Archives For Appraiser

Matt Garner, appraiser, Lexington, Kentucky, was indicted and charged with conspiracy to commit wire fraud and false statement in a matter within the jurisdiction of an agency of the United States based on allegations that he used unlicensed surrogates to conduct residential real property appraisals under his name and license.

According to the indictment, in 2015, Garner began an illegal and deceptive practice of using uncertified and unlicensed surrogates, including two individuals identified in the indictment as GD and ZG, to perform appraisals and fill out Uniform Residential Appraisal Reports without attributing the reports to those individuals or identifying their involvement.  In most instances, Garner never visited the property.  He paid the surrogates a portion of his appraisal fee.

The indictment further alleges that Garner instructed his surrogates to pretend to be him if questioned by anyone during the appraisal process and he provided them with his own business cards to provide to others, if necessary.

By doing this, Garner was able to greatly increase the number of appraisals he could perform in a given time.

According to the indictment, Garner made the following material statements by signing and submitting the appraisal reports performed by surrogates:

  1.  That he had personally performed the appraisal;
  2. That he had not been assisted by any other person in performing the appraisal;
  3. That he was knowledgeable of and experienced in the market where the property was located.

*CORRECTION:  This article originally stated that Garner was charged with bank fraud.  He was actually charged with violation of 18 USC 371 – conspiracy and the underlying substantive offenses are identified as wire fraud in violation of 18 USC 1343 and false statements in a matter within the jurisdiction of an agency of the United States in violation of 18 USC 1001.

Louis Marandola, 41, attorney, Providence, Rhode Island; Brian R. McCaffrey, 38, licensed loan originator, East Greenwich, Rhode Island; Raffaele M. Marziale, 41, former loan officer, Bristol, Rhode Island; Lauren Sienko, 33, loan processor, Rehoboth, Massachusetts; Gina M. Ronci Mohamed, 45, licensed real estate agent, Lincoln, Rhode Island; and Edwin Rodriguez, 35,  real estate investor, Pawtucket, Rhode Island, were charged in a 22-count federal grand jury indictment unsealed in U.S. District Court in Providence, Rhode Island with allegedly participating in a conspiracy to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees. Continue Reading…

Franchesco Franco, 34, a former mortgage loan originator, Providence, Rhode Island, pleaded guilty in federal court to conspiracy to commit bank fraud for his participation with a local real estate attorney and others in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who had recently died, in order to secure a loan in the amount of $157,102 for the purchase of a residence at 63 Wendell Street, Providence, Rhode Island.

According to court documents, after the mortgage was issued, Franco filed fraudulent documents in the deceased person’s name in order to have his own name added to the deed for the property. Loan payments were never made to Flagstar Bank, an FHA-insured lender, by Franco or anyone else. As a result, the U.S. Department of Housing and Urban Development (HUD) paid an insurance claim to Flagstar Bank for the unpaid balance of the loan in the amount of $165,062. According to court documents, a corporation formed by the real estate attorney, an alleged co-conspirator in this matter, later purchased the note for $35,000. Continue Reading…

Mark E. Greenlee, 50, Charleston, North Carolina, a former West Virginia licensed real estate appraiser, was sentenced for preparing a false and fraudulent appraisal in 2006 in furtherance of a multi-million-dollar mortgage fraud scheme perpetrated by Deborah L. Joyce and others in the Stonegate subdivision in Hurricane, Putnam County, West Virginia.

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Joel Reck, 47, McKeesport, Pennsylvania, pleaded guilty to one count before United States District Judge Nora Barry Fischer for his role in a mortgage fraud scheme.

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Lavon Ruderson, 42, Cleveland, Ohio, an appraiser, was convicted on 16 counts related to a $3.25 million mortgage fraud involving dozens of properties in Northeast Ohio.

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James J. Goldberg, who did business as JJG Real Estate Appraisal Services (“Goldberg“), and Robert Micheline, who did business as P&M Appraisals (“Continue Reading...

Below are brief summaries of some of the significant mortgage fraud cases in California brought since June 18, 2010:

United States v. David Crisp, et al. The indictment alleges that, from approximately January 2004 to September 2007, the defendants operated real estate businesses in Kern County through which they submitted fraudulent loan applications

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Richard Lawrence Veazey, 53, Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of wire fraud conspiracy in connection with a mortgage fraud scheme.  The defendant pleaded guilty to one count before United States District Judge Donetta W. Ambrose.

In connection with the guilty plea, the court was advised that Veazey, who was an appraiser,

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Ryan Daryl Krutzig, 31, Maple Grove, Minnesota, a real estate appraiser, and Jesse Scott Hoffman, 32, St. Cloud, Minnesota, a real estate agent, were indicted in connection with a $1.8 million mortgage fraud scheme that involved 28 properties. The defendants were charged with five counts of wire fraud in connection to the scam. In addition, Continue Reading...