Michigan Man Admits to Defrauding Lender to Stall Foreclosure

James Whitaker, a former Orchard Lake, Mich., resident, pleaded guilty before U.S. District Judge Bernard A. Friedman to filing fraudulent bankruptcy petitions to defraud his mortgage lender and forestall foreclosure on his mortgage and take possession of his property. According to Terrence Berg, U.S. attorney for the Eastern District of Michigan, in 2007 Whitaker's mortgage holder, Deutsche Bank, began foreclosure proceedings on a $970,000 mortgage Whitaker had obtained on the residence he occupied. However, he held title to the property in his sister-in-law's name. When the bank began eviction proceedings to take possession of the property, Whitaker had a bankruptcy petition preparer file several bankruptcy petitions in his sister-in-law's name to halt eviction action. By doing this, the value of the property substantially decreased. Sentencing for Mr. Whitaker is scheduled for Nov. 17.