twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.reversefunding.com

subscribe to free Mortgage Daily email newsletter

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.



Appraiser Sentenced in $14 Million Case

John F. Hochrek Jr. sentenced to 6 months in prison

July 11, 2011

By JOHN DIEDRICH Milwaukee Journal Sentinel - McClatchy-Tribune Information Services


An appraiser in a $14 million mortgage fraud scheme has been sentenced to less than a year behind bars.

The Illinois man was sentenced to six months in federal prison for his role in the scheme involving more than 40 properties.

John F. Hochrek, Jr., 50, of Spring Grove, Ill., pleaded guilty to one count of conspiracy to commit wire fraud.

U.S. District Judge Lynn Adelman also gave Hochrek six months home confinement as part of three years probation. Hochrek also will be required to pay restitution that will be determined later.

Federal sentencing guidelines called for 46 to 57 months in prison for Hochrek. In a sentencing memo, Adelman said he went below that range because Hochrek, as an appraiser in the scheme, did not reap more than his ordinary fee in doing the fraudulent transactions. The judge also said that because of Hochrek's age and otherwise clean record was not a threat to the public.

"This process appeared to have had a significant affect on him, and he indicated that he planned to move into a different field in the future," Adelman wrote in the sentencing memo from June 30.

Hochrek was one of five people from Wisconsin and Illinois who were charged in a 24-count indictment in May 2009.

According to court documents, the fraud scheme was orchestrated by mortgage broker Paul Zaleski, 62, formerly of Twin Lakes, Wis., and Antioch, Ill.

Zaleski was the leader of the "straw-buyer" scheme, arranging to have buyers purchase at least 40 properties. The buyers were told they were part of an investment group.

Zaleski, working as a loan originator at First Security Financial Services in Kenosha, prepared fraudulent loan applications, which had false documents and inflated appraisals, the indictment says.

At least $2 million was funneled to shell companies controlled by Zaleski and others. The loans subsequently went into default and foreclosure.

Besides Zaleski and Hochrek, those also charged were Michael Pembroke of Twin Lakes; Patricia Lynn Kay of Kenosha; and Robert Farrell formerly of Richmond, Ill.

Kay, a straw buyer and partner in one of the shell companies, previously was sentenced to three years of probation conditioned on six months of home confinement. She also was ordered to pay a fine of $3,500.

Zaleski, Pembroke and Farrell are scheduled to be sentenced later this year.

This case was investigated by the IRS and FBI and prosecuted by the U.S. Attorney's Office in Milwaukee.

back to home page

Local Mortgage Fraud news
News about local mortgage fraud.



To see more of Milwaukee Journal Sentinel or to subscribe to the newspaper, go to
http://www.jsonline.com

Copyright (c) 2011, Milwaukee Journal Sentinel

Distributed by McClatchy-Tribune Information Services.

For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544)


This story was distributed by TNS - Tribune News Service
Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news