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Criminal Complaints Second-Quarter 2010 Mortgage Litigation Index

Criminal Complaints
Second-Quarter 2010 Mortgage Litigation Index
Cases involving criminal complaints.

 

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to StoryLink to Story
Statewide Bancorp, also known as Venture West Capital, Chronic Cantina, JH Builders, Upland Market Place na na na FBI, IRS agents raid homes. na na na oldmortgagedaily.com/MctUpland061210.asp
Penny J. Spencer, Thomas F. Sands, Stephen D. Rasey and Kimberly A. Davis n/a United States District Court for the Southern District of Ohio $234,349 Employees of an Ohio mortgage broker, MacLoud Financial, have plead guilty to attempting to avoid tax liabilities through a scheme where they accepted expense reimbursements in lieu of wages. The IRS prosecuted four conspirators. Penny J. Spencer was the last to plead guilty. n/a n/a n/a oldmortgagedaily.com/MCTBrokerReimbursements051310.asp
Home Ownership Possibilities for Everyone LLC Kentucky Department of Financial Institutions Commonwealth of Kentucky Public Protection Cabinet n/a Cease-and-desist order issued because state claims mortgage broker was unlicensed, operated fraudulently, and concealed facts. Specifically, the mortgage broker offered refinance and purchase-money mortgages at less than 2 percent with no closing costs. It is also accused of charging an illegal, nonrefundable $300 upfront membership fee and advancing fees ranging from 3 to 3.5 points that were placed in escrow accounts. Kentucky Department of Financial Institutions v. Home Ownership Possibilities for Everyone LLC 2010-AH-079 6/9/10 oldmortgagedaily.com/OrderHope061510.asp
Jeffrey Tye Brown State of Nevada na $30,685 Mortgage modification scam in which up-front fees were charged in return for modification services which were not performed. na na na oldmortgagedaily.com/LitigationForeclosureFirms061610.asp
Michael Fiorito United States US District Court for the District of Minnesota Mortgage modification scam results in prison sentence for equity stripping scheme. na na na oldmortgagedaily.com/LitigationForeclosureFirms061610.asp
William Vargas State of Nevada na $21,000 Mortgage modification scam in which up-front fees were charged in return for modification services which were not performed. na na na oldmortgagedaily.com/LitigationForeclosureFirms061610.asp
William T. Bridge United States United States District Court for the Eastern District of California na Mortgage broker sentenced to 21 months in jail for paying kickbacks to an employee of Washington Mutual in order that the bank process fraudulent mortgages United States v. Bridge 16-Jun-08 oldmortgagedaily.com/BrokerBribe042010.asp
David Fili n/a Lawrence District Court $25,000 Defendant allegedly told a local couple that they would own a percentage stake in a mortgage company once they deposited $25,000 in the company. Fili, however, used the money for his personal use. n/a n/a n/a oldmortgagedaily.com/LitigationInvestor041410.asp
Lee Farkas United States of America and the SEC U.S. District Court for the Middle District of Florida (criminal case) and U.S. District Court for the Eastern District of Virginia (civil case) $400,000,000 Defendant is the former chairman of Taylor, Bean and Whitaker Mortgage Corp., and faces criminal and civil allegations of allegedly using $400 million in warehouse financing to fund fake loans to cover up Taylor Bean and Whitaker’s overdrafts and operating losses. Securities and Exchange Commission, Plaintiff, v. Lee B. Farkas, Defendant. Civil Action File No. 1:10cv667 16-Jun-10 oldmortgagedaily.com/ArrestLeeFarkas061610.asp
Michael J. McGrath Jr. and Leroy Hayden United States of America U.S. District Court -District of New Jersey $136,000,000 A second person, Leroy Hayden, pleaded guilty to one count of wire fraud conspiracy in a case where a lender sold Fannie Mae $136 million in mortgages that it did not own. Hayden allegedly conspired with co-defendant McGrath to fraudulently sell the loans. United States of America v. Hayden, Leroy n/a 13-May-10 oldmortgagedaily.com/USMortgagePlea051410.asp
Wesley A. Snyder na na $29,000,000 Unauthorized sub-servicer collected payments on behalf of mortgage borrowers without completely passing them on to the lender anad now servicng 12-year sentence. In re. Wesley Snyder na na oldmortgagedaily.com/MctLawsuitSnyder052610.asp

 

 

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