FACTS
The Federal Deposit Insurance Corp.is issuing “inquiry letters," followed by subpoenas, followed by lawsuits against brokers as well as the loan officers. Sometimes the FDIC skips the inquiry letter and other times it skips the subpoena and goes right to the lawsuit. How do we know? We are representing numerous brokers that have received the letters, subpoenas and lawsuits. If you get any of the three let us know.
FDIC Administrative subpoenas which seek personal records from family members of the targets of an investigation into corporate wrongdoing must face more exacting scrutiny than subpoenas seeking records from the targets themselves. Challenged subpoenas, to the extent they seek information from family members fail to withstand that heightened scrutiny. The U.S. District Court can deny enforcement of those portions of the subpoenas which seek personal information from the corporate directors' families. (mcvanefdis44f311271995)
MORAL
If you are served with a federal administrative subpoena you should immediately consult your attorney. This can be very cost effective since many times the subpoenaing party is not unreasonable and will and has negotiated the records requested.
ARIZONA REAL ESTATE INVESTOR CONVICTED OF LEADING MORTGAGE FRAUD RING
FACTS
On Nov. 22, Eitan Maximov, a citizen of Israel and lawful permanent resident of the United States, was convicted after a six day jury trial on one count of conspiracy to commit wire and bank fraud and one count of wire fraud as a result of his leadership in a cash-back mortgage fraud scheme that took place during 2006-2008. The defendant was taken into custody following the jury verdict and his sentencing is set before U.S. District Judge David G. Campbell on Feb. 27, 2012.
He furthered his scam by creating fictitious companies and billed himself as an investor. The defendant played a leadership role in the underlying conspiracy which involved at least nine residential properties in the Scottsdale area. The objective of the conspiracy was to recruit unqualified borrowers as straw buyers, submit fraudulent loan applications on their behalf and on his own behalf, obtain mortgage loans in excess of the selling price of the property and then take the excess amount of the loans out through escrow in what is known as a “cash back” scheme.
The defendant recruited straw buyers and worked with an escrow officer in the scheme to defraud and then benefited from their involvement in the scheme. Most of the properties were purchased or attempted to be purchased for in excess of a million dollars. Following the funding of the loans, the defendant received “cash back” or proceeds. All of the homes purchased through the conspiracy have been foreclosed or sold at a loss to the lending institutions. The conspiracy resulted in approximately $5 million in loans obtained by fraud and an actual and intended loss to lending institutions of nearly $6.5 million.
A conviction for of conspiracy to commit wire and bank fraud carries a maximum penalty of 30 years in federal prison, a $1 million fine or both. (usattyaz112311)
MORAL
Here the prosecutors went back to loans funded in 2006. So the federal prosecutors are looking to loan files for fraud that occurred 2006 to date is this one attorney's opinion.
LOS ANGELES MORTGAGE BROKER ARRESTED FOR STEALING ESCROW FUNDS
FACTS
On Nov. 22, 2011 U.S. Attorney Benjamin B. Wagner announced the arrest of Steve Zaven Kessedjian after a federal grand jury returned an indictment charging him with mail fraud for a mortgage fraud scheme.
According to the indictment, Kessedjian's company, Amerilend Inc., Woodland Hills, helped homeowners secure loans to refinance their homes. When a loan was funded, Amerilend would use Targa Escrow, also owned by Kessedjian, to disperse the escrow funds.
According to the indictment, in December 2007, an Amerilend employee assisted a couple from Tuolumne County in refinancing their home to consolidate their credit card bills. As directed by closing documents, the bank paid off the first mortgage and then wired the remainder of the loan proceeds, $57,343, to Targa Escrow. Instead of dispersing the remainder to the credit card companies as the escrow instructions directed, Kessedjian allegedly took the funds for his own purposes. The victims lost their home to foreclosure and their home-based business, as they could not make payments for the refinanced loan and pay the creditors who were supposed to have been paid off with the funds allegedly taken by Kessedjian.
If convicted of the charges, Kessedjian faces a maximum statutory penalty of 20 years in prison, a $250,000 fine, and up to three years supervised release. (usattycaed112211)
MORAL
He is innocent until proven guilty beyond a reasonable doubt. But, if proven beyond a reasonable doubt I would say he is looking at about five years in a federal hotel.
OHIO LEADER OF A $6.7 MILLION MORTGAGE FRAUD SCHEME GETS 12 YEARS IN A FEDERAL PRISON—AND THERE IS NO PAROLE
FACTS
In November, Louis Amir, the leader of a $6.7 million mortgage fraud scheme involving a home in Gates Mills, Ohio, was sentenced to 151 months in prison. He was also ordered to pay restitution of $6,592,637 to four mortgage lenders.
Two others involved in the scheme were also recently sentenced—one to 2.5 years in prison, the other to eight months house arrest followed by more than two years of supervised release.
A jury found Amir guilty on all 21 counts against him, including one count of conspiracy, six counts of wire fraud, 13 counts of money laundering, and one count of perjury in a bankruptcy proceeding.
Deirdre Ferguson received three years probation and ordered to make restitution totaling $6,592,637. Ferguson pleaded guilty on Aug. 25, to one count each of conspiracy and aiding and abetting money laundering.
Daphne Stokes received 30 months in jail followed by three years' supervised release. Stokes was also ordered to pay restitution totaling $6,649,937 to four mortgage lenders and the Department of Housing and Urban Development. She pleaded guilty on Sept. 1, to one count each of conspiracy, aiding and abetting money laundering, theft of government funds and misuse of a Social Security number.
During December 2006 and January 2007, Louis Amir, aided and abetted by Daphne Stokes and Deirdre Ferguson, fraudulently applied for and obtained six mortgage loans from four lenders totaling approximately $6.7 million to finance the purchase of a residence at 1860 Surrey Place, Gates Mills, Ohio. Amir had purchased the residence for approximately $2 million. The indictment further charged that the defendants delayed filing the warranty deed relating to the purchase of the residence to avoid detection of their fraudulent scheme. The defendants caused the mortgage lenders to issue loans far in excess of the true market value of the Gates Mills property. As a result of this fraudulent scheme, the lenders sustained losses totaling about $6.7 million.
The indictment included 13 money laundering counts pertaining to financial transactions conducted by Amir with the proceeds of the mortgage fraud scheme. These transactions included issuing a $100,000 check to Ferguson, issuing three checks totaling $65,000 to Stokes, and paying off Stokes' mortgage of approximately $87,000. Other money laundering transactions in the indictment included Amir's payments of approximately $103,000 to purchase a Bentley automobile and nearly $164,000 to lease a Rolls Royce, as well as purchasing plasma televisions, speakers, and accessories for about $96,000.
The indictment also charged Amir with committing perjury on Nov. 10, 2008, in connection with a proceeding in his name in the United States Bankruptcy Court for the Northern District of Ohio.
The indictment also charged Stokes with theft of government funds relating to assistance payments she received totaling $57,300 from HUD. Finally, the indictment alleged that Stokes provided a false Social Security number to Huntington National Bank in December 2005 to obtain a $20,800 loan to purchase a Mercedes Benz. (usattyndoh112111)
MORAL
Federal prosecutors are still pursuing fraud loans (including stated income) that occurred over six years ago. Note the 2006-2007 time frame of the loans here. Obviously someone cooperated with the prosecutor. I bet you can guess which one.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
