FACTS - On Jan. 30, William Tro Goings of Sacramento, Calif., pleaded guilty in federal court to participating in a conspiracy to commit wire fraud for his role in a mortgage fraud scheme that defrauded a failed Sugar Creek, Mo. bank of more than $8.5 million.
Goings admitted that he defrauded American Sterling Bank in a scheme that lasted from Oct. 11, 2006, to Jan. 18, 2007. American Sterling Bank was closed on April 17, 2009.
Goings acted as a finder for a California mortgage broker by recruiting borrowers and preparing loan applications for those borrowers. Goings submitted fraudulent loan applications and supporting documents that contained false information about the borrowers' income, assets and liabilities, and credit history.
As a result of the mortgage fraud scheme, American Sterling Bank approved loans totaling $8,587,893 for 19 properties in California. Goings received approximately $99,408 from the scheme.
Under federal statutes, Goings is subject to a sentence of up to 30 years in a federal prison without parole, plus a fine up to $1 million and an order of restitution. The United States Probation Office will schedule a sentencing hearing after the completion of a presentence investigation. (usattywdmo13012)
MORAL
Notice the federal prosecutors went back four years. Goings netted a little over $99,000 and now has the dubious prospect of looking forward to 30 years in a federal prison without parole. Somehow I do not think it is worth it.
CALIFORNIA REAL ESTATE SALESPERSON GETS 27 MONTHS IN PRISON FOR MORTGAGE FRAUD
FACTS
On Jan. 30, Robinson Dihn Nguyen of Fresno was sentenced to 27 months in federal prison, followed by three years of supervised release and ordered to pay $433,000 in restitution for conspiring to commit mail, wire and bank fraud in connection with his employment as a real estate agent for Crisp & Cole Associates.
In pleading guilty, Nguyen admitted that between January 2004 and September 2007, he and his co-conspirators defrauded mortgage lenders and banks by submitting false and fraudulent statements in mortgage loan applications and related documents to obtain loans for straw buyers and others purchasing property.
Nguyen and others bought, sold, and refinanced real estate in order to skim equity from the properties. They did this through an elaborate use of straw buyers and other borrowers, including his co-defendants and others, to buy, refinance, and sell properties amongst themselves. Through this scheme, they rapidly inflated the nominal value of the properties, while typically using close to 100% financing in order to extract the inflated equity amounts on each transaction. In perpetrating this fraud, Nguyen caused false loan applications to be submitted to lenders with misstatements concerning the borrowers' income, assets, and employment, and false statements concerning the borrowers' intent to reside in the properties as owner-occupiers as well as other misstatements and omissions. Many of the properties purchased with the loan proceeds were subsequently foreclosed upon after loan payments were not made when due.
The remaining nine co-defendants are awaiting trial and are next scheduled to appear before United State District Judge Lawrence J. O'Neill on Feb. 27, 2012. Five others have pleaded guilty in related cases. (usattyedca13012)
MORAL
That makes 15 in all, for loans that occurred eight years ago.
LAS VEGAS REAL ESTATE AGENT AND MORTGAGE BROKER CONVICTED OF MORTGAGE FRAUD; ONE AQUITTED
FACTS
On Feb. 2, Jeannie Sutherland and Kelly Nunes were found guilty of one count of bank fraud and one count of conspiracy to commit wire and bank fraud involving a mortgage fraud scheme that netted nearly $2.5 million in fraudulent mortgage loans. A third individual, Michael Toren was acquitted on the one charge against him.
According to the evidence at trial and court documents, Sutherland, a real estate agent, and Nunes, a mortgage broker, participated in a scheme to submit fraudulent loan documents to a lender and to artificially inflate the sales price of two Las Vegas homes. The scheme netted nearly $2.5 million in mortgage loans, more than $600,000 of which was diverted by the defendants in the form of kickbacks and commissions. The participants then attempted to cover up their scheme by lying to state regulators and federal investigators.
Sutherland and Nunes face a maximum sentence of 30 years in prison on each count.
