California AG Accuses Loan Modification Firm, Attorney Of Filing Phony Lawsuits To String Homeowners Along, Collect Upfront & Monthly Fees

From the Office of the California Attorney General:

• Attorney General Edmund G. Brown Jr. [Monday] sued a foreclosure consultant and an attorney -- Paul Noe Jr. and Mitchell Roth - who conned 2,000 desperate homeowners into paying exorbitant fees for "phony lawsuits" to forestall foreclosure proceedings.(1) These lawsuits were filed and abandoned, even though homeowners were charged $1,800 in upfront fees, at least $1,200 per month and contingency fees of up to 80 percent of their home's value.

• "Noe and Roth ripped off homeowners desperate for help by charging unconscionable fees for phony lawsuits," Brown said. "Instead of aggressively pursuing the lawsuits, Noe and Roth strung them along so they could continue to rake in fees."(2)

***

• After filing the lawsuits, Roth did virtually nothing to advance the cases. He often failed to make required court filings, respond to legal motions, comply with court deadlines, or appear at court hearings. Instead, Roth's firm simply tried to extend the lawsuits as long as possible in order to collect additional monthly fees.

• Under the terms of the agreement, United First charged homeowners approximately $1,800 in upfront fees, plus at least $1,200 per month. If the case was settled, homeowners were required to pay 50 percent of the cash value of the settlement. For example, if United First won a $100,000 reduction of the mortgage debt, the homeowner would have to pay United First a fee of $50,000. If United First completely eliminated the homeowner's debt, the homeowner would be required to pay the company 80 percent of the value of the home.

For the entire California AG press release, see Brown Sues Foreclosure Consultant and Attorney Who Conned Homeowners into Paying Thousands for Phony Lawsuits.

For the California AG's lawsuit, see People v. United First, Inc., et al.

Go here for other posts related to this operation.

(1) Brown's lawsuit contends that Noe, Roth and United First:

• Violated California's credit counseling and foreclosure consultant laws, Civil Code sections 1789 and 2945;
• Inserted unconscionable terms in contracts;
• Engaged in improper running and capping, meaning that Roth improperly partnered with United First, Inc. and Noe, who were not lawyers, to generate business for his law firm violating Section 6150-6156 of the California Business and Professions Code, and
• Violated Section 17500 of the California Business and Professions Code.

(2) In addition to the current hot water this pair is in, Paul Noe Jr. was convicted of wire fraud in 1989 and the subject of a California Department of Insurance Cease and Desist Order in 2004; and Mitchell Roth resigned from the California State Bar in late May 2009, after the State Bar closed his law firm (see SF Weekly: State Bar Takes Over 'Son of Super Swindler' Law Firm -- 2,000 Con Jobs Too Late).

Brooklyn Feds Charge Title Agency Owner With Ripping Off $1.7M In Escrow Account Funds, Failing To Record Mortgages & Deeds In Real Estate Deals

From the Office of the U.S. Attorney (Brooklyn, New York):

• [Last week] in federal court in Brooklyn, Jonathan Boxman, an owner and operator of real estate title insurance companies, was charged with defrauding clients of title companies he controlled of more than $1.7 million. According to the criminal complaint, Boxman stole money that was entrusted to those companies and used it to pay operating expenses associated with his failing businesses.

***

• According to the complaint, Boxman controlled Titledge Insurance Company of New York, a real estate title insurance company licensed by the State of New York, and various other title abstract companies(1) and agents. [...] Through his companies and bank accounts, Boxman received fees for the recording of mortgages and deeds, which, in turn, he was supposed to remit to the county where the deed or mortgage was recorded.

***

• However, instead of paying the fees to the counties, Boxman allegedly transferred the money to accounts he controlled and used it to pay his companies’ operating expenses and to cover thefts from prior victims of his scheme. The complaint charges that between January 2006 and December 2008, Boxman stole over $1.7 million in recording taxes, other fees, and monies held in escrow, and that as a result of his scheme several mortgages and deeds were never recorded.

For more, see Title Insurance Company Owner/Operator Charged In $1.7M Fraud Scheme.

Go here, Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds.

