FACTS - Al Siapno, a Border Patrol agent from San Diego and his wife Leila have pleaded guilty in a mortgage-fraud scam that involved at least 24 other people and several home loans throughout the county. The alleged perpetrators listed in a federal indictment overstated incomes, over-appraised home values and used other fraudulent means to obtain millions of dollars in mortgages.
They were accused of making false statements on their loan application while trying to refinance a mortgage, officials said. Officials said the Siapnos, who each pleaded guilty to conspiracy to commit wire fraud on March 1, plotted with other people.
Three other people have pleaded guilty in the case: David and Kristin Berkenfield and home appraiser Matthew McIntyre. Authorities said the scheme involved people whom: inflated applicants' income levels; included made-up occupations and sources of income; falsely certified that applicants were self-employed; and falsely claimed that applicants owned investment funds that were not their own.
The Berkenfields admitted to authorities that they overstated their income. Charges against David Berkenfield may be dropped as long as he doesn't get involved in any illegal activity for one year.
McIntyre admitted that he lied to mortgage lenders about his finances. To obtain a mortgage on a home in Cardiff, he added himself onto someone else's bank account so he could claim that person's assets as his own. The indictment also includes a Feb. 22, 2007, email excerpt from McIntyre to an individual named "D.C." saying: "I wanted to see what values were needed on these—the real value is in the $700,000s (sic) somewhere but let me know if you need higher and I'll push the value a little." (sdutrib31412)
MORAL
I would say that Mr. Berkenfield had a very good lawyer.
CALIFORNIA DEVELOPER ARRESTED FOR MORTGAGE FRAUD
FACTS
On March 16, United States Attorney Benjamin B. Wagner announced the arrest of Aruna Kumari Chopra. A federal grand jury returned an indictment against her on March 15, charging her with two counts of mail fraud and two counts of aggravated identity theft. The indictment was unsealed following her arrest.
According to the indictment, in 2009, Chopra purchased property at 4754 Dale Road in Modesto. She sought to finance the development of the property by trying to convince the city of Modesto to put into place a Communities Funding District that would issue bonds for infrastructure improvements. She allegedly concealed from the city of Modesto that there were pre-existing liens on the property. She also allegedly provided the City of Modesto with fictitious contracts of potential sales of a fully developed property to support a higher appraisal of the property. The indictment alleges that Chopra attempted to defraud other lenders, including the persons who sold her the property, by filing documents with the Stanislaus County Recorder's Office that contained forged signatures. She is charged with aggravated identity theft for two instances when she allegedly forged the signature and used the seal of a notary public on a publicly filed document.
If convicted, Chopra faces a maximum penalty of 20 years in prison and a $250,000 fine on each count of mail fraud, and she faces a mandatory penalty of two years in prison on each count of aggravated identity theft, which must run consecutive to any other sentence. (usattyedca31612)
MORAL
Remember, I have been saying the federal authorities are still working on 2009 cases where “stated income” was used and I expect to see many more indictments in Southern California as well as Central during the rest of 2012.
MARYLAND MORTGAGE BROKER GETS THREE YEARS IN FEDERAL PRISON FOR FAILURE TO MAKE PAYOFFS ON MORTGAGES
FACTS
On March 9, Gary Pierce was sentenced to six years in prison followed by three years of supervised release, for conspiracy to commit wire fraud in connection with a five-year scheme to divert or hold mortgage payoff funds from clients' closings on 17 Maryland properties. Judge Blake also ordered Pierce to pay restitution of $4,174,044.41.
Co-defendant Todd R. Bettin pleaded guilty on this same date to wire fraud in connection with the same scheme.
Pierce owned Home Settlements LLC, while Bettin was the assistant manager of Home Mortgage (also owned by Pierce and located in the same office).
In 2007 Bettin refinanced the mortgage on his home. Pierce acted as the settlement agent. Rather than paying off the original mortgage as required, Bettin kept the payoff amount and never informed the original lender that he had refinanced the property. Also in 2007, Pierce obtained a mortgage loan on a property in Edgewater that he did not own. Bettin acted as the loan officer on the transaction. Bettin and Pierce created false documents purporting to show that Pierce owned the property and provided those fraudulent documents to the lender. Bettin and Pierce used the funds obtained from the lender to perpetuate the scheme, and each personally diverted $50,000 to themselves. The true owner of the property had no knowledge that documents had been created purporting to show that the property had been sold to Pierce.
Beginning in 2007, Pierce and Bettin diverted or held mortgage payoff funds from clients' closings for a matter of days, weeks, and sometimes years. Pierce falsely represented on HUD-1 forms sent to the borrower's lender that the payoff was made, when in fact Pierce intended to divert the funds. Pierce and Bettin fabricated wire confirmation reports, which purported to be a bank record of the transfer, to include in loan files. These were created in advance of audits in order to deceive the title insurers. Additionally, to forestall discovery by the lenders, Pierce and Bettin contacted the mortgage lender who should have been paid off and posed as the borrower/homeowner. Bettin would either create an online profile for the borrower and stop any mail from being sent to the borrower, or he would tell the lender that his, the borrower's, address had changed and he would re-direct the lender to send all correspondence to a post office box owned by Pierce. Bettin would then make monthly mortgage payments to the existing lender. Believing that the bank had been paid off as a result of the settlement, the borrower stopped making monthly payments on that mortgage. And since that lender was receiving monthly payments, it had no reason to notify the borrower of any delinquency. With no delinquency in the account, the scheme went undetected.
Because the existing mortgages were not paid off, the liens against the property were not removed and clear title could not be passed to the new lender and borrower. The total amount of diverted or otherwise improperly obtained funds totals $4,971,380. (usattyedva31312)
MORAL
Problem is that once you start the paper trail, there is never enough money to keep it going. So Pierce is going. Going to federal prison for six years.
STRAW PURCHASERS IN VIRGINIA PLEADS GUILTY
FACTS
On March 14, Kevin Scott Wiebe pled guilty in the United States District Court for the Western District of Virginia in Lynchburg to charges related to knowingly submitting false mortgage documents as part of a broader fraud.
Wiebe waived his right to be indicted and pled guilty to a one-count information charging him with misprision of a felony pertaining to bank fraud by obtaining a mortgage loan by submitting false information in loan documents.
“Mortgage fraud is a persistent problem that afflicts all regions of this country. Those of us who work in the Department of Justice are using every tool we have to prevent, prosecute, and punish these crimes,” United States Attorney Timothy J. Heaphy said. “This office is committed to prosecuting mortgage fraud and pursuing justice and restitution for its victims.”
Wiebe worked for Timothy Brooks and Adam Spruill as an office manager. Brooks and Spruill have previously pled guilty to operating a scheme to find credit worthy individuals, or straw buyers, to apply for property loans and/or construction loans. The straw buyers were instructed to falsify loan applications to purchase lots and to obtain construction loans.
Wiebe, knowing his actions were illegal, was a straw buyer for Brooks and Spruill and received a $5,000 “good faith” payment for obtaining a loan. In his loan documents, Wiebe falsified his monthly income, created and produced his own verification for rent, falsified his employment, and inflated his bank account information. At sentencing, Wiebe faces a maximum possible penalty of three years in federal prison and/or a fine of up to $250,000. (usattywdva31412)
MORAL
Notice the quote from the U. S. Attorney above and you will understand now why the government is indicting straw buyers! For $5,000 Wiebe now has a felony conviction, cannot vote, cannot obtain certain licenses such as loan originator ever, possibly liquor licenses to run a liquor store or even a contractor's license among others. Somehow I think it was a bad exchange.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
