Archives For Washington D.C.

Duo Indicted on Federal Charges in Real Estate Scheme

Stephanie Abbott —  November 29, 2021 — Leave a comment

Jeffrey M. Young-Bey, 65, Washington, District of Columbia, and Martina Yolanda Jones, 44, Baltimore, Maryland, were indicted earlier this month for a scheme in which they allegedly used fraudulent property deeds to steal residential real estate property in the District of Columbia

As alleged in the indictment, beginning at least as early as November 2019, Young-Bey and Jones conspired to steal real estate and obtain a loan against the property or sell the property for profit. Specifically, the indictment states, Young-Bey identified a target property located in the District of Columbia. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners.  Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity controlled by Young-Bey or Jones.  The residential real estate property was then encumbered or sold through means of materially false and fraudulent pretenses, representations, and promises.

As a result of the scheme, the indictment alleges, Jones and Young-Bey obtained $323,224 from a fraudulent loan taken out on one property.

In addition, according to the indictment, Young-Bey received $268,036 from the sale of a second property in the District of Columbia that he allegedly stole and sold through the same scheme.  With these fraudulent proceeds, the indictment alleges, Young-Bey purchased a 2020 BMW 750XI worth over $106,000 and a 2016 BMW 328XI worth over $21,000.

All told, the indictment alleges, the scheme generated more than $500,000 in illegal proceeds.

In connection with Young-Bey’s activity, the Government has seized $269,239, as well as the 2020 BMW 750XI.

The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.

Young-Bey was arrested on November 22, 2021, and Jones was arrested on November 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

Young-Bey was arrested on Nov. 22, 2021, and Jones was arrested on Nov. 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

This case is being investigated by the FBI’s Washington Field Office.  It is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein and Special Assistant U.S. Attorney Viviana Vasiu, both from the Fraud Section of the U.S. Attorney’s Office for the District of Columbia.

In Mortgage Fraud , ,
 permalink

Judge Issues Arrest Warrant for Man Charged with Mortgage Fraud – The Washington Post

Stephanie Abbott —  January 3, 2020 — 2 Comments

Judge issues arrest warrant for Montgomery County man charged with mortgage fraud  – Patricia Duckett cries as she recounts how she lost her home of nearly 20 years, Nov. 6, 2019, in District Heights, Md. (Katherine Frey/The Washington Post) Patricia Duckett cries as she recounts how she lost her home of nearly 20 years, Nov. 6, 2019, in District Heights, Md. (Katherine Frey/The Washington Post) By Rachel Chason Jan. 3, 2020 at 9:51 a.m. PST A Prince George’s County Circuit Court judge issued an arres

Source: Judge issues arrest warrant for Montgomery County man charged with mortgage fraud – The Washington Post

In Mortgage Fraud ,
 permalink

Universal American Mortgage Company, LLC Agrees to Pay to Settle for Failing to Follow FHA Rules

Stephanie Abbott —  October 23, 2018 — Leave a comment

Universal American Mortgage Company, LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain mortgages.  UAMC is a mortgage lender headquartered in Miami, Florida, doing business across the country, including in the Western District of Washington.

The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify.  The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.

During the period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program.  A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance.  If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan.  Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance.  DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.

The announcement was made by U.S. Attorney Annette L. Hayes.

“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division.  “We will hold accountable entities that knowingly fail to follow important federal program requirements.”

“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney for the Western District of Washington, Annette L. Hayes.  “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance.  This settlement should serve as a warning to other lenders to diligently follow the rules.”

United States Attorney Joseph Harrington for the Eastern District of Washington said, “FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis.  FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program.  We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”

“One of our principle responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General.  “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”

“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement.  “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”

The settlement resolves allegations originally brought by Kat Nguyen-Seligman, a former employee of a related UAMC entity, in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to bring suit on behalf of the federal government and to share in any recovery.  The whistleblower will receive $1,980,000 as her share of the federal government’s recovery in this case.

This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Washington and Western District of Washington, the Department of Housing and Urban Development, and the Department of Housing and Urban Development’s Office of the Inspector General.  case is captioned United States ex rel. Kat Nguyen-Selgiman v. Lennar Corporation, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.).  The claims resolved by this settlement are allegations only, and there has been no admission of liability.

