twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to 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

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

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

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

Press Releases
Reports and announcements from

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









site map

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.

P R E S S   R E L E A S E


May 3, 2012


CHICAGO Seven defendants, including a Streamwood man who co-owned a Chicago condominium building and two loan officers, were indicted for allegedly participating in a scheme to fraudulently obtain approximately 35 mortgage loans totaling more than $8.8 million from various lenders, federal law enforcement officials announced today. The indictment alleges that most of the mortgages were obtained to finance the purchase of condominium units in a building located at 4725 South Michigan Ave., Chicago, by straw buyers, including a Chicago police officer, John Welch, and others. Defendant Yaseen Ahmed, who co-owned the Michigan Avenue condominium building, and co-defendant Eliot Higueros, who allegedly recruited straw buyers, caused proceeds of the fraud to be disbursed to themselves and multiple companies they owned or controlled, the charges allege.

All seven defendants, who will be arraigned at a later date in U.S. District Court, were charged with various counts of wire fraud in an 11-count indictment that was returned by a federal grand jury yesterday. The indictment also seeks forfeiture of $8,820,630. The charges were announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago.

Ahmed, 37, of Streamwood, who was charged with 10 counts of wire fraud, was co-owner of a company that owned the 4725 South Michigan Ave. condominium building. Other properties involved in the alleged fraud scheme were located at 3318 West Monroe St., 7919-21 South Phillips Ave., 1349 North Sedgwick St., and 2012 West Thomas St., all in Chicago.

Between 2006 and 2008, Ahmed, his co-defendants and others allegedly schemed to obtain the fraudulent mortgages by making false representations in loan applications, supporting documents, and HUD-1 settlement statements concerning the buyers' employment, financial condition, assets, true source of down payments, and intention to occupy the residence.

As part of the scheme, Higueros, 41, of Chicago, who was charged in all 11 counts, allegedly recruited Welch, 34, of Chicago; Amanda Fanaro, 28, of Oswego; and Kristin Daugherty, also 28, of Erie, Col., and formerly of Oswego, as well as seven other unnamed individuals to serve as nominee buyers.

Ahmed and Higueros allegedly referred the straw buyers to licensed loan officers, including co-defendants Razzak Khader, 33, of Morton Grove, and Theodore Cardenas, 42, of Westmont, to arrange for the buyers to obtain fraudulent mortgage loans. The indictment alleges that Higueros paid the straw buyers to purchase the units knowing that the payments would be concealed from the mortgage lenders, and that Ahmed paid Khader for fraudulently qualifying certain straw buyers knowing that these payments would also be concealed. Upon closing the transactions, Ahmed and Higueros caused title companies to disburse the loan proceeds to themselves and their multiple business entities, the charges allege.

As an example of the pattern alleged throughout the indictment, Higueros recruited Welch to purchase four condominium units in the 4725 South Michigan Ave., building, knowing that he would obtain financing by making false statements to mortgage lenders, the indictment alleges. Higueros paid Welch for each unit that Welch bought, knowing that the payments would not be disclosed to the lenders, it adds.

The government is being represented by Assistant U.S. Attorneys Heather McShain and Brian Netols.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charges are part of a continuing effort to investigate and prosecute mortgage fraud in northern Illinois and nationwide under the umbrella of the interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.

Since 2008, close to 200 defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $280 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.

The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit:

Source: United States Attorney's Office for the Northern District of Illinois

mortgage fraud case stories

mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

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

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


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

secondary marketing

social media

servicing news

subprime news

wholesale lenders