Jerome Whittington, 65, La Quinta, California; Patricia Torres Zavala, 42, Benicia, California; and, Kathleen Moore, 68, Olympia, Washington have been charged by a federal grand jury for their roles in a variety of fraudulent schemes, including one involving short sales, that victimized at least 20 investors and caused losses of more than $2 million.

The three defendants were charged in a superseding indictment filed on July 8, 2015. The 24-count indictment alleges that they lied to investors in a series of schemes, and then used investor money for personal expenses rather than investing the funds as promised.

Whittington is also charged in a separate case with posing as a former federal prosecutor in a case involving a former DEA agent.  Continue Reading…

Tamara Tikal, 45, Rio Vista, California was sentenced to three years and nine months in prison for her conviction for conspiring to commit mail fraud in relation to a foreclosure rescue scheme. Tamara Tikal was also ordered to pay $3,671,000 in restitution to victims of the offense by United States District Judge Troy L. Nunley.

Tamara Tikal’s husband Alan Tikal was convicted following a bench trial and sentenced to 24 years in prison. Tamara Tikal pleaded guilty to the conspiracy in August 2014, as did co-defendant Ray Kornfeld, who was sentenced to five years in prison.  Continue Reading…

If you are involved in fraud detection and prevention in the mortgage industry or have attended an event where I have spoken over the past few years, you are no doubt aware that the Sovereign Citizen movement has been targeting the mortgage industry.  The one most prominent in my mind is, of course, the Dorean Group.  Its ringleaders, Scott Heineman and Kurt Johnson were a were a frequent topic on the blog during 2005 and through their trial, sentencings and appeals.  Although Sovereign Citizens at times become engaged in mortgage fraud because of certain beliefs concerning the history of our currency and a misreading of the law, their impact and involvement in the mortgage industry is tangential to their ideology – which is grounded in conspiracy theory.  In 2013, I wrote an article entitled Fraud From the Fringe – the Sovereign Citizen Movement and the Rise of Mortgage Elimination Schemes, published in Mortgage Banking Magazine, that provides more explanation.  The Southern Poverty Law Center and the Anti-Defamation League also have resources on Sovereign Citizen ideology.

I am always interested in news on Sovereign Citizen activity and prosecutions – even when not related to mortgage.  Some of the conduct they engage in can be incredibly harassing to the people they target – be it a private citizen or a government figure.  The everyday engagements that give rise to retaliation can be very minor in the eyes of the non-Sovereign Citizen and yet the backlash can be astounding – the worst, of course, being examples of public safety officers gunned down during traffic stops.  But, ordinary, every day social or business interactions can also result in economic threats or the filing and recording of legal documents that can be difficult to appropriately address. Continue Reading…

George Dravilas, real estate broker, 37, Medinah, Illinois, was sentenced to 16 months in federal prison for his role in a mortgage fraud scheme involving a pair of Chicago apartment buildings.  Dravilas pled guilty in February to one count of bank fraud.  In addition to the prison term, U.S. District Judge Gary Feinerman ordered Dravilas to pay $463,110 in restitution.  Dravilas will begin serving his sentence no later than Sept. 21, 2015. Continue Reading…

Hector Hernandez, real estate developer and owner of a mortgage company, 57, Miami, Florida; Aleida Fontao, co-owner of a mortgage company, 62, Miami, Florida; and Olga Hernandez, senior mortgage underwriter, 58, Lake Mary, Florida, each pleaded guilty to conspiracy to commit wire fraud affecting a financial institution in connection with an FHA mortgage fraud scheme involving federally insured mortgages that caused losses of $64 million to the Federal Housing Administration (FHA).  Including these defendants, 25 individuals have pleaded guilty to offenses related to this scheme to date..  Hector and Olga Hernandez both pleaded guilty on July 13, 2015, while Fontao pleaded guilty on July 7, 2015.  As part of his plea, Hector Hernandez also agreed to forfeit $8 million, which amounts to his profits from the scheme.

Hector Hernandez’s mortgage company, Great Country Mortgage Bankers, specialized in mortgage loans that were insured by the FHA. Continue Reading…

“You can have whole neighborhoods that are economic wipeouts. Who did it really help? The builder. He got his sale.”

Richard Hagar, national expert on mortgage fraud, explaining the effect of builder bailouts to The Dallas Morning News

Olga Palamarchuk, 45, Rancho Cordova, California; Pyotr Bondaruk, 44, Sacramento, California; Vera Zhiry, 35, Sacramento, California; and Peter Kuzmenko, 37, West Sacramento, California, were found guilty by a federal jury after a three week trial of conspiracy to commit mail fraud related to a mortgage fraud conspiracy. Palamarchuk and Bondaruk were also found guilty of making false statements to a financial institution and money laundering. Zhiry was also found guilty of money laundering.

According to evidence presented at trial, Palamarchuk, a loan officer at Capital Mortgage Lending Inc., recruited Bondaruk to purchase two houses using 100 percent financing and to refinance and obtain a home equity line of credit on one of the houses. In order to qualify for the loans, Palamarchuk and Bondaruk submitted fraudulent loan applications to lenders, falsely stating Bondaruk’s employment, income, assets, and intent to occupy the homes as his primary residence. Continue Reading…

Fugitive in mortgage fraud case hid in the open before being nabbed

A wanted fugitive was arrested late Saturday night in Kaimuki.

Jennifer McTigue was wanted by the FBI after she failed to appear in court and didn’t respond to calls.

Agents from the FBI, along with U.S. Marshals and Honolulu Police converged on a Pukalani Place residence off Wilhemina Rise late Saturday night and took McTigue into custody.

Real estate investor set to be sentenced Monday in fraud case

After several delays, Fredericksburg-area real estate investor James Ashby Moncure is scheduled to be sentenced Monday in federal court for wire fraud and illegal monetary transactions.

Prosecutors want the 42-year-old father of two to serve more than seven years in federal prison and pay $8.2 million in restitution, according to documents in U.S. District Court in Richmond.

 

Tips to help you avoid foreclosure rescue scams

Imagine that you are one of the hundreds of thousands of New Yorkers at risk of losing your home. You’ve fallen behind on mortgage payments, and — the home that you worked hard to buy for your family is suddenly in jeopardy.

One day, you get a call from a company offering the help you so desperately need. A soothing voice on the other end of the phone line promises that you will be able to save your home. Desperate for any solution, you arrange a monthly payment plan, relieved that your nightmare is finally coming to an end.