The settlement agreement is being handled by Assistant United States Attorney Kayla Stahman.

In Mortgage Fraud , ,
 permalink

Man Sentenced For Using Forged Deeds to Steal Homes

Stephanie Abbott —  October 19, 2018 — Leave a comment

Robert McCloud, 39, most recently of Warrenville, South Carolina, was sentenced today to 18 months in prison on a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.

According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.

In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.

In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW, Washington, D.C., was transferred from the true owners to a fictitious person.  The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.

In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, Washington D.C., to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph.  He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.

The true owners of the homes, who are elderly, have faced difficult and lengthy proceedings in order to retitle the properties in their own names. Unwinding the fraudulent transfer is merely the first step for the victims to reclaim their ownership and interest in the properties and each must now settle various outstanding bills.

Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited.  These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.

McCloud pled guilty in June 2018, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. In addition to his prison term, McCloud must pay restitution in an amount to be set later by the Court, as well as a forfeiture money judgment of $57,965. Following his prison term, he will be placed on three years of supervised release, the first six months of which is to be spent in home confinement. McCloud also will be required to perform 150 hours of community service.

The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.

In Mortgage Fraud ,
 permalink

Defendant Obtained 24 Loans on Two Properties, Then Defaulted

Stephanie Abbott —  July 3, 2018 — Leave a comment

Garth Anthony Gardner, 49, a citizen of the Republic of Trinidad & Tobago, pled guilty yesterday to charges involving a scheme in which he made misrepresentations to apply for and obtain more than $3 million in multiple home equity line of credit loans.

According to the government’s evidence, in October 2003, Gardner purchased a property in the 5100 block of 13th Street NW, Washington, DC, using the Social Security number of another person and falsely representing himself as a U.S. citizen.  In May 2005, he used a corporation that he owned to purchase a second property in the 1300 block of Dexter Terrace SE, Washington, DC.  Gardner transferred ownership of the second property from the company to himself for $10.  Next, Gardner applied for a series of home equity line of credit loans using the two properties as collateral.

By settling these loans in close proximity to each other, Gardner minimized the banks’ ability to learn about the other loans.  From August to October 2004, Gardner obtained 12 home equity line of credit loans from 12 different banks secured by the 13th Street property, totaling approximately $1.4 million.  Between March and April 2006, Gardner applied for 13, and obtained 12, such loans from 12 banks, secured by the Dexter Terrace property, totaling approximately $1.9 million.

In approximately February 2008, Gardner stopped making payments and defaulted on all of the loans.  The banks discovered Gardner’s fraudulent conduct after initiating foreclosure proceedings on the properties.

Gardner admitted that he used a portion of the proceeds from the fraudulent scheme to purchase 15 silver bars, which the government recovered and liquidated for about $1.1 million.

Gardner was arrested in Frankfurt, Germany in May 2017, and was extradited to the District of Columbia in February 2018, to face the charges that had been pending since 2014.  He remains in custody pending his sentencing.

Gardner pled guilty on July 2, 2018, in the U.S. District Court for the District of Columbia, to two counts of bank fraud. Each charge carries a statutory maximum of 30 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces an estimated range of 51 to 63 months in prison and a fine of up to $100,000. The plea agreement calls for him to pay $3,165,294 in restitution to 24 financial institutions. It also calls for him to pay a forfeiture money judgment in the amount of $2,048,446. The Honorable Christopher R. Cooper scheduled sentencing for Sept. 24, 2018.

The announcement was made by U.S. Attorney Jessie K. Liu and Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.

In announcing the plea, U.S. Attorney Liu and Acting Special Agent in Charge Jackson commended the work performed by those who investigated the case from the Internal Revenue Service-Criminal Investigation. They also expressed appreciation for the assistance provided by the Washington Field Office of the U.S. Secret Service and the Office of the Inspector General of the Social Security Administration. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle Bradford, David A. Last, Diane Lucas and Denise A. Simmonds, and Paralegal Specialist Aisha Keys.

In Mortgage Fraud ,
 permalink

Man Pleads Guilty to Using Forged Deeds to Steal Homes

Stephanie Abbott —  June 27, 2018 — Leave a comment

Robert McCloud, 39, Warrenville, South Carolina, pled guilty today to a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.

