FACTS
On Oct. 17, U.S. District Judge Neil V. Wake SENTENCED TALAL ASHEK TO TWO YEARS IN FEDERAL PRISON. Ashek was also ordered to pay over $2.9 million in restitution. Ashek had previously pleaded guilty on Aug. 4 to one count of conspiracy to submit false claims to a lending institution for his role in a mortgage fraud conspiracy.
ASHEK OWNED AND OPERATED PHILLIPS LUXURY HOMES, L.L.C., an Arizona construction firm. Ashek's company specialized in building multi-million dollar luxury homes in areas such as Paradise Valley and Fountain Hills, Ariz. Between 2006 and 2007, Ashek solicited investors to obtain loans from banks that were to be used to purchase a lot by the investor and to pay Ashek to construct a luxury home on the lot. Ashek and the investor agreed that they would share the profits after the luxury home was completed and sold. The majority, if not all, of the investors solicited by Ashek were financially unqualified to obtain the multi-million-dollar loans needed for the lot purchase and home construction. Ashek fraudulently assisted the investors to qualify for the loans by depositing, or causing the deposit, of monetary funds into the investors' bank accounts. After the investor received Ashek's deposit, they then signed loan applications which falsely represented that they owned a significant amount of monetary assets. After the loan applications were submitted to the bank, the investor returned the money to Ashek. (usattyaz101811)
MORAL
There is always a paper trail. He now has two years and there is no parole in the federal system.
CALIFORNIA REAL ESTATE AGENT AMONG SIX ARRESTED FOR MORTGAGE FRAUD
FACTS
On Oct. 19, JASON RAY PATTERSON, a prominent local real estate agent who has spent the bulk of his career with RE/MAX COLLEGE PARK REALTY, entered a not guilty plea in federal court in downtown Los Angeles. He is among six people named in a federal grand jury indictment that charges the group scammed banks and lending companies by falsely inflating the prices of more than a dozen beachfront condominiums.
Federal authorities allege he and the other defendants named in the indictment were part of scheme that used straw buyers to purchase more than a dozen condominiums, the vast majority of which are in Long Beach, for amounts significantly above the actual value of the properties with the promise the seller would give the extra money back to the buyer in cash. Hathaway denied the allegations against his client.
Patterson is charged along with ALLEN DANA, RONALD GEORGE "RONKO" TOMICH, ISAAC "JACK" SOUSSANA, ISRAEL "IZZY" SOUSSANA AND PATRICIA SNUGGS.
TOMICH IS A REAL ESTATE AGENT WHO WORKS FOR CENTURY 21 BEACHSIDE REALTORS IN HUNTINGTON BEACH.
ISAAC SOUSSANA IS LISTED IN THE INDICTMENT AS A RESIDENT OF LOS ANGELES COUNTY AND A MORTGAGE LOAN OFFICER WHO WORKED FOR J&R LENDING INC., A MORTGAGE LENDING AND BROKERAGE FIRM DOING BUSINESS UNDER THE NAME FIRST SECURITY LENDING with offices located in Los Angeles, Burbank and Northridge.
ISRAEL SOUSSANA IS ISAAC SOUSSANA'S BROTHER AND HE IS ALSO A RESIDENT OF LOS ANGELES COUNTY AND A MORTGAGE LOAN OFFICER WHO WORKED FOR FIRST SECURITY, ACCORDING TO THE INDICTMENT.
SNUGGS IS A RESIDENT OF LOS ANGELES COUNTY and worked as a licensed real estate appraiser, according to the indictment.
The indictment charges than a dozen homes were purchased between 2005 and 2007 and the straw buyers were chosen for their good credit, though the scheme saw participants lie or falsify straw buyers' incomes and holdings in so that they would qualify for the loans, some in excess of $1 million dollars, authorities allege.
The indictment, which was released Oct. 13 and includes 27 counts, alleges Patterson was part of the scheme and that he knew of the falsely inflated purchase amounts and that he falsified documents used to purchase at least five properties. The charge includes two counts that allege Patterson falsified loan applications during his own purchase of two Long Beach properties—located at 1 Third Place and 850 Ocean Blvd.—when he listed himself as an owner/occupier.
Count 26 of the indictment states, "an application for a mortgage loan ... falsely stated that defendant Patterson intended to occupy Unit 403, when in truth and in fact, as defendant Patterson then well knew, defendant Patterson did not intend to occupy Unit 403 and, in fact, did not ever occupy Unit 403." The same allegation is made in count 27 for the purchase of the property at 850 Ocean Blvd. (longbeachpresstelgram102011)
MORAL
Note that the properties investigated occurred starting in 2005 which means the FBI is investigating 2005 loans and forward.
MARYLAND TITLE COMPANY PRESIDENT PLEADS GUILTY TO MORTGAGE FRAUD
FACTS
On Oct. 18, James KEVIN HUGHES pleaded guilty to wire fraud arising from a scheme to defraud lenders and a title insurance company of approximately $3.1 million. A co-defendant is scheduled for trial on Nov. 7.
