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:

Feb. 4, 2014


CONNECTICUT MAN SENTENCED TO FEDERAL PRISON FOR MORTGAGE SCAM THAT DEFRAUDED TARP BANKS

WASHINGTON, DC - The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) today announced that Robert Ilunga, of Naugatuck, Conn., was sentenced on Friday by U.S. District Judge Alvin W. Thompson in Hartford, Conn., to 18 months in federal prison for operating a multimillion-dollar mortgage fraud scheme that involved more than 40 properties in Bridgeport, Conn. Ilunga will serve three years of supervised release upon his release from prison.

According to court documents and statments made in court, Ilunga and others were involved in the operation of Waikele Properties Corp., a real estate companyy with offices in Bridgeport and Garden City, N.Y. From approximately 2001 to August 2011, Robert, Ilunga, Winston Shillingford, Marleen Shillingford, and others conspired to obtain fraudulent mortgages for the purchase of more than 40 multi-family properties in Bridgeport. As part of the scheme, Ilunga and his co-conspirators purchased existing multi-family homes as well as vacant parcels of land and erected new houses on them to sell. The co-conspirators recruited individuals to purchase the properties, acted as the buyers' real estate agent, and assisted the buyers in applying for residential mortgage loans to purchase the homes. The co-conspirators then prepared loan applications for the buyers that included fraudulent information concerning, among other things, the buyers' employment, income, assets and liabilities, previous property ownership, and intention to make the properties their primary residences. The co-conspirators also provided fraudulent supporting documentation with the loan applications, including false letters from ficitious employers, false earnings statements, and fraudulent bank records.

After the loans were approved, the illicit proceeds of the scheme were wired into the Waikele Properties bank account and then transferred to members of the conspiracy. Some of the proceeds were also used to continue the mortgage fraud scheme.

Contrary to the representations made on the loan applications, several straw purchasers never occupied the houses as their primary residences and subsequently defaulted on the loans.

"While the nation was mired in a housing crisis, Ilunga and his co-conspirators ripped-off TARP banks for millions of dollars and helped wreck the housing market in communities across Bridgeport," said Christy Romero, Special Inspector General for TARP (SIGTARP). "Ilunga and others bought more than 40 properties in-and-around Bridgeport, recruited straw buyers - many of whom had no intention of actually living in the homes - to purchase them, and acted as real estate agents for the 'purchasers.' In order to obtain mortgages for the properties, Ilunga and others falsified information, such as lying that the properties would be primary residences; submitted fake employment and tax documentation; and lied about the creditworthiness of the purchasers to TARP banks and other mortgage lenders. The properties that later fell into foreclosure were bad loans that cost the banks millions of dollars in losses. SIGTARP and our law enforcement partners stand united in bringing to justice those responsible for threatening taxpayers' TARP investments."

The parties have agreed that victim financial institutions, which include TARP banks, suffered losses of between $2.5 million and $7 million as a result of this scheme. A restitution order will be issued after further court proceedings.

In January 2012, Ilunga pleaded guilty to one count of conspiracy to commit wire fraud and to one count of conspiracy to commit money laundering.

In October 2011, Winston and Marleen Shillingford each pleaded guilty to one count of conspiracy to commit wire fraud and to one count of conspiracy to commit money laundering. On last Tuesday, January 28, 2014, Winston and Marleen Shillingford were sentenced to federal prison terms of four and three years, respectively, for their roles in the scheme.

This investigation is being conducted by SIGTARP, the Internal Revenue Service - Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Department of Housing and Urban Development's Office of Inspector General.

This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David T. Huang.

This prosecution was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. SIGTARP is a member of the task force. To learn more about the President's Financial Fraud Enforcement Task Force, please visit www.StopFraud.gov.

About SIGTARP

The Office of the Special Inspector General for the Troubled Asset Relief Program investigates fraud, waste, and abuse in connection with TARP.

To report suspected illicit activity involving TARP, dial the SIGTARP Hotline: 1-877-SIG-2009 (1-877-744- 2009).

To receive alerts about quarterly reports, new audits, and media releases issued by SIGTARP, sign up at www.SIGTARP.gov/pages/press.aspx. Follow SIGTARP on Twitter @SIGTARP.


Source: SIGTARP


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