(1) A title abstract company or agent performs title searches and other functions on behalf of a title insurance company, including issuing title insurance policies in the title insurance company's name, recording mortgages and deeds, and holding money in escrow. EscrowRipOffKappa

Staten Island DA Charges Title Agency Owners With Looting Real Estate Escrow Account, Illegally Pocketing $1M+ In Funds Belonging To Others

From the Office of the Richmond County, New York District Attorney:

• Richmond County District Attorney Daniel M. Donovan, Jr. today announced that Joseph DeVito and his wife, Mary Ann Palladino-DeVito [...] have been arraigned on an indictment alleging that from 2002-2004 they embezzled over $1 million from homeowners seeking to clear titles, as well as their franchise’s parent company.

***

• The defendants, [...] are accused of a top count of Grand Larceny in the 1st Degree, a Class B felony, punishable by a maximum penalty of up to 25 years in prison. District Attorney Donovan stated, "As part of this mortgage fraud scheme, these defendants are alleged to have victimized new homeowners and their franchiser by accepting payment for mortgage fees, mortgage taxes, customer fees, real property filing fees, and escrow account funds and then misappropriating the funds for their own purposes. They are also alleged to have failed to file any tax returns to the State of the New York, depriving our state of essential funds for services such as healthcare and education." The District Attorney further stated that the defendants were franchisees of Fidelity National Title, a Jacksonville, Florida based title insurance company.

For the Staten Island DA's press release, see D.A. Donovan: Two Former S.I. Residents Accused of $1 Million Real Estate Title Fraud, Tax Evasion (Joseph Devito, 39, & Mary Ann Palladino-DeVito, 41, Accused of Embezzling Over $1 Million from Customers & Title Insurance Company, Face up to 25Years in Prison).

For the indictment, see People v. Palladino, Devito.

Go here, Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. EscrowRipOffKappa

Columbus Man Suspected In "Cash Back," Ponzi, Affinity Real Estate Scam Feels The Heat Of Criminal Probe; Trusting Acquaintances Left Holding The Bag

In Columbus, Ohio, The Columbus Dispatch reports:

• A thief used a pen and paper to steal nearly $1.5 million from a group of well-educated, upper-middle-class Columbus professionals. [...] One man became rich; the others were left nearly penniless. [...] Somnath Ganguly, 47, remains free. But the Delaware County resident faces mounting legal troubles, including civil lawsuits and criminal investigations for the real-estate deals he orchestrated during the past four years. Local investors pray that justice will be done.

***

• Columbus and Westerville police both have sent cases to the Franklin County prosecutor's office detailing fraud and forgery. "He is just a complete thief, that's the bottom line," said Sgt. Harold Hansen, of Columbus' economic crimes unit.

***

• The investors all are professionals: scientists, doctors and computer experts. They also are members of Columbus' Bengali community who say they were taken by a fellow native of the Bengal region of India. [...] All now say they were conned and betrayed. They said Ganguly gained their trust first by becoming a friend and then by giving them big returns on early investments. In true Ponzi-scheme fashion, those big returns came from the pockets of other investors.

For more, see Investor nightmare (Trusting professionals unwittingly buy into a housing deal that leaves them in financial ruin, and they want answers).

Builder/Lender To Cough Up Million$ In Settlement With Feds Over Fraud Allegations That It Screwed Over Homebuyers In Loan Application Process

In Charlotte, North Carolina, The Charlotte Observer reports:

• Federal investigators [last week] filed mortgage and accounting fraud charges against Beazer Homes USA, but the homebuilder will escape prosecution because it agreed to pay $50 million to victims and accepted responsibility for its actions. The charges, entered in U.S. District Court in Charlotte, relate to Beazer's participation in a scheme designed to fraudulently increase its mortgage company's profits and sell homes, as well as an accounting scheme designed to "smooth earnings." As a result, authorities said, homebuyers defaulted on their loans, and neighborhoods plagued with foreclosures watched home values plummet.(1)

***

• Under the agreement with the U.S. Attorney's office, the homebuilder accepts responsibility for fraudulent practices and will pay $10 million immediately toward restitution for victimized homebuyers, plus additional money up to a total of $50 million as the company recovers financially. The U.S. Attorney's office has agreed not to prosecute the company as long as it satisfies its obligations in the next five years.

For more, see Beazer agrees to pay victims $50 million.

