Beazer Homes USA settles criminal charges with
the United States for $50 Million

By: Dennis NormanYesterday Beazer Homes USA reached a $50 million settlement with the United States over charges of mortgage and accounting fraud. The Federal Bureau of Investigation in Charlotte issued a press release giving the details of the settlement as follows:Beazer and its subsidiary, Beazer Mortgage Corporation, admitted to engaging in several fraudulent mortgage origination practices, including:Fraudulently [...]

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http://realestateconsumernews.com/special-posts/beazer-homes-usa-settles-criminal
-charges-with-the-united-states-for-50-million/

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4th of July Weekend Activities in Marin!

Looking for something fun to do this weekend enjoying our great Marin weather?  How about the Marin County Fair & Fireworks Show!  This is a very fun event for you and your family. Runs July 1st through July 5th @ Marin Civic Center Fairgrounds, San Rafael. Fun attractions, food, concerts, special exhibits, arts and crafts, carnival rides, farm animals with petting zoo's and more!

Corte Madera 4th of July Parade begins at Redwood High School at 10:30 and...

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http://www.marinmodern.com/blog/sandi-bowman/4th-of-july/show/

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Phoenix business owner arrested for ID Theft and
mortgage fraud - used dead persons SSN

In the following press release the Maricopa County Sheriff’s office announced that deputies executed search warrants this morning at the Phoenix based business Aracruz International Granite located at 2310 W. Sherman St. and at the business owner’s home in Anthem located at 42514 N. Bradon Ct.

Deputies received information through Sheriff Joe Arpaio’s illegal immigration hotline that Raphael Libardi, the co-owner of the business, is in the country illegally from Brazil and that he was using the social security number of a deceased person.

Libardi was booked on felony identity theft and mortgage fraud charges under suspicion of using the deceased person’s social security number to purchase two vehicles and two homes (one of which has been foreclosed on). Two adult children of Libardi’s, Ive Libardi (25) and Isac Libardi (20), were also arrested at the business for suspicion of being in the country illegally.

Aracruz International is a supplier of granite counter tops which employs between 15-20 people and is believed to generate about $1.9 million in annual sales.

During the execution of that warrant other employees, some of which were related to Libardi, were also found to be in the country illegally.  

It has been noted that Libardi has donated $5,000 annually to the Republican Congressional National Committee.

During the course of 21 employer sanctions investigations, the Sheriff’s Office has arrested 166 out of 262 illegal aliens for felony identity theft and forgery charges.

“Identity theft is a serious crime. Despite the fact that it seems the President of the United States and the U.S. Secretary of Homeland Security will shift their focus to only go after employers, I will continue to pursue all illegal aliens in business establishments who take away valuable jobs from U.S. citizens” Arpaio says.

Read The Full Article:
http://www.mortgagefraud.org/journal/2009/7/2/phoenix-business-owner-arrested-for
-id-theft-and-mortgage-fr.html

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Ready 'n' Rarin' to Go for Everyone

You can now get the entire May edition of the award-winning Site Selection online by simply using our new reader. By using the "Navigate" menu in the upper left-hand corner, resourceful readers can also:

 

• qualify to receive a free subscription.
• request additional digital delivery of Site Selection.
• renew your subscription to the magazine.

 

Read it all now! Ready 'n' Rarin' to Go for Everyone

You can now get the entire May edition of the award-winning Site Selection online by simply using our new reader. By using the "Navigate" menu in the upper left-hand corner, resourceful readers can also:

• qualify to receive a free subscription.
• request additional digital delivery of Site Selection.
• renew your subscription to the magazine.

Read it all now!

Read The Full Article:
http://harriscompanyrec.com/blog/2009/07/ready_n_rarin_to_go_for_everyo.html

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Sold! Fantastic Fixer in Sun Valley

Perfectly situated on a tiny knoll overlooking open space in the distance and just steps to Sun Valley Elementary school, this original condition 1950's home at 2425 5th Avenue, San Rafael (Sun Valley neighborhood) is truly a diamond in the ruff.   The home features 3 bedrooms, 1 bathroom, hardwood floor...

