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


Oct. 25, 2012

Defendants Charged as Part of $100 Million Loan Origination Fraud
Accountant Admits Creating Fake Records as Part of Scheme That Led to $14.5 in Kickbacks

United States Attorney Laura E. Duffy announced that Los Angeles-based accountant Audrey Yeboah, a participant in a nationwide loan origination and kickback scheme, pled guilty today to a felony information charging her with wire fraud. Yeboah admitted participating in the scheme by creating fake W-2 forms, pay stubs, and other records for straw buyers so that her fellow conspirators could collect millions of dollars in kickbacks from fraudulently-obtained mortgage loans. In entering her guilty plea, Yeboah admitted reviewing payment records that showed over $14.5 million in kickbacks were collected from the fraudulent purchase of $100 million in properties. A sentencing hearing is scheduled for February 4, 2012 at 9:00 a.m.

United States Attorney Duffy also announced that earlier, on September 20, 2012, a federal grand jury handed up a related, superseding indictment charging Laguna Hills loan processor John Allen for submitting fraudulent loan applications to mortgage lenders on behalf of the straw buyers in the same scheme. According to the indictment, Allen generated false records, including doctored bank account statements purporting to show significant assets (e.g., $150,000) that the borrowers did not really possess. In addition, Allen allegedly maintained what he called a "pipeline" of additional properties to purchase as part of the scheme, each of which included an additional $100,000 or more in potential kickbacks that he described as "profit."

Yeboah and Allen join defendants Mary Armstrong, an unlicensed mortgage broker who was apprehended in Las Vegas, Nevada; Teresa Rose, a Ramona real estate agent; Armstrong's assistant William Fountain; and Seattle businessman Justin Mensen—each of whom is already charged for participation in the scheme. As alleged in the charging documents and court records, the defendants carried out their scheme by recruiting "investors" through the Internet and advertisements in the Los Angeles Times, and encouraging them to purchase homes located in Southern California, Washington state, and elsewhere. In reality, these so-called investors were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. The defendants were able to secure mortgages for the properties by falsifying loan applications for the straw buyers, falsely claiming exorbitant income from fake employers and using fake W-2s and pay stubs to support the claims. The defendants submitted these fraudulent loan applications to mortgage lenders to obtain 100 percent financing—and thus avoided having to make any down payment on the properties.

The indictment alleges that the defendants profited on these mortgages loans by inflating the purchase price of the properties by $100,000 or more. Although the conspirators claimed that the extra money would be used for construction to improve the properties, the indictment alleges that no construction work was ever performed; instead, the money was kicked back to the participants. United States Attorney Duffy commented that these latest charges exposing the wider extent of this loan origination fraud are the result of an active, ongoing criminal investigation. Mensen, Rose, and Yeboah have each pled guilty. Trial for Armstrong, Fountain, and Allen has not yet been scheduled.

United States Attorney Duffy explained that the American public is the very real victim of these types of widespread mortgage fraud that played such a significant role in destabilizing the country's general financial situation. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego Division of the Federal Bureau of Investigation at (858) 565-1255 or the Federal Housing Finance Agency-Office of Inspector General hotline at (800) 793-7724.

The public is reminded that an indictment is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.

Defendant, Criminal Case No. 12CR4322H
Audrey Yeboah
Age: 54
Los Angeles, CA

Summary of Charges Count 1: Title 18, U.S.C., Section 1343—wire fraud; maximum penalty: 20 years in custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.

Defendants, Criminal Case No. 12CR1848-JAH
Mary Armstrong
Age: 51
Las Vegas, NV

Teresa Rose
Age: 57
Ramona, CA

William Fountain
Age: 36
Los Angeles, CA

John Allen
Age: 54
Laguna Hills, CA

Summary of Charges 12CR1848-JAH
Count 1: Title 18, U.S.C., Section 37—conspiracy to commit wire fraud and to launder money; maximum penalties: five years in custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment (all defendants).

Count 2: Title 18, U.S.C., Section 1343—wire fraud; maximum penalties: 20 years in custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment (Mary Armstrong).

Counts 3-5: Title 18, U.S.C., Section 1956(a)(1)(B)(I)—money laundering; maximum penalties: 15 years in custody, a maximum fine of $500,000 or twice the value of the property involved in the transaction, and $100 special assessment (Mary Armstrong).

Defendant, Criminal Case No. 12CR1458-JAH
Justin Mensen
Age: 31
Seattle, WA

Summary of Charges
Count 1: Title 18, U.S.C., Section 371—conspiracy to commit wire fraud and to launder money; maximum penalties: five years in custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.

Investigating Agencies
Federal Bureau of Investigation
Federal Housing Finance Agency-Office of Inspector General

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

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

free mortgage 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

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news