Georgia Police Chief Accused Of Stealing House

Carver Bible College Police Chief Joseph Woods is accused of stealing the home of a deceased Fulton County grandmother and may face possible criminal charges today in connection with alleged mortgage fraud, according to a report by Investigative Reporter Dale Cardwell of WSB-TV Channel 2 in Atlanta, Georgia. According to the report:

• Woods is the leader of a local police department that employs a number of officers facing criminal charges such as murder and assault,
• he was already accused of theft by deception and is now looking at an additional charge possibly being tacked on,
• the warranty deed which made Woods the owner appears to be a fraud, and
• since an interview with Channel 2, Woods has told the family he wants to give the house back.

Fulton County District Attorney Paul Howard is calling for anybody else who may be familiar with Woods and this kind of practice to come forward and speak to the D.A.’s office to determine if he’s done this kind of thing before.

Go here to watch the WSB-TV Channel 2 report (video no longer available) or, to read the text of the report, see Local Police Chief Accused Of Stealing House.

Homeowners Invoking "Truth In Lending" Rights To Back Out Of Bad Loans

CBS5 in San Francisco, California reports:

• "This may be the life preserver for homeowners about to sink-- a way to strike back at shady loan brokers who mislead people about the true cost of their mortgage loans."
• "Federal Truth in Lending documents that are required with every refinanced loan give homeowners a greatly expanded right to cancel if the documents are not exactly right."
• "How much extended time? Try three years from the date of the loan."

In this report, attorney William Purdy from the Santa Cruz law firm of Simmons and Purdy, who reportedly with his law partner have hundreds of cases of Truth in Lending violations, is interviewed.

Also covered in the report is another case where The Fair Housing Law Project of the non-profit agency The Law Foundation, which provides free legal services to Silicon Valley individuals in need, is suing a broker and lender on behalf of a consumer borrower for Truth In Lending violations.

Purdy says the Truth in Lending Act is not a way of getting out of debt -- but it can be a way of getting out of a bad loan, and it essentially depends on whether the lenders got sloppy with the right-to-cancel document required to be given to refinancing homeowners. (The part of the law being enforced in these cases only applies to homeowners who are refinancing; it does not apply on purchase transactions.)

To watch the report, by CBS5's Tony Russomanno, see CBS5 Video - Bay Area Homeowners Backing Out Of Bad Loans, (then, click "Play") or

Go here for the text of the story - Bay Area Homeowners Backing Out.

For a related article, see Finding a legal escape clause (Attorney rescues homeowners from loans they can't afford)

For a story involving law firm Simmons & Purdy that resulted in the arrest of mortgage broker Altaf Abdulrehman Shaikh (alias Zak Kahn) for allegedly ripping off homeowners in mortgage transactions, see DA: Scammer sought to bilk homeowners.

Go here for more posts on homeowners who have refinanced into bad mortgage loans and are now using the Federal TILA to try and undo the bad loans.

Editor's Note

Using the Federal Truth In Lending Act is also being used by financially strapped homeowners to void sale leaseback, repurchase option deals entered into with foreclosure rescue operators. See, for example,

• Foreclosure Rescue Operator Violates Federal Law, State Usury Law, and
• Michigan Federal Judge Orders Return Of Home By Foreclosure Rescue Operator. undo mortgage loans TILA alpha

Option ARMs The Target Of Homeowners' "Truth In Lending" Lawsuits

Buried in a recent column appearing in the San Francisco Chronicle is a mention of attorney Jeffrey Berns, of Tarzana, California (Los Angeles County) who is preparing to file Federal Truth In Lending Act lawsuits on behalf of hundreds of borrowers who took out option ARMs. According to the column:

• "Berns says he is going to file cases in state court alleging violations of federal truth-in-lending laws as well as deceptive practices, fraud and negligent or intentional misrepresentation."
• "Berns, who is working on a contingency basis, says many lawyers are not willing to take on these cases. They can be difficult to win because "the disclosures are there, they're just buried in more than 100 pages of documents.""

