ARIZONA REAL ESTATE AGENT PLEADS GUILTY TO FRAUD
FACTS
On Dec. 15, 2009, former Tucson real estate agent Roy Fife pleaded guilty in U. S. District Court to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. He faces up to two years in federal prison after pleading guilty to his role in a mortgage fraud scheme that he admitted involved taking out fake loans to inflate local home values.
He and another Tucsonan, Chris Nero, were indicted in June 2008 on 48 counts of wire fraud, money laundering and conspiracy. According to the indictment, Fife and Nero enlisted straw buyers to take out at least 27 fake loans in their name to purchase at least 17 homes they would neither live in nor pay the mortgage on. The loans would be for above the asking price on the home, with Fife, Nero and the straw buyer sharing in the excess proceeds, according to the indictment.
Fife and Nero were two of 36 people in Arizona and more than 400 nationwide that federal authorities targeted in 2008 as part of a U.S. Justice Department investigation dubbed Operation Cash Back. Nero has a Feb. 16 trial date on the federal charges. As part of Fife's plea agreement, he could be called to testify against Nero.
Fife is scheduled to be sentenced April 5 by U.S. District Court Judge Cindy K. Jorgenson. He could also be ordered to pay as much as $2.8 million in restitution to various banks and lending institutions through which the fake loans were obtained. Fife is also awaiting sentencing for a state conviction on fraud and forgery charges to which he pleaded guilty last December.
In that case, Fife admitted to forging the signature of a client in order to push through the sale of a northeast side home that would have netted him a six-figure commission, according to Pima County Superior Court records. He faces between one and 3.75 years in prison in that case. (azdlystr121609)
MORAL
Did you know any of these gentlemen? If so, I suggest you see an attorney knowledgeable in mortgage loans and fraud now to see what your potential exposure might be.
CALIFORNIA REAL ESTATE AGENT SENTENCED TO EIGHT YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD SCHEME
FACTS
On Dec. 14, 2009, Felix Pichardo of Lancaster, Calif. was sentenced to eight years in federal prison and ordered to pay restitution of $777,000 in relation to a mortgage fraud scheme in which he "purchased" homes in Altadena and Riverside.
He admitted that he used the identities of two victims to obtain mortgage loans for properties that were not for sale.
Pichardo, a licensed real estate agent, and his co-defendant Latrice Shaunte Borders of Long Beach, participated in two separate fraudulent real estate sales transactions. Pichardo, using identities appropriated from other people, caused loan applications to be submitted to AmTrust bank in the amounts of $417,000 and $360,000. The loan applications were submitted without the property owner's knowledge for real estate which was not for sale. The proceeds of the two loans were deposited into bank accounts under the control of Pichardo and Borders.
A federal grand jury in Los Angeles indicted Pichardo and Borders in July 2008. In February 2009, Postal Inspectors arrested Pichardo in Boston and he has remained in custody since then. Borders was arrested in November 2008. In July 2009 Borders pleaded guilty to bank fraud and is scheduled to be sentenced by Judge Wilson on Jan. 4, 2010.
This case was investigated by the Identity Theft and Economic Crime Task Force, which is sponsored by the Los Angeles Division of the United States Postal Inspection Service. Members of ITEC include Postal Inspectors, and agents and detectives from the United States Secret Service, the Los Angeles Police Department, and the Los Angeles County Probation Department - Special Enforcement Operations Unit. (usattycdca121409)
MORAL
Now you would think the appraiser would know the property was not for sale when the appraisal was done, would you not? I wonder why it was not discovered and reported by the appraiser then? Maybe because there was no onsite appraisal because of the new appraisal law?
CALIFORNIA BANKRUPTCY ATTORNEY AND HIS WIFE INDICTED FOR CONSPIRACY TO COMMIT BANKRUPTCY FRAUD
FACTS
A federal grand jury in San Jose has indicted James and Jane Nelsen of Salinas, for conspiracy to commit bankruptcy fraud, James Nelsen, a bankruptcy attorney who practices in San Jose, filed for personal bankruptcy then allegedly lied to the bankruptcy court in order to obtain permission to sell an office condominium he owned with his wife, without any of the proceeds going to pay Mr. Nelsen's creditors. The proceeds instead went to Mrs. Nelsen, who used the money on her own and her husband's behalf.
