knowledge and outside the closing of the home purchase, attributable to his criminal conduct is at least $375,556. The government believes that aggregate amount is $436,556.

Unruh pleaded guilty to one count of conspiracy to commit wire fraud and money laundering, one count of wire fraud and one count of money laundering related to a mortgage fraud scheme. In a separate but related case, Spencer pleaded guilty to two counts of conspiracy to commit wire fraud, one count of wire fraud and one count of money laundering.

Under federal statutes, Unruh is subject to a sentence of up to 45 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. Spencer is subject to a sentence of up to 50 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

Matt J. Whitworth, United States Attorney for the Western District of Missouri, announced the guilty pleas.

This case is being prosecuted by Assistant U.S. Attorney Douglas C. Bunch. It was investigated by the Federal Bureau of Investigation and IRS-Criminal Investigation.

mortgage fraud

Post a Comment Name: Email: Location: Smileys Remember my personal information Notify me of follow-up comments? Submit the word you see below: The trackback URL for this entry is: Trackbacks: Previous entry: Search posts: Advanced Search --> Enter your Email Preview | Powered by FeedBlitz

Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. 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. Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty. Follow Anne on Twitter. Thursday, February 18, 2010 F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question: Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan? Judge Julie Robinson responded by admonishing the jurors to read all of the instructions. The jury presented its' verdict... Read More... 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... Read More... 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... Read More... 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... Read More... 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... Read More... More Trial Coverage

What's Your Opinion?

ORDER NOW!!

Blog Roll

All Foreclosure Information and Resources Housing Storm Calculated Risk Mortgage Lender Implode-O-Meter Home Gain Blog Rain City Guide Real Estate Tomato Blood Hound Blog Appraiser Active Fraud, Phishing and Financial Misdeeds The Collar - US News and World Report Georgia Bankruptcy Blog Fighting Fraud Newsday Real LI Matrix