Read The Full Article:
http://www.marinmodern.com/blog/erika-davito/sold-fantastic-fixer-in-sun-valley/s
how/

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The Office of the Comptroller of the Currency
(OCC)s Financial Literacy

The Office of the Comptroller of the Currency (OCC)’s Financial Literacy Update is a bimonthly e-newsletter containing information about upcoming financial literacy events, new initiatives of the OCC and other government agencies and organizations, and other related resources. 

Financial Literacy Update provides brief descriptions and Web links for upcoming events in chronological order. We list new initiatives and resources (with Web links) in alphabetical order. We welcome your feedback on the Financial Literacy Update. Please e-mail us at  communityaffairs@occ.treas.gov.

Upcoming Events — New Initiatives — New Resources

Upcoming EventsLessons in Children’s Literature WorkshopJuly 14, 2009 (St. Louis, Mo.)The Federal Reserve Bank of St. Louis offers “Lessons in Children Literature,” a professional development workshop for 1st-5th grade educators. The course covers curriculum ideas designed to help students gain personal finance and economic knowledge while they read.Personal Finance: Your Students’ First Steps WorkshopJuly 16, 2009 (St. Louis, Mo.)The Federal Reserve Bank of St. Louis offers “Personal Finance: Your Students’ First Steps,” a professional development workshop for 9th-12th grade educators. The course covers two new curricula designed to help students meet their first personal finance challenges. It's Your Paycheck! introduces students to wages and taxes while also preparing them for the tempting world of credit cards, payday loans, rent-to-own contracts and check cashing schemes. Cards, Cars and Currency focuses on that first important purchase—a car—and also helps students learn more about the costs and benefits of using credit cards for smaller purchases that can add up to big problems.Junior Achievement Worldwide Leadership ConferenceJuly 20-24, 2009 (Boston, Mass.)Junior Achievement Worldwide holds its Worldwide Leadership Conference with the theme,“ Connecting to Build a Better World.”Making Sense of Money and Banking CourseJuly 20-24, 2009 (Philadelphia, Pa.)The Federal Reserve Bank of Philadelphia offers “Making Sense of Money and Banking,” a five-day course for teachers that covers money, banking, and the Federal Reserve System. The course is taught by Federal Reserve economists, economic education specialists, and staff from state centers on economic education. Emphasis is placed on active- and collaborative-learning teaching methods and curricula for teaching money and banking in the grades K-12.Get Your Kicks on Route 66 Teacher WorkshopJuly 22, 2009 (Canyon, Texas)The Federal Reserve Bank of Dallas, Texas Council on Economic Education, West Texas Center for Economic Education, College of Business, and West Texas A&M University offer a one-day teacher workshop for secondary educators called “Get Your Kicks on Route 66.” The workshop examines the West Texas economy and how it relates to what is going on nationally as well as globally. Also addressed are the major economic drivers that make this region work, especially as they relate to the natural resources of wind, water, and energy.2009 National Youth Involvement Board Annual ConferenceAugust 3-6, 2009 (Tempe, Ariz.)The 2009 National Youth Involvement Board Annual Conference provides insight and resources that can be used to understand young consumers and teach them good money management skills.Program on Personal Finance for the Middle School ClassroomAugust 4, 2009 (Philadelphia, Pa.)The Federal Reserve Bank of Philadelphia offers a one-day professional development program that introduces middle school teachers to methods for teaching personal finance topics, such as personal decision making, saving, investing, budgeting, and the wise use of credit.Train the Trainer Financial Education WorkshopAugust 19, 2009 (Dallas, Texas)The Texas Department of Banking provides hands-on training on three financial education curricula: the Federal Reserve Bank of Dallas’s “Building Wealth,” the Federal Deposit Insurance Corporation’s (FDIC) “Money Smart Program,” and JA Worldwide’s “Junior Achievement.” National Community Tax Coalition’s 2009 Annual ConferenceAugust 31-September 1, 2009 (San Antonio, Texas)The National Community Tax Coalition, a project of the Center for Economic Progress, holds its 2009 Annual Conference. Themed “Realizing the Dream: Promoting Financial Opportunity in All Communities,” the two-day conference provides opportunities for training, learning, networking, and shaping the direction of community-based tax preparation, financial services, leadership development, and advocacy. Financial Literacy, Financial Education, and the Federal Reserve: Conference on Strategies for SuccessSeptember 11, 2009 (Chicago, Ill.)The Federal Reserve Bank of Chicago holds this conference to bring people together with researchers and representatives of partner organizations to discuss strategies for designing successful programs and partnerships in financial literacy and financial education. The conference provides research that evaluates the effectiveness of financial education and counseling and opportunities for participants to learn from partners about what works and what could be improved. 2009 NFCC Annual Leaders Conference on Credit CounselingSeptember 14, 2009 (Washington, D.C.)The National Foundation for Credit Counseling holds its 2009 Annual Leaders Conference in Washington, D.C. The national agenda focuses on financially responsible behavior and helping the foundation’s members deliver quality financial education and counseling services. 2009 Annual Conference for Economic EducationOctober 7-10, 2009 (Washington, D.C.)The Council for Economic Education, National Association of Economic Educators, and Global Association of Teachers of Economics holds its 2009 annual conference. The conference focuses on grades K-12 economic, personal finance, and entrepreneurship education. 