Man Sentenced for Defrauding Mortgage Lending Institutions

Stephanie Abbott —  October 26, 2018 — 1 Comment

James Bayfield, 46, Queens, New York was sentenced today to 21 months’ imprisonment, to be followed by three years of supervised release, for conspiracy to commit bank and wire fraud.

Bayfield, a self-described mortgage specialist, was convicted by a federal jury in January 2017 for his role in a multi-million dollar mortgage fraud scheme. http://www.mortgagefraudblog.com/?s=James+Bayfield

Between September 2008 and May 2011, Bayfield and his co-conspirators caused mortgage loan applications with false information to be submitted to lending institutions, including Amtrust, Bank of America and JPMorgan Chase, in connection with the purchase of residential properties located in Brooklyn and Queens, New York.  These applications contained fraudulently inflated purchase prices and false information about the assets and income of the purported purchasers, many of whom were paid to act as straw purchasers.  Bayfield and his co-conspirators also provided false down payment checks to make it appear as if the straw purchasers and other borrowers had made down payments on the properties.

To complete their scheme, Bayfield and his co-conspirators conducted simultaneous and secretive purchases and sales of the properties, sometimes called “flips,” at inflated prices.  Ultimately, the lending institutions issued millions of dollars of mortgage loans secured by properties with inflated appraisal values, and many of these loans were placed into default status.

Bayfield was also ordered to pay $184,651 in forfeiture.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentencing.

Bayfield has portrayed himself as a mortgage specialist, but now stands exposed as a convicted thief who used his knowledge of real estate transactions to carry out his fraudulent schemes against lending institutions,” stated United States Attorney Donoghue.  “This Office will continue working with our law enforcement partners to vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of lenders left holding the loans.”  Mr. Donoghue thanked the Federal Bureau of Investigation; the Federal Housing Finance Agency, Office of Inspector General; the U.S. Department of Housing and Urban Development, Office of Inspector General; the Federal Deposit Insurance Corporation, Office of Inspector General; and the New York State Department of Financial Services for their hard work and dedication over the course of this multi-year investigation and prosecution.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys David C. Pitluck, Mark E. Bini and Michael T. Keilty are in charge of the prosecution.

Stephanie Abbott

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One response to Man Sentenced for Defrauding Mortgage Lending Institutions

  1. Ronald NMI Williams November 12, 2018 at 1:09 pm

    Criminal agencies such as the FBI, prosecutors, as well as the courts, do not hesitate to prosecute and imprison perpetrators who commit fraud against lending institution. But when the fraud comes from a different directions – the institutions being the suspect, it is another whole different. To those out there who were foreclosed on by JP Morgan Chase Bank, where the Note was originated by former Washington Mutual Bank. The Federal Deposit Insurance Corporation has formed an unholy fraudulent union with JP Morgan Chase Bank. Homeowners who tried to sue JP Morgan Chase Bank regarding foreclosure of Washington Mutual Notes, are usually met with dismissal motions by Chase, where it claims to have obtained rights of a WaMu Note from the FDIC, as receiver for Washington Mutual Bank. The best kept secret is 12 U.S.C. 1821(d)((6) and 12 U.S.C. 1821(D)(13)(D). The statutes precludes Chase Bank from responding to a Complaint alleging fraudulent foreclosure, by an action where the Court has to determine the rights conveyed by a mortgage note, where Chase’s claim is the Washington Mutual Note had been obtained from the FDIC, acting as receiver for Washington Mutual Bank. This means and I have first hand knowledge, Chase is barred from defending foreclosure action, where Chase claims to have obtained the rights to the Note from the FDIC acting as receiver for Washington Mutual Bank. The FDIC is deliberately enabling Chase to foreclose on such Notes while knowing that the FDIC and it alone has jurisdiction to determine rights conveyed by a mortgage note where the Note is from a closed bank with the FDIC acting as the bank’s receiver. Chase’s success in foreclosing on WaMu Notes in my case and thousands of other, is the direct result of corruption within our judicial system. In Williams v. United States of America, the judiciary literally acted as a co-principal in the taking or our home: by orders enabled the FDIC not to adjudicate the claims I submitted against the FDIC and Chase Bank. My claims were denied without my mandated right to an FDIC adjudication of my claims. The entire Circuit of the District of Columbia appeals court, and each and every one of them, dismissed my petition for rehearing despite proof that the three-judge panel deciding my appeal, made a false Order in our opponent’s favor. Our opponent was the United States of America, from conduct against us taken by the FDIC. Homeowner victims of Chase , I can be reached at 702 270-9937 or rnwil3@aol.com. My court papers present conclusive proof of all I state against Federal Judges, the FDIC and JP Morgan Chase Bank. An enterprise as it the case of all courts with similar cases, are subjecting homeowner plaintiffs suing for foreclosure, to a fraud upon the court and obstruction of due administration of justice. I need to be put in touch with persons similarly situated, for class action purposes.

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