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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Raymond Walter Zwego, Jr., 60, Kansas City, Missouri., was sentenced by U.S. Chief District Judge Fernando J. Gaitan, Jr., to 10 years in federal prison without parole. The court also ordered Zwego to pay $5,599,767 in restitution. The court also sentenced Zwego to three years in federal prison, to be served consecutively to the mortgage fraud sentence, for violating the terms of his supervised released on a prior bank fraud conviction, for a total sentence of 13 years.
Zwego, who owned and operated Xpress Car Sales, Xpress Car Rental, North Mission Investments, Cobalt Blue, LLC, and Indigo Blue in North Kansas City, pleaded guilty on Oct. 19, 2007, to being the organizer and leader of the conspiracy to defraud Fieldstone Mortgage Corporation. Zwego also pleaded guilty to 11 counts of wire fraud related to the attempted sale of a residential property at 5034 Sunset Drive, Kansas City, Missouri, at an inflated price. Conspirators falsely represented to Fieldstone Mortgage that the sale price was $1.2 million, while in reality, the actual sale price was $707,000. Conspirators sought to obtain a loan to purchase the property through a fraudulent loan application and other fraudulent documents.
Zwego’s fraudulent real estate closings included approximately 60 properties with loans totaling approximately $16.9 million. Each of these loans was structured in such a way that Zwego received excess funds from the loan closings as a result of inflated appraisals and numerous false and fraudulent documents, as well as misrepresentations to multiple people and entities. These loans were financed by mortgages from 25 lenders, who sustained losses totaling approximately $5.6 million as a result of the fraud scheme. Zwego received approximately $3.3 million through his company, North Mission Investments, during the three-year scheme.
Zwego is among seven co-defendants who have pleaded guilty to their roles in the conspiracy to commit mortgage fraud and the fifth of those defendants to be sentenced. Two co-defendants were convicted at trial for their roles in the conspiracy and also have been sentenced.
Monty J. Kinman, 27, Overland Park, Missouri, was sentenced to two years and six months in federal prison without parole. The court also ordered Kinman to pay a $2,500 fine. Kinman was the regional manager and a loan officer at Soldi Financial in Overland Park.
Rick A. Peterson, 34, Lenexa, Kansas, was sentenced to five years in federal prison without parole. The court also ordered Peterson to pay a $2,500 fine. Peterson was a title insurance officer and loan closer from January 2004 through January 2007, first at Parkway Title in Overland Park, Kansas, then at Freedom Title in Kansas City, Missouri, where he was the manager of the office.
Kinman and Peterson were each convicted at trial on Nov. 7, 2007, for the mortgage fraud conspiracy as well as one count of wire fraud.
James R. Rhoades, 48, Kansas City, Missouri, was sentenced to five years of probation and ordered to pay a $2,000 fine and $5,395,843 in restitution. Jeremy A. Plagman, 30, Lee’s Summit, Missouri, formerly an appraiser doing business as JET Appraisals in Lee’s Summit, was sentenced to two years of probation, including 30 days of home detention under electronic monitoring. As a condition of his probation, Plagman may not be involved in the real estate industry. Larry E. Barshaw, 57, and Linda M. Thompson-Barshaw, 59, Kansas City, Kansas, were each sentenced to five years of probation, including six months of home detention. The court also ordered each of these three co-defendants to pay a $2,000 fine, and ordered the Barshaws to pay $1,517,108 in restitution.
The Barshaws were recruited as “straw buyers,” posing as purchasers of the Sunset Drive property. In reality, the Barshaws never intended to reside at the residence or to make payments on the mortgage. They were to be paid $40,000 for their role in the conspiracy. Thompson-Barshaw is the owner of Colormarc, Inc., a remodeling business that employs her husband, Larry Barshaw.
James E. Coleman, 60, Kansas City, Missouri, pleaded guilty on May 21, 2007, to his role in the mortgage fraud conspiracy and four counts of wire fraud. Coleman is a Certified Public Accountant who formerly served as president of the board of a Kansas City magnet school. A sentencing hearing for Coleman is scheduled on Friday, Sept. 26, 2008.
Michael Rodd, 54, Olathe, Kansas, pleaded guilty on June 27, 2007, to his role in the mortgage fraud conspiracy. Rodd was a real estate broker doing business as Heartland of America, Inc., in Olathe. Rodd is currently a fugitive and a federal warrant has been issued for his arrest.
This case is being prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and Gene Porter. It was investigated by the Federal Bureau of Investigation.
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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