A pair of co-conspirators, John Williams and Carson Winglet had previously pled guilty for their roles in the fraud scheme and will be sentenced at a later date. (usdoj2212)
MORAL
Nevada prisons are pretty cold. I would say
NEW YORK WOMAN GETS SIX YEARS IN PRISON FOR LOAN MODIFICATION FRAUD
FACTS
On Feb 2, Lori J. Macakanja of Dunkirk, N.Y., who had been convicted of mail fraud and theft of government money, was sentenced to 72 months in prison and three years' supervised release and ordered the defendant to pay $298,639.00 in restitution to the victims.
Macakanja, in her capacity as a housing counselor employed by HomeFront Inc., inappropriately requested money from clients. The defendant told clients that the money would be used towards loan modifications to prevent foreclosures on their homes. After receiving the funds, Macakanja used the money for her own personal use, including gambling, and failed to obtain the loan modifications for the victims. A total of 136 HomeFront clients were defrauded with losses totaling approximately $300,000. In addition, Macakanja also obtained federal grant monies from the Buffalo Urban Renewal Agency for HomeFront clients. On two occasions, she diverted $2,000 worth of BURA money to pay her own personal mortgage.
While an employee of a federally approved housing counselor, she illegally solicited and received payments from 136 homeowners facing foreclosure with the promise that the funds would be used to secure mortgage modifications. (usattywdny2212)
MORAL
People are still being solicited to do loan modifications even on the radio today! If you know anyone tell him or her to investigate very carefully, not just carefully and any money to be paid before the modification is granted is questionable. Especially check the licensing of the people soliciting the modifications.
MAN AND NEPHEW SENTENCED TO 6 YEARS AND 18 MONTHS RESPECTIVELY IN DALLAS FOR MORTGAGE FRAUD
FACTS
On Feb. 3, Lionel Alexander and his nephew Blake Alexander were sentenced to 78 months and 18 months, respectively, for their roles in a mortgage fraud scheme that resulted in an approximate $1.3 million loss for financial lenders. In addition, Judge Fitzwater ordered that the Lionel Alexander pay $1,339,305.23 in restitution—$622,879.01 of which is to be paid jointly and severally with Blake Alexander. Both were ordered to surrender to the Bureau of Prisons on March 20.
Lionel Alexander of Dallas, pleaded guilty to one count of mail fraud; he was the president and CEO of American Family Mortgage in Dallas. Blake Alexander of Lafayette, La., pleaded guilty to one count of conspiracy to make a false statement to a financial institution; he worked as a loan processor for American Family Mortgage.
In August 2005, Lionel Alexander began recruiting straw borrowers by telling them that they would be purchasing investment properties in which individuals with bad credit could live. He represented that he would find the homes and the tenants and told the straw borrowers that tenants would rent-to-own the houses while their credit was being repaired, which would take six months to two years. Once their credit was repaired, they would purchase the homes from the straw borrowers.
The mortgage fraud scheme involved 48 properties in the Dallas- Ft. Worth area and resulted in more than one million dollars in loss. In furtherance of the scheme, in August 2006, Lionel Alexander falsified and altered loan application documents for the purchase of properties located on Wood Acre Road and Creek Meadow Drive in Fort Worth, Texas, and on Harborview Blvd. in Rowlett, Texas, by an individual, “J.R.” He misrepresented J.R.'s wages, falsely stated the property would be her primary residence and failed to disclose other properties J.R. purchased.
As part of the scheme, Blake Alexander entered into an agreement with Lionel Alexander to make a false statement to obtain a loan from Washington Mutual Bank. Blake Alexander altered loan documents that he prepared and submitted to Washington Mutual on behalf of the straw borrower sot that the borrower would qualify for the loan. In March 2006, Blake Alexander sent a residential loan application to Washington Mutual reporting that the straw borrower, “S.L.,” was purchasing property located on Indian Creek Drive in Desoto as his primary residence; that S.L. was earning $15,000 per month; that S.L. had a bank account at Bank of America; and that S.L. earned $4,000 per month in rental income. Blake Alexander admitted altering Bank of America statements to falsely reflect that they were S.L.'s bank statements. He also faxed a fake letter to Washington Mutual stating that S.L. was entering into a business agreement that would generate between $15,000 and $20,000 per month for S.L. Based on these false representations, Washington Mutual loaned $300,000 to S.L. and American Family Mortgage was paid $6,000 for the transaction. (usattyndtx2312)
MORAL
I would like to make you aware of two things. 1) I publish these so you can (if you like) check your loan files to see if you did business this company or other companies like this. It can let you set aside a potential loss fund and may let you decide to check underwriting in your company. 2) It shows the federal authorities are not bashful about going back seven years to check fraudulent loans and chase the people that did them. We have represented quite a few over time and it may be well if anyone has been involved to see their respective attorneys now rather than wait until they are investigated or sued. It is always best to see your attorney at the first indication of trouble. When you wait until the lawsuit or indictment hits you remove certain potential legal defenses the attorney could or may have been able to use.