According to the indictment, James Nelsen filed for personal Chapter 13 bankruptcy protection in February 2005. The bankruptcy filing did not include his wife, Jane Nelsen. On March 29, 2006, Mr. Nelsen filed a motion in bankruptcy court requesting to sell an office condominium located at 105 East Alisal St., Salinas, outside of the bankruptcy proceedings, that is, free of any judicial lien. Nelsen claimed as justification that the office condominium was encumbered by a deed of trust to his parents-in-law, Peter and Marjorie Kurle, in such a way that at the completion of its sale, no money would remain to pay creditors. The bankruptcy court granted the motion, allowing the sale to proceed.
The indictment alleges, however, that on March 29, 2006, the Kurles sent a letter to the escrow company stating that they were owed no money for their deed of trust on the office condominium. When the sale of the office condominium closed on May 12, 2006, at the Nelsens' direction the sale proceeds, $224,789.38, were wired to a bank account controlled by Mrs. Nelsen. The indictment further alleges that after she received the money, Mrs. Nelsen: (1) wired $118,000 to a title company in Florida toward the purchase of a vacation condominium in Puerto Vallarta, Mexico; (2) wrote a check for $50,000 to her husband, James Nelsen; and (3) used $27,879.39 to pay off the outstanding balance on an automobile loan.
Mr. Nelsen was arrested at his home on Dec. 10, 2009, and made his initial appearance in federal court in San Jose later that day. He was released on a $50,000 personal recognizance bond but was ordered to wear an electronic monitoring device. Mrs. Nelsen was out of the state when the arrest warrants were executed.
The maximum statutory penalty for each count of bankruptcy fraud in violation of Title 18, United States Code, Section 157(3) is five years' imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense. The maximum statutory penalty for each count of concealment of assets in violation of Title 18, United States Code, Section 152(1) is five years' imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense. The maximum statutory penalty for each count of conspiracy in violation of Title 18, United States Code, Section 371 is five years' imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense. The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, Section 1343 is 20 years imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense. The maximum statutory penalty for each count of engaging in monetary transactions in property derived from specified unlawful activity in violation of Title 18, United States Code, Section 1957(a) is 10 years' imprisonment and a fine of $250,000 or twice the amount of the criminally derived property involved in the transaction. (Case #: CR 09-01168 JF).
MORAL
Here is a person that has blown his whole career if proven guilty. Licensed as an attorney since 1977, over 22 years and if guilty he has blown his career over $225,000. Without a license how does he earn a living? With a felony conviction if found guilty, how does he earn a living? Do not lie to your attorney about your assets or liabilities or you may find yourself in the same boat and it is awfully leaky.
CALIFORNIA SUPERIOR COURT SENTENCES ESTATE FINANCIAL INC. PRINCIPALS TO PRISON FOR FRAUD
FACTS
San Luis Obispo Superior Court Judge Jack Crawford sentenced Estate Financial Inc. principal Karen Guth to 12 years in prison and Joshua Yaguda to eight years for fraudulently selling securities without the proper licenses, lying to investors and stealing or destroying property worth $3.2 million.
Guth and Yaguda pleaded guilty in October to 26 felony counts after Crawford offered a plea agreement that stipulated that the defendants plead guilty and agree not to appeal in exchange for the eight and 12 year sentences.
Yaguda could be released after serving another three years in state prison. Guth, considered to be the primary owner and operator of the failed investment firm, faces an additional five years of incarceration if conditionally released early.
As a result of the sentencing, the pair's assets, such as the Pasolivo olive ranch, can now be sold. Enticed by the promise of 12% interest on property-secured investments, approximately 3,400 investors entrusted their nest eggs with Guth and Yaguda. Estate Financial's portfolio contained more than $317 million in monies owed to investors when the company filed bankruptcy in 2008. Of that, only $21,000 was held free and clear. A restitution hearing has been set for Feb. 24, 2010. (12709sgp)
MORAL
Thank you for the updates Guy Puccio. For the rest of you out there, as I have been explaining for the past two years, if you have been involved in any questionable loans it is a lot better to see us now then later. There is a lot that can be done legally to protect clients when they consult legal counsel at the earliest opportunity, which means before the interviews with law enforcement.
LENDER/BUILDER FILES BANKRUPTCY IN SANTA BARBARA
FACTS
Lender, developer, building contractor and foreclosure firm owner Don Vaughn has allegedly filed for bankruptcy protection. In a Chapter 7 filing at U.S. Bankruptcy Court in Santa Barbara on Dec. 8, 2009 as case number 9:09-bk-15147, Vaughn lists himself doing business as Vaughn Real Estate. He runs his building contractor business through that Atascadero company, according to his license information with the Contractors State License Board. Attorney David Robertson claims that Vaughn and his business partner, builder Fred Machado, owe his client $150,000 in a judgment. He had requested that Vaughn and Machado appear at a debtor's exam in San Luis Obispo Superior Court on the day Vaughn filed for bankruptcy. The bankruptcy filing does not mention Vaughn's ownership in nonbank lender Country Financial. Nor does it refer to his owning All American Foreclosure Service -- which handles a large portion of real estate foreclosures and auctions in the county -- nor any of the limited liability corporations that Vaughn uses to conduct business, nor a number of properties that he owns in California.
