Archives For escrow theft

Escrow Manager Arraigned on Charges of Wire fraud and Illegal Transactions

Stephanie Abbott —  April 5, 2022 — Leave a comment

Christopher Adam Jensen-Tanner, 43, Roswell, New Mexico, was arraigned in federal court today on a 38-count indictment charging him with 34 counts of wire fraud and four counts of engaging in monetary transactions in property derived from specified unlawful activity.

According to the indictment and other court records, Jensen-Tanner allegedly used his position and access as owner and president of Roswell Escrow Services, Inc. (RES) to fraudulently redirect customer funds for his personal benefit.

RES served both as a qualified intermediary and as a servicer for real estate contracts. As a qualified intermediary, RES held proceeds from property sales in trust for clients for a period of up to 180 days, during which time the clients could use the funds to purchase a like-in-kind property and not incur capital gains. As a real estate contract servicer, RES received monthly payments from property buyers, taking a portion of the payment to cover insurance, property taxes, and fees. Ordinarily, such funds would be segregated through numerous bank accounts based on the nature and purpose of the funds, and occasionally further delineated by individual clients.

On or before January 11, 2017, Jensen-Tanner allegedly began commingling funds within the RES corporate accounts by moving funds held in trust to operating accounts and vice-versa, contrary to established best practices of the industry. From around January 11, 2017, to October 23, 2019, Jensen-Tanner allegedly made several personal purchases for himself directly from RES corporate accounts. During that same period, Jensen-Tanner allegedly transferred funds from RES corporate accounts at Wells Fargo bank to a holding account for Wells Fargo certified funds tied to Wells Fargo cashier’s checks. Jensen-Tanner then allegedly transferred those certified funds to pay for personal expenses, either directly or via his personal checking account.

The extent of the fraud was in excess of $2 million.

Jensen-Tanner is subject to conditions of release pending trial, which has not been scheduled.

An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Jensen-Tanner faces up to 20 years in prison for each count of wire fraud and up to 10 years in prison for each count of engaging in monetary transactions in property derived from specified unlawful activity.

The FBI and IRS Criminal Investigation are investigating this case with assistance from the Securities and Financial Institutions Divisions of the New Mexico Regulation and Licensing Department. Assistant United States Attorneys Ry Ellison and Richard Williams are prosecuting the case.

The FBI is seeking other potential fraud victims in this case. Anyone who was a customer of RES and believes they were the victim of fraud is asked to contact the FBI at 1-800-CALL-FBI or go online to tips.fbi.gov.

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Former R.E. Attorney & Wife Plead Guilty to Mortgage Fraud

Stephanie Abbott —  March 4, 2022 — Leave a comment

Barry Wayne Plunkett Jr., 61, and Nancy Plunkett, 56, both of Hyannis Port, Massachusetts, a former  attorney and his wife pleaded guilty today in federal court in Boston in connection with various mortgage fraud schemes.

Prior to being disbarred in October 2017, Barry Wayne Plunkett Jr. owned and operated the Plunkett Law Firm where his wife, Nancy Plunkett, was his office assistant and paralegal.

The defendants engaged in several bank fraud schemes. In one scheme, from September 2012 to July 2016, the defendants defrauded six mortgage lenders and 14 homeowners for whom the Plunkett Law Firm handled the closings for new mortgage loans to refinance residential properties. The defendants informed the mortgage lenders that pre-existing mortgages were paid off from the new loan proceeds when, in fact, the Plunketts intentionally failed to pay off the prior liens and instead converted more than $900,000 in payoff funds for their own purposes.

In other bank fraud schemes – between April 2015 and March 2018 – the Plunketts fraudulently used various names, entities and false documents to obtain three successive mortgage loans on their home in Hyannis Port in amounts of $412,000, $470,000 and $1.2 million. The defendants pledged as collateral a property in Hyannis Port that was held in a family trust for which Barry Wayne Plunkett Jr. was one of three beneficiaries. Both defendants participated in providing false documents to the lenders, including false title reports and other records to falsely represent that the property was free and clear of existing mortgage liens and forged documents in the names of other people. The defendants also made misrepresentations to a lender that Nancy Plunkett was a single woman living in Wellesley who was purchasing the property in her maiden name as a business investment when, in fact, the defendants had been married since 2014 and the property was their residence.

