Former NFL wide receiver Irving Fryar is out of prison after serving just eight months of a five-year sentence for mortgage fraud.
Source: Irving Fryar released after 8 months of 5-year prison sentence | ProFootballTalk
The scheme is used by borrowers who don t have enough income to qualify for a regular mortgage, so they apply for a higher rate non-owner-occupied loan.
Source: National Mortgage News – A New Type of Occupancy Fraud: Fake Investors
Former execs cleared on some charges
Source: Jury issues mixed decision in Thornburg fraud case | Albuquerque Journal
A disbarred Wading River attorney previously convicted in a $4 million real estate Ponzi scheme was indicted last month for wire fraud in connection with an alleged theft that occurred prior to her conviction, according to a federal indictment.
Source: Convicted Wading River Ponzi schemer indicted — again | Riverhead News Review
Suffolk County prosecutors are working with the state attorney general’s office as it investigates a Roxbury real estate dealer and two of his sons who are at the center of allegations of fraud and forgery involving numerous properties, according to a spokesman for the district attorney’s office.
Source: District attorney, AG investigate Roxbury real estate dealer – The Boston Globe
A notorious Manhattan landlord who the state attorney general likened to Bernie Madoff is close to reaching a plea agreement on his mortgage-fraud case, his attorney said Tuesday.“We are working
Source: ‘Madoff of landlords’ close to plea deal in fraud case | New York Post
Angel Garcia-Oliver, 49, Miami, Florida, pleaded guilty to conspiracy to commit bank and wire fraud. He faces a maximum penalty of 30 years in federal prison.
According to the plea agreement, Garcia-Oliver was the principal of Garcia-Oliver & Mainieri, P.A., a law firm located in Coral Gables, Florida. Tribute Residential, LLC, which was owned by a co-conspirator, owned and sold multiple communities. Garcia-Oliver, or employees working at his direction, served as settlement agents and conducted dozens of real estate closings for condominium units owned by Tribute, including Cypress Pointe in Orlando, Florida and the Villas at Lakeside in Oviedo, Florida. Continue Reading…
David B. Pick, Bowie, Maryland, was sentenced to 5 months imprisonment to be followed by 3 years supervised release. He was ordered to pay restitution of $383,178. He previously pled guilty to making false statements arising from a real estate closing.
As previously reported by Mortgage Fraud Blog, Pick was a loan originator respons Continue Reading…
They lost their bid for a new trial in the largest mortgage fraud case in Nevada.
Now federal prosecutors want a judge to order former real estate broker Eve Mazzarella and her ex-husband, Steven Grimm, returned to prison to continue serving lengthy terms behind bars while they appeal their 2011 convictions.
“The ‘substantial questions’ of law and fact they raised to be released from prison have been resolved by this court in favor of the government,” Assistant U.S. Attorney Sarah Griswold wrote in court papers filed late Monday.
Cecil Sylvester Chester, 68, Mitchellville, Maryland pleaded guilty to charges arising from the fraudulent purchase of seven properties in Baltimore, Maryland, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.7 million.
“Mortgage fraud perpetrators steal by inducing lenders to make loans that will never be repaid, and they harm neighborhoods when the inevitable foreclosures drive down property values,” stated U.S. Attorney Rod J. Rosenstein.
Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland. Co-conspirator Andreas Tamaris, 44, Bel Air, Maryland, purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown, Maryland.
According to his guilty plea, from February 2008 to July 2009, Chester and his co-conspirators, including Alexander Sivels, II, 32, Baltimore, Maryland, found buyers for Tamaris’ properties and for other property owners. Chester persuaded individuals, who were inexperienced with residential real estate transactions and who lacked the funds needed to pay the down payment and closing costs, to purchase Baltimore row houses owned by Tamaris or otherwise located by the conspirators. Chester advised these “straw purchasers” that they didn’t need to contribute funds for the down payment or closing costs to buy these properties. Chester also advised that he would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed, and that Chester would collect the rent and make the mortgage payments.
Chester and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit.
The conspirators provided false information about the straw purchasers’ employment, income and financial assets, as well as fraudulent supporting documentation to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
Chester brought the straw purchasers to the closing, and then caused the straw purchasers to falsely sign certifications in the closing documents affirming that they intended to use the properties as their primary residence and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Chester and the other conspirators received substantial payments drawn from the proceeds of the loan.
Few, if any, payments were made towards the mortgages. All of the seven properties which Chester was involved in went into foreclosure, resulting in a loss of at least $1,482,207.
Chester faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud, and for wire fraud. U.S. District Judge James K. Bredar has scheduled sentencing for March 23, 2016 at 2:00 p.m.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office.
In a related proceeding involving two of the properties at issue in the instant case, co-conspiratorTamaris, previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Sivels previously pleaded guilty to wire fraud involving the fraudulent purchase of at least nine properties in Baltimore. Both Tamaris and Sivels are scheduled to be sentenced on September 27, 2016.
United States Attorney Rod J. Rosenstein commended the FBI , HUD OIG – Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.