For the U.S. Department of Justice press release, see United States Settles False Claims Act Allegations Against National Home Builder and Mortgage Lender:

• Beazer Homes USA Inc. has agreed to pay the United States $5 million dollars, plus contingent payments of up to $48 million dollars to be shared with victimized private homeowners, to resolve allegations that it, and Beazer Mortgage Corp., were involved in fraudulent mortgage origination activities in connection with federally insured mortgages.

(1) According to the Department of Justice, the settlement resolves allegations that when Beazer Mortgage Corp. made Federal Housing Administration (FHA) insured mortgage loans for the purchase of homes built by Beazer Homes USA Inc., the companies fraudulently and improperly:

• required purchasers to pay "interest discount points" at closing, but then kept the cash and failed to reduce interest rates;
• provided cash "gifts" to home purchasers through certain charities, so purchasers could come up with minimum required down payments, with assurances the "gifts" would not have to be repaid, and then increased home purchase prices to offset the amount of the gifts;
• obscured which of its branches made defaulting mortgage loans to avoid FHA detection of excessive default rates; and
• ignored "stated income" requirements in making loans to unqualified purchasers.

Housekeeping Note

The links to Massachusetts Bankruptcy Judge Rosenthal's rulings referred to in "Bankruptcy Judge Hammers Mass. Money Lender Accused Of Predatory Practices By Piling Up Loan Charges, Wrestling Property Ownership Away From Borrowers" posted earlier today have been fixed.

If anyone continues to have a problem accessing these rulings, drop me a line at HomeEquityTheft@yahoo.com and I'll email them to you. Sorry for the inconvenience.

Free SoCal Legal Clinics To Advise Homeowners Facing Foreclosure

In Orange County, California, KPCC Radio 89.3 FM reports:

• Starting this week, some struggling Orange County homeowners are eligible for free help. KPCC's Susan Valot says a series of legal clinics that starts tomorrow is geared toward Asian-Americans.

• The Asian Pacific American Legal Center will host three free clinics – two this month and one next month.(1) They're for homeowners who face foreclosure or who might be victims of predatory lending. Attorneys will review each case, explain the property owner’s legal rights and offer advice about "short" sales, loan modification, and defending against eviction.

Source: Struggling OC homeowners to get free legal advice.

(1) Reportedly, Vietnamese, Korean, and Mandarin translators will be on hand at the Garden Grove clinics. You have to call the Asian Pacific American Legal Center to make an appointment.

Central Florida Judges Hit With Federal Suit Over Implementation Of "Rocket Docket" Foreclosure Hearings

In Sarasota, Florida, the Sarasota Herald Tribune reports:

• Gregory Dixon and Maria Goldberg expect to lose their homes to foreclosure, so they have not appeared in court or tried to defend themselves. But they also think the way the judicial system handles uncontested foreclosure cases such as theirs violates the constitutional rights of all Sarasota and Manatee county residents, and they are asking a federal judge to step in.

• Their lawsuit against 12th Circuit Chief Judge Lee Haworth and two judges handling foreclosure cases argues that the courts should review cases to prevent lenders from taking homes based on incomplete or incorrect information. Their attorney, Richard Kessler, says judges have a responsibility to verify documents filed by lenders, and not doing so violates foreclosure defendants' rights to due process in court.(1)

***

• Kessler's lawsuit argues that a new "rocket docket," where up to 250 uncontested foreclosures are heard in one day to help unclog the congested court system, only accelerates the problem. But, judges say, it is the defendants' job to challenge the documents being used by lenders to take their property.

For the story, see Homeowners contend courts must review documents.

For earlier stories on Sarasota's foreclosure "rocket docket," see:

• Two minutes, and home goes away,
• 'Rocket docket' for foreclosures begins,
• It's fast, furious at Sarasota's 'Rocket Docket' court.

For posts that reference the failure of mortgage lenders and their attorneys to file the proper paperwork when bringing foreclosure actions, Go Here, Go Here, Go Here, Go Here, Go Here, Go Here, and Go Here.