According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.

In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.

In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW, Washington, DC was transferred from the true owners to a fictitious person.  The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.

In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, Washington, DC, to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph.  He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.

Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited.  These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.

The harm caused to the owners, buyers, and title companies was covered by title insurance; the restitution amount of $200,488 is the amount due and owing to the title insurance companies after giving credit to the forfeited funds, which were returned to the victims.

McCloud pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, McCloud faces a likely range of 27 to 33 months in prison and a fine of up to $60,000. He also has agreed to pay $200,488 in restitution to two title insurance companies, as well as a forfeiture money judgment of $57,965. The Honorable Amit P. Mehta scheduled sentencing for Oct. 19, 2018.

The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.

In Mortgage Fraud , ,
 permalink

Prison Sentence for Fake Mortgage Satisfactions

Rachel Dollar —  July 19, 2017 — 2 Comments

David Tyrone Johnson, 48, Washington, D.C., was sentenced to a year and a day in prison on federal charges arising from a real estate scheme involving forged mortgage satisfaction documents.

Johnson pled guilty in April 2017, in the U.S. District Court for the District of Columbia, to charges of bank fraud and making false statements. He was sentenced by the Honorable Ketanji Brown Jackson. Following his prison term, Johnson will be placed on two years of supervised release. He also must pay $337,105 in restitution to Fidelity National Title Insurance Company, as well as a forfeiture money judgment of $170,688.

According to a statement of offense submitted at the time of the guilty plea, SunTrust Mortgage, Inc. loaned a friend of Johnson’s approximately $470,000 in 2008 to purchase residential real estate in the 100 block of 57th Street SE. By 2009, the friend had failed to repay the mortgage loans, and in 2010, SunTrust Mortgage filed a notice of foreclosure with the District of Columbia’s Recorder of Deeds. In April 2013, SunTrust Mortgage began the process of foreclosing on the mortgage and taking possession of the property, due to the friend’s failure to make good and timely payments on the mortgage loans.

Sometime before October 2, 2013, Johnson caused the creation of two phony and forged certificates of satisfaction, which falsely represented that the SunTrust Mortgage loans at the property on 57th Street SE had been paid and that his friend owned the property “free and clear.” According to the statement of offense, on October 2, 2013, Johnson filed these two phony certificates of satisfaction with the Recorder of Deeds.

In or about December 2013, after the fake certificates of satisfaction allowed the friend to sell the property without paying the outstanding mortgages, the title and escrow company wired out the sales proceeds of $337,105, of which approximately $170,688 was obtained by Johnson.

In addition, in 2015, Johnson was required to submit a financial disclosure form to his government agency employer; however, on that form, Johnson failed to disclose the money he obtained from the sales proceeds of the property, knowing that he had obtained the money. This failure to inform his government agency employer was material or important to his employer, and one that resulted in a false statement on his financial disclosure form.

In announcing the sentence, U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office expressed appreciation for the work performed by those who investigated the case and assisted in preparing it for trial from the FBI, including the Washington Field Office and the FBI Laboratory. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Christopher Toms; former Paralegal Specialists Corinne Kleinman and Kaitlyn Krueger; Litigation Tech Specialist Ron Royal, and Assistant U.S. Attorney Thomas Swanton, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.

In Mortgage Fraud ,
 permalink

Real Estate Investment Fraud Scheme Sentencing

Rachel Dollar —  February 17, 2017 — Leave a comment

Homayoon Daneshvar, 63, Washington, D.C., was sentenced to 18 months in prison.  The charges related to a $1.9 million real estate investment fraud scheme.

Danshevar was also ordered to serve three years of supervised release, forfeit $1.945 million, and pay $926,020 in restitution.

Daneshvar pleaded guilty on October 24, 2016.

According to court documents,  Daneshvar engaged in a real estate investment fraud scheme from in or about April 2009 to January 2013.  Deneshvar lied and made false promises to eight victim investors to persuade them to give him approximately $1.9 million. Daneshvar told the victim investors the money would be used for bridge financing to purchase foreclosed property that would be “flipped,” or quickly resold for profit. Daneshvar promised the investors a monthly return on their investments.  In reality Daneshvar used the money to invest in the stock market, pay “returns” on the investments back to the investors, and to pay for his own personal expenses.

