GEORGIA MAN PLEADS GUILTY TO MORTGAGE FRAUD THAT AIDED IN A BANK FAILURE
FACTS
MARK ANTHONY MCBRIDE, also known as Charles Conley, Charles Conley, Jr., and Manuel Evans, pleaded guilty on April 23, 2009 in federal district court to a conspiracy to obtain millions of dollars in fraudulent mortgages and other loans and to a bankruptcy fraud designed to stay foreclosures on dozens of fraudulently obtained properties.
In 2001, immediately after being released from prison, MCBRIDE began a mortgage fraud scheme that continued through 2002, when he had to report for service of another federal prison sentence. As soon as he was released again from prison in November 2006, MCBRIDE continued his fraud by completing fraudulent mortgage loans, vehicle loans, lines of credit, credit cards and other extensions of credit in his name, in his aliases, in a number of stolen identities, including those of his children, and in the identities of other unqualified borrowers. These fraudulent loans continued until MCBRIDE was arrested in September 2008 for violating his supervised release. Dozens of banks and other lenders, including the recently failed Omni National Bank, funded fraudulent loans for MCBRIDE.
MCBRIDE generated mortgage loan proceeds for himself using inflated valuations for properties, securing the loans and sharing those proceeds with his straw borrowers and other conspirators. He was able to retain proceeds from the frauds by filing eight bankruptcy cases in Georgia, Alabama and South Carolina. The last such fraudulent filing was a May 2008 petition in Atlanta, filed in a bogus name and stolen Social Security Number. The petition falsely stated he had never filed bankruptcy in the past.
MCBRIDE was charged in a two-count criminal information filed on April 23, 2009. The information charged MCBRIDE with a conspiracy which encompassed the 10-year long fraud scheme and with one count of bankruptcy fraud. He could receive a maximum sentence of 35 years in prison and a fine of up to $1,250,000. Sentencing is scheduled for July 9, 2009, before United States District Judge Jack T. Camp. (usattyga42309)
MORAL
In and out of prison and doing it in between the stays. But getting away with it for 10 years is a long time.
FIVE IN HAWAII ARRESTED FOR MORTGAGE FORECLOSURE FRAUD
FACTS
Five people were arrested by the FBI on April 23, 2009 in connection with an alleged foreclosure bailout scheme that took hundreds of thousands of dollars from local lenders and residents and cost some their homes.
Bobby W. Wood, owner of Asian Pacific Funding; Stephen Balino, owner of New Horizons Financial; Welton Kalani, owner of Accel Mortgage LLC; Carlton Yim, co-owner of Walter P. Yim and Associates; and Audra Palomares, a processor with Accel Mortgage LLC, are accused of multiple counts of mail fraud, wire fraud, money laundering, and making false statements on a loan application.
All five pleaded not guilty. As of April 24, 2009 more than 17 people have been charged with conspiracy, mail fraud and making false statements on loan applications in an 18-month ongoing investigation into mortgage fraud in Hawaii.
Agents arrested Yim in the parking lot of a church on Ke'eaumoku Street. The others were arrested at their homes.
According to court documents, those arrested promised to help struggling homeowners stave off foreclosure if the homeowners agreed to a "sham" sale. They allegedly told the owners they could remain in their homes and that their title would be returned to them after a set period of time. The scheme involved offering "straw purchasers" $12,000 to $15,000 per transaction to act as new title holders. But the proceeds were allegedly funneled into fake escrow accounts and the new loan would go into default. The amount of the new loan was more than the old loan and the properties went into foreclosure, according to court documents.
An indictment, unsealed April 23, 2009 outlined six purportedly fraudulent loans totaling $1,916,980, with an undisclosed amount allegedly siphoned off and distributed among Wood, Balino, Kalani, Yim and Palomares. On Jan. 5, 2007, Kalani allegedly deposited a $92,000 check purportedly obtained in the conspiracy into his personal account; and on March 23, 2007, Wood allegedly deposited $78,001 into his account.
Wood and Balino are scheduled for a detention hearing today. Yim, Palomares and Balino have been released on a $50,000 bond.
Their trial is set for June 23 at 9 a.m. before U.S. District Judge Susan Oki Mollway. Mollway, however, may recuse herself because Balino processed the loan for her condominium last year, according to Balino's company, New Horizons Financial.
The accused allegedly manipulated their friends and business associates into aiding in the completion of fraudulent real estate transactions "for the purpose of pulling out equity," according to the court documents. Kalani, Wood and others sought out troubled homeowners and offered aid, while Kalani and Wood also recruited buyers for the homes, according to the allegations.
