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:

August 18, 2011


Four Charged with Running $13 Million Loan Fraud Scheme

CINCINNATI—A federal grand jury has indicted four people who ran a Cincinnati real estate business known as American Equity Group (AEG) with fraudulently obtaining more than $13 million in loans through a loan fraud scheme that targeted homeowners or builders in or near foreclosure. The scheme allegedly caused a loss of $6 million.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the indictment today. These agencies are members of the Greater Cincinnati Mortgage Fraud Task Force.

The indictment charges Adam Moellers, 33; Gary Dailey, aka Gary Klump, 32; Perry Bensick Jr., 35; and Gary Dailey's mother, Mary Dailey, 50, all of Cincinnati, with wire fraud, mail fraud, and conspiracy.

The indictment alleges that the four worked together at AEG, which also operated under the names Equity Financial Solutions and Equity Finance Group, and carried out the scheme between July 2006 and October 2007.

According to the indictment, they conspired to locate distressed properties that were in or nearing foreclosure or that needed to be sold quickly. They would typically promise the sellers that they could continue to live in the property as a renter then purchase the property back after AEG assisted the homeowner with repairing their credit. The defendants are accused of finding "investors" to purchase the property, often as inflated values, with the promise that the mortgage would be paid through rent payments from the original seller and that the original seller would purchase the property back within a short period. After the properties were stripped of any equity, they would be back in foreclosure again, and the distressed homeowners wouldn't have any standing in court because they no longer owned the properties. The "investors& who bought the houses were left with the debt.

In other circumstances, the distressed properties were new homes that were constructed by new home builders, but had not been purchased yet. The four would find "investors" to purchase the property, often at inflated values, with the promise the property would quickly be resold or rented.

The indictment alleges that they fraudulently secured loans totaling more than $13 million and involving 18 properties in Ohio, Indiana, Michigan, and Georgia. They allegedly created loan applications with fraudulent statements about the borrower's income, employment, assets and liabilities, forged signatures on the applications and submitted fabricated supporting documentation to lenders.

Each count is punishable by up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the loss.

"Loan fraud can devastate an individual's bank account, undermine financial institutions, and devalue properties in entire neighborhoods," Stewart said. "We will continue to build collaborations with law enforcement to investigate and prosecute fraud."

"As a result of the hard work of the task force, this indictment will help protect Ohioans and bring criminals to justice," Attorney General DeWine said. "Foreclosure rescue scams remain a major threat to the financial security of Ohio homeowners, and we are committed to doing all we can to put an end to this type of fraud. These operations make false promises to vulnerable homeowners and take money without providing any real help."

The four will be summoned to federal court for their initial appearance and arraignment

An indictment is merely an accusation. Defendants are presumed innocent unless and until proven guilty in court.




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

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