FACTS
On Dec. 8, Maria Quijada Ramirez of Bakersfield, Calif., was arrested at the home of a relative joining her husband and real estate agent daughter who already are in custody and awaiting trial. She was wanted on a $1 million arrest warrant in connection with an alleged $4.1 million mortgage fraud scheme.
Her daughter is real estate agent Guadalupe Ramirez, and her husband is accused of being a straw buyer. The male is identified as both Augustine and Agustin in court documents, and on some property records he is listed as Agustin.
The father purchased five homes between November 2006 and January 2007 and each time indicated he planned to live in the place, according to a criminal complaint filed in March in Kern County Superior Court. Owner-occupied homes are eligible for more favorable loan terms.
Father and daughter are accused of conspiring to obtain inflated appraisals on homes, and lying to sellers to get them to make what amounted to kickback payments that were not disclosed to lenders, according to the allegations listed in the complaint. The homes went into default immediately.
The daughter, a Bakersfield real estate agent, was missing for months but eventually was arrested in July in Las Vegas, where she had just been hired at a realty company that said it had no idea she was wanted by authorities. The father was arrested in November in Apple Valley. (bkrsfldcal12810)
MORAL
This one has some Lulu morals for those of you that remember the comic strip and comic book.
1. Everyone is innocent until proven guilty and so are these people.
2. The family that commits fraud together if convicted gets to stay together (in prison that is).
3. Indicating on the 1003 for two or more loans submitted close in time that you intend to occupy both as a primary residence is a felony.
4. Taking or giving a kickback without the lender knowing is a felony.
FOUR DEFENDANTS CONVICTED OF MORTGAGE FRAUD
FACTS
On Dec. 17, Melissa Villegas of Sacramento, Calif., pleaded guilty before U.S. District Judge Edward J. Garcia. Three other defendants pleaded guilty in the case earlier this year. Rick Villegas pleaded guilty to mail fraud on Dec. 14. Kathleen DeLapp pleaded guilty to misprision, or concealing knowledge, of a felony on Dec. 9. Robert Martinson pleaded guilty to mail fraud on Jan. 8.
The defendants schemed to defraud mortgage lenders by submitting fraudulent loan applications in the names of straw buyers and other investors.
Martinson ran a branch of MAC Real Estate Services out of a gym on Watt Avenue in North Highlands, which he owned but operated under his wife's name and license. Martinson purchased dozens of homes throughout the Sacramento area as investment properties and placed title to them in "Sheryl's LLC." In 2005, as the housing market began to slow, officials said, Martinson unloaded properties from Sheryl's LLC using straw buyers.
DeLapp was a loan processor for MAC Real Estate Services and an account executive for Aegis Mortgage. She processed some of the loans for Martinson's buyers. When DeLapp could not process the loans through Aegis, she, for a fee, assisted Martinson in facilitating real estate loans with other lenders. DeLapp processed loan applications from Martinson that contained inconsistent representations to the lender about occupying the property, officials said.
Co-defendants Rick Villegas and his wife at the time, Melissa Villegas, were mortgage loan officers working out of their home under the license of Landmark Realty Co. In 2006, their firm brokered six home loans that contained materially false representations concerning the borrowers' income, employment history and intent to occupy the homes as the primary residence. Melissa Villegas assisted on two of the loan applications, knowing that the applications contained false declarations of primary residence, false employment and false income information. Rick Villegas signed one of the applications as the loan interviewer, knowing that the interview never occurred and that information on the loan applications was false.
Melissa Villegas is scheduled for sentencing on March 11, Martinson on Feb. 25, and DeLapp and Rick Villegas on March 4. (sacbe121710)
MORAL
Now you can see the federal prosecutors are working on the 2006 loans. Remember, it is safer for you to retain your attorney before you are contacted by law enforcement in order for the attorney to be more effective.
FORMER ILLINOIS TITLE CO. OWNER TO BE TRIED CRIMINALLY BY STATE FOR STEALING NEARLY $6 MILLION IN CUSTOMER FUNDS
FACTS
Pamela Williams of Darien, Ill. and the former owner of a Wheaton title company, suspected of funneling more than $6 million from clients into personal accounts, is to be tried on Jan. 18, 2011 in DuPage County Court. She along with Patricia Johnson of Naperville allegedly orchestrated the fraud scheme through PLM Title Co. Williams owned the company and Johnson was a silent partner.
