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 15, 2012


FINAL TWO DEFENDANTS IN MORTGAGE FRAUD SCHEME SENTENCED
Former East Grand Rapids Businessman Kevin Grady Sr. Sentenced to 14 years' imprisonment

GRAND RAPIDS, MICHIGAN –The last two participants in a multi-million dollar mortgage loan fraud scheme were sentenced in U.S. District Court today, announced U.S. Attorney Donald A. Davis. Kevin Grady Sr., 48, of Grand Rapids, Michigan was sentenced by the Hon. Robert J. Jonker to serve 14 years in prison for his convictions for wire fraud, bank fraud and making false statements to the FBI. Edward Hessie Sumrell, 55, of Grand Rapids, Michigan, was sentenced to serve 3 years' probation for making a false statement to the FBI. Seven other individuals, including a convicted licensed appraiser and a convicted closing agent, testified for the government at the trial of Grady and Sumrell in February of this year. Both were previously sentenced for their roles in conjunction with the same mortgage fraud scheme.

During 2005 and 2006, Grady managed the Grand Rapids office of Sure Financial, a mortgage brokerage business owned and licensed by another individual. The government proved at trial that Grady, and loan officers working at his direction, obtained inflated appraisals and fixed prices with sellers. Grady enticed financially unqualified buyers to purchase the homes by promising them kickbacks of $5,000 to $10,000 per property after the closings. Grady defrauded the mortgage lenders by submitting loan applications that misrepresented the buyers' places of employment, employment income, assets, and other pertinent information. Grady and his loan officers created or obtained false pay-stubs, residential leases, tax documents, verifications of employment, and other documentation that were submitted to the lenders to make it appear that the information on the loan applications was truthful. Some of these counterfeit documents were prepared and provided by Sumrell, who was convicted by the jury of lying to the Federal Bureau of Investigation regarding his association with Grady's office. Judge Jonker stated that Grady's significant sentence was attributable not only to his blatant and pervasive pattern of fraud, but also to his abusive behavior directed at individuals that he needed to carry out the fraud and who were vulnerable to his intimidation.

Evidence submitted at trial proved that, in less than one year, Grady defrauded mortgage lenders in excess of two million dollars and personally pocketed over $500,000 of the fraudulently obtained loan proceeds, some of which was then used to pay kickbacks to the buyers. Grady also defrauded Key Bank in conjunction with a million dollar loan that he used to pay off the building on East Paris Avenue where he operated the fraudulent mortgage loan business and Grady Group Properties. Judge Jonker ordered Grady to pay $3,000,000 in restitution to the lending institutions and he agreed to forfeiture in the amount of $1,181,332. "Mortgage fraud will continue to be vigorously investigated and prosecuted by this Office. Pervasive mortgage fraud schemes do not just victimize the mortgage lenders, they victimize our entire community by manipulating the true value of real estate through falsely inflated appraisals, followed by inevitable foreclosure sales at below-market values," said U.S. Attorney Davis.

The Grand Rapids office of the FBI investigated the case, and Assistant U.S. Attorneys Ron Ste.


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


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