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
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Omar Anabo, 57, Vallejo, California has been sentenced to three years in prison for conspiracy to make false statements on loan applications and ordered to pay $379,068 in restitution to victims of the conspiracy.
According to court documents, between Oct. 2004 and May 2007, Anabo and co‑conspirators Sergio Roman Barrientos, 66, and Zalathiel Aguila, 46, operated Capital Access LLC in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Anabo and his co-conspirators. http://www.mortgagefraudblog.com/?s=Omar+Anabo
The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme. Aguila was sentenced on July 26, 2019, to four years in prison.
U.S. Attorney McGregor W. Scott made the announcement.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Christina McCall prosecuted the case.
Ruby Price, 74, Bonner Springs, Kansas was sentenced today to a year and a day in prison for swindling homeowners facing foreclosure with false promises to help them save their homes
Price was a managing partner of Arize Group, a company based in Overland Park, Kansas. http://www.mortgagefraudblog.com/?s=Ruby+Price
She and co-defendants took money from distressed homeowners by fraudulently promising to:
- Lower their interest rates.
- Lower their monthly payments
- Help them obtain loan modifications.
Price pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
U.S. Attorney Stephen McAllister made the announcement.
McAllister commended the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, the Johnson County District Attorney’s Office, Special Assistant U.S. Attorney Emilie Burdette and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Sara Cordry, 69, Overland Park, Kansas, was found guilty on Monday of taking part in a scheme to swindle homeowners facing foreclosure with false promises to help them save their homes.
During trial, prosecutors presented evidence that Cordry conspired with co-defendants to take money from victims by fraudulently promising to:
- Lower their interest rates.
- Lower their monthly payments.
- Help them obtain loan modifications.
Investigators identified more than 500 victims in 24 states who suffered a total loss of more than $1 million due to the scheme.
Co-defendants include:
- Tyler Korn, 30, St. Ann, Missouri, who was sentenced to 51 months in federal prison.
- Ruby Price, 74, Bonner Springs, Kansas, who is awaiting sentencing.
- Amjad Daud, 35, Lutz, Florida, who failed to appear at court hearings. A warrant for his arrest has been issued.
Cordry’s sentencing is set for January 9, 2020. She could face up to 30 years in federal prison and a fine up to $1 million on each count.
U.S. Attorney Stephen McAllister made the announcement.
McAllister commended the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, the Johnson County District Attorney’s Office, Special Assistant U.S. Attorney Emilie Burdette and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Aston Wood, 55, New Richmond, Wisconsin, has been charged today with four counts related to an alleged mortgage fraud scheme.
The indictment charges that Wood engaged in a scheme to defraud from September 2015 to July 2019. He is charged with one count of wire fraud, one count of mail fraud, one count of bankruptcy fraud, and one count of criminal contempt of court.
The indictment alleges that Wood represented to owners of homes in foreclosure that he could help them stay in their home by obtaining refinancing or modification of their mortgage, and that he instructed customers to make monthly mortgage payments towards a new or modified loan in an amount he selected, payable to him or to a limited liability company of which he was the sole member. The indictment alleges that rather than remit the payments to lenders as promised, Wood instead deposited the payments in bank accounts he controlled and used the funds for his own personal expenses.
The indictment further alleges that Wood offered to help some customers buy back their foreclosed property, and he continued to solicit and receive funds from customers or their families based on false representations that the funds would be used to repurchase the property. In addition, the indictment alleges that Wood told some customers to file for bankruptcy to stall foreclosure proceedings, which allowed Wood to delay detection and continue collecting monthly mortgage payments from customers.
The fourth count of the indictment alleges that Wood disobeyed a lawful order of a Court of the United States, an injunction issued on October 24, 2017, by U.S. Bankruptcy Judge Catherine J. Furay in the Western District of Wisconsin, which permanently enjoined Wood from soliciting customers, offering to perform, and performing services related to mortgage foreclosure and debt relief.
If convicted, Wood faces a maximum penalty of 20 years in federal prison on both the wire fraud charge and the mail fraud charge, and five years on the bankruptcy fraud charge. The criminal contempt of court charge has no maximum penalty; the penalty is at the Court’s discretion.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Wood are the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Housing Finance Agency – Office of Inspector General. The U.S. Attorney’s Office acknowledges the assistance of the Office of the U.S. Trustee. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Vision Property Management, LLC; the company’s CEO, Alex Szkaradek; and a number of other companies affiliated with Vision have been charged today for operating an illegal, deceptive, and unlicensed mortgage lending business in New York since at least 2011. By offering disguised, predatory subprime home loans and illegal finance-lease hybrid agreements, Vision and the other defendants took part in fraudulent activities that repeatedly targeted and took advantage of financially vulnerable New Yorkers.
