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.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


3 Face Sentences for Mortgage Crimes

Recent mortgage-related criminal legal actions

Jan. 18, 2010

By SAM GARCIA


A former mortgage broker who stole more than $100,000 from a reverse mortgage borrower has been sentenced to six years in prison despite showing up at his sentencing with a $50,000 check for his victim. In another case, a Texas woman was sentenced for cleverly diverting proceeds from loan closings to her personal accounts. A third case has a former bank executive admitting that he cooked the books and facing sentencing along with two other related defendants who are accused of mortgage fraud.

The U.S. Department of Justice announced that Jeffrey L. Levine pleaded guilty to cooking the books of Omni National Bank -- which left the government with $290 million in losses and 144 employees without a job when it failed in March 2009. The guilty plea was the result of a collaborative effort between the Justice Department, the Federal Deposit Insurance Corporation's inspector general, the Atlanta postal inspector, the special inspector general for the Troubled Asset Relief Program and the U.S. Department of Housing and Urban Development's inspector general.

Levine, who was the second-largest shareholder of the Atlanta-based bank, was executive vice president and head of Omni's community redevelopment lending department from 2000 until October 2007. The unit provided short-term rehabilitation financing on Section 8 properties for subprime borrowers.

He colluded with other Omni executives to hide many exceptions made to underwriting policies and procedures, according to the government. Levine allegedly hid the diversion of loan proceeds escrowed for
rehabilitation. He also concealed excessive credit concentrations to a single borrower and the funding of additional loans for foreclosures -- some financed up to five times at higher amounts. He additionally failed to create sufficient reserves for bad loans.

Levine is scheduled for sentencing on March 23. Two other defendants, Delroy Oliver Davy and Mark Anthony McBride, have agreed to plead guilty to fraudulently obtaining millions of dollars in loans and await sentencing. A third defendant, Brent Merriell, has pleaded not guilty.

Jodie Hoang was sentenced to 30 months in prison for allegedly stealing $1 million from her employer, Standard Mortgage Corp., a government news release Thursday indicated. Hoang pleaded guilty on Sept. 15, 2009.

The former accounting clerk used the New Orleans-based firm's computer system to change the deposit codes for payments made at loan closings. Hoang then created checks from the stolen funds payable to either herself or to her credit card providers.

Former mortgage broker John McTaggart was sentenced by San Francisco Superior Court Judge Charles Haines to six years in prison over allegedly stealing $140,000 in reverse mortgage proceeds from an 86-year-old woman.

McTaggart allegedly convinced the borrower to sign over the funds for two annuities he promised to purchase on her behalf. But instead, he deposited the funds to his personal account, quit his job and paid her fake annuity payments from the funds.

Ultimately, McTaggart fled to Memphis, Tenn., where he was arrested. At his sentencing, McTaggart presented the prosecutor with a $50,000 cashier's check made out to the victim.


photo of John McTaggart
Photo of John McTaggart

In. re. Jeffrey L. Levine.
Dec. 22, 2009 (U.S. District Court for the District of Georgia).

United States of America v. Jodie T. Hoang.
(U.S. District Court for the Eastern District of Louisiana).


Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com in 2000.

e-mail:
[email protected]


Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.


Reverse Mortgage News
Home equity conversion mortgages, HECM lenders and HECM reports. Reverse mortgage lending issues, analysis and compliance.

www.mortgagebranchmanagerjobs.com
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



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.



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

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

secondary marketing

social media

servicing news

subprime news

wholesale lenders