Custom List: Apella Markets & More

post from Table Talk With Apella on 28 August 2008 01:03:43 PM. © Table Talk With Apella

Apella Markets & More

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Mass attorney indicted, accused of stealing loan
funds

post from Daily Mortgage Fraud News on 28 August 2008 12:58:00 PM. © Daily Mortgage Fraud News

In the following press release from the Massachusetts Attorney General it was announced that a Middlesex Grand Jury returned indictments against a former Somervillereal estate attorney in connection with allegedly making falsestatements on mortgage applications and associated documents and usingthe funds secured from the loans for his own purposes, rather thanpaying off existing loans as directed by the new lenders. Kevin Carey,age 48, of Middleboro, is charged with Larceny over $250 (8counts) and Willfully Making a False Statement Regarding FinancialCondition or Assets (7 counts).

Authorities allege that, while practicing as a real estate lawyer inSomerville and Medford, Carey engaged in a scheme called ?mortgagestacking? on four residential properties he or his family membersowned. The scheme allegedly involved serially refinancing the loans onthese properties, without paying off the existing loans. Carey wasalso the agent for a New England title insurance company which allowedhim to issue title insurance policies on mortgage transactions heprocessed. Title insurance policies protect lenders in the event thatthere are defects in the title of the property.

Authorities allege that on various occasions between April 2002 throughSeptember 2004, Carey performed the functions of closing attorney onmortgage loans on each of the properties involved. Authorities allegethat Carey ?stacked? three mortgages on a home in Medford, twomortgages each on two different properties in Everett, and one mortgageon his personal residence in Medford. Carey also allegedly falsifiedinformation on mortgage loan applications by omitting certain mortgageson the various properties, and also signed a family member?s name onfalse mortgage applications and closing documents he created. Authorities also allege that when he received the proceeds of theloans, Carey did not pay off the existing mortgages on theseproperties, but rather used the funds for his own benefit. Authoritiesfurther allege that Carey issued title insurance policies orcommitments in connection with the transactions, and the lenders weretherefore protected. However, ultimately the title insurance companysuffered the financial loss. Authorities believe that Carey stole over$2 million dollars in this manner.

Investigatorsbelieve that the lenders remained unaware of the problem because Careycontinued to make monthly payments on all of the loans. In November2005, a database search by Fannie Mae flagged the multiple mortgages onone of the properties, triggering a notification to one of thelenders. The lender then notified the title insurance company of theproblem. Lawyers for the title insurance company then referred thematter to the Attorney General?s Office in March 2006.

Following an investigation by the Attorney General?s Office, aMiddlesex Grand Jury returned indictments against Carey late yesterdayafternoon. His arraignment in Middlesex Superior Court has not yetbeen scheduled.

The case is being prosecuted byAssistant Attorney General Margaret Parks of Attorney General MarthaCoakley?s Corruption and Fraud Division, and was investigated by StatePolice assigned to the Attorney General?s Office and Investigator CarlMullen of Attorney General Martha Coakley?s Financial InvestigationsDivision. The United States Postal Inspection Service also assisted inthe case.

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http://www.mortgagefraud.org/journal/2008/8/28/mass-attorney-indicted-accused-of-
stealing-loan-funds.html

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California real estate fraud fugitive arrested in
Illinois

post from Daily Mortgage Fraud News on 28 August 2008 12:36:00 PM. © Daily Mortgage Fraud News

In the following press release from the San Bernardino County District Attorney on August 22, 2008 it was announced that in May 2008, felony charges were filed against John Christopher Foster, 50, formerly of Rancho Cucamonga, involving several felony counts of Real Estate Fraud related offenses. In 2005 and 2006, Foster forged the victim’s signature on a Grant Deed and Deeds of Trust for property located in the city of Fontana. Subsequently, Foster sold the Fontana residence for $675,000.

Investigators from the San Bernardino County District Attorney?s Real Estate Fraud Unit found that Foster had fled California in January 2008. On August 14, 2008, Illinois State Troopers arrested him while driving through Douglas County, Illinois. Foster was arrested on the outstanding felony warrant, which included charges of: Forgery, identity theft, and filing forged documents
with the County Recorder?s Office.

