Archives For fraudulent loan applications

IRVINE, Calif.–(BUSINESS WIRE)–CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its latest Mortgage Fraud Report. The report shows a 12.4 percent year-over-year increase in fraud risk at the end of the second quarter, as measured by the CoreLogic Mortgage Application Fraud Risk Index.

Source: CoreLogic Reports a 12.4 Percent Year-over-Year Increase in Mortgage Fraud Risk for the Second Quarter of 2018 | Business Wire

Yant Garcia, 38, Hialeah, Florida pled guilty on September 5, 2018, to one count of conspiracy to commit an offense against the United States.

According to the plea document, beginning around 2012, and continuing through around 2015, Garcia agreed with others to launder the proceeds of an identity theft tax refund scheme and mortgage fraud scheme by cashing checks in names of persons who were not present at check-cashing stores in Miami.

In or around 2013, Garcia’s co-conspirators submitted fraudulent tax returns to the Internal Revenue Service (IRS) using stolen personal identity information seeking refunds ranging in value from $130,000 to $170,000.  In total, the Department of Treasury paid out approximately $4.3 million in fraudulent refund claims by mailing out tax refund checks.  The defendant and a co-conspirator met with the owner of a check-cashing store in Hialeah and the true owner of the store agreed to cash these checks for a thirty percent fee.

In or around 2015, Garcia and his co-conspirators engaged in a mortgage fraud scheme on a property in Miami Beach.  Garcia and his coconspirators submitted fraudulent loan applications and received approximately $3.7 million in proceeds from this mortgage fraud via interstate wire to the account of the fake title company in Miami.  Garcia then provided checks to co-conspirators who cashed these checks at check-cashing stores in South Florida in the names of payees who were not present.  http://www.mortgagefraudblog.com/?s=Yant+Garcia

Garcia is scheduled to be sentenced on November 14, 2018 at 10:30 a.m. before U.S. District Judge Marcia G. Cooke.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.

Mr. Greenberg commended the investigative efforts of the FBI and IRS-CI.  The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Joseph DiValli, Jackson, New Jersey, was sentenced today to 18 months in prison for his role in a large-scale mortgage fraud scheme that used phony documents and straw buyers to acquire more than $6 million in loans.

According to documents filed in this case and statements made in court: http://www.mortgagefraudblog.com/?s=Joseph+DiValli+

From March 2011 through November 2012, DiValli and other conspirators agreed to fraudulently obtain mortgage loans for properties located in North Jersey, New Jersey. After recruiting “straw buyers” to purchase the properties, DiValli and others submitted false and fraudulent loan applications and supporting documents so the straw buyers could qualify for the loans. DiValli and others also used another conspirator, who worked at a bank, to create misleading certifications showing certain bank accounts held more money than they actually had. DiValli and other conspirators also submitted false appraisal reports, backdated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.

As a loan officer for a North Jersey mortgage lender, DiValli facilitated some of these fraudulent transactions, including a $244,855.26 mortgage on a property located on Smith Street, Elizabeth, New Jersey. Overall, the scheme induced lenders to issue more than $6 million in loans, resulting in several defaults and exposing lenders and the Federal Housing Administration (FHA) to more than $2 million in potential losses.

DiValli also admitted using a separate scheme to modify the mortgage on his personal residence. From March 2011 through June 2012, Divalli used false payroll ledgers and earnings statements to deceive a loan officer into believing that his net earnings were lower than his actual income level.

DiValli also admitted receiving income of more than $450,000 in 2012. In order to avoid taxes of $79,000, DiValli failed to file taxes for 2012 and cashed his paychecks at a check-cashing facility to conceal his income.

DiValli previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion. Judge Wigenton imposed the sentence today in Newark federal court.

In addition to the prison term, Judge Wigenton sentenced DiValli to three years of supervised release and ordered to pay restitution of $2,322,045.

U.S. Attorney Craig Carpenito made the announcement and credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Goldsmith Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the National Security Unit, Andrew Kogan of the Cyber Unit, and Senior Litigation Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit.

Defense counsel: Michael A. Koribanics Esq. Clifton, New Jersey.

Alejandro Tobon, 35, Orlando, Florida has been sentenced to 37 months and Carlos Escarria, 61, Largo, Florida has been sentenced to 18 months in federal prison, for conspiracy to commit bank and wire fraud. They pleaded guilty on June 9, 2017.

According to court documents, from as early as October 2007 through May 2008, Tobon, Escarria, and others conspired to execute a bank and wire fraud scheme. The goal of the fraud scheme was to sell condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex in Tampa, Florida. To entice buyers to purchase the units, the conspirators offered cash payments to buyers, either before or after closing. The mortgage lenders were not made aware of these payments. The conspirators used several entities to conceal from the mortgage lenders the cash payments to buyers.

The conspirators made false statements on loan documents, such as purchase and sale agreements and loan applications, and on HUD-1 settlement statements, to induce mortgage lenders to approve loans for otherwise unqualified borrowers for the condo unit purchases.

