|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview
|
Case Title |
Case Number
|
Date Filed |
Link to StoryLink to Story |
| Gary Foster |
United States |
U.S. District Court for the Eastern District of New York |
$19,000,000 |
Former Citigroup Inc. vice president suspected of swindling $19 million from his employer, according to a complaint and affidavit by FBI Special Agent Thomas J. D’Amico in support of application for arrest warrant filed last month in U.S. District Court for the Eastern District of New York. |
United States of America v. Foster |
M-11-645 |
6/23/2011 |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Walter Daniel Olmstead |
United States |
U.S. District court for the Eastern District of California |
n/a |
Defendant pleaded guilty to a conspiracy to hold down bid prices on foreclosed properties, then hold another second private auction where conspirators would bid a higher amount than at the public auction, resulting in illicit fees. Six others have pleaded guilty to the conspiracy, including Anthony B. Ghio, Jahn R. Vanzetti, Theodore B. Hutz, Richard W. Northcutt, Yama Marifat and Gregory L. Jackson. |
United States v. Olmstead |
2:11-CR-0291 EJG |
8/12/2011 (Plea and Cooperation Agreement filed) |
www.mortgagedaily.com/MctForeclosureAuction081311.asp |
| John Robert Miller |
United States of America |
U.S. District Court, Middle District of Florida, Tampa Division |
$1,100,000 |
Miller pled guilty to paying former Coast Bank of Florida executive Phil Coon $1.1 million in a scheme where the pair illegally skimmed fees from loans closed through the bank. Coon was sentenced to 18 months for participation in a scheme to illegally skim fees from loans closed through Coast Bank of Florida. Judge Elizabeth Kovachevich sentenced Miller to 18 months. |
United States of America v. Miller |
8:08-cr-0030-T30 TBM |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp, www.mortgagedaily.com/MctAmericanMortgageLink071611.asp, www.mortgagedaily.com/MctSentencePhilCoon070711.asp |
| Philip Coon |
United States of America |
U.S. District Court for the Middle District of Florida |
$1,500,000 |
A federal judge sentenced the former Coast Bank executive to 18 months in federal prison for his scheme to skim almost $1.5 million from borrowers’ construction loans. |
United States v. Coon |
8:08-cr-00441-EAK-MAP |
7/6/2011 |
www.mortgagedaily.com/litigationcriminal072511.asp, www.mortgagedaily.com/MctAmericanMortgageLink071611.asp, www.mortgagedaily.com/MctSentencePhilCoon070711.asp |
| Cary Jay Silberman; Robert Francis Childs |
State of California |
Santa Clara County Court |
n/a |
Criminal conviction in relation to foreclosure prevention scam |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationforeclosurefirms092711.asp |
| Howard R. Shmuckler |
United States |
U.S. District Court for the Eastern District of Virginia |
n/a |
Defendant was charged by a federal grand jury with operating The Shmuckler Group, a fraudulent mortgage-rescue business. Defendant allegedly promised a 97% success rate in securing loan modifications and falsely claimed that he was a licensed attorney. |
United States v. Shmuckler |
n/a |
8/11/2011 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Jack Ferm |
State of Nevada |
n/a |
$192,000 |
Criminal charges brought against head of U.S. Justice Foundation in relation to loan modification/foreclosure relief scheme to charge upfront fees and defraud distressed homeowners. |
n/a |
n/a |
3/11/2011 |
www.mortgagedaily.com/litigationforeclosurefirms092711.asp |
Jeff McGrue, John-Pierre Rivera, Ronald Morgan, Gerald Guidry
|
United States |
U.S. District Court for the Central District of California |
$55,000,000 |
McGrue received a 25-year sentence during July in Gateway case. Guilty pleas for Rivera, Morgan and Guidry. |
U.S. v. McGrue, U.S. v. John-Pierre Rivera, U.S. v. Morgan, U.S. v. Guidry |
CR 08-1318(A)-ODW |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Marien Brown a/k/a Marien White |
United States |
U.S. District Court for the Eastern District of Missouri |
n/a |
Defendant operated 1st Financial Resource LLC and 1st Federal Resource LLC to target distressed borrowers in Hawaii, promising more than 80 clients that she would use her foreclosure-rescue service to help them avoid foreclosure. When clients wired funds to the defendant, she allegedly spent the money on personal expenses. |
United States v. Brown |
n/a |
8/11/2011 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Peter James Porcelli |
United States |
U.S. Court of Appeals for the Eleventh Circuit |
$2,507,542 |
11th Circuit Court of Appeals affirms 2009 conviction of Porcelli for equity-stripping scheme related to assisting distressed homeowners. |
United States v. Porcelli |
No. 10-14777 |
9/21/2011 |
www.mortgagedaily.com/litigationforeclosurefirms092711.asp |
| Stephen Andrew Easterly; Emanuel Percival |
District Attorney – San Bernardino County |
San Bernardino County Court |
$17,000,000 |