The filing is incomplete, failing to list required schedules that would show his assets and debts. If Vaughn does not give that information to the Bankruptcy Court timely his petition can be considered invalid and dismissed.
Vaughn is one of the longest-standing nonbank lenders in San Luis Obispo County. He founded the lending company Pippin-Powell Real Estate, also known as Requity Corp., with James Vincent Allred in 1978.
Vaughn bought the company back in 1988, reorganized it under the name Estate Financial and then sold it to Karen Guth and Charlie Applebaum in 1994, according to filings with the state Department of Corporations. (See article above where Guth has been sentenced to prison for 12 years)
When Estate Financial started having cash-flow problems at the end of 2007, Guth brought on Vaughn as an adviser, and he shared offices with her in Estate Financial's headquarters.
Guth and her son Joshua Yaguda were sentenced this week to 12 and eight years in state prison, respectively, for having defrauded thousands of investors out of millions of dollars. Vaughn is also facing lawsuits alleging fraud in his real estate dealings.
Like other nonbank lending companies in San Luis Obispo County that have been accused of fraudulent practices -- such as Estate Financial, 21st Century, Real Property Lenders and Hurst Financial -- Country Financial had a permit to sell investments that consisted of fractional interests in promissory notes secured by real estate deeds of trust. (slotrib121009121409)
MORAL
If you recognize any of the names here, you may want to seriously consider consulting your lawyer.
CALIFORNIA COUPLE DRAWS 10 YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD
FACTS
A couple that called themselves Cheri and Terry Tucker will be locked up in federal prison for 10 years. Judge Manujal Real sentenced Terrance George Tucker and Sonya Delores Wodke Tucker, who pleaded guilty in March to bank fraud, to 121 months and 120 months, respectively. A restitution hearing is scheduled for 1:30 p.m. on Feb. 22, 2010
The Tuckers worked locally and operated Tucker Mortgage in Thousand Oaks and San Diego. They also sold real estate. The two were convicted of being involved in fraudulent loan applications. Their sentencing on two counts of bank fraud could have brought a maximum penalty of 30 years in federal prison for each count, or 60 years total for each of them. Under federal law, Sonya Delores Wodke Tucker will serve 85% of her sentence, minus a year for time served. If she's a model prisoner, she may be released in less than 7½ years. Sonya Tucker has been held in the Metropolitan Detention Center, Los Angeles, without bail. During the sentencing hearing, the judge referred to Terrance Tucker as a financial predator and called Sonya Tucker a danger to others.
The couple was charged with a scheme in which they sought out private real estate investments from people; most were elderly. Investors got no firm documentation on what they were actually investing in but were promised interest of 12% or more. The Tuckers then took the investment money and used it to secure about $80 million in conventional mortgage loans for about 400 unsuspecting homebuyers by falsely stating the down payments came from the assets of the borrowers when they actually came from private investors.
The couple told clients, who were mostly friends or members of their church, they could buy a home by getting 100% financing through a combination of conventional loans and short-term, high-interest loans called hard money loans. According to court documents, the Tuckers also filled out the applications with false information about jobs and incomes. The loans came from various banks, including Washington Mutual and Downey Savings. When the homeowners' hard money loans came due, they would be advised to pay them off with a home equity line of credit obtained by the Tuckers. Instead of paying off the loans for the homeowners, the Tuckers would reinvest that money somewhere else into new hard money loans.
An investigation into others involved with the Tuckers' criminal activities is ongoing. (thansoksacrn12309)
MORAL
If you knew them and now know the investigation is ongoing, I strongly suggest you see an attorney now that is knowledgeable in mortgage fraud. Alternatively, you might be in trouble and not even know it.
.
TWO LAS VEGAS MEN INDICTED FOR MORTGAGE FRAUD
FACTS
Two Las Vegas men have been charged with conspiracy and fraud charges for devising and implementing a mortgage fraud scheme involving straw buyers and falsified mortgage loan documents. Tarl Brandon and Calvin A. Gribble were indicted by the Federal Grand Jury on Dec. 1, 2009, and charged with one count of conspiracy to commit mail fraud, wire fraud, and bank fraud. Gribble was arrested and appeared on Dec. 7, 2009, before U.S. Magistrate Judge Lawrence R. Leavitt, and was released pending trial. Brandon surrendered to authorities on Dec. 10, 2009.