According to Tom Pool, spokesman for the California Department of Real Estate, "State courts have found that mortgage brokers are fiduciaries in these types of transactions."

Reportedly, a state judge in Wisconsin recently ruled in favor of borrowers who had taken out option ARMs offered by Chevy Chase Bank that violated three provisions of the Federal Truth in Lending Act. The case was ultimately certified as a class action lawsuit. According to Milwaukee attorney Kevin Demet, who represented the homeowners, the size of the class could reach 7,000 to 8,000 people nationwide who took out the Chevy Chase option ARM in the year leading up to April 2005.

For more, see Subprime crisis offers a chance to step up.

For stories on the Chevy Chase, option ARM class action lawsuit, see:

• The Washington Post: A Fight Over the Fine Print (Chevy Chase Bank Faces Suit Over Adjustable-Rate Mortgages),
• Milwaukee Journal Sentinel: Mortgage lawsuit may have big effect (Couple's low interest rate lasted a month).

Go here for more posts on homeowners who have refinanced into bad mortgage loans and are now using the Federal TILA to try and undo the bad loans. undo mortgage loans TILA alpha

Lawyer Gets 3+ Years In Jail In Flipping Fraud

Vishnu Rajendra Poonai (aka Joey Poonai), a lawyer in Canada since 1992, was led away in handcuffs after being sentenced to 3 1/2 years on each of five counts of fraud, with the sentences to be served concurrently. The court found Poonai benefited financially from the flipping frauds totaling $5 million that involved 18 properties that were purchased, then sold again right away at "highly inflated" values. Mortgages were issued-- to either fictitious people or through identity theft-- based on the inflated prices and when the mortgages fell into default, the banks were left holding the bag. For more, see Disbarred lawyer sentenced to 3 1/2 years in jail, reported by The Brampton Guardian.
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Sacramento Area Real Estate Group Accused Of Duping Investors

A recent report by Investigative Reporter Josh Bernstein of KCRA-TV Channel 3 in Sacramento, California describes an alleged mortgage fraud scam where seven unsophisticated investors where lured into a "real estate investment opportunity" where they purchased over twenty homes, and then were left with their credit destroyed and stuck with unrented homes and unaffordable mortgage payments. The real estate group who is accused of providing the investment opportunity, reportedly made all the arrangements in the investors' purchase of the homes, including allegedly submitting false loan applications on behalf of the investors. Those identified by the investors as being involved in the alleged fraud scheme are:

• James Martin (aka Jim Martin), VFM Investment Group LLC, Gabriel Viramontes, Freedom Capital Mortgage, Inc., Joseph S. Gallo, Esnian Mortgage & Realty Network, Mario Fellini III, real estate agent Yajen Huang (aka Jennifer Huang), and others.

An impromptu, on camera interview was attempted with some of the accused at their office; however, they didn't seem to interested in answering any questions. While their attorney agreed to appear on camera, he didn't seemed to relish the opportunity to answer Josh Bernstein's questions, either (he sounded like he had "marbles in his mouth" and he looked like "a deer caught in the headlights." I actually felt sorry for him. He looked like a young guy; maybe he needed to earn the legal fees from representing these clients so he could pay his own mortgage.)

All the investors have reportedly filed lawsuits. A lawsuit filed by one of the investors is currently pending in Sacremento County, California Superior Court alleging fraud, constructive fraud and breach of fiduciary duty, civil conspiracy, negligent misrepresentation, and unlicensed practice of law, among other claims against some or all of the above named accused. Representing the investor in this lawsuit are Dennis B. Hill and Andrew E. Bakos of Hill Law Firm, Lincoln, California.

To read that lawsuit, see Romano vs. Martin, et al. (6.51 MB)

Go here to watch the KCRA3 report by Josh Bernstein (no longer available online).

North Carolina Home Flipper Leaves Investors "Holding The Bag"

The Fayette Observer recently reported on the story of Eric Omar Jones, a businessman who started a now-defunct company he named U.H.K. Investments — for “University of Hard Knocks.”

