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:

Jan. 29, 2013


Defendants Sentenced To Prison And Ordered To Pay $8.5 Million To Victims Of Mortgagte-Fraud Scheme

PANAMA CITY, FLORIDA Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that earlier today, United States District Judge Richard Smoak ordered defendants, who were convicted several months ago for their roles in a complicated mortgage-fraud scheme, to pay more than $8.5 million to victims of the scheme. Avinie Maurice Bates, III, 41, of Miami; Jill Beth Newman Zuravel, 47, of Boynton Beach; Alan Jay Nathan, 60, of Boca Raton; and Meredith Lelann King, 38, of Destin were held jointly responsible for repaying the victims $8.5 million in losses caused by the scheme, and Joann V. Walter, 56, of Parkland was held jointly responsible for repaying $2.4 million of the losses.

The evidence presented in the case showed that Bates held himself out as a real-estate investor with a Miami investment company, known as Right Choice Housing, LLC. Zuravel acted as the attorney for Right Choice Housing. Nathan owned Mortgage Bankers of America Group, Inc., a mortgage company located in Boca Raton, and Walter was a mortgage broker with Mortgage Bankers of America. King was a closing agent employed by Blue Dolphin Title, LLC, a title company located in Panama City Beach.

The evidence further showed that, in 2005 and 2006, the defendants obtained over $9 Million in mortgages from lenders to purchase ten properties in Panama City and Panama City Beach. Bates found properties, entered into sales contracts to purchase the properties at one price (the "lower sales price"), and listed the buyer on the contracts as "Right Choice Housing, LLC and/or assigns." Then Bates, Zuravel, Nathan, and Walter convinced individuals in the Miami area to release their credit information in exchange for up to $30,000. Once these individuals (the "straw buyers") were in place, Zuravel prepared the legal documents to assign the sales contracts from Bates and Right Choice Housing to the straw buyers at a much higher price (the "higher sales price").

Once these assignments were made, Nathan and Walter prepared loan applications for the straw buyers, in which they falsely inflated the straw buyers' income, employment, bank account balances, and intent to reside at the properties all for the purpose of fraudulently qualifying the straw buyers for the millions of dollars in loans.

After the loans had been approved by the lenders, King conducted the property closings at Blue Dolphin Title in Panama City Beach. At the closing, she used the difference between the lower and higher sales prices to cover the straw buyers' required down payments and then paid the rest to Bates, Zuravel, and Nathan. Of that balance, King wired over $1.2 million to Bates or to companies owned by Bates, such as Gold by Gold and Bates Enterprises.

By the end of 2006, all of the mortgages were in default, and all of the properties have since been foreclosed upon or are in foreclosure proceedings.

At the sentencing hearings for the defendants, held in September, the Court determined the following terms of imprisonment for each defendant, but reserved ruling on the issue of restitution until a hearing could be held:

Bates was sentenced to just over 12 years in prison.
Zuravel, who cooperated in the case, was sentenced to 4 years in prison.
Nathan, who cooperated in the case, was sentenced to just under 3 years in prison.
King, who cooperated in the case, was sentenced to 2 years in prison.
Walter, who cooperated in the case, was sentenced to 20 months in prison.

Restitution Hearing
The Court held an evidentiary hearing regarding the restitution a week ago, but reserved ruling until today. The Court ordered the defendants Bates, Zuravel, Nathan and King to pay a total of $8,596,595.24 in restitution to the victims on all ten properties as set forth below, and ordered Walter to pay a total of $2,409,462.38 for her involvement with three of the properties. At the hearing, the Government admitted dozens of exhibits reflecting the outstanding balances on the mortgages, as well as the price for which the properties were sold after foreclosure or current taxable value to establish the amount owed to the victim financial institutions and sellers. The Government's evidence showed that, to date, the total loss on all of the mortgages was approximately $12 million, and the fair market value of the properties was just under $3 million.

Property Restitution Ordered Victim
23001 Front Beach Road
Panama City Beach, Florida
$610,489.42 JP Morgan Chase
1600 Wahoo Road
Panama City Beach, Florida
$486,865.63
$200,000.00
Aurora Loan Services
Ocwen Loan Servicing, LLC
21222 Front Beach Road
Panama City Beach, Florida
$747,704.42
$375,000.00
American Home Mortgage Servicing Inc.
Ocwen Loan Servicing, LLC
1501 Trout Lane
Panama City Beach, Florida
$421,268.54
$160,000.00
$95,000.00
Aurora Loan Services
Wingspan Portfolio Advisors
Marie Beamer
483 Wahoo Road
Panama City Beach, Florida
$822,957.64
$194,250.00
HSBC Bank
Ocwen Loan Servicing, LLC
1522 Trout Lane
Panama City Beach, Florida
$1,310,350.58
$116,640.00
Ocwen Loan Servicing, LLC
Thomas & Deborah Frowert
2729 Kings Road
Panama City, Florida
$474,640.15 Bank of America
4452 Ashland Road
Panama City, Florida
$1,112,849.77
$120,000.00
Selene Finance
DTA Solutions, LLC
2843 Longleaf Road
Panama City, Florida
$895,394.50 Selene Finance
342 Fairway Boulevard
Panama City Beach, Florida
$453,184.59 Deutsche Bank
TOTAL $8,596,595.24  


"This case is a stark reminder of the lengths to which greed-motivated criminal minds will go," said U.S. Attorney Marsh. "At a time when the economy and the real-estate market were on a downward trajectory, these defendants were not afraid to make a bad situation worse. In cases driven by greed, restitution to the victims is a critical part of the penalty paid by these offenders." Ms. Marsh also expressed her deep gratitude to the work of the Florida Office of Financial Regulation Bureau of Financial Investigations, the Florida Department of Financial Services - Division of Insurance Fraud, and the U.S. Postal Inspection Service, whose excellent work led to the results in this case.

The case was prosecuted by Assistant U.S. Attorney Gayle Littleton.


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


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