Archives For Mortgage Fraud

$1.7 Million Advance Fee Scam Charged

Rachel Dollar —  October 8, 2015 — Leave a comment

James Thomas, 44, of Villa Rica, Georgia, was arraigned on federal charges of wire fraud and money laundering arising from an alleged advance fee fraud scheme involving $1.7 million.  Thomas was indicted by a federal grand jury on September 15, 2015.  

According to the U.S. Attorney, the charges, and other information presented in court: Between 2008 and 2011, Thomas portrayed his firm, Trilateral Capital and Development LLC (“Trilateral”), as a reputable and well established private equity company that had successfully loaned millions of dollars for real estate development projects. Trilateral’s website and marketing materials contained fraudulent misrepresentations about the firm’s past real estate deals.  Thomas also misrepresented Trilateral’s finances and on least one occasion e-mailed a fraudulent bank statement purporting to show that Trilateral had over $1.6 million in one account.    Continue Reading…

In Mortgage Fraud ,
 permalink

Fraudster’s $4.4M debt to victim banks wiped out, then reinstated

Convicted mortgage fraudster Angel Puentes thought he’d hit the motherlode when a judge cut more than half off the federal prison sentence he was serving and then unexpectedly ruled that Puentes no longer had to pay more than $4.4 million in restitution to his victims.

But Puentes is back on the hook for the money after an appeals court ruled this week that the judge didn’t have the authority to wipe out his debt to the victims.

 Posted by Rachel Dollar  onOctober 7, 2015 In Mortgage Fraud
 permalink Leave a comment

Sentence in Fake Borrower Ponzi Scheme

Rachel Dollar —  October 7, 2015 — Leave a comment

Paul Sloane Davis, 76, Santa Rosa, California, was sentenced to 36 months in prison and ordered to pay $1.7 million in restitution, for a Ponzi scheme he perpetrated along with co-defendant Diane Cobb, 58, currently a resident of the State of Ohio.  The sentencing follows a guilty plea in which Davis admitted to running a fraudulent scheme.  Court documents establish that Davis and Cobb profited by more than a million dollars.

Davis was charged by indictment on October 31, 2013, for his part in the scheme.  According to the indictment, Davis and Cobb operated a financial services company in Marin County known as DM Financial.  Through DM Financial, Davis and Cobb offered investors the opportunity to fund purported short-term “bridge loans” to borrowers who, according to Davis and Cobb, needed short-term financing for residential real estate transactions.  The defendants fraudulently provided to these investors, among other things, the identity of the purported borrower, a promissory note reflecting the amount and terms of the loan, and a deed of trust securing the loan to the borrower’s real property.  Based upon these documents and other representations made by Davis and Cobb, the investors believed the defendants were directing the funds into secured loans with borrowers. Continue Reading…

In Mortgage Fraud ,
 permalink

New York Loan Modification Scam Indicted

Rachel Dollar —  October 7, 2015 — Leave a comment

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…

In Mortgage Fraud , , , ,
 permalink
Real Estate Broker

Attorney Sentenced in Condo Conversion Scheme

Rachel Dollar —  October 6, 2015 — 5 Comments

Michael R. Anderson, 46, attorney, Framingham, Massachusetts, was sentenced to two years in prison, two years of supervised release, and ordered to pay $11,048,212 in restitution and forfeit $7,413,712 in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester and Roxbury, Massachusetts.  In January 2011, Anderson pleaded guilty to sixteen counts of wire fraud, nine counts of bank fraud, and two counts of engaging in unlawful monetary transactions.   Continue Reading…

In Mortgage Fraud , , , , , ,
 permalink

Costa Mesa woman who ran foreclosure fraud scheme sentenced to 6 years

A 31-year-old Costa Mesa woman was sentenced Monday to nearly six years in federal prison for operating a foreclosure rescue fraud scheme that targeted homeowners with bogus promises of mortgage relief.

Najia Jalan was ordered to pay restitution of about $236,000 and serve three years of supervised release following her 70-month prison term, according to the U.S. Attorney’s Office.

 Posted by Rachel Dollar  onOctober 6, 2015 In Mortgage Fraud
 permalink Leave a comment

Ex-NFL Star Irving Fryar Sentenced to 5 Years in Prison in $1.2 Million Mortgage Fraud Case

 Posted by Rachel Dollar  onOctober 5, 2015 In Mortgage Fraud , , ,
 permalink Leave a comment

Man Sentenced for Lying About Owning Property

Rachel Dollar —  October 5, 2015 — Leave a comment

Montgomery Joseph Isner, 47, Hagerstown, Maryland, was sentenced to 30 months in prison for bank fraud.

Isner misrepresented himself as the owner of a parcel of real property in Berkeley County, West Virginia in order to fraudulently obtain a loan in the amount of $60,000. Isner pled guilty in June 2015 to one count of “False Statement on Loan Application.” As part of the sentence, Isner was also ordered to pay restitution in the amount of $57,285.78.

The plea was announced by United States Attorney William J. Ihlenfeld, II.  Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.   Chief U.S. District Judge Gina M. Groh presided.

In Mortgage Fraud
 permalink

Costa Mesa Woman Could Be Sentenced To Federal Prison For Running A Foreclosure Rescue Fraud Scheme

A 31-year-old Costa Mesa woman could be sentenced to federal prison today for running a foreclosure rescue fraud scheme that targeted homeowners with bogus promises of mortgage relief.

Najia Jalan faces between two and six years behind bars following her July guilty plea in Los Angeles to mail fraud and aggravated identity theft charges, according to the U.S. Attorney’s Office.

 Posted by Rachel Dollar  onOctober 5, 2015 In Mortgage Fraud ,
 permalink Leave a comment

Guilty Pleas in Cash to Close Fraud

Rachel Dollar —  October 2, 2015 — Leave a comment

 Timothy L. Ritchie, 44, Annapolis, Maryland, pleaded guilty to making false statements arising from a real estate closing.

Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.

According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road, St. Michael’s, Maryland.  John L. Davis, 55, real estate agent, Chestertown, Maryland, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower.  The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing.  In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.

Ritchie faces a maximum sentence of five years in prison.  U.S. District Judge Richard D. Bennett scheduled his sentencing for January 14, 2016, at 10:00 a.m.

John L. Davis previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and awaits sentencing. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.  United States Attorney Rod J. Rosenstein commended the FHFA – OIG and FDIC – OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. DiGregory and Assistant U.S. Attorney Kathleen O. Gavin, who are prosecuting the case.

In Mortgage Fraud , , ,
 permalink