The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year sentence to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The Plunkett’s pleaded guilty to five counts of bank fraud and one count of aggravated identity theft. Barry Wayne Plunkett Jr. also pleaded guilty to one count of tax evasion. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 10, 2022. The Plunketts were indicted in July 2020.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Victor A. Wild and Mackenzie Queenin, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Carol Head, Chief of Rollins’ Asset Recovery Unit, are prosecuting the case.

 

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Former Unlicensed Mortgage Broker Pleads Guilty to Mortgage Fraud Scheme

Stephanie Abbott —  August 31, 2021 — Leave a comment

Brent Kaufman, 50, Commack, New York, a former unlicensed mortgage broker, pleaded guilty today to criminal information charging him with stealing $4.7 million in mortgage refinancing proceeds that were meant to pay off the existing mortgages of his clients.

According to court filings and facts presented during the plea proceeding, Kaufman worked as an unlicensed mortgage broker and often assisted clients in Queens and Long Island with refinancing their mortgages.  At the closing for a mortgage refinancing, the money from the new mortgage is supposed to be wired to the financial institution that holds the existing mortgage so that it can be paid off. Between 2016 and 2019, Kaufman, together with others, engaged in a scheme to defraud Home Point Financial Corporation, LoanDepot.com LLC and United Wholesale Mortgage and other mortgage lenders (the “Lenders”) by obtaining, and attempting to obtain, monies and funds from the Lenders by means of materially false representations.  Specifically, Kaufman provided incorrect wire routing information to the Lenders for the existing mortgages.  Instead of wiring the funds to the correct financial institution, the funds were instead transferred to bank accounts controlled by Kaufman.  As a result, the existing mortgages were not paid off, leaving the clients with two mortgages on their homes, and Kaufman stole the funds for his own personal use.

During the period of the charged conduct, Kaufman stole more than over $4.7 million, some of which he used to make mortgage payments on the existing mortgages or to eventually pay off those mortgages to avoid detection of his scheme.  When Kaufman stopped paying the existing mortgages, several of his clients’ homes were foreclosed on.  Victims of the scheme ultimately suffered a loss of approximately $2.5 million.

When sentenced, Kaufman faces up to 30 years in prison, as well as forfeiture and a fine of up to $1 million.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert W. Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), and Darnell D. Edwards, Acting Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.

“With today’s guilty plea, Kaufman admits to stealing millions of dollars in a brazen mortgage fraud scheme that defrauded numerous lenders and left his homeowner-clients in danger of losing their homes to foreclosure,” stated Acting U.S. Attorney Kasulis.  “This Office is committed to prosecuting defendants like Kaufman who are driven by greed to abuse the trust of innocent homeowners.” Ms. Kasulis expressed her grateful appreciation to the FBI, FHFA-OIG and the USPIS for their outstanding work and assistance in this investigation and prosecution.

“Not only did Kaufman steal his victims’ money, but he also violated their trust, leaving them financially vulnerable and at risk of significant financial complications,” stated FBI Assistant Director-in-Charge Driscoll.  “Collectively, his victims suffered millions of dollars in losses. Today’s guilty plea reminds us of the threat posed by those who prioritize their own financial interests above all else.”

“Brent Kaufman betrayed the trust of unsuspecting homeowners by stealing millions of dollars in mortgage payoffs and failing to repay lenders.  As demonstrated by these charges, FHFA-OIG and its law enforcement partners will investigate and hold accountable those who seek to victimize Fannie Mae and Freddie Mac and misuse the lending process to unjustly enrich themselves,” stated FHFA-OIG Special Agent-in-Charge-Manchak.

“This is a classic case of greed overcoming honest business practices, as Mr. Kaufman took advantage of his access to clients funds to enrich his own lifestyle. His actions left many in financial ruin, holding two mortgages and facing the threat of foreclosure. Law enforcement will always work tirelessly to bring individuals to justice for their crimes against the American public,” stated USPIS Acting Inspector-in-Charge Edwards.

The government’s case is being prosecuted by Assistant United States Attorneys Jonathan Siegel and Laura Mantell.

 

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Attorney Sentenced for Stealing Down Payments Held in Escrow

Stephanie Abbott —  May 10, 2021 — Leave a comment

Edmundo Roman-Perez, 71, Sunset Park, Brooklyn, an attorney has been sentenced today to 1 to 3 years in prison for stealing approximately $280,000 in down payments he received to hold in escrow from two clients he represented in the sale of their homes. The defendant pleaded guilty to second-degree grand larceny in December 2020.

