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  • November 30, 1999

Archives For November 30, 1999

Sentencing in Foreclosure Rescue Fraud

Rachel Dollar —  December 17, 2015 — Leave a comment

David W. Griffin, 44, Lutz, to three years in federal prison for bankruptcy fraud and making a false statement during a bankruptcy proceeding.

According to court documents, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC.  The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the properties back to the homeowners to obtain rental income, and falsely promising that the homeowners could repurchase the properties from Griffin. To maximize his rental income, Griffin also prevented creditors and guarantors, including the Fannie Mae and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, and causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent.  Continue Reading…

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Massachusetts Mortgage Broker Sentenced to Three Years

Rachel Dollar —  December 17, 2015 — Leave a comment

Michael P. O’Donnell, mortgage broker, 54, Middleton, Massachusetts, was sentenced by U.S. District Judge Douglas P. Woodlock to three years in prison, two years of supervised release and ordered to pay a fine of $150,000 in connection with his role in 20 fraudulent loan transactions in the North Shore area of Massachusetts.  In July 2015, O’Donnell was convicted following a three-day bench trial of attempted bank fraud. Continue Reading…

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Cay Club Executive Convicted After Trial

Rachel Dollar —  December 14, 2015 — 1 Comment

Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, Florida, was convicted after a five week trial, of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million fraud scheme involving the sale of vacation rental units involving Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere.  Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs.

According to evidence submitted in court, Clark was the Chief Executive Officer of Cay Clubs, which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater.  Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States.  Cay Clubs raised more than $300 million from investors by promising to develop dilapidated properties into luxury resorts, and promising investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing.  Evidence at trial showed that, in reality, Cay Clubs never developed the properties it had promised to investors and that they remained in a dilapidated condition.  Continue Reading…

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Six Indicted in Rhode Island Mortgage fraud

Rachel Dollar —  December 14, 2015 — Leave a comment

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…

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42 Months in Warehouse Theft Scheme

Rachel Dollar —  December 14, 2015 — Leave a comment

Brady Bunte was sentenced to 42 months in prison today, by Chief District Judge Joseph H. McKinley Jr.,   and ordered to pay restitution in the amount of $10,689,587 for devising a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans.

In 2007 and 2008, Brady Bunte owned and operated Trust One Mortgage, a mortgage lender located in Orange County, California.  Trust One Mortgage funded mortgages by maintaining a warehouse line of credit with various banks, including National City Bank.  National City Bank was a federally insured financial institution.  Its warehouse lending offices were located in Louisville, Kentucky.  Continue Reading…

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Title Company Owner Charged in Escrow Diversion

Rachel Dollar —  December 8, 2015 — Leave a comment

Anthony R. Angelo, 69, Philadelphia Pennsylvania, was charged  by Information with wire fraud and bank fraud.

The Information alleges that Angelo was the owner of Aracor Search & Abstract Services, Inc., a title company that provided real estate title insurance services and transactions, located in Philadelphia, Pennsylvania.  Because Ararcor was in debt, Angelo caused funds from dedicated escrow accounts to be used to pay off other escrow obligations and operating costs, causing a loss of over $1 million to the victims.

If convicted the defendant faces a maximum possible sentence of 70 years in prison, a $1.5 million fine, a five-year period of supervised release and a $300 special assessment.

The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Daniel A. Velez.

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Bank President Pleads Guilty to Fraud

Rachel Dollar —  December 8, 2015 — Leave a comment

Gary Patton Hall Jr., 49, Tifton, Georgia, the former president and Chief Executive Officer of Tifton Banking Company (from August 2005 to June 2010) pled guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit fraud against the United States in connection with his role in a bank fraud scheme in which he hid underperforming and at-risk loans from the bank and the FDIC.

According to facts stipulated in the plea agreement, while president and Chief Executive Officer of TBC, Mr. Hall was engaged in an ongoing scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses.   As part of the scheme, Mr. Hall hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking.   Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others. Continue Reading…

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Guilty Verdict Follows 16 Day Federal Trial

Rachel Dollar —  December 8, 2015 — Leave a comment

Vera Kuzmenko, 45, Loomis, California and Rachel Siders, 40, Roseville, California, were found guilty by a federal jury after a 16 day trial of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions over $16 million.

Vera Kuzmenko was also found guilty of witness tampering and money laundering associated with the scheme.

According to evidence presented at trial, from late 2006 through early 2008, the defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento, California, area. The defendants were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars and Rachel Siders received hundreds of thousands of dollars. Continue Reading…

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5+ Years for Targeting Hispanic Borrowers in Fraud Scheme

Rachel Dollar —  December 8, 2015 — Leave a comment

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…

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18 Years in Prison for Mortgage Modification Scam

Rachel Dollar —  December 8, 2015 — Leave a comment

Andrea Ramirez, 47, Rancho Cucamonga, California was sentenced to 18 years in federal prison and ordered to pay $6,764,743 in restitution for orchestrating a scheme that offered bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services that were never provided.

Ramirez was the founder, co-owner and organizer of a telemarketing operation known under a series of names – including 21st Century Legal Services, Inc. – that bilked more than 4,000 homeowners across the nation, many of whom lost their homes to foreclosure. Ramirez was sentenced today after pleading guilty to one count of conspiracy to commit mail fraud and wire fraud.

“This fraudulent company purposely targeted homeowners who were extremely vulnerable because they were facing foreclosure,” said United States Attorney Eileen M. Decker. “Ramirez and her co-defendants made false promises to desperate homeowners, often took the last of their money and then abandoned them. Her contempt for her victims will put her in federal prison for nearly two decades.” Continue Reading…

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