Attorney General action against individuals promising foreclosure relief assistance in exchange for upfront fees. |
n/a |
n/a |
8/29/2011 |
www.mortgagedaily.com/litigationforeclosurefirms092711.asp |
| Bank of America, NA; Pablo Araque; Does 1-100 |
Patricia Arreola et al |
Los Angeles Superior Court – Central Civil West |
$30,000,000 |
Class Action plaintiffs are Latino families in California alleging ponzi scheme run by Juan Rangel which involved, among other things, a mortgage fraud scheme targeting homeowners with equity in the home but behind on their payments. BoA was sued for providing material assistance to the ponzi scheme. |
Arreola v. Bank of America N.A. et al |
BC464530 |
6/30/11 |
www.mortgagedaily.com/LitigationInvestor092811.asp |
| John Rutigliano; Kenneth Kiefer |
United States |
U.S. District Court for the Eastern District of New York |
$1,500,000 |
Defendants were arrested over allegations that they convinced distressed borrowers to sign over their titles, only to be swindled out of their properties. The scheme resulted in 14 borrowers losing $1.5 million. |
United States v. Rutigliano, et al. |
n/a |
n/a |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Helen Hinojos, Ruth Farias, Esmeralda Garcia |
United States |
N/A |
N/A |
Mortgage loan processor Helen Hinojos, along with Ruth Farias and Esmeralda Garcia, are being tried for taking out fraudulent cashout second mortgages and stealing refinance proceeds from five elderly homeowners. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Shawn L. Portman; Sonja L. Lightfoot; Jeanette R. Salsi; Adam S. Voelker |
United States |
U.S. District Court for the Western District of Washington |
$45,000,000 |
Portman pleads not guilty in a federal action by US Attorney claiming Portman, and three other defendants, conspired together to submit false documents about borrowers’ qualifications and property values to induce the bank to fund loans amounting to more than $45 million. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/MctPierceCommercialBank080611.asp |
| William M. Vaughan, Craig Chambers, Patrick Friedl, Tom K. Crowley, Jon Nevins |
United States |
U.S. District Court for the Western District of Missouri |
$1,142,768 |
Former Northland National Bank vice president William M. Vaughan and mortgage broker and former police officer Craig Chambers were indicted along with Patrick Friedl, Tom K. Crowley and Jon Nevins for allegedly participating in a $485,000 mortgage fraud scheme. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| David Rubin, Joshua Gould |
United States |
U.S. District Court for Missouri |
$4,700,000 |
Rubin pled guilty to one felony count of wire fraud. Gould pled guilty to one felony count of wire fraud and one felony count of mail fraud. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Frederick Darren Berg |
United States of America |
U.S. District Court for the Western District of Washington |
$100,000,000 |
Judge Richard A. Jones ruled that Berg would not be allowed to leave federal prison in order to use a more sophisticated computer for his defense. Berg is accused of running a Ponzi scheme worth $100 million from his former firm, Meridian Mortgage funds. |
United States v. Berg |
2:10-cr-00310-RAJ |
10/14/2010 |
www.mortgagedaily.com/MctMeridian071411.asp |
| Kurt Branham Barton |
United States |
U.S. District Court for the Western District of Texas |
$50,000,000 |
A jury convicted Barton of operating a Ponzi scheme that cost 300 individuals more than $50 million. Barton was the founder, president and chief executive officer of Triton Financial LLC. |
United States v. Barton |
1:11-cr-00083-LY |
2/15/2011 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Marcilin Anne Benvin |
United States |
U.S. District Court for the District of Nevada |
$35,000,000 |
Benvin was indicted on 50 counts over allegations that she defrauded investors between 2004 and 2008 by deceiving them about the conditions and purposes of the loan, and provided fraudulent documents so that she could collect roughly 3 percent in origination fees as a mortgage broker. |
United States v. Benvin |
n/a |
8/182011 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Philip Lochmiller Sr., Philip Lochmiller Jr., Shawnee Carver |
United States of America |
U.S. District Court |
$30,000,000 |
On July 21, a jury found Philip Lochmiller guilty of conspiracy, money laundering and mail fraud in connection with a ponzi scheme. Lochmiller Jr. pled guilty to conspiracy, money laundering conspiracy and mail fraud. Carver pled guilty to conspiracy, money laundering conspiracy and mail fraud. |
na |
na |
Guilty Conviction on July 21 |
www.mortgagedaily.com/Fraud/PressReleaseLochmillerGuilty072111.asp, www.mortgagedaily.com/litigationcriminal072511.asp |
| Robert Stinson Jr. |
United States |
U.S. District Court for the Eastern District of Pennsylvania |
$17,000,000 |