(1) Reportedly, Kessler conducted a study of 180 Sarasota County cases and found only one in four had complete paperwork. EpsilonMissingDocsMtg

Title Insurer's Lack Of Action On Subcontractors' Mechanics Liens Filed Against Bankrupt Developer Leaves Recent Homebuyers In Refinancing Limbo

In Woodstock, Illinois, the Chicago Sun Times reports:

• Woodstock resident Deborah Sinnett's taste of the American dream has turned sour big-time, and she blames bankrupt Streamwood-based home builder Kirk Homes. Since Sinnett moved into her $355,000 Kirk home in December, 11 liens have been placed against the property by companies claiming they weren't paid by Kirk.(1) She faces the threat of foreclosure because of the liens, according to a local attorney. But her title insurance should cover her.

• Sinnett said the liens also have complicated her plans to refinance at lower rates. Kirk says she's protected. But the title insurer, First American Title Insurance Co., hasn't taken court action to remove the liens, and Sinnett doesn't know how long the liens will remain on her property. It could be a couple of years, according to state law.

***

• Sinnett said she received the first lien notice shortly before Christmas. She contacted First American Title and was told by letter that her title is insured, but "because there has been no action taken by the lien claimants to enforce their claims through a court proceeding, there is no action for First American to take at this time." [...] First American declined to comment on Sinnett's case, but said it "stands behind its policies of title insurance." But the company indicated Sinnett and others could be in for a long wait.(2)(3)

For more, see Kirk Homes bankruptcy leaves homeowners in limbo (STUCK IN MIDDLE: With Kirk Homes in bankruptcy, many homeowners can't refinance because of contractors' claims).

For more on homeowners left in the lurch due to actions by builders/contractors, go here, go here, go here, go here, and go here.

Go here for other posts involving legal issues related to title insurance.

(1) Reportedly, Sinnett's situation isn't unique as builders across the country fold or file Chapter 11 bankruptcy.

(2) Reportedly, Sinnett shared documents showing liens totaling more than $140,000. "It's costing us hundreds of dollars per month to not be able to refinance. No mortgage company wants to talk with us about refinancing with all those liens," she said.

(3) If faced with a lien on your home, attorney Mark Nora, vice chair of the Chicago Bar Association's real property committee, provides this advice in the article:

• Homeowners can "make demand" on the title insurer to take appropriate action to discharge the lien. The insurance policy will specify how soon a homeowner must make that demand.
• Alternately, homeowners can demand in court that the filer of a lien either file a lawsuit to enforce the lien or be barred from proceeding with one.
• Those in the process of building a home can require in the contract proof that subcontractors are being paid as work has been completed and lien waivers to prevent those companies from filing liens on the property related to that work.
• Work with a qualified attorney, make sure you have title insurance from a company with sufficient reserves to handle claims and read the fine print. title insurance legal issues StiffingContractorsTheta

Lawyers Bellyaching Over Exclusion From Fannie, Freddie "Assembly Line Foreclosure Attorney List"

The Connecticut Law Tribune reports:

• To most Connecticut foreclosure attorneys, it's known as "the list." Inclusion is supposed to guarantee not only prestige in the legal community but, more importantly, a massive flow of foreclosure cases at a time when there's money to be made in volume work.

• Mortgage giant Fannie Mae maintains the primary list, called the retained attorney network, and it includes about 140 select law firms in 31 states. Many of those chosen firms also comprise the Freddie Mac designated counsel list of about 50 members.

• So what's the big deal?

For more, see Elite Lists for Foreclosure Work Under Scrutiny (Firms frustrated over difficulty in qualifying for work on Fannie Mae and Freddie Mac foreclosures; Connecticut attorney general is investigating).

For more on the Connecticut attorney general inquiry on how Fannie Mae, Freddie Mac, and mortgage-processing services company Lender Processing Services Inc. select law firms for foreclosure services, see:

• The Wall Street Journal: Conn AG Seeks Information On Foreclosure Law Firms (requires subscription; if no subscription, try here, then click link for the story),
• Connecticut Attorney General press release: Attorney General Investigates Selection Process For Law Firms, Marshals Handling Foreclosures,
• Go here for Connecticut AG Blumenthal's letters to LPS , Fannie, Freddie requesting information.

Bankruptcy Judge Hammers Mass. Money Lender Accused Of Predatory Practices By Piling Up Loan Charges, Wrestling Property Ownership Away From Borrowers

In Worcester, Massachusetts, the Worcester Telegram & Gazette reports:

• A loan repayment demanded at gunpoint, effective interest rates exceeding 41 percent and a near decade-long litany of coercion and strong-arm tactics left two borrowers “between the proverbial rock and a hard place,” according to a federal judge’s ruling that comes down hard on a controversial Marlboro lending firm and its president.