According to the investigation, in late 2018, a couple hired the defendant to represent them in the sale of their two-family, Sunset Park, Brooklyn home. The home sold for $1,350,000 and the defendant received a $135,000 down payment from the buyers that he should have held in his attorney escrow account until the date of closing, when the funds should have been released to his clients. Instead, the defendant used the money for his own benefit. After closing in March 2019, the defendant issued checks to his clients purporting to cover the $135,000 owed, which bounced upon deposit. The defendant failed to disburse the funds he owed to his clients.

Similarly, between November 2018 and April 2019, the defendant represented three brothers in the sale of their two-family home in Dyker Heights, Brooklyn. The home sold for $1,500,000 and the defendant received a $150,000 down payment from the buyers that he should have held in his attorney escrow account until closing, when he should have released the money to his clients. Instead, the defendant again used the money for his own benefit, and issued the brothers checks purporting to cover the funds owed to each of them. The checks bounced and the defendant failed to distribute the funds he owed to the brothers.

Additionally, the defendant was under indictment in Richmond County related to allegations that he stole client funds. In November 2020, he pleaded guilty to one count of third-degree grand larceny and received a sentence of 1 to 3 years in prison. The Brooklyn and Staten Island sentences will run concurrently.

Brooklyn District Attorney Eric Gonzalez made the announcement.

District Attorney Gonzalez said, “Today’s sentence holds this defendant accountable for the serious breach of trust and financial hardship he caused his victims. Let this serve as a reminder that I am committed to protecting Brooklyn’s residents from attorneys and other unscrupulous fraudsters who abuse their positions of authority to take advantage of those they are entrusted to advise and represent.”

The case was investigated by Supervising Financial Investigator Deborah Wey of the District Attorney’s Investigations Division.

The case was prosecuted by Senior Assistant District Attorney Katherine Zdrojeski of the District Attorney’s Public Integrity Bureau, under the supervision of Assistant District Attorney Laura Neubauer, Chief of the Public Integrity Bureau, and Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division, and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

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Former Lawyer Indicted for Allegedly Stealing From Client in Real Estate Deal

Stephanie Abbott —  April 8, 2021 — Leave a comment

Gerald Douglas, 52, East Flatbush, Brooklyn, New York was arraigned today on an indictment in which he is charged with second-degree grand larceny for allegedly stealing the down payment toward the purchase of a Brownsville, New York home whose seller he represented.

According to the investigation, the defendant represented a 76-year-old woman in the sale of her Brownsville house, negotiating the contract for her in September 2018. A down payment of $71,700 was allegedly deposited into the defendant’s escrow account. The closing occurred in August 2019, by which time the defendant had allegedly stopped returning his client’s phone calls and she was forced to retain new counsel to close the transaction. The client received the sale proceeds at the closing, but not the down payment despite repeated requests to the defendant.

It is further alleged that in June and July 2018, the defendant asked the same client if she would loan him money, first $6,000 and then $8,000. He allegedly told her he was expecting a rental payment for a property he owned in Flatbush, Brooklyn, though in fact the property had gone into foreclosure five years earlier and he was no longer the owner.

Douglas was released without bail and ordered to return to court on May 12, 2021.

The defendant was disbarred by the Appellate Division Second Department in 2019.

Brooklyn District Attorney Eric Gonzalez made the announcement.

District Attorney Gonzalez said “The victim in this case was allegedly defrauded of a large sum of money by her own attorney, who had a legal duty to protect her interests. I would like to thank my Public Integrity Bureau for its hard work in seeking to hold the defendant accountable for his alleged criminal act and betrayal of trust.”

The case is being prosecuted by Senior Assistant District Attorney Adam Libove of the District Attorney’s Public Integrity Bureau, under the supervision of Assistant District Attorney Laura Neubauer, Bureau Chief, and Assistant District Attorney Michel Spanakos, Deputy Chief of the District Attorney’s Investigations Division, and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

 

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Disbarred Attorney Pleads Guilty to Stealing from Homeowners

Stephanie Abbott —  April 3, 2019 — Leave a comment

Constantine Giannakos, 51, Hicksville, New York, a disbarred attorney, pleaded guilty yesterday to stealing $40,000 from a Hicksville couple selling their home.

In early 2017, a Hicksville homeowner and her ex-husband hired the defendant to represent them in the sale of their home. The complainants and their home purchasers entered a sales contract on February 4, 2017.

At the time of the contract signing, the buyers’ attorney provided a $40,000 down payment check made out to ‘Constantine Giannakos, as attorney’ that was deposited into Giannakos’ escrow account and held there until the closing.