The complaint alleges that Vision specializes in buying severely distressed properties and then markets those properties — at a substantial markup to consumers — without making any necessary repairs or renovations, and without fully disclosing to consumers the many conditions that exist and repairs that must be made for safe habitation. Vision targets low-income consumers eager to share in the “American dream” of homeownership, claiming that its “unique” business model provides this path to homeownership. But, in reality, Vision’s illegal business model has generated significant profits by skirting consumer protections and financial regulations and trapping vulnerable consumers with high cost mortgages for uninhabitable homes.
Vision’s deceptive tactics have left many of its consumers in dilapidated homes with unhealthy and hazardous conditions, while simultaneously requiring them to pay subprime, or high-cost, interest rates — in the range of 10% to 25% — on top of paying for extensive repairs and renovations just to make their homes habitable.
Vision has engaged in approximately 150 such transactions in New York since 2011 without possessing the legally required licenses to engage in mortgage lending. Furthermore, Vision entered into contracts with financially strained consumers that illegally required them to shoulder the burden of ensuring their properties were habitable. Often, consumers were deceived and trapped into paying for the treatment and repair of dangerous and unhealthy conditions in their new homes, including infestations, faulty electrical wiring, missing heaters and septic systems, mold, and asbestos, as well as severely damaged and rotted out, floors, walls, and roofs.
Vision has violated laws applicable to both mortgage lending and the leasing of residential properties, as well as numerous state and federal consumer protection laws.
Attorney General Letitia James and New York Superintendent of Financial Services Linda A. Lacewell made the announcement.
“For nearly a decade, Vision put profits above people — fraudulently targeting, preying upon, and exploiting aspiring homeowners, including people with disabilities, the elderly, and those living on fixed income,” said Attorney General Letitia James. “These deceptive and abusive practices have trapped New Yorkers in mold-infested, dilapidated homes, and wrongfully placed the onus on consumers to pay the price. This behavior is unacceptable, which is why my office is aggressively prosecuting Vision and will do the same against any company or individual that tries to defraud New Yorkers.”
“As alleged in the complaint, Vision swindled vulnerable New Yorkers who wanted nothing more than the American dream of homeownership but instead got distressed properties with unsafe, squalid conditions and high-interest, predatory loans,” said Superintendent Linda A. Lacewell. “We took this action to protect New York consumers by putting an end to these illegal, predatory and unconscionable business practices and holding Vision and its CEO accountable under New York State law and applicable federal laws. I am proud of the exemplary work of the DFS colleagues who investigated Vision’s activities for over two years, analyzed thousands of documents, and who worked to protect New Yorkers and bring this company to justice.”
In the suit — being filed in the Southern District of New York — Attorney General James and Superintendent Lacewell are seeking to end Vision’s ongoing illegal activity in New York, secure restitution and damages for all consumers injured by these practices, and obtain statutory penalties.
The matter is being handled by Assistant Attorney General Noah Popp of the Consumer Frauds and Protection Bureau, under the supervision of Jane M. Azia, Chief of the Consumer Frauds and Protection Bureau, and Chief Deputy Attorney General for Social Justice Meghan Faux. The Bureau of Consumer Frauds and Protection is overseen by Chief Deputy Attorney General for Economic Justice Christopher D’Angelo.
Additional attorneys at the Department of Financial Services involved with this litigation include Peter C. Dean of the Real Estate Finance Division and Cynthia M. Reed, Supervising Attorney in the Consumer Protection and Financial Enforcement Division.
Zalathiel Aguila, 46, Vallejo, California has been sentenced to four years in prison for conspiracy to commit wire fraud affecting a financial institution and bank fraud.
According to court documents, between September 2004 and February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated Capital Access LLC, in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Aguila and his co-conspirators.
The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
Aguila remains out of custody pending his surrendering for service of his sentence on October 25, 2019. Barrientos was sentenced on November 2, 2018, to 14 years in prison for his role in the scheme, and Anabo (charged elsewhere) is scheduled to be sentenced on August 16, 2019.
U.S. Attorney McGregor W. Scott made the announcement.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case.