• U.S. Bankruptcy Court Judge Joel B. Rosenthal’s decision last week in favor of two corporations controlled by area real estate developers David D. Depietri of Southboro and Robert Depietri Jr. of Worcester marked the first time complaints against LBM Financial LLC and its owner, Marcello M. Mallegni, were aired in a trial and ruled upon by a judge. In his decision, Judge Rosenthal declared that LBM and Mr. Mallegni used a variety of “unscrupulous, to say the least” tactics to ensnare the Depietri brothers’ corporations, 201 Forest Street LLC and 219 Forest Street LLC, into a cycle of ever-increasing default interest and late fees.

***

• The ruling had been anxiously awaited by those who have filed more than a dozen state and federal lawsuits that accuse LBM and people associated with it of using similar tactics — including loan sharking, racketeering, extortion and fraud — in transactions they had with the firm.(1) The underlying intent of LBM and its principals, the lawsuits allege, was to wrest control of development projects through foreclosure, or, at the very least, force delays to run up the cost of those loans by piling on fees, penalties and default interest rates.(2) “This is exactly what they did to me,” said Barnstable developer Robert M. Bradley, who has a pending federal racketeering lawsuit against LBM, Mr. Mallegni and others. His experiences, he added, “absolutely mirror those made in this case, only tenfold.”

For more, see ‘Unscrupulous’ loan tactics cited (LBM Financial and owner Mallegni fined $1.1M).

For Judge Rosenthal's recent ruling in this matter, see 219 Forest Street LLC et al v. LBM Financial, LLC et al (6-30-2009).

Go here for Judge Rosenthal's April 8, 2009 ruling resulting in the discharge of one of the mortgages in this case pursuant to the application of Massachusetts "Obsolete Mortgages Statute" - M.G.L. ch 260, section 33.

Go here for other posts on accusations of strong arm money lending practices made against these "hard money" lenders.

(1) According to the story, many of the state and federal lawsuits filed against Mr. Mallegni and LBM also name David G. “Duddie” Massad, chairman and primary owner of Commerce Bank, as a defendant.

(2) An earlier Worcester Telegram & Gazette story (see Strong-arm tactics are alleged - LBM Financial target of complaints) reports, in the following excerpt, how LBM Financial routinely dodges the application of the Massachusetts criminal usury statute in lending transactions by availing itself of a huge loophole in the state's law that allows a lender to charge more than the maximum interest rate, provided that it notifies the state attorney general in writing ahead of time about it (see M.G.L. Chapter 271: Section 49(d). Criminal usury). Keep in mind that actually obtaining approval to make these loans from the state attorney general (or any other government authority, for that matter) is not necessary; you merely have to let the AG's office know, in writing, that you're going to do so.

• The state usury law dating back to the 1970s ostensibly caps the maximum legal interest rate at 20 percent, but also allows lenders to charge higher rates if they notify the state attorney general’s office in writing. LBM filed notifications announcing its intention to charge interest rates above the usury limit on loans in 1997, 2000, 2002, 2005, 2006, 2007 and 2008, according to records on file at the attorney general’s office. The one- or two-page notification letters, signed by Mr. Mallegni, don’t say exactly how far above the usury limit the company intended to set its interest rates. “All that the statute requires is that if a business is going to lend above a certain rate, they must file with this office,” said Melissa Sherman, a spokeswoman for Attorney General Martha Coakley. “We do approve these, but serve more as a depository for such notices.”

Go here for an example of an LBM Financial letter informing the Massachusetts AG it will be charging usurious rates.

Colorado Real Estate Broker Goes Down In $10.9M Mortgage Fraud Scam Involving 10-Person Ring, 34 Deals, Straw Buyers, "Phantom" Home Improvements

In Adams County, Colorado, the Denver Business Journal reports:

• Uto Essien faces a possible 36-year prison sentence for his role as the ringleader in a multimillion-dollar mortgage fraud scheme. Following a seven-day trial in Adams County, Essien, 45, was convicted of four felony counts — two counts of forgery, and one count each of theft by receiving and violating the Colorado Organized Crime Control Act.