Reportedly, he was at the center of more than 100 house flipping deals in North Carolina in Cumberland, Hoke, Moore, Robeson and Sampson counties. At least 53 of the homes ended up falling into foreclosure, The Observer found. Many of the investors he recruited ended up "holding the bag", owning homes in disrepair with mortgages that they couldn't afford to pay.

While he admits he made business mistakes, Jones denies misleading investors. He hasn’t been charged with crimes, though the FBI has apparently investigated. For more, see Easy money, hard lessons.
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16 Unlicensed Contractors "Stung" By Cops

Westchester County, New York police detectives, posing as the owners of a county-owned, rundown home, arrested 16 unlicensed contractors after requesting and obtaining bids for repair work on the home from them, reports Newsday.com and The Journal News.

The three week sting operation used a three story house in Yorktown, NY and captured the suspects on video. Among those arrested were two who were already on the county's Renegade Renovator list of contractors who have generated repeated consumer complaints.

"This was the first-ever sting in Westchester, but it won't be the last," according to GaryBrown, Westchester County's director of consumer protection. "Let the unlicensed contractor beware."

For the whole story, see:

• Police posing as Westchester homeowners arrest 16 contractors, and
• Westchester nabs 16 unlicensed contractors.

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South Florida Mortgage Broker, Others Accused In Foreclosure Rescue, Equity Stripping Lawsuit

An elderly South Florida homeowner currently has a civil lawsuit pending alleging that (1) she was victimized by a foreclosure rescue group in a sale-leaseback-option to repurchase deal that resulted in her being stripped of most of the equity in her home, and (2) she was scammed allegedly:

• through the use of false statements and representations,
• through the imposition of false charges on a HUD-1 closing statement,
• through the use of a forged document, and
• by taking advantage of her lack of financial sophistication.

The homeowner named as defendants in her lawsuit Boca Raton, Florida mortgage broker Nicole Smith, her husband Mauricio N. Smith, mortgage brokerage Signature Lending Group, Inc., Deborah O'Hara (with addresses in Coral Springs, Florida and Brooklyn, New York), and two instituitional lenders among others in which she is seeking relief for:

• violations of the Federal Truth In Lending Act and Regulation Z,
• violations of the Federal Home Owners Equity and Protection Act,
• violations of the Florida state law prohibiting usury,
• common law fraud (seeking rescission and damages),
• breach of contract, and
• quieting the title to her home (quiet title action).

Representing the homeowner in this lawsuit are The Law Offices of Sherri B. Simpson, P.A. of Fort Lauderdale, FL and James A. Bonfiglio, P.A., of Boynton Beach, FL.

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More On New Generation Funding, NYC Bangladeshi Mortgage Fraud Case

The New York City property flipping, mortgage fraud scam reported here last week involved the mortgage brokerage New Generation Funding, Bangladesh nationals and members of the New York City area Bangladeshi community who were recruited and paid $5,000 per deal to act as straw buyers. The scam ensnared legitimate mortgage lenders, including American Home Mortgage, Argent Mortgage, Long Beach Mortgage Company Fremont Investment and Loan, Aurora Loan Services, BNC Mortgage, Lehman Brothers Bank, Webster Bank, HSBC Bank, New Century Mortgage (R.I.P.), WMC Mortgage Company, GFI Mortgage Bankers, Inc., Alliance Mortgage Banking Corp., and Equifirst Corp.

The following individuals being criminally charged in Brooklyn Federal Court last week:

• Mohitul Islam, Mohammed Zubair Hossain, Lalon Ahmed, Mohammed Jewel, Mehdi Hasan, Iqbal Hasan, Humayun Kabir, Togor ( last name unknown), Golam Bahauddin Sadi, and Mizanur Rahman.

