SEP 27, 2012
Compliance Matters

Company Owner Gets Nine Years for Mortgage Fraud

Print
Reprints
Email

Teresa Rose, a Ramona real estate agent who will be sentenced in early December for her admitted role in a mortgage fraud scheme is still allowed by state law to practice real estate. She pleaded guilty in May 2012 to acting in a conspiracy that federal authorities said involved inflated home prices, fraudulently obtained mortgages and kickbacks. Until Rose's sentencing is final, she can still list homes, show them to clients and sell them, according to officials with the California Department of Real Estate.

State law allows the DRE to suspend, revoke or deny a license if the license holder enters a guilty plea to or is convicted of a felony. However, the agency cannot by law act until the conviction is final and the time for an appeal has passed.

Generally, the right to appeal comes after sentencing, the law states. If the defendant doesn't file an appeal, the sentencing is considered final.

Rose's record with DRE shows she's licensed and has no disciplinary action against her. Following her conviction, she left Coldwell Banker Country Realty in Ramona and now hangs her license with licensed broker Jonathan Patrick Mann, who lists a Laguna Beach address, public records show. Rose has at least seven Ramona listings under Mann's brokerage, based on listing information.

Rose is one of four people that federal investigators say were involved in a scheme to inflate real estate prices, obtain mortgages fraudulently and skim more than $1.5 million in kickbacks. The probe found that the defendants failed to pay the mortgages on the 16 properties identified in court records and they eventually went to foreclosure.

Investigators said the scheme involved more than $11 million in home loans.  More than $1.5 million of that was skimmed and hundreds of thousands of dollars were earned through commissions and fees, government officials said. In all, lenders suffered about $5 million in losses.

Rose was an agent at Coldwell Banker Residential Brokerage at the time. She faces one count of conspiracy to commit wire fraud and to launder money. Her maximum sentence is five years in prison and a fine of up to $250,000. Her sentencing is set for Dec. 3, 2012.  9sdutr92212)

MORAL

Oddly enough if you Google the name “teresa rose realtor ramona” as of Sept. 23, you will pull up a website that shows her picture and still at Coldwell Banker Country Realty notwithstanding the DRE website has her listed as licensed to Jonathan Patrick Mann as her broker.

SEVEN INDICTED IN SACRAMENTO FOR MORTGAGE FRAUD

FACTS

On Sept. 14, a federal indictment was unsealed charging seven people, including a Ventura man, with running a multistate Ponzi scheme and related mortgage fraud activities that prosecutors said cost investors and lenders a combined $17 million.

The years long investigation resulted in the arrest of Lawrence Leland Loomis. He and his 76-year-old father-in-law, John Hagener, were charged with operating a fraudulent, California-based investment fund that cost more than 100 investors more than $7 million.

Loomis and five other defendants are also charged in a 50-count indictment with costing lenders $10 million in losses through two mortgage fraud operations. One of those charged, Peter Woodard, is from Ventura, authorities reported.

Prosecutors said all three frauds were operated through Loomis Wealth Solutions, which was based in California and also worked with investors in Illinois, Washington and elsewhere from 2006 through 2008.

Loomis and Hagener were charged with bilking investors through a program called Naras Funds in 2007 and 2008. The indictment said Loomis encouraged investors to tap their home equity and retirement accounts to buy shares in the funds and to help purchase residential real estate.

He and his father-in-law allegedly promised 12% annual returns and said the funds were guaranteed, but the indictment claims the men used investors' money to pay themselves, their companies' operating expenses, and to prop up the scheme by paying later investors with money from earlier victims.

Loomis and Hagener had court appearances on Sept. 14, while the others were to appear later.

Loomis and a real estate appraiser, Darren Fehst of Halifax, Nova Scotia, are also charged in connection with a mortgage fraud scheme in which Loomis is accused of paying Fehst thousands of dollars to overstate appraisals so properties could be sold for inflated prices.

Loomis and four others also are charged with buying about 200 properties in Arizona, California, Florida and elsewhere while falsifying the sales prices and costing lenders about $10 million.

Those others are Woodard, Michael Llamas, Joseph Gekko and Dawn Powers. All are charged with mail and wire fraud. Each fraud charge carries a maximum possible sentence of 20 years in federal prison   (ventstr91412)

MORAL

Note the investigation goes back to 2006 over eight years ago. Rumor is the investigation took over four years. So be aware of this.

TOTAL OF 50 INDICTED AND CHARGED WITH MORTGAGE FRAUD IN NORTH CAROLINA

FACTS

On Sept. 21, 2012, the U. S. Attorney in Charlotte, N.C., announced nine defendants were charged in the latest takedown in the Operation Wax House mortgage fraud investigation in the Western District of North Carolina. 

A second superseding indictment in the Western District of North Carolina charging six defendants with federal offenses including mortgage fraud conspiracy, bank bribery conspiracy, money laundering conspiracy, and wire fraud was returned by a federal grand jury sitting in Charlotte. Three additional defendants were charged separately by criminal bills of information accompanied by plea agreements. 

The mortgage fraud and bank bribery conspiracies alleged in the superseding indictment represent part of an ongoing investigation, Operation Wax House, conducted by the FBI and IRS-CI into mortgage fraud targeting the Mecklenburg and Union County communities of North Carolina’s Western District.

Comments (3)
Does my heart good to see folks getting their due. If only our government had done this with the SEC, Wall Street and big bankers. Imagine how much improved housing would be today.
Posted by Dora | Friday, September 28 2012 at 9:06PM ET
Curious how those borrowers did not know their incomes were inflated. Don't borrowers sign the final loan application at closing that states their income and monthly payment ..... Seems to me the borrower is just as responsible as the crooked mortgage person.
Posted by DON | Tuesday, October 02 2012 at 6:14AM ET
Add Your Comments:


Twitter
Facebook
LinkedIn
Already a subscriber? Log in here
Please note you must now log in with your email address and password.