***

• Essien and nine others were indicted in March 2008 on charges connected with 34 real estate deals in Denver, Adams, Arapahoe and Jefferson counties. [...] Four others have pleaded guilty. The rest are expected to stand trial this summer.

• Between spring 2004 and spring 2007, Essien and his co-defendants allegedly used false invoices and shell corporations to obtain $10.9 million in mortgages, keeping $1.1 million of those funds, according to the indictment. [...] Those indicted allegedly used shell buyers to acquire houses at inflated prices, telling mortgage lenders that the houses had gotten improvements they actually hadn’t, the Attorney General’s Office said. Lenders were deceived into paying for the improvements. [...] Essien acted as the real estate broker in the deals.

For the story, see Man convicted in mortgage-fraud scheme.

Washington AG Intervenes On Behalf Of Mobile Home Residents Alleging Property Titles Were Never Properly Transferred By Park Owner

From the Office of the Washington State Attorney General:

• Residents of a Spokane mobile home park were bewildered to learn they didn’t own the homes they live in. When an investigation by the Washington Attorney General’s Office revealed that the owner of West Prairie Village never properly transferred the titles, the business agreed to make things right. West Prairie Village owner, Vito Enterprises, U.S., Ltd., cooperated with the state’s investigation and signed an agreement submitted [...] for filing in Thurston County Superior Court.

***

• “Some of West Prairie Village’s residents are seniors who were denied property-tax exemptions because they didn’t own their homes,” Assistant Attorney General Jackie Findley said. “After the Spokane Assessor’s Office alerted us to the problem, we investigated and found that the titles hadn’t been properly transferred and the sales contract terms were vague.”(1) [...] The Attorney General’s Office alleged that Vito Enterprises’ sales practices were unfair and violated Washington’s Consumer Protection Act.

For the entire press release, see Stumped Spokane seniors told they didn’t own their homes (Mobile-home park owner changes sales terms after Attorney General’s Office steps in).

(1) The purchase agreements and promissory notes required new West Prairie Village homeowners to make monthly payments with 9 percent interest amortized at 15 years. Although the agreement referenced a “5-year term,” it wasn’t clear to purchasers that they were responsible for a balloon payment. At the end of five years, owners were told they needed to pay off the remaining balance or renew their contracts at a 12-percent interest rate. rent to own lease purchase option scams yellowstone

Oakland Settles Suit Charging Lender, Subsidiaries, Real Estate Agents With Illegal Foreclosure Evictions

From the Office of the City Attorney for Oakland, California:

• A City of Oakland lawsuit accusing JPMorgan Chase Bank of wrongfully evicting tenants from foreclosed homes has been settled. The lawsuit was one of five filed by the city in recent months accusing banks, their subsidiaries and several local real estate agents of violating an Oakland law that protects tenants from unjust evictions.(1)

• In February and March of this year, Oakland’s Neighborhood Law Corps filed the lawsuits against JPMorgan Chase and Fidelity National Financial, along with their subsidiary companies and the local agents who are paid to remove tenants from properties the banks have acquired through foreclosure.

• Tenants in foreclosed homes and apartments provided numerous examples of improper eviction notices served by those agents. Oakland’s "Just Cause" ordinance allows landlords to evict tenants for specific reasons such as failing to pay rent or damaging property. However, foreclosure is not a "just cause" for eviction under the city’s law.

• JPMorgan Chase agreed to a settlement that includes a $35,000 payment to the city. The settlement also includes an example of a legal notice that banks can use to determine the occupancy of a foreclosed property in Oakland. "Evictions resulting from the foreclosure crisis continue to cause extraordinary hardship for working families here in Oakland and across California," City Attorney John Russo said. "I congratulate JPMorgan Chase and other defendants for quickly stepping up to settle these lawsuits and for recognizing the law in Oakland. We hope these settlements send a strong message to other banks and agents who do business in our community."

• Russo also praised real estate agents Joseph McNulty and Percy Cheung, the first defendants to agree to settlements.(2) The City Attorney’s Office is in settlement negotiations with other defendants named in the complaints.

For the Oakland City Attorney press release, see Oakland reaches settlement with JPMorgan Chase on eviction lawsuit.

Go here for other posts on illegal foreclosure evictions in violation of Oakland, California's Just Cause Ordinance.

