twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to 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

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

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









site map

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


June 29, 2012

Two Men Plead Guilty to Mortgage and Tax Fraud Indicted in investigation by Division of Criminal Justice & Division of Taxation

TRENTON Attorney General Jeffrey S. Chiesa announced that two men have pleaded guilty to mortgage and tax fraud in an investigation by the Division of Criminal Justice and New Jersey Division of Taxation that charged four men with conspiring to steal over $435,000 by filing hundreds of fraudulent state income tax returns. The two other defendants pleaded guilty previously in the case and were already sentenced to state prison.

Adebowale Sheba, 41, of Franklin Township (Somerset County), pleaded guilty yesterday afternoon to two counts of second-degree theft by deception before Superior Court Judge Thomas W. Sumners Jr. in Mercer County. Sheba admitted that he used an alias and false employment and earnings information to obtain mortgage loans in the amounts of $278,950 and $235,000 for the purchase of two homes in Newark. Under the plea agreement, the state will recommend that he be sentenced to five years in state prison. He must pay restitution to the lenders in an amount to be determined by the court.

In addition, Johnson Coker, 52, a.k.a. "Johnny Tunde" and "Adeyemisi Toyusini," of Old Bridge, pleaded guilty yesterday afternoon to charges of second-degree conspiracy and third-degree receipt of stolen property before Judge Sumners. He admitted his part in a conspiracy to file false state income tax returns using stolen and fictitious identities in order to fraudulently collect refunds. The state will recommend that he be sentenced to five years in state prison. He must pay $55,206 in restitution to the state. Judge Sumners scheduled sentencing for the two defendants for Sept. 26.

Deputy Attorney General Denise Grugan prosecuted the case for the Division of Criminal Justice Financial & Computer Crimes Bureau and took the pleas. The two men were charged in a Dec. 23, 2009 state grand jury indictment which also named Taiwo D. Daisi, 41, of Roselle, and Ugochukwu H. Madubuike, 32, of Orange. The indictment charged the four men with conspiring in a scheme to fraudulently obtain at least 585 state tax refund checks totaling $435,577 between February 2005 and February 2008. Madubuike and Daisi previously pleaded guilty for their roles in the scheme and were sentenced to state prison. Madubuike was sentenced on Sept. 22, 2010 to four years in state prison, and Daisi was sentenced on July 28, 2011 to five years in state prison.

All four men previously pleaded guilty to federal charges filed by the U.S. Attorney's Office for the District of New Jersey for stealing over $3 million in federal tax refunds by filing thousands of fraudulent U.S. tax returns. Sheba was sentenced on July 25, 2011 to 72 months in federal prison, and Coker was sentenced that day to 70 months in federal prison. Madubuike was sentenced on Aug. 30, 2010 to 41 months in federal prison, and Daisi was sentenced on July 11, 2011 to 37 months in federal prison. The state sentences for all four men will run concurrently with their federal sentences.

The investigation was led by Auditor Thomas R. Bair Jr. of the Division of Taxation Office of Criminal Investigation and Sgt. Robert Walker, Detective Richard A. Loufik and Deputy Attorney General Grugan of the Division of Criminal Justice.

State and federal authorities arrested Coker, Daisi and Sheba on Nov. 18, 2009. Madubuike had been arrested by federal authorities in November 2008. All of the men are from Nigeria, with the exception of Madubuike, who was born in the U.S. Daisi is a naturalized U.S. citizen. Coker and Sheba are not U.S. citizens.

The fraudulent state refund checks were mailed to 27 addresses controlled by the defendants. The checks were cashed against, or deposited into, various bank accounts which they maintained or to which they had access. Daisi operated a business called Chrysolyte Universal and Tax Services Professional from his apartment and used its bank account to deposit some of the checks. Tax returns were filed using stolen identities, including stolen Social Security numbers. Other identities were fictitious. Some Social Security numbers were invalid or did not match the names under which the returns were filed. Several Social Security numbers were from deceased people.

The investigation began when auditors from the Division of Taxation Office of Criminal Investigation detected numerous refund checks payable to multiple taxpayers that were co-endorsed with the same name. The tax returns associated with the refund checks had similar taxpayer information, including filing status as head of household, one or two dependent children, wages ranging from $7,000 to $16,500 with no payroll tax withholdings, and business losses reported on an accompanying Schedule C. Wages were reported on identical W-2s, apparently produced from the same software package. In all instances, the taxpayers completed the Earned Income Tax Credit Schedule with income levels that qualified for the EITC.

Division of Taxation auditors expanded the scope of their review, identifying and investigating checks that were co-endorsed with different names but fit the suspicious pattern. They referred the case to the Division of Criminal Justice.

Source: Office of the Attorney General for the State of New Jersey

mortgage fraud case stories

mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

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

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


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

secondary marketing

social media

servicing news

subprime news

wholesale lenders