The victims of the real estate investment fraud included a 78-year old retiree who invested her retirement savings.  Another victim was a permanently disabled Marin Corps veteran who borrowed against his home, according to court documents.  When the victims became suspicious, Daneshvar them that their money was tied up in properties and that their investments had grown. Eventually, he confessed that he had been lying to the investors and running a Ponzi scheme.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Grace L. Hill prosecuted the case.

In Mortgage Fraud ,
 permalink

Indictment for Fake Mortgage Release

Rachel Dollar —  August 15, 2016 — Leave a comment

David Tyrone Johnson, 48, Washington, D.C. was indicted on charges that he conspired to commit bank fraud and other crimes arising from a real estate scheme involving a forged mortgage satisfaction document.

Johnson was named in a six-count indictment that was returned on August 9, 2016. He is charged with federal violations of conspiracy, bank fraud, wire fraud, engaging in illegal monetary transactions, and making a false statement, as well as uttering, which is a District of Columbia offense.  The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. Johnson pled not guilty to the charges at his first court appearance.

According to the indictment, SunTrust Mortgage, Inc. loaned a friend of Johnson’s approximately $470,000 to purchase residential real estate in the 100 block of 57th Street SE in 2008.  By 2009, the friend had failed to repay the mortgage loans, and in 2010, SunTrust Mortgage filed a notice of foreclosure with the District of Columbia’s Recorder of Deeds. In April 2013, SunTrust Mortgage began the process of foreclosing on the mortgage and taking possession of the property, due to the friend’s failure to make good and timely payments on the mortgage loans.

The indictment alleges that sometime before October 2, 2013, Johnson caused the creation of two phony and forged certificates of satisfaction, which falsely represented that the SunTrust Mortgage loans at the property on 57th Street SE had been paid and that his friend owned the property “free and clear.”  The indictment also alleges that on October 2, 2013, Johnson filed these two phony certificates of satisfaction with the Recorder of Deeds.

In or about December 2013, after the fake certificates of satisfaction allowed the friend to sell the property without paying the outstanding mortgages, the title and escrow company wired out the sales proceeds of $337,105, of which approximately $170,688 was obtained by Johnson.

The indictment, which was unsealed in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.In announcing the charges, U.S. Attorney Phillips and Assistant Director in Charge Abbate expressed appreciation for the work performed by those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman, Paralegal Specialist Kaitlyn Kruger, Litigation Tech Specialist Ron Royal, and Assistant U.S. Attorney Thomas Swanton, who is assisting with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham who is prosecuting the case.

In Mortgage Fraud , ,
 permalink

Clear Title, Sell House, Plead Guilty

Rachel Dollar —  June 29, 2016 — Leave a comment

Veronica Washington was charged by information in the U.S. District Court for the District of Columbia and plead guilty to conspiracy to commit bank fraud.

According to the information, Washinton purchased residential real estate at 123 57th Street SE, Washington D.C. on February 20, 2008 and obtained two mortgage loans for approximately $470,000 total from SunTrust Mortgage. By 2009, she had failed to maintain timely mortgage payments and, in February 2010, she entered into a HAMP trial period plan.  By May 2010, she was again behind on her mortgage payments and, on May 7, 2010, a Notice of Foreclosure was filed with the DC Recorder of Deeds.  In April 2013, SunTrust Mortgage began the process of foreclosure.

Sometime before October 2, 2013, according to the information, two fake Certificates of Satisfaction of the mortgages were recorded which represented SunTrust had been paid and that Washington owned the property “free and clear.” The satisfactions contains forged signatures of someone purporting to be an individual authorized to sign for SunTrust Mortgage.

On or about October 11, 2013, Washington listed the property for sale for $425,000 – even though she owed in excess of $470,000 on the two SunTrust mortgages.  On or about November 10, 2013, Washington agreed to sell the property to a buyer for $379,000.  After signing documents to complete the sale in December 2013, the title company wired Washington the sales proceeds of over $337,000.

The charges to which Washington pled guilty carry a maximum possible sentence of 5 years in prison and a $250,000 fine.

 

 

In Mortgage Fraud ,
 permalink