The Indictment alleges that from about June 2004 to Jan. 31, 2005, Brandon, managing member of KTB Construction Co. LLC, and Gribble, owner of C. A. Gribble and Associates, a mortgage broker, solicited and paid persons to act as straw buyers to apply for mortgage loans to purchase real estate in Las Vegas. In most instances, Brandon and Gribble had the straw buyers apply for mortgages for more than one house at a time and concealed from the lenders that they were purchasing more than one property. To induce the lenders to fund the loans, Brandon and Gribble caused the loan applications and supporting documentation to include false and fraudulent information concerning the straw buyers' income, assets, employment, and intent to occupy the home. Once the financial institutions funded the loans, the escrow companies made disbursements to Brandon's shell company, KTB Construction and paid commissions and fees to Gribble.
The indictment specifically discusses two fraudulent transactions involving the purchase of two homes in the fall of 2004 by a straw buyer, one at 2317 Cameridge Elms St., in North Las Vegas, and the other at 8682 Belinda Ct. in Henderson. Once the loans were approved, Brandon and Gribble caused the financial institutions to wire monies from New York to a local lender in Las Vegas to fund the loans, and caused the title company to fraudulently pay KTB Construction $105,000 for these transactions. Brandon and Gribble then paid the straw buyer $14,000 for applying for the mortgages. Gribble made a mortgage payment on the properties to conceal the fraud from immediate scrutiny.
If convicted, the defendants face up to 30 years in prison and a $1 million fine. This investigation is being led by and the FBI, and other agencies of the Southern Nevada Mortgage Fraud Task Force, including IRS Criminal Investigation, the U.S. Postal Inspection Service, Office of the Inspector General for the Department of Housing and Urban Development, the U.S. Secret Service, the Las Vegas Metropolitan Police Department, the Nevada Attorney General's Office, and Office of the Inspector General for the Social Security Administration. (usattynv121009)
MORAL
Did you notice how they went back five years to find these people? Remember what I said in the last e-alert? Here there are six cooperating agencies. What they left off was the seventh cooperating agency which was the Mortgage Lending Division that revoked his license.
NEW YORK APPRAISER INDICTED FOR FALSIFYING APPRAISALS
FACTS
On Dec. 14, 2009 Michael Cassadei of Schenectady and Galway, N.Y., was arrested following the unsealing of a five-count indictment by a federal grand jury in Albany. The indictment alleges that defendant Michael Cassadei, doing business as AAA Allstate Appraisal Services, violated Title 18, United States Code, Sections 1344(1), (2) and 2 by participating with others in a complex mortgage fraud property-flipping scheme by making and causing to be made materially false and fraudulent misrepresentations to a federally-insured financial institution with regard to, among others, certain loan applications, down payments, seller-held second mortgages, and HUD-1 forms, and by using his own appraisal business to generate misleading appraisals in support of the residential properties he sold through nominees, and through whom he obtained the bulk of the proceeds of the resulting mortgage loans. All of the properties, which were located in Albany and Schenectady, went into foreclosure and caused significant losses to the financial institutions which held the mortgages.
The indictment further charges that defendant Michael Cassadei tampered with a witness by instructing the witness to lie to a federal agent who participated in the investigation.
If convicted, Michael Cassadei faces a maximum sentence of up to 30 years of imprisonment, a period of up to five years of supervised release, and fines of up to $1 million dollars on each of the four counts of bank fraud in the indictment, and up to 20 years of imprisonment, a period of up to five years of supervised release, and a fine of up to $250,000 on the witness tampering charge. (usattyndny121409)
MORAL
Witness tampering is the one that is going to cause him the most trouble.
FORECLOSURE BACKLOG IS OVER 1.7 MILLION
FACTS
A report says about 1.7 million homeowners were on the verge of foreclosure in the fall, a looming "shadow inventory" of homes that will come on the market for sale over the next several years and weigh down prices.
The study by real estate research firm First American CoreLogic provides an estimate of how many bank-owned homes have yet to be put on the market as of September. It also includes borrowers who have missed at least three months of payments and are likely to lose their homes. (ap121709)
MORAL
Welcome to the real estate real world. This means more lawsuits. The FDIC is now using outside attorneys to sue brokers, loan officers and lenders over bad loans sold to banks that have been taken over by the FDIC. This includes among others Downey Savings and Loan. We are already representing lenders, brokers and loan officers sued or threatened with lawsuits over loans gone bad. We have also developed a reasonably good defense to the demands as well.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
