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


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:

July 1, 2011


Two Indicted, Arrested in $17 Million Mortgage Fraud Scheme

PHOENIX—A federal grand jury in Phoenix returned an indictment earlier this week against mortgage broker Michele Marie Mitchell, 43, of Glendale, and her alleged associate, Jeremy West Pratt, 32, of Phoenix. The indictment, returned on June 28, charged Mitchell and Pratt each with one count of conspiracy and one count of wire fraud. Special agents of the Internal Revenue Service and the FBI arrested Mitchell and Pratt on Thursday.

"With these arrests, we are confronted once again with the damage and pain that mortgage fraud caused in our community and to our economy," said U.S. Attorney Dennis K. Burke. "Criminals out to make a fraudulent profit deepened this mortgage crisis and made recovery more difficult. We all appreciate the efforts of the IRS and the FBI in bringing this particular scheme to a stop, and we will continue to investigate and prosecute others like it."

Special Agent in Charge Dawn Mertz of the IRS Criminal Investigation stated, "This case is yet another example of a 'get rich quick' scam gone bad. Unfortunately, mortgage fraud schemes such as this one impact all of us with deflated property values, empty homes, and significant financial consequences to banks, taxpayers, and neighborhoods."

"Mortgage fraud continues to persist as a serious crime problem in Arizona," said Steven R. Hooper, FBI Acting Special Agent in Charge, Phoenix Division. "This indictment signifies that the FBI's Mortgage Fraud Task Force is continuing its efforts to protect our community and financial institutions from the effects of mortgage fraud."

The indictment alleges that Mitchell portrayed herself as a mortgage broker, loan officer, and real estate investor. She allegedly did business at an office on East Vista Bonita Drive in Scottsdale. Pratt is alleged to be the president of Arizona Cooling Control Plus, Inc. and involved in construction and remodeling work. The indictment charges that as part of their alleged conspiracy, Mitchell and Pratt recruited people with good credit scores to act as straw buyers to ostensibly purchase one or more properties as investments. Mitchell and Pratt allegedly enticed the straw buyers by offering to pay a kickback of up to $15,000 per property or to make the mortgage payments until the property could be resold for a profit, or both. In addition, the indictment charges that the defendants submitted false loan applications and supporting documents to induce lenders to fund loans. Then, at the close of escrow, they enriched themselves by directing a portion of loan proceeds, or "cash back," to a company which one of them controlled.

The indictment goes on to allege that between October 2005 and February 2007, Mitchell and Pratt obtained mortgage financing for 17 properties and induced lenders to fund approximately $17 million in loans, resulting in over $2.4 million dollars in cash back. The properties are located in Glendale, Scottsdale, Surprise, Peoria, Goodyear, and Phoenix. The indictment charges that the defendants failed to make the mortgage payments as promised and that each of the 17 properties went into foreclosure.

Conviction for the crimes of conspiracy and wire fraud each carries a maximum penalty of 30 years in prison, a $1 million fine, or both. This case has been assigned to United States District Judge James A. Teilborg. In determining an actual sentence, Judge Teilborg will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by special agents of the Internal Revenue Service Criminal Investigations Division and the Federal Bureau of Investigation. The prosecution is being handled by Frank T. Galati, Assistant U.S. Attorney, District of Arizona, Phoenix.


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


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