Between February 4, 2017 and the scheduled closing date of September 27, 2017, the defendant and one of the complainants met at public locations including a Dunkin’ Donuts on Newbridge Road in Hicksville. The defendant claimed he had an office in Syosset, New York but in fact, did not.

Following the closing on September 27, 2017 the defendant was supposed to remit the $40,000 down payment to his clients but never did so. The complainants made several subsequent requests for the money via phone and text messages but never received the money.

The Nassau County District Attorney’s Office received the case on October 24, 2017, after receiving a complaint from the homeowners. A review of the escrow account showed Giannakos spent the $40,000 at Home Depot, on credit card payments, department stores, mortgage payments, and unrelated business expenses.

Giannakos pled guilty to Grand Larceny in the Third Degree (a D felony) before Judge Robert Bogle. If the defendant provides $40,000 restitution at the time of sentence on May 10, 2019 he is expected to be sentenced to five years’ probation; however, if the defendant does not pay restitution, he is expected to be sentenced to one to three years in prison.

Nassau County District Attorney Madeline Singas made the announcement.

“Instead of faithfully representing his clients, this defendant stole $40,000 from them and spent it at the Home Depot and on personal credit card payments,” DA Singas said. “When an attorney abuses their client’s trust and steals from them, my office will hold them accountable for their crimes.”

Giannakos was disbarred for another matter on August 21, 2012.

Since 2012, the NCDA has prosecuted more than 20 attorneys for misconduct.

If you believe you may have been a victim of an unscrupulous attorney, please call the NCDA’s Tip Line at 516-571-7755. Anyone interested in hiring an attorney is encouraged to check that person’s standing and registration with the Office of Court Administration.

Assistant District Attorney Jennifer Contreras of DA Singas’ Financial Crimes Bureau is handling this case. Eric Franz, Esq. represents the defendant.

 

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Former Owner of Mortgage Company Ordered to Pay Restitution in Fraud Scheme

Stephanie Abbott —  December 6, 2018 — 1 Comment

David Fili, Jr., 48, Drexel Hill, Pennsylvania, was sentenced today to one day in jail and five years of supervised release, with the first 18 months of supervised release to be served on home confinement in multi-million dollar fraud scheme.

Along with George Barnard, 47, Newtown Square, Pennsylvania, Fili owned Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, Pennsylvania. Between 2005 and March 2013, Fili and Barnard issued refinance mortgage loans to customers of CFMC. Instead of using the money to pay off their customers’ outstanding first mortgages, however, they diverted $9,781,977 to themselves from bank accounts belonging to CFMC and several title companies owned by Barnard. Barnard was previously sentenced to five years in prison for his role in the scheme.

As part of his guilty plea, Fili admitted that he used much of the money he diverted to buy a vacation home and to support his gambling habit (while Barnard used the money he diverted to buy multi-million dollar beach homes in Avalon, New Jersey, several yachts, and to pay the salary of a yacht captain). At the time that the scheme fell apart in March 2013, Fili and Barnard left over two dozen CFMC customers stuck with two mortgages on their homes because CFMC had failed to pay off their customers’ existing first mortgages.

Fili was ordered to forfeit $1,969,312.02, and is jointly and severally liable to pay $9,567,074.56 in restitution.  Fili previously entered a guilty plea to ten counts of wire fraud and two counts of bank fraud.http://www.mortgagefraudblog.com/?s=David+Fili%2C+Jr.

U.S. Attorney William M. McSwain made the announcement.

“For many years, Fili defrauded honest, hard-working individuals out of their money so that he could gamble it away and relax in his illegally-obtained vacation home, “ said U.S. Attorney McSwain. “The defendant’s vacation ends now. We are thankful that the Court ordered him to pay millions of dollars as a result of his crimes.”

The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

 

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Owner of Now-Defunct Real Estate Escrow Company Sentenced for Escrow Theft

Stephanie Abbott —  August 10, 2018 — 1 Comment

Lori Lynn Andrew, 49, Cashmere, Washington, the owner of Hartman Escrow, Inc., a real estate escrow firm was sentenced today to 24 months in prison for bank fraud.

Andrew stole more than $2.1 million through a variety of techniques, including making false entries in escrow closing documents, altering accounting records, and depositing checks into the general account instead of the trust account.