They were indicted on 55 counts related to theft charges, according to the DuPage County State's Attorney Office. The charges range from theft of more than $300 to theft of more than $500,000. Both women pleaded not guilty to the indictment. An investigation into Williams and Johnson's dealings began when an attorney of one of victims contacted the Wheaton Police Department according to the State's Attorney Office. From November 2007 to April 2008, the two women allegedly used PLM Title, a home purchasing and refinancing company, to funnel money that clients paid into escrow accounts toward their own personal and business expenses. (wheatonptch12310)
MORAL
Watch who you hire and be careful to keep reconciling the accounts yourself. Remember, ultimately you as the owner will be held responsible.
UNITED STATES CHARGES FOUR INDIVIDUALS FOR FRAUDULENT MORTGAGE FORECLOSURE RESCUE SCAM
FACTS
On Dec. 14, an indictment was unsealed and a verified civil complaint was filed against ANTHONY J. DEMARCO III and his real estate companies, DEMARCO REI, INC. AND OPM GROUP, LLC, alleging a mortgage fraud scheme involving more than $30 million in loans. The civil complaint seeks a temporary restraining order and preliminary injunction against defendant. It also seeks to forestall foreclosures against the victims. The indictment charges DEMARCO, MICHAEL RICHARD ROBERTS, SEAN RYAN MCBRIDE, AND ERIC BASCOVE with conspiracy; charges DeMarco, Roberts, and McBride with mail, wire, and bank fraud; and charges DeMarco with money laundering. DeMarco and Roberts were arrested on Dec. 14.
DeMarco, who operated the real estate investment firm DeMarco REI, Inc., headquartered in Center City, Philadelphia, employed Roberts and Bascove. DeMarco’s business claimed to be able to assist homeowners facing imminent foreclosure. McBride was a title agent at SETTLEMENT ENGINE, INC., in Pittsburgh. According to the indictment, from June 2008 through December 2008, the defendants would scour public records filings to find homeowners in financial distress and pitch a “SALE-LEASEBACK” ARRANGEMENT to them. The pitch was that the real estate company would buy the homeowner’s house, the homeowner would remain in the house and pay rent to the real estate company, and when the homeowner got back on his or her feet financially, the homeowner could buy back the house. The defendants further claimed that if there was equity in the house at the time of the sale to DeMarco REI, then DeMarco REI would put that money into an escrow or rent reserve account for the homeowner. Instead, the defendants allegedly used fraudulent documents to obtain mortgage loans from lenders and stole the equity in the homes. It is further alleged that DeMarco and his employees would solicit straw purchasers for these properties, providing them with the down payment for the mortgage and telling them that the real estate investment firm would make the monthly mortgage payments. The result of the scheme is that the mortgage lenders were stuck with loans that are in default, the “straw” purchasers own houses that are going into foreclosure, and the original homeowners face eviction from their own homes once the foreclosures are complete.
The indictment alleges that DeMarco used the proceeds of the scheme to pay his personal and business expenses; that McBride conducted fraudulent real estate closings as part of the scheme; and that the defendants created fraudulent mortgage documents.
The verified complaint seeks novel relief that will bring all the individuals and entities that have a stake in the properties (the homeowners, the “straw” purchasers, and the mortgage lenders) before the court to create an orderly process by which the damage caused by the defendants’ alleged fraud can be mitigated. The goal of the process is to have the parties work towards finding a solution other than foreclosure—perhaps a loan modification, perhaps a forbearance agreement, perhaps a deed-in-lieu of foreclosure. The orderly process sought by the filings is the best way to ensure that the greatest numbers of original homeowners have an opportunity to save their homes.
If convicted of all charges: DeMarco faces a maximum possible sentence of 200 years’ imprisonment, a $5 million fine, and a five-year period of supervised release; Roberts faces a maximum possible sentence of 150 years’ imprisonment, a $3.75 million fine, and a five-year period of supervised release; McBride faces a maximum possible sentence of 230 years’ imprisonment, a $6 million fine, and a five-year period of supervised release; Bascove faces a maximum possible sentence of 60 years’ imprisonment, a $2 million fine, and a five-year period of supervised release. (usattyedpa121410)
MORAL
So you think you want to do mortgage foreclosure rescues. Well I recommend you get a good lawyer first that knows what he is doing or you to may be looking at possible prison terms of 230 years in prison. Must be nice to have that kind of longevity. Remember, see your attorney first that understands mortgage financing laws first. Or you may be seeing the attorney for criminal representation later.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
