Archives For Mortgage Fraud

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

Brian Roy Lozito, Jacksonville, Florida, has been charged today for deceptively marketing and selling mortgage and foreclosure relief services to consumers throughout the United States, defrauding consumers out of more than $160,000.

Lozito, while doing business as American Investigative Services, LLC allegedly deceived more than 150 consumers by claiming to provide services in return for payments upfront.

According to the complaint, American Investigative Services solicited upfront payments from consumers promising to conduct a forensic audit of consumers’ mortgage documentation in order to uncover evidence of improper robosigning, or improper notarization, assignment, or recording of the mortgage documents, or other technical deficiencies. The defendants told consumers that if these purported legal deficiencies were uncovered in mortgage documents, the lender would be unable to foreclose on the consumer’s mortgage, and the consumer would thereby own the home free and clear, even if the consumer stopped making mortgage payments to the lender. The defendants even claimed that consumers could recover mortgage payments the consumers had previously made to mortgage companies.

The complaint also alleges that the defendants performed none of the promised services, and instead used the money obtained from consumers to pay Lozito’s personal expenses. The complaint alleges violations of Florida’s Deceptive and Unfair Trade Practices Act, and seeks permanent injunctive relief, restitution, civil penalties and fees.

Attorney General Pam Bondi made the announcement.

Consumers who paid fees to the above-named entity or individual can file a complaint by calling 1(866) 9NO-SCAM or file online at MyFloridaLegal.com

To view the complaint, click here.

Maria Santa, 41, Sacramento, California, was sentenced today to one year and one day in prison for failing to surrender for service of her sentence.

According to court documents, Maria Santa was previously sentenced to 20 months in prison for mortgage fraud and was ordered to begin serving her sentence in February 2014. When her motion for bail pending appeal was denied, she fled the jurisdiction and left a note at her residence that made it appear that she had committed suicide.

On August 26, 2016, Maria Santa was arrested in Sacramento, California as a passenger in a vehicle her husband Virgil Santa was driving. She was found in possession of an identification document belonging to her twin sister.

Virgil Santa, 43, Sacramento, California is charged with harboring a fugitive in relation to Maria Santa’s offense. The charge is only an allegation, he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

U.S. Attorney McGregor W. Scott made the announcement. U.S. District Judge Kimberly J. Mueller ordered today’s sentence to be served consecutive to Santa’s original sentence.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jared C. Dolan and Amanda Beck are prosecuting the case.

 

Arthur Change Menefee, 46, Stockton, California was sentenced today to three years in prison and ordered to pay over $5 million in restitution, for his participation in a large-scale mortgage fraud scheme.

According to court documents, Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in Menefee’s mortgage fraud scheme, with substantial losses to the lenders.

To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two other defendants, Valeriy Vasilevitsky, charged in United States v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in United States v. Willis, 2:13-cr-00228 MCE, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.

United States Attorney Phillip A. Talbert made the announcement.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.