A New York mortgage banking firm has been accused by The Provident Bank of mortgage fraud.
The Provident Bank, based in Jersey City, New Jersey, has reportedly filed a civil lawsuit against Community Home Mortgage Corp., accusing the company of fraud. According to an article published by Newsday.com earlier this week, Provident alleges that the Melville, New York company owes it more than $24 million.
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On its website, Mortgages.cc, Community says it “originates over $150 million in first and second mortgages annually.” The company, which Ginnie Mae currently reports as an approved single family issuer, says it is “licensed in over 30 states for direct Mortgage lending.”
Ira Silverman is listed as the president of Community, according to a list of licensed second mortgage lenders published by the Indiana Department of Financial Institutions.
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Apparently, Community is alleged to have been warehousing the same loans with two different warehouse lenders. Provident claims that Community garnered at least $910,000 worth of advances each from Provident and Warehouse One, the second warehouse lender, Newsday.com said.
Last month, about 15 agents from the FBI and the U.S. Department of Housing and Urban Development (HUD) raided the 110-employee company, Newsday.com reported, and Community now faces civil charges and a criminal investigation. Newsday.com went on to say that the company, which has since closed its doors, is also under investigation for processing potentially illegal 203(k) HUD loans where proceeds were used for self-enrichment instead of the intended use — helping not-for-profits build and renovate houses.
In its weekly bulletin dated October 4th, New York’s state banking department reported that Community surrendered its licenses for several locations on October 2nd.
Representatives from HUD and the U.S. Attorney’s office refused to comment on the case.
Articles about mortgage fraud cases include:
- Todd H. Charske and Gregory B. Romer of Kemper Financial Inc. are accused by the FBI of operating a flipping scheme and defrauding Meritage Mortgage Corporation
- According to the Suspected Fraud Activity Index for August of this year, the state showing the most deterioration in the Fraud Index combined with the higher activity levels is Texas.
- Two Virginia men are accused of using a Virginia title insurance agency to illegally divert loan proceeds for their own benefit.
- 83 individuals have been indicted by a Cleveland grand jury for participating in mortgage fraud schemes.
- Former PinnFund CFO admitted to being a coconspirator in the $300+ million Ponzi scheme
- Three Peoria, Illinois women were sentenced for their involvement in a mortgage loan scam where they defrauded a bank of $1.7 million in a classic flip transaction scheme
- Shirley Harwood and her employee pled guilty to defrauding two lenders out of more than $6 million
- Loan originator Brian J. Wilkozek and two loan processors are among fifteen people indicted in a south side Chicago “flipping” scheme
- Edward Rostami was sentenced to a year in prison for using a fraudulently obtained property title to obtain a $1 million loan
- Rene Abreu was among 11 people indicted in a case involving The Mortgage Pros, Inc. in Guttenberg, New Jersey
- David Allan Van Velzer, Jr., was sentenced to more than 8 years in prison for wire fraud and money laundering
- Kenneth Bradford and Jo Ellen Bryant received 10+ year sentences in a Georgia flipping case
- Seven indicted in AppOnline.com mortgage fraud scheme
- Indian authorities apprehended Rajiv C. Shah, one of two brothers that allegedly sold loans with fraudulent documentation to 3 U.S. lenders
- Loans originated by originated by Chapel Creek Mortgage Banker, Inc. could cost Chase Manhattan Mortgage Corp. between $10 and $20 million
- Kent E. Baklor was sentenced for defrauding two lenders of over $8.5 million
- Tamira Smyth was sentenced in a Chicago ‘flipping’ scam involving twenty defendants
- Former Las Vegas mortgage broker David Ferradino was sentenced to five years’ probation and ordered to pay $4.2 million in restitution to 90 investors
- Michael Graham received a sentence of more than 12 years in prison and was ordered to pay $515 million in restitution for his role in the failure of The First National Bank of Keystone.
- Yehuda Shiv was charged by the SEC with overstating the value of his clients’ assets by more than $139 million
- Cheryl A. Swain pleaded guilty to a charge of mail fraud in connection with her conduct as the VP for Marketing Syndication of MCA
- Robert B. Herbert, Jr. of Raleigh allegedly “embezzled and misappropriated moneys from Stewart Title.
- Donald Lukens allegedly defrauded more than 100 investors — including popular sports figures — of at least $12.5 million in a number of schemes, including one involving mortgage backed securities
- Steven D. Mueffelman and John S. Lombardi charged in a 15-count indictment with mail and wire fraud
- Raymond T. Jackman, JR. was sentenced to two years’ probation
- GreatStone Mortgage in Florida is accused of fraud, sexual harassment.
- The government is pursuing mortgage fraud cases in Charlotte and Cleveland.
- Miami family allegedly ran a mortgage fraud ring that swindled lenders out of $3.8 million.
- Maryland is the state with the most instances of possible fraud, according to Affinity Corporation’s ‘Suspected Fraud Activity Index’ for the months of June, July and August.
- Thomas Eck and Zahra Gilak made as much as $15 million, and defrauded investors of $100 million in sham that included online mortgage brokerage
- Richard Wood, a Las Vegas mortgage broker accused of bilking millions of dollars from dozens of investors in a nationwide Ponzi scheme, was gunned down outside his home.
- FBI Investigating Massive Mortgage Fraud Case In Spokane
- Richard Michael McDowell, who through southern California-based Active Home Loans and M&M Loan Service admittedly swindled an estimated $7 million from about two dozen investors, was sentenced to 27 months in federal prison.