More than 260 investors lost over $17 million in a Ponzi scheme operated by Stinson, who allegedly solicited investors with fraudulent promises of returns between 10 and 16 percent. Stinson pleaded guilty to the charges outlined in a 26-count indictment. |
United States v. Stinson |
10-cr-0724 |
11/4/2010 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Sonoma Valley Bank; Brian Melland; Bijan Madjlessi |
United States |
U.S. District Court for the Northern District of California. |
$14,000,000 |
A federal grand jury is sifting through the collapse of Sonoma Valley Bank, but no criminal charges have been filed. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/mctsonomavalleybank072411.asp |
| FDIC & Grant Thornton, LLP (joint stipulation) |
FDIC & Grant Thornton, LLP (joint stipulation) |
U.S. District Court, Southern District of West Virginia & 4th Circuit Court of Appeals |
$23,306,618 |
Settlement was reached with auditors of failed First National Bank of Keystone when the parties of the last outstanding federal civil complaint against the bank entered a joint stipulation. |
Grant Thornton, LLP v. Federal Deposit Insurance Corporation |
1:00-0655 & 1:03-2129 |
n/a |
www.mortgagedaily.com/MctSettlementKeystone080811.asp |
| Lee Bentley Farkas |
United States |
U.S. District Court for the Eastern District of Virginia |
n/a |
Farkas, former Taylor bean and Whitaker Mortgage chairman, is appealing his sentence to 30 years in prison on 14 criminal counts of conspiracy, bank, wire and securities fraud. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Rene Rebello |
United States |
U.S. District Court for the Central District of California |
$1,200,000 |
Former Countrywide employee pled guilty to misappropriating consumer information |
United States v. Rebello |
n/a |
n/a |
www.mortgagedaily.com/MctSentenceRebollo092911.asp |
| Christopher Dixon |
City of San Diego |
San Diego Superior Court |
$7,500 |
Owner of Nations Mortgage Solutions, Christopher Dixon, pleaded guilty to acting as a real estate agent without a license in connection with loan modifications. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
| Christopher S. Godfrey; Dennis Fischer; Vernell Burris Jr.; Brian M. Kelly |
United States |
U.S. District Court for the District of Massachusetts |
$3,000,000 |
An indictment against former employees of Home Owners Protection Economics Inc. alleges that defendants collected over $3 million from borrowers whom they misled in connection with the Home Affordable Modification Program. |
United States v. Godfrey, et al. |
11-CR-10279 |
8/9/2011 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Joseph Yorkus; James Bartczak |
Nevada Attorney General |
Eighth Judicial District Court of Clark County Nevada |
$383,176 |
Yorkus was sentenced to 48 months that will be served concurrently with another conviction. Allegedly sent fake transfer-of-servicing notices to some of Bank of America’s Nevada borrowers so that they could collect payments themselves through a sham company. Defendants also accused of charging for modification services through several businesses but not providing services. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Ronald Rodriguez; Zoar Rodriguez; Berta M. Cabrera; Kelly Rodriguez |
Florida Attorney General Pam Bondi |
n/a |
$750,000 |
Defendants were arrested for allegedly collecting modification fees through their company Best Value Homes Inc., but not delivering promised loan modification services. Their 500 victims reportedly lost $750,000 in the scam. |
n/a |
n/a |
8/17/11 |
www.mortgagedaily.com/LitigationCriminal082411.asp |
| Joseph Traxler |
United States |
U.S. District Court for the District of Minnesota |
$8,000,000 |
CFO of mortgage company charged with defrauding warehouse lenders by concealing pre-existing mortgages to obtain double funding and concealing defaults. |
United States v. Traxler |
n/a |
n/a |
www.mortgagedaily.com/MctChargesCentenial092911.asp |
| Marshall E. Home, Margaret Elizabeth Broderick |
United States of America |
n/a |
n/a |
10-count indictment over trying to act as imposter for Fannie and Freddie and steal 28 properties. |
n/a |
n/a |
Sept. 2011 |
www.mortgagedaily.com/Fraud/PressReleaseHomeCharged090811.asp |
| Louis Gendason; Kimberly Mackey; John Incadela; Marcos Echeverria |
United States of America |
U.S. District Court for the Southern District of Florida |
$2,570,000 |
The defendants were charged with one count of conspiracy to commit wire fraud for their participation in a reverse mortgage and loan modification scheme. Gendason, Mackey and Incandela pleaded guilty to one count of conspiracy to commit wire fraud. Echevarria charged with conspiracy to commit wire fraud and has not pleaded guilty. |
United States v. Gendason, et al. |
0:11-cr-60145-WPD |
6/20/2011 |
www.mortgagedaily.com/MctReverseFraud070711.asp |
| Douglas Brandewie |
United States |
n/a |
$10,000,000 |
A criminal information filed in June charges Douglas E. Brandewie with making a false statement to the FDIC. |
United States v. Brandewie |
11-20367 |
n/a |
www.mortgagedaily.com/litigationcriminal072511.asp |