The basis for the criminal complaint filed by authorities comes from information from an unnamed "confidential witness", identified as CW1, who was a partner in the mortgage fraud, who has already agreed to plead guilty, and has also agreed to "sing" to the Feds in exchange for a lesser sentence for his/her role in the scam. In addition, there are three additional unnamed confidential witnesses, CW2 and CW3 (both of whom have pleaded guilty to fraud charges in a related investigation and have agreed to "sing" to investigators in the hopes of getting lighter sentences), and CW4.

Red flags were raised when two of the victimized mortgage companies noticed high rates of default on the New Generation-originated mortgages; they subsequently found a fraudulent pattern of employment and income information when they audited the corresponding mortgage applications. At that point, the two mortgage companies called in law enforcement.

Described in the criminal complaint are undercover stings that are captured on video, involving confidential witness CW1 and an undercover FBI agent pretending to be a notary public and title closer at a simulated property sale closing.

One element of the alleged scam, as described in the criminal complaint, was the use of "short sales", in which the one member of the alleged conspiracy would negotiate a discounted payoff from the mortgage lender on a loan secured by a particular property controlled by the alleged fraud group. After successfully negotiating the "short pay" and re-taking control of the property for a fraction of what was owed, the property could then be resold to another straw buyer a significantly higher price, thereby "recycling" the property through the alleged fraud group's operation all over again.

For the full story (at least the version filed by the FBI Special Agent in the case), see the Criminal Complaint filed by Federal prosecutors, U.S.A. vs. Hossain, et al.

For media reports on this story, see:

• Ten charged in mortgage fraud scheme,
• FBI Arrests 9 of 10 Charged in Widespread Mortgage Fraud Scheme; Defendants Include Mortgage Brokers and Straw Buyers,
• Ten Charged With $7 Million Mortgage Fraud Scheme,
• Click here for this blog's posts on this NYC Mortgage Fraud Story.

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New York Attorney Discipline Committee Keeping Busy

In a recent article, The New York Daily News reports on the work of the attorney Disciplinary Commitee of one Department of the Appellate Division of the State Supreme Court.

Thomas Cahill, chief counsel for the Disciplinary Committee of the Division's 1st Department, which covers Manhattan and the Bronx, is interviewed for the Daily News story. His office, which polices the 76,777 lawyers in Manhattan and the Bronx, has a staff that includes 20 full-time attorneys, many of whom are former prosecutors, investigators, an accountant and paralegals. It handles about 3,500 matters a year in a complex process that begins with screening of complaints.

Most ripoffs by attorneys involve theft from escrow accounts and trusts and estates or billing for work that wasn't done, according to an analysis by The Lawyers' Fund for Client Protection of the State of New York. Among the examples of attorney misconduct cited in the article include incidents where:

• an attorney deposited over $470,000 from the proceeds of a home sale in Peekskill, New York into his business checking account and gave the homeowner a rubber check for the proceeds of the home sale,
• the same attorney, who failed to remit to his clients the $354,900 proceeds from the sale of an Italian restaurant (he pocketed $319,000; the balance is reportedly still being traced),
• an attorney who pleaded guilty to participating in a $750,000 mortgage scam,
• an attorney who reportedly represented approximately 200 clients buying real estate who had her clients buy title services at a company next door that she also owned, which the New York State Appellate Court judges called "an impermissible conflict of interest."

The article also cites the variety of excuses that the rogue attorneys offer up when they get nailed. For more, see Rotten lawyers face raft of raps in ripoffs.

For information on filing attorney grievances and obtaining relief from dishonest attorney conduct in New York State, see:

• A Guide To Attorney Disciplinary Procedures In New York State, and
• The Lawyers’ Fund For Client Protection of the State of New York.

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha

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Channel 2 News "Sting" Two Foreclosure Rescue Operators

In Southern California, local television station CBS 2 and its investigation team led by investigative reporter David Goldstein set up hidden cameras in a Whittier, California home and caught two foreclosure rescue, mortgage consultants seeking to charge upfront fees to help a homeowner facing foreclosure, according to a report on Channel 2's website at cbs2.com. According to the report:

• "The real homeowner is facing foreclosure. That information is made public so she has received hundreds of flyers from people offering to help. But we hired this actress to pose as the homeowner and watched from the back room as we invited foreclosure experts in to hear their pitch."

