Archives For fraudulent loan applications

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.

 

Paul Watterson, 55, Mountainside, New Jersey, was sentenced to 15 months in prison for his role in a multi-million dollar mortgage fraud scheme that used phony documents and straw buyers to make illegal profits on over-developed condominiums in the Wildwood, New Jersey, area.  Watterson previously pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

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

Stephen Pirt, 37, Mountain House, California, was sentenced to 2 years and 1 month in prison for his participation in a large-scale mortgage fraud scheme. According to evidence presented at the trial for co-defendant Erik Hermann Green, 33, Roseville, California, Pirt and Green defrauded the New Century Mortgage Company by submitting false documentation about borrowers’ employment, income and assets, including fraudulent loan applications and other altered bank documents. On September 19, 2013, Stephen Pirt pleaded guilty to wire fraud.

United States District Judge Troy L. Nunley told Pirt, “you were an organizer and leader of the scheme, and you need to be punished for that.”   The judge also explained the need for a proper deterrent effect.

Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine.

The case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.

Elizabeth Calderon, 39, Salinas, California, and Esther Sanchez, also known as Trinidad Carrillo, 54, Salinas, California, were indicted by a federal grand jury on charges of filing false tax returns, theft of government funds, aggravated identity theft, making false statements to federally insured institutions, and conspiracy,

Calderon and Sanchez are charged with conspiring to submit a loan application to Bank of America that contained false information and was supported by counterfeited documents.   According to the indictment, beginning on or about November 24, 2010, and continuing to the present, Calderon has been a professional tax return preparer and many of the charges against Calderon arise from this tax work Continue Reading…

David Gotterup, also known as “David Gott,”, 35, Oceanside, New York, and Jason Green, 35, Oceanside, New York, were charged in an eleven-count indictmenet with conspiracy to commit mail fraud, wire fraud, and bank fraud in connection with a scheme to defraud homeowners who were attempting to modify their mortgage loans, and related mail fraud counts.  The indictment also charged Gotterup with conspiracy to commit wire and bank fraud in connection with a scheme to improperly obtain mortgage loans, and related bank fraud counts, disaster loan fraud, and aggravated identity theft. Continue Reading…

Nine individuals were sentenced on federal charges stemming from a mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.

The sentencings occurred before the Honorable Reggie B. Walton of the U.S. District Court for the District of Columbia. Defendants include:

  • Edward Dacy, 77, West Melbourne, Florida. He was sentenced on August 6, 2015 to six years in prison. Dacy was found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment.
  • Frank Davis, Jr., 49, Washington, D.C. He was sentenced on August 7, 2015 to five years in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Davis will be placed on three years of supervised release. Judge Walton also ordered that Davis pay $2,730,345 in restitution and an amount of $2,296,463 as a forfeiture money judgment;
  • Frederick Robinson, Sr., 52, Montgomery, Alabama. He was sentenced on July 31, 2015 to 27 months in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Robinson will be placed on three years of supervised release. Robinson also was ordered to pay $925,311 in restitution and an amount of $971,900 as a forfeiture money judgment.
  • Lonnie Johnson, 47, Greensboro, North Carolina. He was sentenced on July 15, 2015 to one year and one day in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Johnson will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $277,000 in restitution.
  • Cheryl E. Morrison, 54, West Melbourne, Florida. She was sentenced on Aug. 5, 2015 to five years of probation for conspiracy to commit mail fraud; she was required to serve 90 days of that time in home detention. She also must pay $42,600 in restitution;
  • Howard Tutman, III, 54, Woodstock, Maryland. He was sentenced on Aug. 4, 2015 to five years of probation for conspiracy to commit bank fraud; he was required to serve 20 weekends in jail. In addition, Judge Walton ordered Tutman to pay $484,370 in restitution and $606,414 in forfeiture;
  • Pauline Pilate, 50, Washington, D.C. She was sentenced on July 16, 2015 to three years of probation for conspiracy to commit bank fraud; she was required to serve eight weekends in jail. In addition, Judge Walton ordered that she pay $1 million in restitution and an identical amount as a forfeiture money judgment;
  • A. Conrad Austin, 49, Bowie, Maryland. He was sentenced on May 15, 2015 to five years of probation for conspiracy to commit bank fraud, mail fraud, and wire fraud; he was required to serve four weekends in jail. In addition, Judge Walton ordered that he pay $5,001 in restitution and an identical amount as a forfeiture money judgment.
  • Anthony Young, 47, Clinton, Maryland. He was sentenced today to five years of probation for conspiracy to commit bank fraud; he is required to serve eight weekends in jail. In addition, Judge Walton ordered that he pay $300,600 in restitution.

Davis and Robinson purchased properties in the names of general partnerships; Davis and Robinson then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns, and letters from a Certified Public Accountant.

Davis recruited Young, who assisted with recruiting other straw buyers; Pilate, who obtained her real estate license in order to create real estate sales contracts for the straw buyers, and Johnson, a bank employee who assisted in creating false verifications of deposits. In order to obtain mortgage loans in the names of some of the straw buyers, Robinson recruited Austin, a Certified Public Accountant (CPA), to create false CPA letters, inflated tax returns, and unjustified financial statements. Tutman was the loan officer on 14 loans or loan attempts, and knew that the borrowers were merely straw buyers for Davis and Robinson and the loan applications contained inflated salaries.

Morrison worked at the settlement company with Dacy, her husband. The settlement company received the funding from the mortgage lender and should have collected the buyers’ cash contributions; it was under the obligation to disburse the loan money only if all of the mortgage lender’s conditions were met and the buyer’s financial contributions collected. Morrison and Dacy handled the straw buyers’ settlement of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.

The sentencings conclude a three-year investigation relating to this mortgage fraud scheme involving the defrauding of banks, mortgage lenders, and the Federal Housing Administration, part of U.S. Department of Housing and Urban Development, of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements. These actions ultimately caused a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.

In this case, a group of greedy individuals teamed up with a real estate agent, a certified public accountant, employees of a settlement company, and others to carry out a far-reaching scheme that caused millions of dollars in losses to banks and other lending institutions,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “These defendants took money that could have been used to help honest, hard-working people attain the dream of home ownership. They used straw buyers and falsified documents to carry out their long-running fraud. The prosecution in this case demonstrates our resolve to aggressively deal with those who engage in mortgage fraud at the expense of the entire community.”

This was a multi-tiered scheme with multiple individuals playing a role, and every single one of them underestimated the ability and commitment of law enforcement to protect innocent victims and ultimately the taxpayers from mortgage fraud schemes,” said Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency. “We are proud to be a part of the multi-agency effort to hold accountable those who engage in mortgage and bank fraud. FHFA-OIG will continue to carry out this work until all are held accountable.

This sentencing was the result of outstanding investigative work conducted by the HUD OIG, and our law enforcement partners,” said Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG). “This collaborative effort sends a clear message that we will commit the necessary resources to make sure that the fraudsters are brought to justice and are prosecuted to the full extent of the law.”

Even though this $16 million mortgage fraud conspiracy targeted lenders, banks, and the Federal Housing Administration, the result of these criminal actions hurts our entire community,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI will continue to work with our law enforcement partners to ensure that these criminal schemes do not go unpunished.”

In announcing the sentences, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Special Agent in Charge Rubenstein, and Assistant Director in Charge McCabe expressed appreciation for the work performed by the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales, former Paralegal Specialist Sarah Reis, and Assistant U.S. Attorneys Anthony Saler, Thomas Swanton, and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and David A. Last, who tried the case against Edward Dacy and handled the plea negotiations with Conrad Austin, and Virginia Cheatham who prosecuted the case.

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…