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


April 27, 2012

Members of Bank Fraud Ring Sentenced in $3.7 Million Scam

ATLANTA—After three days of hearings, United States District Judge William S. Duffey, Jr. today concluded the sentencings of six co-conspirators involved in a $3.7 million dollar bank fraud ring involving home equity lines of credit (HELOCs). Among those sentenced were two of the ringleaders: Otis Bernard Livingston, 44, of Gulfport, Mississippi; and Dionne Michelle Whitted, 37, of Castle Hayne, North Carolina; a prolific straw borrower, Shalena Sutherlin, 27, of Douglasville, Georgia; a forger of false financial documents, Todd Ivery, 43, of Kennesaw, Georgia; former bank employee, Hung Quoc Nguyen, 30, of Buford, Georgia; and a recruiter, Catasha Browning, 36, of Douglasville, Georgia.

"This fraud scheme, like so many, was based on greed and lies," said United States Attorney Sally Quillian Yates. "The conspirators designed an insidious scam to target banks and local home owners by using homes to secure loans, many times without the owners' knowledge. We remain committed to safeguarding our financial institutions and their customers from such financial predators."

According to United States Attorney Yates and information presented in the public record: Between 2006-2007, Whitted operated a company known as "Mastermind Events" in Conyers, Georgia, which was supposed to host seminars, including foreign currency exchange (FOREX) trading training events. Livingston and Whitted, the leaders of the conspiracy, recruited so-called "straw" borrowers, including Sutherlin, who would present themselves to banks as if they were the true owners of property, when, in fact, they were acting without the knowledge of the true owner and were funneling the proceeds back to the schemers. Eventually, Sutherlin evolved beyond a straw borrower to become the president of Mastermind Events, working with Livingston and Whitted on recruiting still more straw borrowers, obtaining false financial documents, submitting the financial information to the banks, and dealing with both bank employees and the straw borrowers.

During the course of the conspiracy, Whitted, Livingston, and Sutherlin made various misrepresentations to convince other straw borrowers to apply for home equity lines of credit (HELOC). Most of these misrepresentations centered on the notion that the defendants' lucrative FOREX trading business would generate more than enough returns to repay all of the loans along with profits for all. This was a lie, and most of the loans went into default.

The fraudulent activity of the coconspirators was extensive. Whitted and Sutherlin forged quit claim deeds on 18 different residential parcels of property which belonged to home owners, some of whom were unaware of the scheme. Whitted and Sutherlin submitted the deeds along with false financial information in support of applications for 25 HELOCs with Wachovia, Bank of America, and Washington Mutual and received in excess of $3.7 million dollars. Whitted and Sutherlin purchased false financial documents, including tax returns, W-2s, and pay stubs–from Ivery and submitted them to the banks on behalf of the straws. Whitted, Sutherlin, and Livingston also bribed Nguyen, a former Bank of America employee, to facilitate more than $1.4 million worth of fraudulent HELOCs, giving him cash, meals, a resort gift card, and diamond rings. Working with Whitted, Browning recruited a straw borrower to obtain over $380,000 in fraudulent HELOCs. None of the straw borrowers had valid title to the properties.

Over the course of the sentencing hearings, Judge Duffey imposed the following sentences:

Whitted was sentenced to five years, two months in prison to be followed by five years of supervised release, during which she must perform 150 hours of community service, and she was ordered to pay $3,486,508.46 in restitution.

Livingston was sentenced to five years, 11 months in prison to be followed by five years of supervised release, during which he must perform 150 hours of community service, and was ordered to pay $2,956,043.97 in restitution.

Ivery was sentenced to four years, seven months in prison to be followed by five years of supervised release, during which he must perform 100 hours of community service, and was ordered to pay $1,662,425.69 in restitution.

Sutherlin was sentenced to two years, 10 months in prison to be followed by five years of supervised release during, which she must perform 75 hours of community service, and was ordered to pay $2,040,638.67 in restitution.

Nguyen was sentenced to two years, six months in prison to be followed by five years of supervised release, during which he must perform 150 hours of community service, and was ordered to pay $1,425,896.19 in restitution.

Browning was sentenced to one year, two months in prison to be followed by three years of supervised release during which she must perform 60 hours of community service, and was ordered to pay $360,026.43 in restitution.

Livington, Whitted, Sutherlin, and Ivery previously pleaded guilty to making false statements to federally insured banks in connection with obtaining HELOCs. Nguyen pleaded guilty to receiving two diamond rings worth over $8,000 as a reward for facilitating a series of fraud loan applications for HELOCs while he was a senior personal banker at Bank of America. Browning pleaded guilty to conspiracy to commit bank fraud and make false statements to federally insured banks.

This case was investigated by special agents of the Federal Bureau of Investigation and United States postal inspectors.

Assistant United States Attorneys David Leta and Nick Oldham prosecuted the case.

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

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