Tobon was the manager of Transcontinental Lending Group’s branch in Tampa, Florida and he was also the President of Tobon Marketing and Consultant. His role in the conspiracy included submitting false and fraudulent loan applications to financial institutions to induce them to provide funding for buyers to purchase Preserve units. He also marketed units to buyers with undisclosed incentives and transferred funds he had received from the developer through Tobon Marketing and Consultant to borrowers’ bank accounts who needed money to close on the purchases. The money was then used to provide the down payment and cash to close requirements.

Escarria worked as a loan officer at Transcontinental Lending Group’s branch in Tampa, Florida. He signed false and fraudulent loan applications to induce financial institutions into providing funding for buyers to purchase condo units. The false representations submitted to and relied upon by the mortgage lenders included occupancy, income, source of funds, and assets.

The mortgage lenders’ total losses resulting from Tobon’s and Escarria’s role in the mortgage fraud conspiracy are approximately $5.8 million.

Tobon and Escarria were sentenced by U.S. District Judge Susan C. Bucklew.

This case was investigated by Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.

Ralph Christopher Cirino was indicted in the Eastern District of Pennsylvania on six counts of mail fraud, four counts of misrepresentation of a social security number, four counts of wire fraud, two counts of making false statements in mortgage loan applications and one count of unlawful possession of authentication feature.

According to the indictment, Cirino falsely reported to the Pennsylvania Department of Labor that two corporations, Fast Care Home Care P.C. and Juris Clarity were legitimate corporations with multiple employees earning wages in 2015 and 2016.  In fact, these companies did not conduct any business, have employees or pay wages and the employees were fictitious.  Cirino sought to obtain unemployment benefits by purporting to be several of the fictitious employees and by submitted unemployment claims on behalf of those fictitious employees and on his own behalf. On of the fictitious employee names identified in the indictment is Benjamin Hunt.

The indictment alleges that Cirino made false statements to American Internet Mortgage, Inc. and Fairway Independent Mortgage Corporation for the purpose of influencing the actions of the mortgage companies on loans.  He caused loan applications containing knowing false statements to be submitted including an application in December 2016 to AIM falsely stating the applicant’s name was Benjamin Hunt, he was employed by Fast Care and earned a weekly salary of $1,960 and an application in March 2017 to Fairway falsely stating the applicant’s name was Benjamin Hunt, he was employed by Fastcare and earned a monthly salary of $9,880.

The indictment also seeks forfeiture of $87,259.

Pierre Chainey, 42, Tabernacle, New Jersey, was sentenced to 54 months in prison for his role in a mortgage fraud scheme that caused $2.7 million in losses.  Chainey previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of conspiracy to commit wire fraud and one count of money laundering. Judge Hillman imposed the sentence on July 7, 2017, in Camden federal court.

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

In November 2005, Chainey established Universal Lending Solutions LLC, a mortgage brokerage company in Northfield, New Jersey, and served as chief executive office of the company until 2008. He was also a loan officer for the company.

From November 2005 through at least January 2008, he conspired with others to profit from the sale and purchase of properties in New Jersey by obtaining mortgage loans for unqualified borrowers using fraudulent loan applications, HUD-1 Settlement Statements and other documents.

In addition to the prison term, Judge Hillman sentenced Chainey to three years of supervised release; restitution will be determined at a later date.

Acting U.S. Attorney William E. Fitzpatrick announced the sentence and credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Newark.

Louis Marandola, 42, Providence, Rhode Island, a Former Real Estate Attorney, and Brian R. McCaffrey, 38, Warwick, Rhode Island, a former licensed loan originator, have been sentenced to federal prison for their participation in a scheme to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees.

Marandola was sentenced to 48 months in federal prison to be followed by 3 years supervised release. On January 13, 2017, Marandola pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft.

McCaffrey was sentenced to 18 months in federal prison, to be followed by 3 years supervised release. McCaffrey pleaded guilty on January 27, 2017, to conspiracy to commit bank fraud and bank fraud.

Two co-defendants in this matter, Raffaele M. Marziale, 41, Bristol, Rhode Island, a former loan officer who pleaded guilty on February 29, 2016, to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft; and Edwin Rodriguez, 35, Pawtucket, a real estate investor who pleaded guilty on June 1, 2016, to conspiracy to commit bank fraud, bank fraud, aggravated identity theft and tampering with a witness, are awaiting sentencing.

Gina Ronci Mohamed, 46, Lincoln, Rhode Island, was sentenced on April 25, 2017, to two years probation. Ms. Ronci pleaded guilty on April 22, 2016, to making a false statement to HUD. Lauren Sienko, 35, of Rehoboth, Massachusetts., was sentenced on April 3, 2017, to two years probation. Ms. Sienko pleaded guilty on January 6, 2017, to making a false statement to HUD.