(1) For more from the Oakland City Attorney's Office on these illegal foreclosure eviction lawsuits, see:

• Press Release: Oakland City Attorney sues major banks, local agents to stop illegal evictions and abuse of tenants’ rights;
• Lawsuit against: JPMorgan Chase, Chase Home Finance, EMC, etc.,
• Lawsuit against: Fidelity National Financial, etc.,
• Lawsuit against: Keller Williams, etc.,
• Lawsuit against: Session Real Estate,
• Lawsuit against: Smart Choice Realty, etc.
• Examples of Wrongful Eviction Notices,
• City Attorney's Guideline for Tenants' Rights in Foreclosed Housing.

(2) According to a San Francisco Chronicle report, Joseph McNulty will pay $3,000 and Percy Cheung of Smart Choice Realty will pay $2,500, said Alex Katz, spokesman for City Attorney John Russo.

C. Florida Man Accused Of Using POA To Secure $150K Credit Line On Alzheimers-Afflicted Mom's Home; Pocketed Cash, Left Her In Foreclosure, Say Cops

In Dade City, Florida, the St. Petersburg Times reports:

• Thomas Davis secured a $150,000 home equity line of credit on his elderly mother's home last year, authorities said. Within seven months, he had spent it all — on drugs, a hydroponic garden for growing marijuana, even on a $40,000 party that Davis, 47, threw for himself, the Pasco County Sheriff's Office said. By March, the bank began foreclosure proceedings on the home of the woman, who has Alzheimer's. And Davis, who had power of attorney as his mother's live-in caretaker, told family members he had dug a financial hole from which he couldn't escape, the Sheriff's Office said.

• A judge transferred guardianship of the 87-year-old mother from Davis to his sister. The sister began making mortgage payments to save the Dade City home from foreclosure. And Davis was arrested this week on a charge of exploitation of the elderly.

For more, see Pasco man spent mother's $150,000 line of credit on drugs, party, deputies say.

Go here, here, here, here, here, and here for other posts on elder financial abuse. FinancialAbuseOfElderlyAlpha

Arizona Man Charged With Ripping Off Dead Man's ID, Using It To Buy Homes, Vehicles

In Anthem, Arizona, KNXV-TV reports:

• A Valley business owner from Brazil is accused of stealing a dead man's Social Security number and using it to purchase two vehicles and two homes, one of which is in foreclosure, according to a Maricopa County Sheriff's Office press release. Raphael Libardi, co-owner of Aracruz International Granite, was booked on felony identity theft and mortgage fraud charges.

For more, see MCSO: Valley business owner, immigrant stole dead man's ID.

Foreclosure Stripping Not Yet On Radar Screen For SW Florida Law Enforcements Authorities

In Naples, Florida, the Naples Daily News reports:

• Foreclosure stripping is a crime, and it has a victim. It’s you. Neighborhoods are losing more than just neighbors. Homeowners in foreclosure are ripping out bathtubs, wiring, countertops, sinks, windows, garage doors and even the palm trees from the front yard and selling them for cash.

• As a result, property values are falling and the tax collections associated with them are stripped, as well. Government services depending on those taxes are thrown onto the chopping block. The victims are everywhere. Law enforcement hasn’t made any arrests.(1) Banks and mortgage companies haven’t brought anyone to court. It’s a free-for-all, and it’s happening right now.

For more, see For sale: Anything and everything inside foreclosed homes (A new trend called foreclosure stripping is against the law, but authorities and banks aren’t stopping it).

For examples of foreclosure stripping ads on Craigslist.com:

• example #1,
• example #2,
• example #3,
• example #4.

Go here for other posts on foreclosure stripping.

(1) Reportedly, Lee County Sheriff’s Office spokesman Larry King said the situation is not as clear as some make it out to be. It’s not always illegal, King said, and suggested new laws may be needed. “The gray area is it’s not officially the bank’s until it’s actually turned over to the bank,” King said. “So what the homeowner does is at their discretion, or something is in place mortgage-wise or statutorily.” In Collier County, Chief Jim Williams, the Sheriff’s Office head of investigations, expressed concern over taking resources away from other investigations, such as those into online child predator schemes, to concentrate on an as-of-yet unexplored area of the law. foreclosure fixture stripping apple

South Florida Tenant On Verge Of Eviction Dies Of Self-Inflicted Gunshot Wound

In Broward County, Florida, MyFox National reports:

• A Florida woman tragically committed suicide on the day she was getting evicted from her home. Heather Newnam, 28, of Tamarac, Fla., shot herself when a real estate agent, a locksmith and movers showed up at her home on Monday after she failed to pay her rent. She told them she had to secure the dogs first, and then a shot was fired, according to the Broward Sheriff's Office. The SWAT team arrived on the scene and found her dead from a gunshot wound to the head.