On Wednesday, August 20, 2008, DA Investigators from the San Bernardino County District Attorney?s Real Estate Fraud Unit extradited Foster, via airplane, back to California from the state of Illinois. Foster was booked into the West Valley Detention Center in Rancho Cucamonga. His bail is set at $675,000.

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http://www.mortgagefraud.org/journal/2008/8/28/california-real-estate-fraud-fugit
ive-arrested-in-illinois.html

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FHA Hikes Mortgage Premiums

post from Housing Wire on 28 August 2008 12:35:21 PM. © Housing Wire

Without the benefit of a more refined risk-based pricing structure, the Federal Housing Administration said earlier this week that it would hike its upfront mortgage premiums for all purchase money mortgages and full-credit qualifying refinances. In a letter to lenders, FHA said it would add 25 basis points to its mortgage premium, bringing the upfront [...]

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http://feeds.feedburner.com/~r/HousingWire/~3/377268053/

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Photo Album: Cover By County

post from Table Talk With Apella on 28 August 2008 12:24:50 PM. © Table Talk With Apella

Cover By County

AR CCM.01

AZ CCM.01

IN CCM.01

KS CCM.01

OR CCM.01

MI CCM.02

NM CCM.01

NC CCM.02

TN CCM.02

VA CCM.03

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Mortgage broker indicted in Mississippi fraud
case

post from Daily Mortgage Fraud News on 28 August 2008 12:13:00 PM. © Daily Mortgage Fraud News

In the following press release United States Attorney Dunn Lampton announced that a federal grand jury has returned an 11-count indictment against Gene A. Bradford in connection with a mortgage loan fraud scheme. The indictment, unsealed today at Bradford?s arraignment, charges Bradford with one count of conspiracy to commit mail fraud & wire fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, and three counts of money laundering. Also included in the indictment is a notice of the government?s intent to pursue forfeiture of Bradford?s property constituting or derived from the proceeds of his illegal activity . The indictment alleges that the value of such illegal proceeds is approximately $1 Million.

According to the indictment, Gene A. Bradford worked as a mortgage broker in Hinds and Madison Counties doing business as Guardian Financial Group, LLC. The indictment alleges that from January, 2003 through approximately December 2004, Bradford and others acting at his direction prepared false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. If the mortgage loans were successful, Bradford received a fee for his brokerage services.

The false and fictitious documents, along with the loan application containing false information, were included in loan application packets submitted to potential lenders by Bradford and others acting under his direction. The indictment further alleges that in order to obtain funding for borrowers who were otherwise unqualified to receive mortgage loans, Bradford and others acting at his direction would fabricate various kinds of documents, including but not limited to, fictitious social security benefit statements, false income and/or employment information, false verifications of rent, or false verifications of bank funds on deposit. False entries were also included on HUD-1 Settlement Statements submitted to various lenders with the final loan packets which reflected that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower. During the time period covered by the indictment, Bradford is alleged to have obtained fraudulent mortgage loans totaling over $1 Million.

This mortgage fraud investigation has been ongoing for over two years and is a joint investigation by the Internal Revenue Service and the United States Postal Inspection Service, assisted by other participating agencies in the Jackson Financial Crimes Task Force, including the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General, Housing and Urban Development-Office of Inspector General, Mississippi Secretary of State?s Office, Mississippi Real Estate Commission and Appraisal Board, Mississippi Department of Banking and Consumer Finance, Hinds County Sheriff?s Office, Madison Police Department and the Madison-Rankin District Attorney?s Office.

United States Attorney Lampton stressed that this indictment represents an accusation only and all defendants are entitled to a presumption of innocence.