This is the first "foreclosure rescue sting" caught on video that I have come across. I suspect that these "caught-on-video stings" of foreclosure rescue operators will become more and more frequent. If anyone knows of any foreclosure rescue stings on video that are available online, please let me know at HomeEquityTheft@yahoo.com. For more on this story, see:

• Foreclosure Experts Prey On Desperate Homeowners,
• Click here to see Video - CBS 2 Foreclsoure Rescue Sting (then, click "Play")

Editor's Note:

California has specific statutes strictly regulating foreclosure rescue purchasers and mortgage foreclosure consultants who approach homeowners facing foreclosure seeking to do business with them.

• For the statute regulating consultants, the California Mortgage Foreclosure Consultants Act can be found at Section 2945 through Section 2945.11 of the California Civil Code.

• For the statute regulating purchasers, the California Home Equity Sales Contract Act can be found at Section 1695 through Section 1695.17 of the California Civil Code.

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Central Florida Homeowners Victimized By Foreclosure Rescue Operator

Reports of two financially strapped Central Florida homeowners allegedly having their home equity stripped from them by a foreclosure rescue operator is the subject of a Local 6 News investigation by WKMG-TV Channel 6 in Orlando, Florida. Reportedly, both homeowners lost their homes and the entire equity that they had accumulated in them.

Local attorney Austin Aaronson is reportedly fighting the equity stripping issue for over a dozen clients.

Local 6 Emmy Award winning Investigative Reporter Mike Holfeld brought his findings to state Rep. Bryan Nelson of Apopka, who is currently co-sponsoring legislation that will create criminal penalties for equity deception schemes in Florida.

For more, see Homeowners Warned Of Equity Stripping.

(revised 4-30-07 12:26 am)
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California Foreclosure Rescue, Equity Stripping Warning, Consultant Jailed

In California, an Associated Press appears in the Ventura County Star that warns:

• "The potential for real estate fraud has soared, driven by a surge in default notices sent to thousands of struggling California homeowners during the past several months."

• "Real estate scams prey on the trust of people in desperate situations. These so-called foreclosure consultants make false promises, giving homeowners the impression that they can improve their credit or pay off their properties in full, with the intent to swindle homeowners out of large amounts of money or, in some cases, their homes."

For more, including the story of an equity stripping victim who lost her home and equity to a forecloure rescue "consultant" (who has since been sentenced to three years and eight months in prison), see:

• Potential for real estate fraud grows as more homeowners face foreclosure (Mortgage help can come with a catch).
• Go here for Video - Foreclosure Rescue / Mortgage Fraud Warning.

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Foreclosure Rescue Scammer Pleads Guilty To Felony Theft

A Prince George's County, Maryland homeowner facing foreclosure got a flier in the mail from Perver Taylor offering financial help, according to a story by investigative reporter Darcy Spencer, of WRC-TV Channel 4 in Washington, D.C. The homeowner responded, but instead of helping her, Taylor proceeded to victimize the homeowner in a foreclosure rescue scam in which she lost her home and the entire equity she had accumulated in it. Taylor pleaded guilty to felony theft and faces up to 10 years in prison when he's sentenced in August. For the whole story, see:

• Woman Scammed Out Of Home (FBI: Mortgage Fraud Cases Increase),
• Click here for Video - Channel 4 TV Report.

For the Maryland statute regulating foreclosure rescue operators, see the Maryland Real Property Law, Title 7, Subtitle 3 - Protection of Homeowners in Foreclosure (Sections 7-301 through 7-321). (Each section of the statute has its own link).

