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 19, 2012


Eleven Charged, Arrests Made In $15 Million Mortgage Fraud Scheme
Federal Indictment Charges Wire Fraud, Money Laundering and Attempted Murder of a Witness

CAMDEN, N.J. – Eleven individuals from five states are charged in New Jersey for their alleged roles in a $15 million mortgage fraud scam that used phony documents and "straw buyers" to make illegal profits on overbuilt condos, including a defendant who attempted to murder a witness to the scheme, New Jersey U.S. Attorney Paul J. Fishman announced.

Willie W. Richardson, 64, of Bloomfield, N.J.; Sean A. Souels, 42, of Philadelphia; Nancy E. Wolf-Fels, 55, of Toms River, N.J.; Deborah L. Hanson, 49, of Voorhees, N.J.; Seth A. Fuscellaro, 39, of Wildwood Crest, N.J.; Larry L Fullenwider, 61, of Millburn, N.J.; and Angela L. Celli, 41, of Somerset, Mass., are in federal custody following their arrests this morning by special agents of the FBI and IRS–Criminal Investigation.

Dwayne K. Onque, 44, of Belleville, N.J., surrendered to authorities this morning. Timothy D. Ricks, 44, of East Orange, N.J.; and Orlando Allen, 47, of Fayetteville, Ga., are expected to surrender to federal authorities later today. Kinard J. Henson, 40, of Ventress, Ala., was already in federal custody in Alabama.

The defendants arrested in the New Jersey area are expected to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. Cilli will have an initial court appearance in her home state before coming to New Jersey to answer the charges in the superseding Indictment, returned by a federal grand jury on July 17, 2012.

All 11 defendants are charged with conspiracy to commit wire fraud. Additionally, Ricks, Henson, Richardson, Allen and Onque are charged with conspiracy to commit money laundering. Henson also is charged with the attempted murder of a straw buyer who was a witness to the mortgage fraud scheme.

"According to the indictment, these defendants created false documents and used straw buyers to convince lenders to give them $15 million for properties that were worth far less," said U.S. Attorney Fishman. "Members of the scheme were willing to launder money – and even to kill – in order to get their hands on the profits and cover their tracks. This case illustrates not only the seriousness of mortgage fraud, but also our focus on eliminating the criminal element from our markets to protect the health of our wider economy."

According to the superseding Indictment:

Ricks and his co-conspirators located oceanfront condominiums overbuilt by financially distressed developers to purchase, negotiating a buyout price with the sellers of the properties. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, N.J., other locations in New Jersey and in Naples, Fla. – to be much higher than the buyout price to ensure large proceeds. Celli and Fuscellaro helped conceal the true sales prices of certain properties through inflated sales contracts and sale and finder fee agreements.

Ricks, Henson, Allen, and Souels then recruited straw buyers, such as Fullenwider and Onque, to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents such as fake W-2 forms, pay stubs, bank statements and investment statements to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.

To prepare the straw buyers' false loan applications, Ricks and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers – including Wolf-Fels and Hanson – that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Ricks and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.

Henson learned of a subpoena seeking documents in connection with a straw buyer's purchases of real estate properties shortly after it was served by federal law enforcement agents on a mortgage brokerage firm. Henson, who had recruited the straw buyer, contacted another individual to kill the straw buyer. They then lured the straw buyer to a wooded area in Mobile, Ala. At Henson's direction and using Henson's firearm, the other individual shot the straw buyer multiple times.

The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The attempted murder of a witness charge carries a maximum potential penalty of 30 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark; and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge John R. Tafur, Newark field office, for their roles in the ongoing investigation.

The government is represented by Assistant U.S. Attorney Matthew T. Smith and Attorney in Charge R. Stephen Stigall of the U.S. Attorney's Office Criminal Division in Camden.

The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.


Source: United States Attorney's Office for the District 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
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