2009 Annual Conference on Financial EducationOctober 21-23, 2009 (Philadelphia, Pa.)The Institute for Financial Literacy hosts the 2009 Annual Conference on Financial Education. The conference provides professional development opportunities for people working in the fields of financial literacy and education. Train the Trainer Financial Education WorkshopNovember 4, 2009 (Lubbock, Texas)The Texas Department of Banking provides hands-on training on three financial education curricula: the Federal Reserve Bank of Dallas’s “Building Wealth,” the FDIC’s “Money Smart Program,” and JA Worldwide’s “Junior Achievement.” Financial Literacy ConferenceNovember 6-8, 2009 (Washington, D.C.)The Jump$tart Coalition for Personal Financial Literacy presents the first nationwide conference devoted entirely to personal finance education in grades K-12. New InitiativesBank On Cities CampaignThe Bank On Cities Campaign is a technical assistance project that helps municipal officials build a comprehensive asset-building agenda for residents. Project participants learn how to access financial services, accumulate and protect savings or other financial assets, and avoid unmanageable debt and bad credit, which are the keys to both family financial stability and the broader economic vitality of their cities.New York City’s Five Borough Economic Opportunity PlanMayor Bloomberg’s Five Borough Economic Opportunity Plan has provided New Yorkers with access to free financial counseling at the city’s Financial Empowerment Centers in Brooklyn, Manhattan, and Queens in addition to the Bronx. Services are provided by professional counselors in person or by phone in English and Spanish. Opening additional Financial Empowerment Centers is one of Mayor Bloomberg’s 18 initiatives to help New Yorkers face current economic challenges.Money Smart WeekMoney Smart Week Wisconsin October 10 – 17, 2009, is a public awareness initiative that aims to build financial knowledge so people can deal with their own money more quickly, confidently, and shrewdly. The workshops, seminars, programs, events, and other activities help people and their families, students, homeowners, businesspersons, employees, and other community members expand their opportunities through improved financial literacy.NAPA’s Innovative National Financial Literacy Campaign on College CampusesThe National Academy of Public Administration has launched a student-focused, public awareness campaign designed to demonstrate the importance of financial responsibility and to inspire students to make their voices heard in the ongoing fiscal policy debate. “Budgetball” is an innovative new sport that combines fiscal strategy and physical play. The game takes students out of the classroom and on to the field for competitive play that highlights the relationships among debt, savings, interest, and taxes.NASAA’s Senior Investor Resource CenterThe North American Securities Administrators Association provides information and tools on financial services and investments, including tips for avoiding investment fraud and where to go for help.High School Liaison ProgramTennessee Society of Certified Public Accountants has a variety of financial literacy programs targeting high school and college students. Its “High School Liaison Program” provides each high school in Tennessee with a volunteer certified public accountant to speak to students about career options or personal finance. The organization also offers a personal finance session to high school juniors and seniors who attend its summer Accounting Academy, a four-day program designed to expose students to career opportunities in the accounting profession.Smart About MoneyThe National Endowment for Financial Education has launched a National Financial Literacy Campaign that encourages Americans to start achieving their financial goals by accessing practical information on the Smart About Money Web site.United We Serve"United We Serve" is a nationwide service initiative, announced by President Obama, that will help meet growing social needs resulting from the economic downturn. The initiative aims to both expand the impact of existing organizations by engaging new volunteers in their work and encourage volunteers to develop their own "do-it-yourself" projects. United We Serve is an initial 81 days of service, through September 11, 2009, but hopes to grow into a sustained, collaborative and focused effort to promote service as a way of life for all Americans.Virginia CASH Campaign (Creating Assets, Savings, and Hope)The Virginia CASH Campaign (Creating Assets, Savings, and Hope) helps low- and moderate-income workers move toward greater self-sufficiency (a) by receiving the federal Earned Income Tax Credit that can supplement earnings and (b) through financial literacy and other asset-building activities. The campaign promotes the Earned Income Tax Credit program through education, outreach, and awareness; provides free tax preparation to avoid the high cost of professional preparers and to avoid refund anticipation loans; and promotes financial opportunities to the unbanked.New ResourcesAsk Doctor DebtThe Association of Credit and Collection Professionals International’s Education Foundation provides a free and confidential resource for helping consumers find solutions to credit and debt issues.Benefits EdgeMetLife released a new publication, The Benefits Edge: Honing the Competitive Value of Employee Benefits, written by industry expert Dr. Ron Leopold. Grounded in MetLife research, The Benefits Edge contains pragmatic principles and ideas designed to help employers make more strategic investments in employee benefits with an eye toward optimizing return on benefits investment and delivering greater competitive advantages.CardRatings.comCardRatings.com offers free educational materials and resources in addition to free credit card ratings and reviews. The U.S. Citizens for Fair Credit Card Terms maintains this Web site.Cooperative Extension SystemThe Cooperative Extension System’s Financial Security for All Community of Practice hosts a series of informational chat sessions through the University of the District of Columbia. Visitors to the site can ask questions and get answers from extension personal finance experts. Also available on the site is a locator for local extension offices and institutions.Debt AdviceThe National Foundation for Credit Counseling has launched Debt Advice, an interactive Web site that gives consumers access to numerous