Christopher Coburn, 34, Winter Garden, Florida has been found guilty of five counts of bankruptcy fraud and two counts of falsification of records in a bankruptcy proceeding.
According to testimony and evidence presented at trial, Coburn solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. In order to prevent the Federal National Mortgage Association (“Fannie Mae”) and multiple financial institutions holding mortgages from lawfully foreclosing on homeowners’ properties, Coburn engaged a bankruptcy fraud scheme in which he filed or caused to be filed fraudulent bankruptcy petitions in the name of the homeowner, without homeowner’s knowledge or consent, just prior to the scheduled foreclosure sale dates. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code, preventing Fannie Mae and the financial institutions from conducting lawful foreclosure sales and obtaining title to the property. The fraudulent bankruptcy petitions filed by Coburn enabled him to collect fees and allowed him to refer the properties to real estate agents in order to obtain ill-gotten commissions for short-sales. Coburn also filed other false and fraudulent bankruptcy forms in the names of some homeowners relied on by the Office of the United States Trustee and the United States Bankruptcy Court for the Middle District of Florida. http://www.mortgagefraudblog.com/?s=Christopher+Coburn
Coburn faces a maximum penalty of 5 years’ imprisonment for each bankruptcy fraud count and up to 20 years in prison for each falsification of records count. His sentencing hearing has been scheduled for September 9, 2019.
United States Attorney Maria Chapa Lopez made the announcement.
This case was investigated by the Federal Housing Finance Agency—Office of Inspector General, with substantial assistance from the Office of the United States Trustee for the Middle District of Florida. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Andrew Valles was sentenced today for operating a $2 million mortgage fraud scheme throughout Southern California.
The scheme occurred between 2012 and 2017. The defendants conspired using a fake insurance company, “SafeCare,” which promised to provide home loan services at a low monthly price to primarily Latino and African American families. During this time, the defendants would delay foreclosures and eviction actions by filing false bankruptcy and other court documents under fictitious names. They would instruct victims to deposit illegal advance fees and other large payments into a bank account controlled by the defendants. When the promised loan did not come through, they would proceed with the fabricated filings. The scheme took place in San Diego, Riverside, Orange, Los Angeles, and San Bernardino Counties in California. http://www.mortgagefraudblog.com/?s=Andrew+Valles
Today, Mr. Valles was sentenced to 13 years in state prison. Restitution was ordered in the amount of $2,342,957. Co-defendant Arnold Millman was previously sentenced to a state prison term of three years and four months.
California Attorney General Xavier Becerra made the announcement.
“These con artists stole the life savings of decent Californians who thought they were making a smart decision for their homes and their families,” said Attorney General Becerra. “These actions will not be tolerated. My office will continue to identify, investigate, and prosecute those who prey on hardworking Californians to line their own pockets.”
The sentencing and guilty pleas are the product of a joint investigation by the California Department of Justice, the California Department of Insurance, and the Federal Housing Finance Agency Office of the Inspector General (FHFA-OIG). A third codefendant, Jemal Lilly, pled guilty and is scheduled to be sentenced on September 4, 2019.
Michael “Mickey” Henschel, 70, Van Nuys, California, a career con man pleaded guilty today in a federal fraud case stemming from a real estate scam that targeted distressed homeowners, many of whom were elderly individuals who were scammed out of their homes, losing significant equity in the properties accumulated over the course of their lifetimes and sometimes over the course of generations of home ownership.
Henschel, pleaded guilty to mail fraud in relation to the scheme that generated more than $17 million in profits and caused homeowners to suffer approximately $10 million in losses when they lost title to their homes and when they were defrauded into giving Henschel and his co-conspirators money as part of the scam. Henschel’s fraudulent conduct also caused losses to mortgage lenders and purchasers of foreclosed properties.
With another defendant pleading guilty today, a total of seven conspirators linked to Henschel’s Van Nuys-based businesses have now pleaded guilty in the scheme that used fraudulent deeds to steal properties from homeowners, and also charged homeowners illegal fees to delay foreclosure and eviction actions.
According to court documents, Henschel, who used various aliases, including “Frank Winston,” “Steve Lopez” and “Ron Berman”, and his co-conspirators tricked distressed homeowners into signing fraudulent deeds on their properties with false promises that the deeds would help homeowners protect their properties from creditors. The fraudulent deeds allowed Henschel and the others to fraudulently file documents on the titles to the targeted homeowners’ properties. For example, they filed fraudulent grant deeds that purported to convey an interest in the properties to entities that Henschel controlled. They also filed fraudulent trust deeds based on fictional loans supposedly guaranteed by the targeted homeowners and fraudulent liens that recorded an interest in the properties based on fictional debts.
