|Fugitive Pair On Mortgage Fraud Spree
Federal agents and police in Georgia and Florida are on the lookout for Matthew Cox and Rebecca Hauck, a couple on a crime spree involving stolen identities, phony mortgage documents and as much as $4.5 million in stolen cash.
Fraud in West Lower at Midwest's Expense
The precipitous drop in refinancing activity has put tremendous pressure on originators to be more aggressive in order to keep making their numbers. As a result, some mortgage professionals have crossed the line and are already involved in fraudulent practices.
FHA Loan Fraud
Federal prosecutors in Philadelphia have cracked a mortgage fraud ring that preyed on buyers who couldn't afford the homes they were sold. Mortgage broker Judy Gemmill and James Ballantyne, a loan officer, have been indicted in the Garland Homes scandal.
Flips & Sales & Puppy Dog Tails
Mortgage broker John Graziano has been charged with 7 others -- including a lawyer, appraiser, real estate investors and phony buyers -- in an elaborate New York flip scheme
More Choices for Fraud Prevention
Two companies have teamed up to help lenders do a better job of preventing fraud. The new fraud detection service isn't the only antidote for fake forms -- as a host of services claim to help reduce mortgage crimes.
Detecting Fraud in Secondary Market
When mortgage fraud occurs, there are always clues left behind. But like in the popular television forensic thrilled CSI -- the clues aren't always easy to find.
Peoples Bank Execs Facing Up to 11 Years in Prison
John Finnan, who was president of the defunct Peoples Bank of Northern Kentucky, and Marc Menne, an executive vice president who oversaw commercial lending, have pleaded guilty to federal bank fraud charges for their roll in the case against a builder who stole $34 million in home closing checks.
Service Identifies Problem Brokers, Originators
Most fraud is reportedly committed by an insider, and at a time when plunging production is expected industrywide, brokerages are more susceptible to fraud. But, a new tool designed to detect fraudulent activity in a broker's history can possibly prevent a company from losing business and millions of dollars, according to one fraud prevention company.
Appraisers Blame Brokers, Licensing for Fraud
Representatives of the nations appraisers testified before Congress that inadequate appraiser licensing and pressure from mortgage brokers enable criminals to commit mortgage crimes.
Fraud Costs CEO, Company $52 Million
A federal grand jury in Florida has returned a verdict of more than $52 million against now defunct CFI Mortgage Inc., former CEO and chairman Stephen E. Williams, and former director James Kowalcyzk.
7 Sentences for Seven Women
Sentences have been handed down in a major mortgage fraud ring that federal authorities cracked in the South Carolina town of Anderson. Among the defendants who defrauded National City Mortgage were one of the company's loan officers, a former mortgage broker with Service First Mortgage Co., and a former loan officer with Kelly Group Inc.
$38 Million Scam Ends in Tragedy
Ben Stewart, a prominent member of a well known family in a southern small town, took horrific steps to end the humiliation of being exposed as a Ponzi scheme operator. Among the companies used in the $38 million scam was his mortgage brokerage.
Top Ten Ways for Originators to Prevent Fraud
Knowing about fraud but doing nothing about it can jeopardize your reputation -- and even your freedom. However, there are a number of steps an originator can take to ensure that fraudulent loan files don't land him or her in jail.
Nevada Tops Subprime Fraud Report
Risk-management services provider Mortgage Asset Research Institute Inc., or MARI, reported that Nevada lead all states in subprime mortgage fraud, while Georgia reigned in fraud within the prime market.
Massive Scheme Duped Builders, Lands Mortgage Banker in Jail
Former New York mortgage banker Avram "Avi" Lebor, president of MKD Capital Corp., will spend more than seven years in prison and must repay nearly $8.4 million for his role in what federal prosecutors have described as a "massive scheme" to defraud investors.