Hughes was a part owner, president, and oversaw the day-to-day activities of TROESE/HUGHES, a title company in Greenbelt, Md., that performed title searches, provided title insurance, and conducted settlements. Hughes was also a signatory on the escrow account. Troese/Hughes had an agency agreement with Chicago Title that enabled Troese/Hughes to provide title insurance, which meant that Chicago Title was liable for title defects to homeowners and lenders.
Troese/Hughes shared an escrow account with another title company, TROESE TITLE SERVICES. Although Hughes was unaware of the fact that the escrow account was shared, he was aware that there were shortages in the account. Sometime in 2006, Troese/Hughes opened a new escrow account, and the escrow accountant, BRENDA LUKENICH, A CO-DEFENDANT WHO PREVIOUSLY PLEADED GUILTY, “ASSIGNED” A $1 MILLION ESCROW SHORTAGE TO THE NEW TROESE/HUGHES ESCROW ACCOUNT.
It became the policy of Troese/Hughes to check with Lukenich as to when mortgage pay-off checks could be sent out, so that she could confirm that there were sufficient funds in the escrow account to cover the check. At this time, the mortgage payoff checks were stored in Federal Express envelopes under the credenza in Hughes's office. Hughes made efforts to fill the escrow shortage at Troese/Hughes by re-financing his own home twice and not paying off the prior mortgage, causing a loss of over $1 million to Chicago Title. In addition, after an employee of Troese/Hughes re-financed his home, Hughes caused the prior mortgage on that home to not be paid off so that the money could be used to fill the escrow shortage, causing a loss to Chicago Title of approximately $217,000.
In March 2008, Chicago Title terminated its agency relationship with Troese Title and Troese/Hughes. In response, Troese Title and Troese/Hughes operations were consolidated into a single title operation, Troese/Prestige. Hughes was not permitted to play an active role in the operation of Troese/Prestige at the specific instruction of Chicago Title. Hughes continued to market and bring in new settlement deals and performed settlements. Lukenich still acted as the escrow accountant. It was agreed amongst Hughes, Lukenich and others that funds from any new settlement conducted by Troese/Prestige would be used to cover the mortgage pay-offs that were still outstanding at Troese Title and Troese/Hughes, contrary to the HUD-1 settlement statement and in violation of the express direction of the lender. Chicago Title received information that a mortgage had not been paid off and conducted a surprise audit of Troese/Prestige. The escrow account did not contain enough money to cover all of the outstanding mortgage pay-offs from Troese/Prestige. Chicago Title, as the title insurer, was forced to make the mortgage pay-offs, to pay off funds due to sellers from settlement, and to pay the recording fees. In total, the loss to Chicago Title stemming from the Troese/Prestige pay-offs was approximately $1.7 million.
Hughes faces a maximum sentence of 20 years in prison and a $250,000 fine. U.S. District Judge William N. Nickerson scheduled sentencing for Feb. 15, 2012, at 9:30 a.m.
Lukenich pleaded guilty to mail fraud on Oct. 12, and is scheduled to be sentenced on Jan. 12, 2012 at 9:30 a.m. (usattymd101911)
MORAL
Watch the title company you pick and you might want to pick one that is VERY WELL KNOWN.
TWO CALIFORNIA MEN INDICTED IN MISSOURI FOR MORTGAGE FRAUD
FACTS
On Oct. 19, two California men were indicted by a federal grand jury for a mortgage fraud scheme that defrauded a failed Sugar Creek, Mo., bank of more than $8.5 million.
ROBERT CHARLES RAMIREZ OF SALINAS, CALIF., AND WILLIAM TROY GOINGS OF SACRAMENTO, CALIF., were charged in a 20-count indictment returned by a federal grand jury in Kansas City, Mo. The indictment alleges that Ramirez and Goings defrauded American Sterling Bank in Sugar Creek in a mortgage fraud scheme that lasted from Oct. 11, 2006, to Jan. 18, 2007. American Sterling Bank was closed on April 17, 2009.
According to the indictment, RAMIREZ AND GOINGS ACTED AS FINDERS FOR A CALIFORNIA MORTGAGE BROKER WHO OWNED CAPITAL PRO LENDING. They recruited borrowers and prepared loan applications for those borrowers. Ramirez and Goings allegedly submitted fraudulent loan applications and supporting documents that contained false information about the borrowers' income, assets, and liabilities, and credit history.
American Sterling Bank approved loans totaling $8,587,893 for 19 properties in California, the indictment says. Ramirez allegedly received approximately $211,523; Goings received an unknown amount. In addition to the conspiracy, Ramirez and Goings are charged together in 19 counts of bank fraud. (usatty101911wdmo)
MORAL
I wonder what is going on with Capital Pro Lending.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
