Guilty Verdict in Fraudulent Loan Applications Case

Rachel Dollar —  August 12, 2015 — 1 Comment

Erik Hermann Green, 33, Roseville, California was found guilty by a federal jury after a six- day trial of five counts of wire fraud in a mortgage fraud scheme involving fraudulent loan applications.

According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses. Continue Reading…

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Irving Fryar, a former player with the Philadelphia Eagles, and his 74 year old mother, Allene McGhee, were recently convicted in a mortgage fraud case after a federal jury trial. Fryar was interviewed by Vai Sikahema of NBC News after his conviction.

Part 1 of the Interview

Part 2 of the Interview

Part 3 of the Interview

Part 4 of the Interview

 Posted by Rachel Dollar  onAugust 12, 2015 In Mortgage Fraud
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Indictment Alleges Forgery to Obtain Real Estate License

Rachel Dollar —  August 12, 2015 — Leave a comment

Clifford Elliot Ryan, 29, Chicago, Illinois, was charged in two separate indictments in Tennessee in connection with forgery to obtain a real estate license.  During the course of the investigation, agents from the Tennessee Bureau of Investigation developed information that on two different occasions, Ryan hired two different individuals to submit their fingerprints as his so he could obtain a Tennessee real estate license. The investigation additionally revealed Ryan believed prior arrests on his record would prevent him from passing the background check necessary for obtaining a license.

In January, the Wilson County Grand Jury returned indictments for Ryan, a former resident of Tennessee, charging him with one count of Criminal Simulation and one count of Forgery/Passing a Forged Instrument in Wilson County, Tennessee. In March, the Davidson County Grand Jury returned indictments, charging Ryan with one count of Fabrication of Evidence, one count of Attempted Fabrication of Evidence, and one count of Criminal Simulation.

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The Ultimate In Credit Repair

Rachel Dollar —  August 11, 2015 — Leave a comment

When I spoke at the American Association of Mortgage Regulators Conference (AARMR) last week in New Orleans, I commented on the fact that, due to heightened underwriting requirements in mortgage lending, origination frauds are more distant from the file.  What does this mean?  It means that the fraud itself is occurring through third party manipulation that is virtually impossible to discover by a simple review of the mortgage documents. One of the methods I used as an example is credit manipulation. A recent guilty plea out of Miami-Dade illustrates this trend.  In this case, a Miami-Dade police officer accepted money to create false police reports reflecting that credit repair customers had reported that they were the victims of identity theft.  In such cases, negative credit reporting is blocked.  Paying $1,500 for credit repair is generally worthless.  But, couple that with a  police officer in your back pocket?  Price–less.

George Price, 42, a Miami-Dade Police Officer, Miami-Dade, Florida, pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349, an offense punishable by up to twenty years in prison. Continue Reading…

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Guilty Pleas in Delta Homes Case

Rachel Dollar —  August 11, 2015 — Leave a comment

Moctezuma Tovar, 46, Sacramento, California and Sandra Hermosillo, 53, Woodland, California pleaded guilty to conspiring to commit wire fraud in connection with a mortgage fraud scheme.

According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento, California based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland, California. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf. Continue Reading…

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SBA Loan Fraud for Commissions

Rachel Dollar —  August 11, 2015 — Leave a comment

An indictment in a recent SBA case outlines a fraud for commission scheme that could easily occur in mortgage lending.

Jocelyn J. Brown, 59, San Diego, California, a former loan broker for the now-defunct La Jolla Bank, was indicted by a federal grand jury on charges that she paid kickbacks to the bank’s vice president and Small Business Administration lending department manager.

According to the indictment, Brown paid the bribes in return for the banker’s assurance that the loans Brown referred would be approved and funded, and, more importantly, that Brown’s commissions would keep on flowing. Brown allegedly collected tens of thousands of dollars in referral fees from La Jolla Bank, and kicked back a portion to the bank manager, in cash, every time she was paid, the indictment said. Continue Reading…

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Massachusetts Loan Modification Attorney liable to Homeowners

Rachel Dollar —  August 11, 2015 — Leave a comment

David Zak, attorney, Revere, Massachusetts, and his two businesses Zak Law Offices, P.C., and Loan Modification Group, Inc, have been ordered to pay more than $625,000 for targeting homeowners with deceptive advertisements and demanding thousands in illegal advance fees for mortgage modification and foreclosure relief services they failed to deliver.

“At a time when homeowners were struggling to afford their mortgages, this attorney abused his clients’ trust and deliberately exploited their financial circumstances by demanding exorbitant fees based on false promises, leaving these homeowners even more vulnerable,” Massachusetts Attorney General Maura Healey said. “This judgment puts an end to these deceptive and unfair practices and confirms that those who seek to capitalize on the foreclosure crisis will be held accountable.”  Continue Reading…

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CEO Convicted in $169M Ponzi Scheme

Rachel Dollar —  August 10, 2015 — Leave a comment

Michael J. Stewart, 68, San Clemente, California, the CEO of a now-defunct Southern California real estate investment firm, was found guilty of 11 counts of mail fraud following a nine-day jury trial before United States District Judge Cormac J. Carney.  The charges arose out of a real estate scheme that ended with the bankruptcy of the company and hundreds of investors collectively losing as much as $169 million.

Stewart owned and was the chief executive of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine, California. Along with co-defendant John Packard, Stewart created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would refinance (or sometimes sell) each property. Continue Reading…

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Tampa lawyer involved in mortgage rescue scam loses law license

A Tampa lawyer who helped swindle homeowners out of $4.7 million during the mortgage crisis has had his law license revoked by the state Supreme Court.

In July of 2014, the attorneys general for Florida and Connecticut filed a federal lawsuit alleging lawyer Ian S. Berger, along with several others, had scammed struggling homeowners by promising them loan modifications if they signed on to “mass joinder” lawsuits against their lenders.

 Posted by Rachel Dollar  onAugust 10, 2015 In Mortgage Fraud , ,
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House-napping? The newest invasion?

Rachel Dollar —  August 10, 2015 — Leave a comment

Brandon Sestoso, 33, Hicksville, New York, his brother Chas Sestoso, 31, Hicksville, New York and Jesse Kusinow, 32, Howell, New  Jersey were charged with breaking into a residence in Jamaica Estates, New York in April, 2015, changing the locks and refusing to allow the true homeowners to enter the premises until they transferred the deed of the house to the defendants.

Queens District Attorney Richard A. Brown said, “In a truly bizarre case, the defendants are accused of breaking into a Queens residence and locking the true owners out, then forcing them to negotiate with the defendants if they wanted to gain access to their own home. If convicted, the defendants face lengthy  time behind bars.” Continue Reading…

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