According to records in the case, beginning in about January 2011, and continuing until July 2012, Andrew used a variety of means to defraud financial institutions and individual home buyers and sellers who were involved in various real estate transactions.  Andrew made, or had others make, false settlement statements on closing transactions listing false or inflated fees and charges.  Andrew forged signatures on various statements and created false invoices, statements, and bills; she altered and deposited checks to her company account that should have gone to others; and she took client funds from her trust account and transferred them to her personal account for her own use.  Andrew used the money for casino payments, credit card bills, and other personal expenses.  Andrew defrauded individual customers, as well as Bank of America, Wells Fargo, Citi Bank, Chase, and GMAC.  http://www.mortgagefraudblog.com/?s=Lori+Lynn+Andrew

In all Andrew defrauded the financial institutions and other customers of $2.185 million.  In July 2012, the Washington State Department of Financial Institutions arranged for a receiver to take over the Tukwila, Washington, escrow company after finding evidence of fraud.  Andrew had her license to act as an escrow agent suspended in 2013, and her license has since been revoked. The receiver was able to recover some funds for unsecured claimants, but just over $1 million is still owed to defrauded clients.

U.S. Attorney Annette L. Hayes made the announcement.

“This defendant chose to victimize people when they were buying or selling a home–often the most important financial transaction of their lives,” said U.S. Attorney Annette L. Hayes.  “Like all real estate escrow agents, the defendant was responsible for ensuring large amounts of money went where they belonged.  When she decided to line her own pockets rather than do her job, she crossed the line and earned the prison sentence that the court imposed today.”

At the sentencing hearing, U.S. District Judge Richard A. Jones said, “Every single time you had an opportunity to change your mind and say ‘this is wrong,’ you kept doing it.”

The case was investigated by the Washington State Department of Financial Institutions, the FBI, the Postal Inspection Service (USPIS), and the Housing and Urban Development Office of Inspector General (HUD-OIG).

The case is being prosecuted by Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Senior Deputy Prosecutor specially designated to prosecute financial fraud cases in federal court.

 

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Former Attorney Indicted for Allegedly Stealing From His Escrow Account

Stephanie Abbott —  June 25, 2018 — Leave a comment

Robert Parker, 53, Easton, Pennsylvania, an attorney, was indicted today for allegedly stealing funds in his escrow account. Parker is charged with two counts of second- and third-degree grand larceny and two counts of first-degree perjury.

According to the indictment, between 2014 and 2018, the defendant, allegedly stole a down payment of approximately $98,000 in connection with a real estate transaction and a settlement of $55,000 from a client, and rebuffed numerous attempts to contact him.

Parker was released without bail and ordered to return to court on September 19, 2018.

Brooklyn District Attorney Eric Gonzalez made the announcement.

District Attorney Gonzalez said, “This defendant was entrusted to safeguard these funds, but instead allegedly stole the money and used it for his own purposes. We will now hold him accountable for his alleged criminal actions.”

The case was referred to the District Attorney’s Office by the Grievance Committee.

The case is being prosecuted by Senior Assistant District Attorney Sara Walshe, of the District Attorney’s Public Integrity Unit, under the supervision of Assistant District Attorney Michael Spanakos, Unit Chief, and the overall supervision of Assistant District Attorney Patricia McNeill, Deputy Chief of the District Attorney’s Investigations Division.

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Lender and Escrow Owner Sentenced to 84 months

Rachel Dollar —  November 11, 2015 — Leave a comment

George Kalivretenos, 59, Miami Beach, Florida, was sentenced to 84 months in prison for a wire fraud and money laundering scheme in which he defrauded borrowers of approximately $5.6 million. Kalivretenos was also ordered to pay $4.18 million in restitution as part of his sentence.

Kalivrentenos pleaded guilty on August 13, 2015. According to court documents, Kalivretenos operated and controlled Jasmine Capital and Jasmine Resources Capital Group, which were lending entities. He also owned and controlled two escrow companies, Escrow Services, LLC, and Escrow Title Services, LLC. Kalivretenos promised to lend companies and individuals millions of dollars after they sent a deposit of 10 percent of the loan amount to a third party escrow company. However, Kalivretenos concealed his control over the escrow company from borrowers. Once the escrow company received the borrowers’ deposits, Kalivretenos spent borrowers’ funds on personal expenses, including two Rolls Royces, a penthouse condominium rented at $18,000 per month, and hotel stays at the Ritz Carlton and Crowne Plaza. He also transferred substantial funds to overseas accounts. Continue Reading…

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