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Massachusetts Banking Officials To Help Homeowners Avoid Foreclosure

Following a protest at the Statehouse on Thursday by homeowners facing foreclosure, Massachusettts Governor Deval Patrick has directed state banking officials to help homeowners negotiate mortgage payment terms to avoid foreclosure, according to an Associated Press article appearing in the Boston Globe.

Reportedly, the Massachusetts Division of Banks has already secured 60 to 90 day freezes on the foreclosures on behalf of 11 of the protesters and will help other homeowners having trouble with their mortgages by providing housing counselors or contacting their lenders to stop or delay foreclosures, according to Steven Antonakes, the Commisioner of Banks. For more, see Patrick directs state to help homeowners.
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Donkey Testifies On Attorney's Behalf

In another story having nothing to do with this blog, the Associated Press reports that:

• "Faced with complaints that his donkey was too loud, attorney Gregory Shamoun decided to bring his case directly to the court: He had the donkey testify."

No word on how Buddy the Donkey held up on cross examination, but reportedly the litigants settled the matter while the jurors were deliberating. For more, see Attorney brings donkey to testify on own behalf in court, reported by Daily Report.

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Weekend I.D. Theft Blotter

Some of the highlights of the week's identity theft stories follow:

• Former Florida nurse arrested for I.D. theft; accused of assuming patient's identity, making over $62,000 in purchases in his name (see Ex-nurse accused of identity theft - More than $62,000 in purchases made in patient's name, authorities say),
• Data entry clerk at NYC government Children's Services office used her work computer to access confidential records belonging to children, sold the information to co-conspirator / tax preparer, who then used the information to fraudulently claim the children as dependents on tax returns that he prepared for his clients (see ACS worker sentenced in identity theft: City),
• I.D. Theft / Grave Robbery - Story of a man who, during 72 years of life, had only two credit cards. Over the two weeks following his death, the man's sister discovered 21 credit applications made in her brother's name (see Scam Alert: Grave Robbery - Even the dead can be victims of identity theft),
• Car salesman conspires with auto buyer in sale of vehicles using stolen identity (see Car salesman held in identity theft scheme),
• Identity theft lands innocent victim in jail (click here for KOMO-TV Video)
• Washington State conducts statewide Shred-a-thon to promote battle against I.D. theft (see Washington State To Have Its First Statewide "Shred-A-Thon"),
• Lawyer Gets 3+ years in jail for flipping fraud involving I.D. theft (see Disbarred lawyer sentenced to 3 1/2 years in jail),
• I.D. theft victims can end up with both damaged credit and criminal record (see Consumer Watch: Criminal Identity Theft) or see WCBS-TV Channel 2 Video.
• Woman accused of using stolen identities to secretly purchase homes in I.D. theft victims' names (see Case grows against Shakopee woman accused of ID theft),
• Mortgage broker convicted of using stolen identities of recently deceased people to cheat mortgage lender and steal over $1.2 million (see Man guilty of using identities of dead people),
• Detailed article on I.D. theft scams - ie. jury duty scam, cash back scam, failed Medicare Part D prescription scam, mailbox theft, Internet lottery scam, use of small electronic storage devices to obtain credit card info, diverting billing statements to another location by completing postal change of address form, “shoulder surfers”, blank charge receipts scam, and others (see Law enforcement, seniors groups fight back against criminals targeting the elderly),
• Shred-it, Office Depot and Crime Stoppers USA promote identity theft fight; organize 2007 USA National Community Shred campaign. Events held at 100 Office Depot stores across the country on April 28, 2007 (see Shred-it, Office Depot and Crime Stoppers Join Forces to Help Combat Identity Theft )

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Wheelchair Bound Widow Beats Down Bully Condo Association

A Margate, Florida condominium association, which brought a lawsuit against an 86 year old, wheelchair-bound widow with a failing memory for allowing two caretakers to stay with her in her apartment around the clock, decided to backpeddle when she retained legal counsel to fight back against them. The association has announced its intent to dismiss the case. However, her attorney, Blaine Carneal, has accused the association of violating Normoyle's civil rights and fair housing laws and asked the Florida Attorney General's Office to investigate. Further, he has formally demanded that the association pay him his attorney fee incurred by his client. The condo association is painfully finding out that once you pick on the wrong person, you can't just back away and not expect any repercussions. For the whole story, see Margate condo drops lawsuit against ailing widow who needs live-in help, reported in the South Florida Sun-Sentinel.

