INDIANA WOMAN PLEADS GUILTY TO MORTGAGE FRAUD AND GETS 51 MONTHS IN FEDERAL PRISON
FACTS
On Dec. 3, KATHY PUCKET OF RICHMOND, IND., was sentenced to 51 months upon her guilty plea to mail fraud and obstructing justice. This followed an investigation by the Richmond Police Department, Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit, and the Federal Bureau of Investigation, Muncie Office. (Notice the cooperation of multiple agencies)
Kathy Puckett was a co-owner of RICHMOND MORTGAGE and served as its sole mortgage originator. Puckett’s job was to prepare loan documents including loan applications and other documents supporting buyers’ income and ability to pay. Between March 2006 and February 2008, Puckett submitted false information to the lenders including inflated bank account balances, false verifications of employment, false verifications of rent, misrepresenting one borrower’s name to reflect a better credit score, and false gift letters. These actions resulted in fraudulent loans exceeding $200,000. In addition to her mortgage broker fee, Puckett received a yield spread premium fee that was not disclosed to the borrower which represented a fee for a higher interest loan given to the borrower. During the investigation of her mortgage fraud activities, in January 2008, Puckett directed an acquaintance to remove documents from files that were to be turned over to the FBI.
MORAL
False bank balances, false VOE documents, false gift letters, But true conviction of 51 months in a federal prison even after she pled guilty.
OREGON MAN CONVICTED OF MORTGAGE FRAUD
FACTS
On Dec. 2, BENJAMIN LUCIAN LUCESCU OF PORTLAND, ORE., WAS CONVICTED of the crimes of bank fraud and wire fraud following a three-day jury trial. Lucescu is scheduled to appear before U.S. District Judge Michael W. Mosman on Feb. 11, 2011 for sentencing on these charges.
LUCESCU IS A LICENSED MORTGAGE LOAN BROKER AND OWNER OF AMERICAN CAPITAL MORTGAGE CORPORATION, LOCATED IN GRESHAM, ORE. Lucescu, acting as a residential mortgage loan broker, knowingly prepared, on behalf of one borrower, five residential loan applications related to three different properties that falsified the borrower’s financial qualifications. The applications were then submitted by Lucescu to four different mortgage lenders with the intent that the lenders would approve mortgage loans for those properties based upon the false financial qualifications provided in the loan applications. The jury convicted Lucescu of all counts in the indictment.
At sentencing, the maximum penalty for each of the three bank fraud convictions is 30 years in prison and a maximum fine of $1,000,000. The maximum penalty for each of the two wire fraud convictions is 20 years in prison and a maximum fine of $250,000. Judge Mosman will also determine prior to sentencing whether to forfeit from Lucescu all of the brokerage fees Lucescu received as a result of his conduct. (usattyor12310)
MORAL
Watch how you try your cases. Pick your trials and know what to argue to mitigate sentencing.
TENNESSEE BUSINESS MAN CONFESSES TO MORTGAGE FRAUD AND IS NAMING NAMES OF HIS CO-CONSPIRATORS
FACTS
STEVEN VINCENT LEAR, a Sevier County businessman is confessing his own guilt and pleaded guilty the week of Nov. 22 in U. S. District Court. He also named alleged co-conspirators in a mortgage and cabin rental fraud case. He pleaded to conspiracy to commit wire fraud, mail fraud and money laundering in a mortgage fraud scheme in which he and others were involved.
Lear apparently has been cooperating with Assistant U.S. Attorney Trey Hamilton and federal authorities since at least late September, when Hamilton filed what's known as an information on Sept. 28. With an information, a suspect agrees to skip review of charges by a grand jury. The filing of an information typically comes via an agreement between the suspect and prosecutors.
However, Hamilton kept the information under seal until last week when, in a hearing before U.S. District Judge Tom Varlan, Lear pleaded guilty in an agreement brokered between Hamilton and Assistant Federal Defender Jonathan Moffatt. The plea deal, which sets out a detailed account of his crimes, remains under seal, however.
Lear is admitting he conspired with unnamed cohorts to trick banks into funding so-called "jumbo loans" for pricey real estate transactions that did not actually occur. Instead, the mortgage money was used to line the pockets of Lear and his unidentified partners, as well as provide a cut to people who agreed to file fake documents with the banks to garner the loans.
"It was part of the conspiracy that conspirators caused the recruited individuals to make materially false misrepresentations on loan application and closing documents, such as false statements related to income, assets, source of down payment and the use of the real property as a primary residence," the information stated.
Only one "recruited" individual is identified in the information: David Rogers. Other identifying information is not provided, and it's not clear if Rogers faces prosecution. He is connected in court records to fraudulent loan applications for two properties on Amet Way in Cosby that netted proceeds for the conspirators of more than $800,000 in 2008. The information states that the mortgage fraud conspiracy spanned from December 2007 to July 2008. A tally on how many banks were deceived and how much the fraud scheme netted is not included.
Lear also confessed to a mail fraud scheme involving A Plus American Vacations, which fronted itself as a chalet and cabin rental business in Sevier and Cocke counties. According to the information, Lear advertised various properties for rent and required customers to submit sizable deposits to reserve the bookings. But when check-in time neared, Lear disappeared from contact, the information stated.
Lear remains free on bond pending sentencing in April. Hamilton told Varlan he wanted to keep details of the case under wraps "because of the ongoing nature of this case." (knoxnews.com112810)
MORAL
Since Lear had a federal public defender meaning he had no money to pay for private counsel, I trust the other co-conspirators can afford private counsel. If they need advice we are available as pro hac vice.
VIRGINIA LOAN OFFICER PLEADS GUILTY TO MULTI-MILLION DOLLAR MORTGAGE FRAUD
FACTS
On Dec. 3, 2010 ALEJANDRO ALQUINTA OF SPRINGFIELD, VA., pleaded guilty to using his position as a loan officer with SunTrust Mortgage in Falls Church, Va. to help carry out a multi-million-dollar mortgage fraud scheme.
Alquinta pleaded guilty to a one-count criminal information charging him with conspiracy to commit wire fraud. Alquinta faces a maximum penalty of 20 years in prison when he is sentenced on March 4, 2011.
Alquinta worked as a loan officer at SunTrust Mortgage in Falls Church, Va., from 2003 until 2006. Between 2005 and 2006, Alquinta acted as a loan officer for at least 14 fraudulent property transactions in which straw buyers and unqualified buyers obtained over $4 million in mortgage loan proceeds. In order to gain approval for these mortgage loans, Alquinta and others prepared false and fraudulent mortgage loan applications for straw buyers and unqualified buyers, which were then submitted to a lending institution. The mortgage loan applications contained materially false, fraudulent, and misleading information, including false information regarding applicants’ employment, income, and assets. As a direct result of Alquinta’s conduct, mortgage lenders suffered losses of nearly $500,000.
This ongoing investigation is being conducted by the FBI Washington Field Office. (usattyedva12310)
MORAL
Notice the federal prosecutors went back seven years to 2003 to get to this gentleman and that it is still an ongoing investigation. If you were involved I suggest you find a knowledgeable mortgage fraud lawyer like yesterday. Otherwise, you may be talking to a person with a gold badge tomorrow.
Happy Holidays and a Bright New Year to you all
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