According to court documents and information presented to the court, an investigation by the United States Attorney’s Office, HUD-OIG, U.S. Secret Service and Rhode Island State Police determined that between 2007 and 2014, the defendants conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. As part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. In some instances, thousands of dollars were fraudulently obtained by misrepresenting on a HUD form the amount of funds due or to be paid to one of the parties involved in a transaction.

In numerous instances, the defendants concealed their involvement in the scheme by conducting business under the names of several different entities and individuals. At times, the defendants used stolen identities to further the fraud and to conceal their connection to the real estate transactions.

The sentences, imposed by U.S. District Court Judge John J. McConnell, Jr., are announced by Acting United States Attorney Stephen G. Dambruch; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.

The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.

 

 

Michael Lane Prevette, Greensboro, North Carolina, was sentenced to 42 months imprisonment in federal court in connection with loan application and appraisal fraud.

Brian Keith Perdue, appraiser, was sentenced to 5 years probation and ordered to pay $886,749.02 in restitution.

In October of 2016, Prevette pled guilty to count one of an indictment, which charged Conspiracy to Commit Application Fraud.  After Prevette completes the term of imprisonment, he will be on federal supervised release for 3 years and has been ordered to pay $886,749.02 in restitution. United States District Judge R. Bryan Harwell of Florence imposed the sentence.

Prevette was involved in a scheme in which mortgage lenders were misled when members of the conspiracy caused fraudulent loan packages to be submitted to the lenders. These packages included inflated real estate appraisals which were prepared at Prevette’s direction. These properties were located in the Myrtle Beach area.

United States Attorney Beth Drake made the announcement. The case was investigated by the FBI.  Assistant United States Attorney John C. Potterfield of the Columbia United States Attorney’s Office prosecuted the case.

Mayory Calvo, 34, Doral, Florida was indictedand charged with one count of mortgage fraud conspiracy, two counts of bank fraud, and one count of loan and credit application fraud. If convicted, she faces a maximum penalty of 30 years in federal prison on each charge.  The indictment also notifies Calvo that the United States is seeking a money judgment (forfeiture) for the proceeds of the charged offenses.  The indictment was returned in open court on May 4, 2016 but was sealed.  The indictment was unsealed on May 13, 2016.  Calvo was arraigned and pled not guilty on June 17, 2016.  Trial is currently scheduled to commence the week of August 1, 2016 before Judge Steven D. Merryday.

According to the indictment and court proceedings, Calvo worked at Elite Mortgage Funding as a sales associate and assisted with the processing of mortgage loans associated with the purchase of properties in Pasco County, Pinellas County and Hillsborough County, Florida. She also lived, for a time, in Hillsborough County, Florida, and signed loan applications to obtain mortgage loans through Elite Mortgage for properties that she purchased.

The indictment alleges that Calvo participated in a mortgage fraud conspiracy, along with Jesus Sira aka Jay Sira (the incorporator and initial president and secretary of Elite Mortgage), Nestor Urdaneta-Gonzalez, and others.  The indictment further alleges that one or more conspirators agreed to purchase properties in exchange for a fee or commission; completed, executed and submitted the FNMA 1003 application containing false and fraudulent information concerning the applicant borrowers, purpose of the loan, source of down payment, employment information and/or monthly income; caused the property seller to execute a disbursement letter directing a material portion of the sales proceeds be disbursed to First Financial Consulting which would be submitted to title companies; executed HUD-1’s with false information or that failed to include important disbursement information; and distributed or shared funds acquired during the conspiracy often using bank accounts in the names of First Financial Consulting or Elite Mortgage.  According to the press release, the agreements to purchase properties were for amounts in excess of the original asking price.

The indictment reflects a specific transaction at 30401 Colthurst Street, Wesley Chapel, Florida, 33544 for a loan of $241,764 through National City Bank that was applied for by Mayory Calvo wherein it was falsely represented that she intended to use the property as her primary residence, she was a single woman (she was actually married to Jesus Sira), and a U.S. Citizen (she was a permanent resident), and that she was being paid $11,211 in monthly base employment income by Elite Mortgage.

The case was announced by United States Attorney A. Lee Bentley, III and investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.  It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Trezevant.  The case is pending in the Middle District of Florida as case number 8:16-cr-00195.

Jason Pond, 38, Spring Hill, Florida, pled guilty to making a false statement in an application to obtain a HUD loan.

According to the plea agreement, on September 28, 2010, Pond purchased his home in Spring Hill, Florida, for $110,000.  Along with his wife, they received a loan of $49,650 from HUD’s Neighborhood Stabilization Program, as a second mortgage on the home.  This loan program would not have required Pond to repay the loan if he lived in the home for 15 years.

In an application to participate in the program, Pond provided false and incomplete information related to his debts, assets, employment, income, and tax returns. One example of a debt that he failed to disclose was a loan that he had received from another government program to obtain a different home. He also did not disclose income he earned from his DJ business, or that he owned certain assets, including two cars and a boat.

Pond faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.

The guilty plea was announced by United States Attorney A. Lee Bentley, III and investigated by the HUD Office of Inspector General and the Hernando County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.