Go here for other posts on Widow vs. Condo association.
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More Charges Against Minnesota Woman Accused Of Using Stolen I.D.s To Buy Homes

Ida Mae James, of Shakopee, Minnesota, who was accused in January of the identity theft of five people to secretly purchase homes in other people's names, secure mortgages, and then collect sales commissions and rents, is now facing an additional accusation of stealing the I.D. of a sixth person. Additionally, a second defendant has been charged in the scam. Holly Jo Jackson, also of Shakopee, is alleged to have assisted James in pulling off the scam. Reportedly:

• "A complaint filed Monday alleges that Jackson, a former personal care attendant for disabled persons, assisted James in stealing the identity of a person whom she cared for in 2005. Two properties allegedly were bought in that person's name."

For more, see Case grows against Shakopee woman accused of ID theft, reported in the Star-Tribune.

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Three Lawyers Involved In Real Estate Theft, Forgery Scam

Authorities say that three lawyers played key roles in a $14 million mortgage scam that robbed owners of the value of dozens of properties, according to The Daily Telegraph. The scam involved forgery, falsely witnessing signatures, and false documents. Reportedly, title insurance companies ended up getting stiffed since the money lost in the scam was repaid by them. Two lawyers have already confessed and have been jailed. The third is on trial. For more, see Lawyers 'in mortgage loan scam'.
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NYC Establishes Foreclosure Prevention Helpline

EmpireStateNews.net reports:

• "New York City Comptroller William Thompson, Jr. Thursday launched a Foreclosure Prevention Helpline to assist New Yorkers struggling to overcome burdensome mortgage payments and threatened with foreclosure. Joined by representatives from community and civic groups, Thompson announced the Helpline - at (212) 669-4600."

For more, see Plan unveiled to assist New Yorkers with escalating mortgage payments.

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Ohio Mortgage Broker Convicted Of Using I.D.s Of Recently Deceased To Get Loans

The Dayton Daily News reported last week:

• "Mark D. Musselman, the mortgage broker accused of using the identities of recently dead people to obtain fraudulent mortgages and steal more than $1 million, was convicted of 48 felony counts Friday following a three-week trial."
• "Musselman ran Phoenix Funding Inc., with offices in Vandalia and his Piqua home."
• "His former employee Mark Edwards pleaded guilty to 48 felony counts the week before the two were to go on trial. Edwards testified against his former employer."

The scam also involved forging appraisals, loan applications and other documents. The victimized lender was Interfirst Mortgage Lenders of Ann Arbor, Mich., owned by ABN AMRO Mortgage.

For more, see Man guilty of using identities of dead people.

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More On California Appraiser Fighting Mortgage Fraud

The Bakersfield Californian reports:

• "Last week, local appraiser Gary Crabtree told The Californian that he has documented about 20 suspicious local home sale transactions in the last year -- and that the number has since grown to more than 50 as news of his allegations spread. He has referred some of them to the FBI, California Department of Real Estate and California Office of Real Estate Appraisers."

According to Detective Frank Wooldridge, who handles real estate fraud cases and other financial and white-collar crimes for the Bakersfield Police Department, "It is very prevalent and it will become more prevalent. There is real estate and mortgage fraud going on in this town. To say it is not, you are just missing the boat."

For more, see Loan fraud cases rising (Officials confirm that mortgage scams occur in Bakersfield market). Click here for other posts on this story.