financial education tools and helps them find a certified credit counselor closest to them.Federal Reserve Credit Card Repayment CalculatorThe Federal Reserve has created a Credit Card Repayment Calculator. Based on the information the user provides, the calculator will give an estimate of how long it will take to pay off the credit card balance. A second calculation helps the user develop a plan for paying off the balance sooner.FDIC Money Smart Podcast NetworkThe FDIC has released the Money Smart Podcast Network, the portable audio (MP3) version of the award-winning Money Smart financial education. The new version of Money Smart is suitable for use with all MP3 players, enabling consumers of all ages to learn to make informed and prudent financial decisions while “on the go.”FDIC Tips on Foreclosure Frauds, Easy Money Schemes, and Other Costly DealsThe FDIC has issued a variety of tips to help consumers stay on guard financially in the current economy, in areas ranging from foreclosure rescue and loan modification scams to deceptive offers of FDIC-insured certificates of deposit. The FDIC published these tips in the spring 2009 issue of FDIC Consumer News, the agency’s quarterly newsletter for consumers, which is available on the Web site.FDIC Tips To Help Consumers Manage Their MoneyIn its winter 2008/2009 issue of FDIC Consumer News, the FDIC issued tips to help consumers spend less, save more, protect against fraud, and borrow wisely at any time but especially during a difficult economy.Financial Literacy of Young American AdultsThe Financial Literacy of Young American Adults, an analysis of the Jump$tart Coalition’s 2008 biennial survey, is available in PDF on the Jump$tart Web site. The survey, which launched in 1997 and has been conducted every other year since 2000, focuses on high school seniors but included college students for the first time in 2008. The results of these surveys (and comparisons with earlier surveys) are included in the book. Also available on this site is Making the Case for Financial Literacy, 2009, a collection of personal finance statistics that Jump$tart compiled from other sources.Financial Literacy OnlineFinancial Literacy Online is a product of National Student Loan Program, a nonprofit student loan guaranty agency dedicated to financial literacy, based on the belief that education helps all consumers manage debt and other financial matters. Financial Literacy Online is a comprehensive and convenient online learning center that teaches students the basics of personal money management. Courses are for students planning for college, enrolled in college, planning to graduate from college, or recently graduated from college. Anyone interested in money management—including parents—may take the courses.Funny Money for High Schools Assembly ProgramInvestor Education Fund, in partnership with the Investment Industry Regulatory Organization of Canada, sponsors “Funny Money for High Schools Assembly Program,” an entertaining show that takes students on a financial literacy tour through the basics of balancing a checkbook, reconciling a debit card statement, learning credit card fundamentals and more.Junior Achievement $ave, USAJunior Achievement and the Allstate Foundation have created a new series of free, downloadable teaching tools to help parents talk to their children about smart money management. Lessons cover budgeting, the importance of saving, understanding the cost of credit and how to use it, and more.Mad About MoneyOpportunity PlanThe National Theatre for Children has developed a communications strategy that combines live theater and multiplatform educational materials to communicate complex messages to hard-to-reach audiences. Mad About Money is a four-part program that teaches children about forming savings habits, evaluating risks, and the difference between a debit card and a credit card.My Money ManagementMy Money Management is a unique industrywide effort to provide consumers with comprehensive financial education resources to help guide their personal finance decision-making process. This Web site provides consumers with tools and resources from a variety of sources, including financial service companies, advocacy organizations, and personal finance experts. My Money Management is an initiative of the Financial Services Roundtable.Smarty PigSmarty Pig is a free, online savings account for people who want to save for specific goals. The account also is FDIC-insured. A person types in the dollar amount they wish to save and the time frame in which they would like to reach their goal. The Web site technology suggests a monthly deposit amount to the account holder to reach that goal.Social Security Administration’s Retire Online — It’s So EasyThe U.S. Social Security Administration offers a wide variety of new and important publications and other resources and tools for the public about retirement, benefits, and support for family members in the event of disabilities or death.Stage Coach IslandWells Fargo recently launched a free virtual world, “Stagecoach Island,” an entertaining and interactive companion site to Hands on Banking, its free financial education program. Teens can explore the island and its hidden secrets, connect with friends and make new ones, and learn smart money management. Educators can use the “Stagecoach Island” virtual world in the West Texas Center for Economic Education classroom to teach important lessons in budgeting, saving, managing credit, buying a home, and getting a job. Participants earn virtual money by visiting the Learning Lounge, and answering questions about money management. They can also obtain virtual jobs, credit cards, and home loans giving players the opportunity to learn, earn, build and, play in a virtual world.Teach Children To SaveThe American Bankers Association has launched “Teach Children To Save,” a Web site designed to make classroom lessons for children available to everyone. The site offers tips for young people and their parents on how to establish a budget, start a savings account, and make regular deposits.Understanding Your Retirement PaycheckThe National Endowment for Financial Education has developed a new Web site dedicated to help people optimize their retirement paycheck by making wise decisions.

