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.



P R E S S   R E L E A S E

FOR IMMEDIATE RELEASE:

June 18, 2012


ANNAPOLIS SERIAL FRAUDSTER SENTENCED TO FIVE YEARS IN PRISON FOR OVER $2.6 MILLION IN LOSSES FROM REAL ESTATE, BUSINESS LOAN AND SOCIAL SECURITY FRAUD SCHEMES

Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Winnie Joanne Barefoot, a/k/a Winnie Jo Budzina, a/k/a Winnie JoAnne Conn, a/k/a Joanne Knopsnyder, a/k/a Olivia JoAnne Morgan, a/k/a Olivia JoAnne Barefoot Morgan, age 59, of Annapolis, Maryland, today to five years in prison, followed by five years of supervised release, for bank fraud, arising from her use of numerous identities to fraudulently obtain real estate and commercial loans, while applying for and fraudulently receiving social security disability benefits. Judge Garbis also ordered Barefoot to pay restitution, with the exact amount to be determined.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

"Today's sentence illustrates the commitment of Postal Inspectors to vigorously pursue individuals who use U.S. Mail as part of these complex fraud schemes," said Peter R. Rendina, Acting Inspector in Charge, U.S. Postal Inspection Service, Washington Division. "With today's challenging economy, it is critical we make every effort to protect our financial institutions and consumers by ensuring the integrity of the U.S. Mail. Our proud tradition of working with several law enforcement agencies, as in this case, demonstrates that individuals who commit fraud and threaten the financial health of our communities will be brought to justice."

From December 2005 to August 2009, Barefoot used the identity of Olivia JoAnne Morgan and her daughter to engage in fraudulent real estate and loan transactions, including transactions involving three properties in Annapolis and a business entity she operated.

In late 2005 and early 2006, Barefoot acquired residential property at 3528 Narragansett Avenue in Annapolis, in her daughter's name. She used a forged document in which her daughter purportedly gave Barefoot power of attorney to apply for financing in the amount of $616,250 to purchase the property. In the application to the lender, Barefoot falsely represented her daughter's assets and ability to pay for the property. The daughter never occupied the property, the property went into foreclosure and the lender lost $415,000.

During the summer of 2006, Barefoot also acquired property at 896 Coachway, The Downs, in Annapolis. She applied for a first and second mortgage loans in the amounts of $780,000 and $195,000, respectively, using the identity Olivia JoAnne Morgan. She falsely represented her income and assets to the lender, and that she intended to use this as her primary residence. Although her daughter and granddaughter briefly occupied this residence in September-October of that year, the property likewise went into foreclosure and the lender lost $276,000.

In February 2007, Barefoot used a false social security number to apply to a bank to increase an existing home equity credit line from $1.3 million to $2.1 million on property at 1588 Eaton Way in The Downs, Annapolis where she resided from 2002 to 2009 with a man whom she falsely represented to be her husband. Barefoot falsely represented in the loan application that she and her "husband" each had monthly income of $25,000 and that her net worth was over $10 million. Barefoot withdrew all of the credit - about $800,000 - from the increased line of credit. When she and the purported husband stopped making payments on the loan, the property went into foreclosure and the bank lost $700,000, plus attorney's fees and foreclosure costs.

During the time of these fraudulent schemes, Barefoot sought and fraudulently obtained supplemental security income from the Social Security Administration (SSA), claiming that she was disabled beginning in 1997 due to back problems. To obtain the benefits, Barefoot falsely: stated that she lived at a PO Box address in Crownsville, Maryland; denied ever having been convicted of a felony, when in fact she was arrested in 1980 and convicted of federal and state felony offenses; and represented that she had no resources nor received any type of income. Barefoot was ultimately approved for disability benefits in April 2007, and fraudulently received more than $26,000 in benefits. In December 2008, Barefoot falsely represented to SSA representatives investigating her eligibility for benefit payments that: she lived alone at 896 Coachway and did not own the house; and that "Olivia Joanne Morgan" was her sister who was married to the man who resided at 1588 Eaton Way. Barefoot eventually returned the $26,000 in social security benefits that she unlawfully obtained.

In February 2007 and September 2008, at about the same time that she applied for and received social security disability benefits, Barefoot obtained two commercial lines of credit loans of $250,000and $120,000 to finance a hyperbaric oxygen chamber business. On the first application she used a false social security number, and falsely represented that income and the combined assets for herself and her purported husband were over $12 million; and that the value of the Eaton Way property was $4 million and that it was unencumbered. In the second application, she falsely represented that her monthly income was $30,861; annual sales from the business were $1.1 million; and that she had not filed bankruptcy in the past 10 years, although in fact she filed bankruptcy in 1999.

Finally, beginning sometime in January 2008 through at least August 2010, Barefoot operated another hyperbaric oxygen chamber business, Advanced Hyperbaric Oxygen, LLC. During that time period, she fraudulently billed for physician hyperbaric oxygen therapy sessions and physician evaluation and management services when no such physician services were provided. These fraudulent billings caused a loss to Medicare of $75,814; to CareFirst BlueCross BlueShield of $433,956; to Aetna of $354,736; and to Humana of $7,924, for a total of at least $872,430.

The total amount of loss resulting from all of the fraud schemes described above is over $2,659,430.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.

This law enforcement action is part of President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The 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.

United States Attorney Rod J. Rosenstein thanked the FBI, SSA - OIG, U.S. Postal Inspection Service and HHS-OIG for their work in the investigation. Mr. Rosenstein commended Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.


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


mortgage fraud case stories


mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines


Local Mortgage Fraud news
News about local mortgage fraud.


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