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Washington State To Have Its First Statewide "Shred-A-Thon"

The Washington State Office of the Attorney General, in conjunction with Washington’s Law Enforcement Group Against Identity Theft, better known as LEGIT, have announced Washington’s first statewide shred-a-thon to take place on Saturday, April 28. Events at 29 locations statewide will help raise awareness of identity theft prevention and assist the public in keeping sensitive documents out of the hands of crooks. Reportedly, nine professional shredding companies are offering free shredding at those locations. For more, see:

• LEGIT Statewide Shred-a-thon,
• You can help foil ID theft Saturday (reported by The Daily Herald),
• Go here for Shred-A-Thon locations.

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Missouri Woman Awarded $400,000 For Being Forced Out Of Her Home

A Missouri woman who was, in effect, forced out of her home of over 30 years as a result of her municipality's failure to correct a city sewage system that caused continued and substantial sewage backup into her home, was awarded approximately $400,000 in damages and interest from the City of Oak Grove, Missouri.

Reportedly, her home was subjected to over a dozen incidents of significant sewage backup over at least a twelve year period beginning in 1992 theough at least 2004, with the incidents increasing in frequency over the tail end of the 12 year period. Each time, she reported the incident to Oak Grove officials without receiving any relief from this pattern of flooding from them.

According to the court decision:

• "During this time, the homeowner began to experience headaches, nausea, bronchitis, and trouble breathing from continuous congestion. Her symptoms began as early as 1999 but became markedly worse in 2001. Her doctor prescribed rounds of antibiotics. In 2003, Collier met with Dr. Kanarak, an allergist, who informed her home was infested with mold and her health complaints likely arose from her exposure to the environmental mold. He recommended that she should move out of her home. Collier was reluctant to leave her home of thirty years; but after she was hospitalized in August 2004, she agreed to leave. The allergist recommended that she leave everything in her home to avoid contaminating another environment and that she would likely need to discard everything in her home. He told her to wear a mask and gloves if she ever went into the house."

In prevailing in her lawsuit against the City of Oak Grove, she was awarded $200,000 on her claim of inverse condemnation, $60,000 in personal injury damages, and over $139,000 in interest.

The homeowner was represented by attorney Bill Carr, Law Offices of William Lewis Carr, Kansas City, Missouri.

Source:

Donna Collier v. City of Oak Grove, Missouri (Mo. App. Ct., W.Dist., April 24, 2007) with an assist from MoreLaw.com.
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Indiana Man Charged In $1 Million Mortgage Fraud

Jason Keigley of First Place Mortgage in Indianapolis, Indiana was charged in 12 counts of theft and violations of the Indiana Securities Act in connection with an alleged a $1 million mortgage fraud scheme. Charges against Keigley center on deals involving two properties in which he is alleged to have misled sellers and buyers, brokering loans in their names without their knowledge and without a proper license. The office of the Indiana Secretary of State investigated the case. For more, see:

• Man Arrested in $1M Mortgage Fraud Scheme, reported by WISH-TV Channel 8 - Indianapolis (link no longer available online),
• Loan broker faces charges tied to $1M in foreclosures, reported by The Indianapolis Star,
• Click here for Channel 8 Video (link no longer available online).

For story update, see The Indianapolis Star: Ex-broker convicted in loan fraud case (2-20-08).

Indiana Secretary Of State Pursuing Mortgage Broker, Title Agent In Alleged Fraud

The State of Indiana is continuing its attack on mortgage fraud, according to an online story by The Indianapolis Star. This time, it's the Indiana Secretary of State launching an offensve against professionals licensed with the state who allegedly played roles in deals involving improper loan applications. It recently filed an administrative complaint which cited loan broker Extreme Investments of Terre Haute and settlement agent Hoosier Title of Sullivan for their alleged roles in deals that enabled West Indiana investors Rick N. Burnett and Kris J. Sommerville in obtaining $1.4 million in loans on 23 houses.

According to the article, "The complaint marks one of the few actions in which a state agency has tried to clamp down on a ring of companies rather than focus on the mastermind of an illicit real estate deal." No criminal charges have been filed. For more, see New tactic in mortgage fraud war (Secretary of state complaint holds broker, title agent accountable).
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