 

 

 

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­HelpWithMyBank.gov - The OCC’s Web site that provides answers to more than 300 commonly asked banking questions. While targeted at national bank customers, the site answers many questions common to all banking consumers and provides useful information about contacting regulators of state banks, thrifts, and other financial institutions. A link from HOPE NOW to HelpWithMyBank.gov has been established. MyMoney.gov - The U.S. government's Web site dedicated to teaching all Americans the basics of financial education. The site houses important information from 20 federal agencies on such topics as buying a home, foreclosure prevention, deposit insurance, privacy, fraud, scams, balancing a checkbook, and investing in a 401(k).Subscribe: Sign up for the OCC’s “Financial Literacy Updates” by visiting http://www.occ.gov/canewslistserv.htm. Have a financial literacy event coming up worth noting? Rolling out a new financial literacy initiative? Developing a new tool or product? Have general feedback? E-mail us at communityaffairs@occ.treas.gov. commercial appraiser, appraisal

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http://harriscompanyrec.com/blog/2009/07/post_163.html

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Mid-Cycle Meltdown!: Jobless Claims July 02 2009

Today, the Department of Labor released their latest read of Joblessness showing seasonally adjusted ?initial? unemployment claims declined 16,000 to 614,000 from last week?s upwardly revised 630,000 claims while ?continued? claims decreased 53,000 resulting in an ?insured? unemployment rate of 5.0%.