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http://www.mortgagefraud.org/journal/2008/8/28/mortgage-broker-indicted-in-missis
sippi-fraud-case.html

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Another Mississippi based mortgage broker
indicted

post from Daily Mortgage Fraud News on 28 August 2008 12:10:00 PM. © Daily Mortgage Fraud News

United States Attorney Dunn Lampton, FBI Special Agent in Charge Frederick T. Brink, and Michael J. DePalma, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced in the following press release that a federal grand jury returned a 13-count indictment against Warren Clifton Pierce in connection with a mortgage loan fraud scheme. The indictment, unsealed yesterday at Pierce?s arraignment, charges Pierce with one count of conspiracy to commit mail fraud & wire fraud, seven counts of wire fraud, one count of conspiracy to commit money laundering, two counts of money laundering, one count of concealing or covering up records with the intent to impede, obstruct, or influence a federal investigation, and one count of concealing or attempting to conceal documents subpoenaed by the federal grand jury. Also included in the indictment is a notice of the government?s intent to pursue forfeiture of Pierce?s property constituting or derived from the proceeds of his illegal activity . The indictment alleges the value of such illegal proceeds to be approximately $547,650.00.

Warren Clifton Pierce worked as a mortgage broker in Hinds County and Rankin County doing business as Raintree County Marketing Company and Integrity Mortgage, Inc. The indictment alleges that from July, 2003 through approximately March 2007, Pierce prepared false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. If the mortgage loans were successful, Pierce received a fee for his brokerage services. The false and fictitious documents, along with the loan application containing false information, were included in loan application packets submitted to potential lenders by Pierce and others acting under his direction.

The indictment further alleges that in order to obtain funding for borrowers who were otherwise unqualified to receive mortgage loans, Pierce and others acting at his direction would fabricate various kinds of documents, including but not limited to, fictitious social security benefit statements, false income and/or employment information, false verifications of rent, or false verifications of bank funds on deposit. False entries were also included on HUD-1 Settlement Statements submitted to various lenders with the final loan packets which reflected that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower. During the time period covered by the indictment, Mark Calhoun obtained fraudulent mortgage loans totaling over $500,000.00.

U. S. Attorney Dunn Lampton stated, ?Mortgage fraud remains a serious concern throughout the United States, including here in Mississippi. This office remains committed to work with the federal and state agencies participating in the Jackson Financial Crimes Task Force to identify and bring to justice those people who enrich themselves by committing crimes at the expense of borrowers and lenders. We will also vigorously prosecute any person who attempts to impede or obstruct the criminal investigations of federal grand juries or federal agents.?

Michael J. De Palma, IRS-CI Special Agent in Charge stated, “In this case, the Jackson Financial Fraud Task Force, which is comprised of a specialized group of financial investigators and federal prosecutors, identified and investigated those involved in this mortgage fraud scheme. Mortgage fraud adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities. We are committed to pursuing those involved in these schemes to ensure they are brought to justice.”

This mortgage fraud investigation has been ongoing for over two years and is a joint investigation by the Internal Revenue Service and the Federal Bureau of Investigation, assisted by other participating agencies in the Jackson Financial Crimes Task Force, including the United States Postal Inspection Service, Federal Deposit Insurance Corporation-Office of Inspector General, Housing and Urban Development-Office of Inspector General, Mississippi Secretary of State?s Office, Mississippi Real Estate Commission and Appraisal Board, Mississippi Department of Banking and Consumer Finance, Hinds County Sheriff?s Office, Madison Police Department and the Madison-Rankin District Attorney?s Office.

United States Attorney Lampton stressed that this indictment represents an accusation only and all defendants are entitled to a presumption of innocence.

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http://www.mortgagefraud.org/journal/2008/8/28/another-mississippi-based-mortgage
-broker-indicted.html

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Shorewood, MN man pleads guilty to mail fraud

In the following press release it was announced that a 39-year-old Shorewood man pleaded guilty last week in federal court in connection with a scheme to defraud a mortgage company out of money. Kevin Ray Winkelmann pleaded guilty to one count of conspiracy to commit mail fraud on Aug. 22 in Minneapolis. He entered his plea before United States District Court Judge Ann Montgomery. Winkelmann was charged July 22.

According to Winkelmann?s plea agreement, between Aug. 1, 2005, and Dec. 15, 2005, he conspired with others in a scheme to defraud GreenPoint Mortgage out of money, namely funds to purchase a home, by means of false representations. Specifically, Winkelmann falsely represented to GreenPoint that he was employed with verifiable income, when in fact he was not employed.