Former Christian Coalition Organizer Jailed for Fraud
Former talk show host and Christian Coalition activist Martin Andrew Nalitz Jr., through his company Merit Funding Group L.L.C., is suspected of fabricating 15 mortgage transactions.
Jail Predicted for Psychic Accused of Mortgage Fraud
Barber Clark, a one time radio psychic in Lexington, Ky., has been indicted on five felony counts of stealing more than $700,000 from an escrow account at the now closed Consolidated Mortgage Inc. mortgage company she and her husband operated.
Equity Stripping Robs Delinquent Borrowers of Title
Minnesota state lawmakers and law enforcement are cracking down on a scam involving the reconveyance of foreclosed property known as "equity stripping." Home Funding Corp., or HFC, and HJE settled a suit filed by Minnesota's Attorney General where they were accused of "stripping" the equity from several Minnesota homeowners.
Buyers Deceived With Promises of Cash
An alleged operator of a Minnesota scam has only been identified as a man from Arkansas who, according to a state senator, convinced 24 people from the Minneapolis area that an organization known as The St. Paul Foundation had hundreds of thousands of dollars in grant money available for home ownership.
Warehouse Lenders, Wholesalers Deceived by Network of Companies
Gerald P. Small, III, owner of Amerifunding, is among the defendants indicted this week on charges they used the personal information of job applicants and loan applicants, along with fake bank and tax documents, to obtain fundings from wholesalers and warehouse lenders.
Southern Calif Scam Used Identities of Dead Real Estate Brokers
$30 million scheme lands Alberto Mordoki, Mirella Mordoki and Alejandro Sady-Kennedy in jail; James Douglas Lus on run.
Preventing Mortgage Fraud
Mortgage fraud can cost a company millions. It happens before the loan is closed, and it happens on mortgages that were funded years ago. And while all mortgage crimes cannot be prevented, a few companies say their services help reduce the fallout from fraud.
Owner, Loan Officers Banned from Mortgage Industry
The Washington Department of Financial Institutions said a two-year investigation uncovered a pattern at Century Mortgage of employees and owners overvaluing properties and falsifying papers to defraud lenders and borrowers with inflated property values, phantom second mortgages and false down payments.
Law Firm Settles in VA, HUD Overcharging Case
Fisher and Fisher P.C. of Chicago has settled a federal lawsuit that accused the law firm of overcharging federal agencies that hired the firm to foreclose on property. The suit was originally filed by a whistle-blowing mortgage broker.
SEC Accuses Former Conseco Finance Execs of $400 Mil Fraud
Rollin Dick, former chief financial officer of Conseco Finance Corp., and James Adams, the unit's former chief accounting officer, have been accused of inflating earnings at its former mobile home lending unit by nearly $400 million. During the year of the alleged fraud, the combined bonuses of two were in excess of $5 million.
Mortgage Firm Squanders $1 Mil of Investors' Money on Gambling
Rose Fund accused by SEC of lying to investors.
Lenders Don't Look to Brokers to Prevent Fraud
Mortgage lenders are pretty much on their own when it comes to fraud -- i.e., identifying perpetrators, preventing exposure and chasing culprits into jail.
Convicted Fraudster Does It Again
Police in Tampa and Clearwater, the FBI and the Florida Office of Financial Regulation are investigating how Matthew B. Cox, who had already been convicted of federal and state charges for mortgage fraud, was able to pull off a whole new scam that involved at least 21 properties and $2.7 million in mortgage loans.
Equity Skimming Fraud
While fraud cases usually involve a conspiring originator or a bribed appraiser, one government special agent recently talked about another kind of mortgage fraud.
Trouble, Alaskan Style
Jim Crawford, former owner of bankrupt City Mortgage, has settled for thousands of dollars with the Alaska consumer protection office over allegations of unfair business practices and fraud claims.
Sister Pressured to Take Fall for Brother in Fraud Case
Cincinnati builder Bill Erpenbeck thought about killing sister Lori, father told her.