Henschel and his co-conspirators benefited from the fraudulent filings in a variety of ways, including through outright theft of the properties, mortgages that co-conspirators obtained on the properties, and rental payments that they obtained from tenants living in the properties. The schemers also made money by demanding payments from the targeted homeowners to clear up the title, and from fraudulent state court civil actions that Henschel and his co-conspirators used to leverage settlement payments.
Four other defendants who worked for Henschel’s various companies recently pleaded guilty to conspiracy to commit mail fraud and bankruptcy fraud. They are:
- Camerino “Mino” Islas, 42, North Hollywood, California;
- Claudia “Jessica” Islas, 43, Reseda, California;
- Juan Carlos Velasquez, 44, Sylmar, California; and
- Eugene “Gene” Fulmer, 84, Encino, California who pleaded guilty today.
Two other individuals, Shara Surabi, 35, Burbank, California, and Lidia Alvarez, 55, Bell Gardens, California, pleaded guilty in late 2017 to federal charges related to this scheme.
The real estate fraud scheme had two parts, one involving property theft and litigation extortion, and the other involving illegal foreclosure and eviction delay.
In relation to the first aspect of the scheme, Henschel and his co-conspirators identified distressed homeowners who were in default on mortgages or were experiencing financial troubles, even though some had large amounts of equity in their properties. These homeowners were falsely told that Henschel was a sophisticated real estate investor and attorney who would purchase their properties on fair market terms, or he could help protect the homes from creditors. Henschel and the others promised distressed homeowners that they could refinance mortgages or restructure real estate holdings to insulate the properties from creditors, and that Henschel and other co-conspirators could manage the properties on an ongoing basis.
Henschel and the others convinced homeowners to sign fraudulent documents that were recorded on the titles to their homes. In some cases, these fraudulent filings were used to steal properties outright. In other cases, the conspirators exploited the fraudulent filings by initiating foreclosure proceedings and demanding money from homeowners before the properties could be sold. Henschel and his co-conspirators also leveraged the high cost of bringing and defending civil actions to extort settlement payments from homeowners, relying on the fact that it would often be less expensive for homeowners to pay money than to fight them in court.
In the foreclosure rescue part of the scheme, Henschel and his co-conspirators used fraudulent filings to charge homeowners fees to delay foreclosure and eviction actions. Henschel and the others had homeowners sign fraudulent deeds that transferred interests to debtors in bankruptcy cases – but the bankruptcies were fraudulent and used solely as part of the fraudulent scheme, not as part of any genuine effort to restructure or eliminate debts. Many of the fraudulent bankruptcies were filed in the names of fictional people and entities, and some involved stolen identities. Henschel and his co-conspirators sent fake deeds and fraudulent bankruptcy petitions to trustees to stop foreclosure sales, and they delayed evictions in a similar way, mainly by sending bogus documents to various county sheriff’s offices.
As a result of his guilty plea today, Henschel is facing a statutory maximum sentence of 20 years in federal prison. The other six defendants each face up to five years’ imprisonment. Henschel is scheduled to be sentenced by United States District Judge Virginia A. Phillips on August 12, 2019 and the four other conspirators who recently pleaded guilty are scheduled to be sentenced on August 26, 2019. Surabi and Alvarez are expected to be sentenced later this year.
As part of his plea agreement, Henschel agreed to forfeit money and property that represent proceeds of the fraudulent scheme, including more than $100,000 in cash seized from a bank account and various residential properties in the San Fernando Valley, Glendale and Pasadena.
The case against Henschel and the others are the result of an investigation by the Federal Bureau of Investigation, and the Federal Housing Finance Agency – Office of Inspector General. The United States Trustee’s Office for the Central District of California initially referred the matter for investigation and has provided substantial assistance. Also providing assistance during the investigation were the Alameda County District Attorney’s Office, the Los Angeles County Recorder’s Office, the Alameda County Recorder’s Office, and the San Diego County Recorder’s Office.
This case is being prosecuted by Assistant United States Attorneys Kerry L. Quinn and Eddie A. Jauregui of the Major Frauds Section. The forfeiture part of the case is being handled by Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section.