The straw buyers agreed to sign documents, prepared by Wood, Balino and others that "contained materially false supporting documentation" claiming the straw buyers would occupy the homes. The loan applications also allegedly contained false information prepared by Palomares, Yim and others regarding the straw buyer's sources of income, bank accounts and rental situations. (honoluluadv42409)
MORAL
Notice how the investigation goes back over two years. It takes that long to get the documents and evidence together. So if you did anything fraudulent since 2007, I would be concerned if I was you and I definitely recommend you see a knowledgeable attorney. That is before the people with gold badges knock on your door.
NORTH CAROLINA MAN PLEADS GUILTY TO FALSIFYING DOWN PAYMENT ON HUD FORMS FOR MORTGAGE FRAUD
FACTS
On April 20, 2009 MAURICE EUGENE JENKINS pled guilty before United States District Judge James C. Dever III, to bank fraud, in violation of Title 18, United States Code, Section 1344. In approximately late 2002 to May 2008, JENKINS devised a scheme to defraud Longleaf Community Bank, Wachovia Bank, New Century Bank, and Omni National Bank out of over $1 million. JENKINS, operating as Lessane Properties, LLC, would purchase residential real estate targeting properties that he could purchase for below their tax value and then resell them to investors at the tax value. JENKINS would then obtain a loan from a bank on behalf of the buyer based on the tax value of the property. JENKINS then used part of the loan proceeds to pay off his loan, gave part of the loan to the buyers (his investors) and the rest JENKINS would keep as profit.
JENKINS would make false statements on HUD forms to the banks in order to secure loans for the buyers. He reported that the buyers were making down-payments for the loans. In reality, no down-payment was made, but rather buyers received a payment from JENKINS.
JENKINS faces a maximum penalty of 30 years imprisonment followed by up to five years of supervised release and a fine of up to $1 million. Sentencing is July 20, 2009. (usattyednc42009)
MORAL
Notice the government went back to 2002 (seven years ago)? When you commit fraud through a bank or other federally insured institution, the government has 10 years in which to prosecute you. Anyone do false down payments between 1999 and now? See your attorney.
REAL ESTATE BROKER FALSIFIES A LOAN APPLICATION IN LOUISIANA AND GOES TO FEDERAL PRISON
FACTS
LORRAINE MILLER was sentenced in federal court by U. S. District Judge Ivan Lemelle to three months incarceration and nine months home confinement for falsifying loan applications. Judge Lemelle ordered that MILLER be placed on five years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should she violate any terms of her supervised release.
On July 16, 2008, MILLER pled guilty to four counts admitting that she provided false information to Fannie Mae, Chase Manhattan Bank and Union Planters Bank in order to secure loans for the sale and purchase of local real estate. MILLER was responsible for fraudulently obtaining a total of $244,100.00 in loans on three separate properties. (usattyedla42209)
MORAL
False loans as the "interviewer", no loss mentioned and now a federal felony conviction. No voting, no licenses for real estate, liquor stores, etc., no decent living. Seems doing it straight would have been better.
PENNSYLVANIA FEDERAL COURT SENTENCES NEW JERSEY WOMAN TO 10 YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD
FACTS
Lizette Morice was sentenced on April 22, 2009 to 10 years in prison for running a fraudulent investment scheme involving fictitious foreclosures. Morice pleaded guilty in July 2008 to seven counts of mail fraud. Between April 2006 and July 2007, Morice ran a company known as Gaddel Enterprises in Langhorne and Morrisville, Pa. She solicited investments in the company claiming that she was obtaining tax-foreclosed properties which she was reselling at a profit, promising clients a substantial return on their investment. No real estate transactions were ever conducted by Gaddel. To perpetuate the scheme, Morice paid early investors with other investors' money.
In addition to the prison sentence, United States District Judge Berle M. Schiller ordered Morice to pay restitution in the amount of $7,259,950, and to complete three years supervised release at the conclusion of her prison sentence. (usattyedpa42209)
MORAL
No matter how many times people hear the story, they never ever want to listen. If it sounds too good to be true, it isn't!
WASHINGTON STATE GIVES NOTICE ON YSP AND DISCOUNT POINTS IN VA LOANS
FACTS
The Washington State Department of Financial Institutions has sought guidance from the Veterans Administration on allowable discount points and the payment of yield spread premiums. Until DFI receives a response to our request for clarification, we will not issue examination findings on discount points or yield spread premiums as long as the fee on Line 802 of the HUD-1 is equal to or less than the amount of the third-party fees paid on behalf of the borrower.
Third-party fees include: escrow fee; tax service fee; underwriting fee; wire fee; courier fee; and document preparation fees (some investors itemize this separate from their underwriting fee). (wadfi42309)
MORAL
So if your discount points on VA loans is equal to or less than the sum of the six third party fees listed above there should be no violation by an auditor for now.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.