TEXAS MAN FOUND GUILTY OF MORTGAGE FRAUD
FACTS
On Jan. 25, Rodney Levan Giles of DeSoto, Texas, was found guilty by a jury in a mortgage fraud scheme that involved homes in the Eastern District of Texas. He was convicted of conspiracy to commit bank fraud. .
From Aug. 8, 2005, to May 30, 2006, Giles, operating as RLG Properties, conspired to defraud Long Beach Mortgage Co. by finding buyers for properties for amounts in excess of the sellers' asking prices. To facilitate the fraud, Giles created false lease agreements, created false letters representing a buyer had agreed to move his business to the area, overstated the monthly income of buyers, and deposited funds in a buyer's account to falsely represent the buyer had funds available to purchase a property. As a result of Giles' scheme, buyers purchased property in Denton, Texas on Camelot Court for $450,000 and Yoakum Drive for $340,000. Both loans resulted in defaults and foreclosures. Giles faces up to 30 years in federal prison. (usattyedtx2312)
MORAL
Texas is real tough and since he insisted he was innocent and was found guilty, I would imagine he will do time in a federal prison. Additionally note the federal authorities went back seven years to get the loans. So they are still working on 2005 loans and coming forward. Remember, the federal statute of limitations for filing criminal charges for mortgage fraud is 10 years and the federal prosecutors have over four statutes to choose from.
D.C. MAN GETS 40 MONTHS FOR MORTGAGE FRAUD
FACTS
On Jan. 27, Akinola George was sentenced to 40 months in prison after earlier pleading guilty to conspiracy to commit bank fraud and mail fraud for his role in a mortgage fraud scheme.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Daniel S. Cortez, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking; James W. McJunkin, Assistant Director in Charge of the FBI's Washington Field Office, and Kenneth R. Taylor, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Housing and Urban Development.
George pled guilty in September 2011 in the U.S. District Court for the District of Columbia and was sentenced by the Honorable Reggie B. Walton. Judge Walton ordered that George begin serving his prison time immediately. He noted that George's “elaborate scheme” caused a significant amount of loss. As part of his plea agreement, George agreed to forfeiture of $2.4 million. He also must pay restitution in the amount of $2,021,346 to victims of his crime.
From October 2004 to April 2008, George, with the assistance of others, defrauded banks and other lenders of money through false statements and misrepresentations. George used about 22 sales of residential real estate properties (all but two sales were for property in the District of Columbia) to fraudulently obtain mortgage loans. Loan documents in support of these mortgages listed false employers and false salaries for the buyers, exaggerated the assets available to the buyers to pay back the loans and make a cash contribution, and incorrectly listed the buyers' intent to occupy the houses.
During the settlement of the sales transactions, thousands of lender dollars were siphoned off through fake renovation invoices and misrepresentations on the settlement documents. Through this process, George fraudulently obtained approximately $2.4 million, even though he was not the seller on any of the properties. George used some of this money to pay for the assistance of others in the conspiracy, to share with other co-conspirators, and to pay for bogus “down payments” for the buyers, as well as other items.
For many properties in the District of Columbia, a co-conspirator acting as the settlement agent submitted the signed Deed or Deed of Trust to the District of Columbia's Recorder of Deeds, with the instructions that after recordation, the documents be mailed back to the title company, which did occur. After closing, the co-conspirators failed to continue to pay the mortgages on some of the properties. The lenders were forced to foreclose and resell the properties at a loss of more than $2 million. (usattywadc12712)
MORAL
Notice how the government went back seven years to 2004 to get him. Notice it ended up he received 40 months in prison. Like I have been stating all along, “It ain't over yet." Not until the “fat lady sings!" And that is at least until the end of 2012 in this one attorneys opinion considering the amount of cases we are seeing.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