It?s important to note that the two most significant periods for job cuts on a non-seasonally adjusted basis is January 15 and July 15 so as July and clearer visibility on H2 quickly approaches it will be interesting to see how initial jobless claims fares.

Also, the continuing claims series is presenting the clearest picture of what is likely to be one of the most problematic aspects of this period of economic crisis namely how to make an immense and growing number of highly specialized (college educated) service/professional service workers productive again.

It?s obvious now that we have reached the first real test of our majority services-based economy.

Unlike the ?tech-wreck? of 2000-2002, our current downturn is very broad, leaving no sector and virtually no corner of the country untouched.

With millions of college educated workers now on the market incomes will clearly suffer but moreover, it will be soon all too clear that our prior bubble economy significantly overproduced service workers (particularly professional service workers) for which current employment opportunities will be scant resulting in continued and fundamental vicious-cycle effects.

The following chart shows the recent trend in initial non-seasonally adjusted initial jobless claims with the year-over-year percent change acting as a rough equivalent of a seasonally adjustment.

Historically, unemployment claims both ?initial? and ?continued? (ongoing claims) are a good leading indicator of the unemployment rate and inevitably the overall state of the economy.

I have added a chart to the lineup which shows ?population adjusted? continued claims (ratio of unemployment claims to the non-institutional population) and the unemployment rate since 1967.

Adjusting for the general increase in population tames the continued claims spike down a bit but as you can see, the pattern is still indicating that recession has arrived.

The following chart (click for larger version) shows ?initial? and ?continued? claims, averaged monthly, overlaid with U.S. recessions since 1967 and from 2000.

NOTE: The charts below plot a ?monthly? average NOT a 4 week moving average so the latest monthly results should be considered preliminary until the complete monthly results are settled by the fourth week of each following month.

As you can see, acceleration to claims generally precedes recessions.


Also, acceleration and deceleration of unemployment claims has generally preceded comparable movements to the unemployment rate by 3 ? 8 months (click for larger version).


In the above charts you can see, especially for the last three post-recession periods, that there has generally been a steep decline in unemployment claims and the unemployment rate followed by a ?flattening? period of employment and subsequently followed by even further declines to unemployment as growth accelerated.

This flattening period demarks the ?mid-cycle slowdown? where for various reasons growth has generally slowed but then resumed with even stronger growth.

Until late 2007, one could make the case (as Fed chief Ben Bernanke surly did) that we were again experiencing simply a mid-cycle slowdown but now those hopes are long gone.

Adding a little more data shows that in the early 2000s we experienced a period of economic growth unlike the past several post-recession periods.

Look at the following chart (click for larger version) showing ?initial? and ?continued? unemployment claims, the ratio of non-farm payrolls to non-institutional population and single family building permits since 1967.

The most notable feature of the post-?dot com? recession era that is, unlike other recent post-recession eras, job growth has been very weak, not succeeding to reach trend growth as had minimally accomplished in the past.

Another feature is that housing was apparently buffeted by the response to the last recession, preventing it from fully correcting thus postponing the full and far more severe downturn to today.

It is now completely clear that the potential ?mid-cycle? slowdown that appeared to be shaping up in late 2007, had been traded for a less severe downturn in the aftermath of the ?dot-com? recession, and now has we have fully entered, instead, a mid-cycle meltdown.

Read The Full Article:
http://paper-money.blogspot.com/2009/07/mid-cycle-meltdown-jobless-claims-july.ht
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Former mortgage broker pleads guilty in Minnesota
flipping scheme

In the following press release Frank J. Magill, United States Attorney for the District of Minnesota announced thata 29-year-old Minneapolis man pleaded guilty today in federal court to wire fraud and tax evasion in connection with a mortgage fraud scheme.

Frederick Earle Deen, III, pleaded guilty to one count of wire fraud and one count of tax evasion. He entered his plea July 1 in St. Paul before United States District Court Judge Richard Kyle. Deen was charged on April 21. According to Deen’s plea agreement, he admitted that from September 2005 to July 2007 he, along with four unnamed individuals, knowingly and willfully engaged in a scheme to commit wire fraud. _____________________________________________________________________________________________

Additional Materials

• Press Release
• Criminal Information

_____________________________________________________________________________________________

Deen was a loan officer and part-owner of Legacy Lending, a mortgage brokerage company in Minnesota. The others involved in the mortgage fraud scheme include the co-owner of the mortgage brokerage company, a residential real estate appraiser, a real estate agent and someone who recruited individuals to act as “straw buyers” for real estate transactions in which mortgage loans were obtained for dollar amounts substantially in excess of the purchase price.

