Gary Patton Hall Jr., 49, Tifton, Georgia, the former president and Chief Executive Officer of Tifton Banking Company (from August 2005 to June 2010) pled guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit fraud against the United States in connection with his role in a bank fraud scheme in which he hid underperforming and at-risk loans from the bank and the FDIC.

According to facts stipulated in the plea agreement, while president and Chief Executive Officer of TBC, Mr. Hall was engaged in an ongoing scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses.   As part of the scheme, Mr. Hall hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking.   Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others. Continue Reading…

Vera Kuzmenko, 45, Loomis, California and Rachel Siders, 40, Roseville, California, were found guilty by a federal jury after a 16 day trial of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions over $16 million.

Vera Kuzmenko was also found guilty of witness tampering and money laundering associated with the scheme.

According to evidence presented at trial, from late 2006 through early 2008, the defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento, California, area. The defendants were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars and Rachel Siders received hundreds of thousands of dollars. Continue Reading…

Rosita Vilchez, 41, who was a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, was sentenced  to 66 months in prison for leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. Vilchez was also ordered to serve a five-year term of supervised release after her prison term.  A forfeiture money judgment of more than $5 million was previously entered against Vilchez.

The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured. Continue Reading…

Andrea Ramirez, 47, Rancho Cucamonga, California was sentenced to 18 years in federal prison and ordered to pay $6,764,743 in restitution for orchestrating a scheme that offered bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services that were never provided.

Ramirez was the founder, co-owner and organizer of a telemarketing operation known under a series of names – including 21st Century Legal Services, Inc. – that bilked more than 4,000 homeowners across the nation, many of whom lost their homes to foreclosure. Ramirez was sentenced today after pleading guilty to one count of conspiracy to commit mail fraud and wire fraud.

This fraudulent company purposely targeted homeowners who were extremely vulnerable because they were facing foreclosure,” said United States Attorney Eileen M. Decker. “Ramirez and her co-defendants made false promises to desperate homeowners, often took the last of their money and then abandoned them. Her contempt for her victims will put her in federal prison for nearly two decades.” Continue Reading…

Miguel LaRosa, 48, Elizabeth, New Jersey, pleaded guilty  in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud for recruiting straw buyers and submitting bogus loan applications as part of large-scale mortgage fraud scheme involving properties in northern New Jersey.

According to documents filed in this case and statements made in court: Continue Reading…

Following a three and a half week jury trial in Albany, Georgia, Elbert Walker, Jr. a/k/a “Shula”, Cairo, Georgia, was convicted of conspiracy to commit arson and mail, wire, bank and bankruptcy fraud and false declarations to a court as well as several firearms offenses.  Darryl Burk, Cairo, Georgia, was convicted of conspiracy to commit mail fraud.  Shirley Burk, Cairo, Georgia, was convicted of conspiracy to commit arson, mail fraud and false declarations to a court.  The jury deliberated just over one day before returning the verdicts.  Senior United States District Court Judge W. Louis Sands presided over the trial.  Continue Reading…

Ryan Costo, 40, Roseville, California, was sentenced to four years and three months in prison for bank fraud in a scheme to defraud lenders.

According to court documents, Costo overstated his income and financial assets in connection with a $1.35 million loan from Bank of America related to the acquisition of a classic aircraft. Costo not only made false statements about his income and various bank and stock account balances on the loan application, but also caused various false and fraudulent account statements and tax returns to be given to the Bank of America in order to procure the loan. Costo made various false representations and submitted false documents to obtain three other loans: a $1.95 million loan from CitiMortgage Inc. related to a Granite Bay, California residence; a $3 million loan from Washington Mutual Bank, now Chase, related to another Granite Bay, California residence, and a $267,000 loan from San Diego Private Bank. Costo pleaded guilty to bank fraud on October 3, 2013.

United States District Judge Morrison C. England Jr. sentenced Costo.  The case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.

Jerrold Fowler, 31, was sentenced to two years in prison, three years of supervised release, and ordered to pay restitution of $3,786,815 and to forfeit $7,413,712 and Thursa Raetz, 40, Virginia, was sentenced to two years in prison, three years of supervised release and ordered to pay restitution of $3,099,224 and to forfeit $7,413,712.  Both recruited participants into a multi-year, multi-property mortgage fraud scheme in Roxbury and Dorchester, Massachusetts.    Continue Reading…

Easton man busted in mortgage fraud scheme

A 64-year-old Easton man – using 13 different alias names – has been arrested in what federal officials call a long-running fraud scheme that targeted dozens of distressed homeowners.

Timothy W. Burke was arrested Thursday for a using a scheme he allegedly created to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages.

In believing what “Tim Burke,” “William Burke,” “Bill Burke,” “Jeff Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” or “Burt” said, many homeowners ultimately lost their houses because Timothy W. Burke (his real name) never paid off the mortgages or negotiated with the lenders, federal officials said.

Former Pittsburgh cop pleads guilty to role in mortgage fraud scheme

A former Pittsburgh policeman honored last year for his proactive policing on the North Side admitted in federal court Monday to his role in a mortgage fraud scheme involving a defunct South Hills company whose president is awaiting trial.

Santino Achille, who resigned from the force Nov. 5, waived indictment before U.S. District Judge Donetta Ambrose and pleaded guilty to bank and wire fraud conspiracy in submitting loan applications that he knew contained false information.

Mr. Achille was involved in a scheme with Century III Home Equity, owned by James Nassida, who was charged last year with bank and wire fraud along with his top loan officer, Robert Denne.