For the purpose of executing the scheme, Winkelmann caused to be delivered by commercial carrier documents sent to GreenPoint Mortgage, located in California. Winkelmann faces a potential maximum penalty of five years in prison. Judge Montgomery will determine his sentence at a future date. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney David M. Genrich.

Read The Full Article:
http://www.mortgagefraud.org/journal/2008/8/28/shorewood-mn-man-pleads-guilty-to-
mail-fraud.html

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Michigan loan officer indicted

A Detroit resident was indicted today on two counts of wire fraud for defrauding New Century Mortgage and Countrywide Home Loans, United States Attorney Stephen J. Murphy announced in the following press release.

U.S. Attorney Murphy was joined in the announcement by Andrew G. Arena, FBI Special Agent in Charge. Nishon Johnson, 37, of Detroit, a loan originator, and others were involved in a scheme to defraud mortgage companies. According to the indictment, during 2005 and 2006, Johnson worked with Quick Michigan Mortgage, located in Southfield, to defraud New Century Mortgage and Countrywide Home Loans. After buying a single-family house, Johnson recruited a buyer to purchase the house at an inflated value. Johnson marketed the home as involving no down payments. As alleged in the indictment, Johnson submitted false loan applications to the mortgage companies which overstated the borrower’s income, and understated his liabilities. In one case, the alleged borrower was not even aware of the loan, and his signatures were forged. The buyers were not able to pay the monthly mortgage, thus resulting in a loan default and foreclosure.

United States Attorney Stephen J. Murphy said, ” When lenders are victimized by unscrupulous real estate professionals who obtain loans by fraud and deceit, we all suffer — including the lenders which have fewer assets to lend to deserving families, the borrowers are not able to hold on to their properties and foreclosure follows. These mortgage schemes have devastated our economy. The Department of Justice has made mortgage fraud a priority.”

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http://www.mortgagefraud.org/journal/2008/8/28/michigan-loan-officer-indicted.htm
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Former PA loan officer pleads guilty in scheme

United States Attorney Mary Beth Buchanan announced on August 6,2008, that Brian Tray, a resident of Pittsburgh, Pennsylvania, pleadedguilty in federal court to charges of Conspiracy, Bank Fraud and WireFraud.

Tray, age 52, pleaded guilty to four counts before United States District Judge Gary L. Lancaster.

Inconnection with the guilty plea, Assistant United States AttorneyBrendan T. Conway advised the court that Tray worked as a loan officerfor, among other places, America’s Mortgage Outlet and Single SourceMortgage. In connection with numerous loans, Tray submitted loanapplications on behalf of borrowers that he knew contained falseinformation related to the borrowers’ income and financial condition. In addition, Tray submitted fraudulent documents to the lendinginstitutions, including fraudulent Verifications of Employment,Verifications of Rent, and appraisals.

Judge Lancasterscheduled sentencing for November 14, 2008. The law provides for atotal sentence of 75 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed isbased upon the seriousness of the offenses and the criminal history, ifany, of the defendant.

The Mortgage Fraud Task Forceconducted the investigation that led to the prosecution of Tray. TheMortgage Fraud Task Force is comprised of investigators from federal,state and local law enforcement agencies and others involved in themortgage industry. Federal law enforcement agencies participating inthe Mortgage Task Force include the Federal Bureau of Investigation;the Internal Revenue Service, Criminal Investigations; the UnitedStates Department of Housing and Urban Development, Office of InspectorGeneral; the United States Postal Inspection Service; and the UnitedStates Secret Service. Other Mortgage Fraud Task Force members includethe Allegheny County Sheriff’s Office; the Pennsylvania AttorneyGeneral’s Office, Bureau of Consumer Protection; the PennsylvaniaDepartment of Banking; the Pennsylvania Department of State, Bureau ofEnforcement and Investigation; and the United States Trustee’s Office.

Mortgageindustry members with knowledge of fraudulent activity are encouragedto call the Mortgage Fraud Task Force at (412) 894-7550. Consumers areencouraged to report suspected mortgage fraud by calling thePennsylvania Attorney General’s Consumer Protection Hotline at (800)441-2555.

Read The Full Article:
http://www.mortgagefraud.org/journal/2008/8/28/former-pa-loan-officer-pleads-guil
ty-in-scheme.html

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