Deen admitted that payments from those mortgage loan proceeds were concealed and diverted to himself and his co-conspirators through the use of fraudulent underwriting and closing documentation which they submitted to lenders to induce the lenders to provide mortgage loans. The funds in excess of the purchase price were then misappropriated by the scheme’s participants.

Deen also admitted that he acted as the loan officer on most of the transactions, causing fraudulent loan application documentation to be provided to potential lenders for purposes of loan underwriting. The fraudulent documentation misrepresented the true terms of the proposed transaction, such as falsely identifying the purchaser; falsely indicating that the property would be “owned-occupied;” inflated the borrower’s income and/or assets; inflated the purchase price of the property; inflated the appraised value of the property; failed to disclose to the lenders that funds in excess of the actual purchase price would be misappropriated by the co-conspirators; and concealed payments that were to be made from the loan proceeds to Deen and others.

This case is the result of an investigation by the Federal Bureau of Investigation and theInternal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorneys Timothy C. Rank and Christian S. Wilton.

The false representations and omissions were material because mortgage lenders rely on the actual purchase price paid by the buyer to assure that the loan is fully collateralized by a realproperty of a sufficient value. The fraudulent payments of loan proceeds to the co-conspirators were also concealed from the lenders.

Individual B owned the mortgage brokerage company through which most of the fraudulent mortgage transactions were conducted. In every transaction, in addition to the concealed payments, Deen admitted that he and Individual B received substantial fees for arranging the fraudulent transactions.

In order to support the falsely overstated purchase price, the conspirators obtained fraudulently inflated appraisals from Individual C, the real estate appraiser. As a result, Individual C was paid funds in excess of a standard appraisal fee.

Individual D acted as the buyer’s real estate agent on multiple real property transactions, and knew that the documents submitted to the lenders falsely identified the straw buyers as the purchaser of the properties when in fact the actual purchaser was Individual E. Individual D was paid substantial commission payments on these fraudulent transactions.

Individual E recruited straw buyers and was paid a portion of the funds misappropriated by the scheme’s participants.

Deen admitted participating in 27 separate fraudulent real estate transactions, worth approximately $18 million in total loan proceeds. There was at least $2 million made in fraudulent concealed payments.

In order to effect the scheme, Deen admitted that on Oct. 17, 2006, in furtherance of the scheme he knowingly transmitted by means of wire communications more than $575,000 in mortgage loan financing for the purchase of a residence in Otsego. During tax years 2006 and 2007, Deen also admitted that he evaded his personal income taxes on approximately $200,000 in taxable income and owes more than $50,000 in income tax.

Deen faces a potential maximum penalty of 20 years in prison on the wire fraud count and five years on the tax evasion count. Judge Kyle will determine Deen’s sentence at a future date.  

Read The Full Article:
http://www.mortgagefraud.org/journal/2009/7/2/former-mortgage-broker-pleads-guilt
y-in-minnesota-flipping-s.html

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Hope Now Sees Slower Climb in Repayment Plans

HOPE NOW, the private sector alliance of mortgage servicers, non-profit counselors and investors touted 249,000 completed workout solutions for struggling borrowers in May.The figure represents a 4% decline from April. Modifications slipped 16.3% from April while repayment plans — including refinancings — rose 6.1% in May after jumping 21.45% in April, indicating at least [...]

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http://feedproxy.google.com/~r/HousingWire/~3/RhGB0Nxteb4/

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Jim Mora and NFL Commissioner set to hike Mt.
Rainier

In 3 days, on July 5, 2009, the Seattle Seahawks head coach Jim Mora and NFL Commissioner Roger Goodell are set to hike Mt. Rainier for the United Way’s “Climb for the Community”. Led by mountaineering expert Ed Viesturs and a group[...]

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http://www.barnettassociates.net/jim-mora-and-nfl-commissioner-set-to-hike-mt-rai
nier/

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