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A Warning About HUD Quality Control

DEC 13, 2012 5:09pm ET
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Green sued Boulter alleging negligence, fraud, negligent misrepresentation, breach of contract, breach of fiduciary duty and rescission. Green claimed Boulter failed to verify material information about the borrower’s ability to repay the loans. As a result, he lost his investments on both properties.

Boulter argued that Green’s claims were barred by the applicable statute of limitations. Green had lost $718,000 in damages. Defendants motioned for a nonsuit.

A judge in the Santa Monica, Calif. Superior Court granted the motion based on the statute of limitations.

MORAL

1)  If you are going to sue, do it timely and know the length of time in which you have to sue. 2) Do your own due diligence. If you are investing over $100,000, let alone $700,000, it behooves you to check the data such as credit and value of the property which is not all that difficult to do.

SAN DIEGO LOAN OFFICER GETS TWO-AND-ONE HALF YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD

FACTS

On Dec. 3, Simon Saeid Koli was sentenced in San Diego federal court by the Honorable Irma E. Gonalez to serve 30 months in custody, followed by three years’ supervised release, for his role in a conspiracy to commit mail fraud, wire fraud, and money laundering in connection with a mortgage fraud scheme involving four expensive homes in Carlsbad, Calif. Koli pleaded guilty to the charge on July 13. Co-defendant Kian Ashkanizadeh, also an LO, has pled guilty to the same charge on July 9.

Both defendants previously worked at a mortgage company called Southern California Finance, where they recruited family members and friends to supply their names and signatures on mortgage loan applications as the purported buyers for million-dollar homes. The defendants then fabricated the job titles, income, and assets of the purported buyers so they could qualify for an approximately $1 million mortgage loan on each property. The defendants also acknowledged that they arranged for $200,000 in sham “consulting fees” to come out of each transaction and another $45,000 for fraudulent “construction fees.” The defendants took for themselves most of the extra $245,000 in fees paid out from each of the four transactions. The defendants also admitted disguising these “fees” by first funneling the payments through bank accounts owned by friends and relatives and then causing the funds to be withdrawn or transferred for their own benefit.

Koli will appear before Judge Gonzalez for a further hearing to determine the amount of restitution to be paid by the defendant. Ashkanizadeh is scheduled to be sentenced by Judge Gonzalez on Jan. 28, 2013. (usattysdca12312)

MORAL

One interesting aside−none of the names mentioned seems to have or have had an NMLS&R unique identifier. One of the two individuals had his real estate license revoked with a right to a restricted licensed but the other is NBA. Just a note to let you know they can both conduct real estate transactions as of Dec. 4, if the one with the NBA activates the license with a broker and the other applies timely for the restricted license. How is this?

SAN FRANCISCO MAN GETS 12 YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD

FACTS

On Dec. 4, Sergio Gutierrez was sentenced to 12 years in federal prison after a jury convicted him of running a scheme in which he defrauded victims by telling them to stop paying their mortgages.

Gutierrez defrauded investors by falsely telling them that they would be able to own their homes outright if they paid him for documents that he claimed would dispute the validity of their mortgages that various banks held on their properties. The lawsuits filed by the victims were dismissed by various courts throughout California, and most of the victims ended up losing their homes through foreclosure. Gutierrez’s purported mortgage elimination program specifically targeted victims who had little or no ability to read or write English. From 2008 to 2009, Gutierrez received more than $89,000 from individual victims who paid him for this program.

He was charged with one count of conspiracy to commit mail fraud and seven counts of mail fraud. On Aug\ 17, Gutierrez was remanded into the custody of the U.S. Marshals Service before trial, after the court found that he violated the conditions of his pre-trial release. He remains in custody pending designation to a Bureau of Prisons facility.

The sentence was handed down by U.S. District Court Judge Jeffrey S. White following the defendant’s conviction by a jury of seven counts of mail fraud and one count of conspiracy. Judge White also sentenced the defendant to a three-year period of supervised release.  (usattynd12412)

MORAL

Whenever, someone tries to convince you to do something that you should know is wrong. Listen to the queasiness in your stomach, it is never wrong.

FLORIDA MAN PLEADS GUILTY TO MORTGAGE FRAUD AND THAT MAKES 19 SO FAR IN THIS ONE SCHEME

FACTS

On Dec 4, Scott S. Schuhriemen pleaded guilty to conspiring to make false statements to Branch Banking and Trust, an FDIC-insured financial institution. Schuhriemen faces a maximum penalty of five years in federal prison.

From 2006 to mid-2007, Schuhriemen conspired with other individuals, including R. Craig Adams and Richard Bobka to knowingly make false statements on mortgage-related documents submitted to BB&T in order to obtain home equity line of credit loans on real property located in the Sarasota area. At the time, Schuhriemen served as a loan officer for BB&T and arranged loans for the co-conspirators. On two occasions, in 2006, Schuhriemen falsely notarized mortgage documents for borrowers related to R. Craig Adams.

Fourteen other defendants, including R. Craig Adams, were sentenced in October 2012 for their roles in a large-scale, Sarasota-area mortgage fraud scheme that spanned over 10 years and involved tens of millions of dollars in fraudulent loans. To date, the investigation has yielded convictions of at least 19 individuals for conspiracy and/or mortgage fraud, including four other former bank loan officers. (usattmdfl12412)

MORAL

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