• Newnam documented her life on Twitter as user rsangel04. Her last post on June 24 read, "Rich get richer, poor get poorer, families on the street, govt doesn't care. God bless the usa, but can He save it?" The day before, Newnam seemed in better spirits. "Five minutes til Rescue Me, Woo Hoo! then bed, Im beat." According to the New Times, Newnam worked in sales at the Success Research Group in Oakland Park, Fla.

Source: Woman Commits Suicide to Avoid Eviction.

Go here and go here for other posts on incidents during home evictions. DeputyEvictionTheta

Litigation In Baltimore City's "Ghetto Loans" Case To Go Forward As Judge Denies Wells Fargo's Request To Dismiss Suit

In Baltimore, Maryland, The Maryland Daily Record reports:

• The city of Baltimore’s mortgage-lending discrimination lawsuit against Wells Fargo Bank N.A. may proceed to what will be a “time consuming and expensive” discovery process, a federal judge ruled Thursday afternoon. Chief U.S. District Judge Benson E. Legg rejected the bank’s motion to dismiss the suit, four days after hearing arguments about the city’s alleged damages. The decision means the city will get access to more details about Wells Fargo’s lending practices since 2000; it had previously relied solely on publicly available information and information from a few industry insiders.

• The city claims the bank targeted black borrowers for subprime loans, a practice known as reverse-redlining, and that the resulting foreclosures have cost it tens of millions of dollars in lost property revenues and police, fire, and rehab expenditures.

***

• “Based on the new affidavits submitted by former Wells Fargo employees Elizabeth Jacobson and Tony Paschal, the City has proffered sufficient proof to proceed with its claim for disparate treatment discrimination under the Fair Housing Act,” Legg wrote in a 4-page memorandum.(1)(2) [...] The ruling represents a big victory for the city, since its suit was the first of its kind when filed in January 2008. A similar suit brought by the city of Cleveland under a public nuisance theory was dismissed in May.

For more, see Judge won’t dismiss City’s suit against Wells Fargo (if link expires, try here).

Go here for Judge Legg's 4-page order.

For earlier reports on this case, see:

• The Maryland Daily Record: Ex-workers allege race-based loan approach at Wells Fargo,
• The New York Times: Bank Accused of Pushing Subprime Deals on Blacks.

(1) In addition to denying Wells Fargo's Motion To Dismiss the lawsuit, the court, in footnote 1 of this order, grants the City of Baltimore's Motion To Amend its Complaint.

(2) According to an earlier report, the two whistleblowers claimed their co-workers targeted black ZIP codes and churches, used software to “translate” marketing materials into African-American vernacular, and referred to subprime loans in minority communities as “ghetto loans” and to borrowers as “mud people.” The loan officers, who worked for Wells Fargo in the Baltimore-Washington area from the late 1990s until 2007, also reportedly alleged that bank employees deceptively steered prime borrowers into subprime loans for their own financial benefit and joked that they were “riding the stagecoach to Hell.”

Northern Florida County Clerk Stops Issuing Summonses To Tenants In Foreclosure Actions

In Alachua County, Florida, The Gainseville Sun reports:

• Clerk of Court Buddy Irby said the Clerk's Office stopped issuing the summonses [to tenants in foreclosure actions] on Jan. 15 on the advice of the clerk's attorney because of concerns that they show the tenants as being sued in court records. "If you were a renter, I'd think you'd be upset that the court records show that you are being sued in a foreclosure suit," he said. Irby said the summonses also created a lot of paperwork at considerable time and expense, with taxpayers footing the bill. He said it would be easier for the lenders or their attorneys to send letters informing any tenants of the foreclosure.(1)

Source: What if your apartment complex forecloses? New law may ease the big surprise.

(1) In judicial foreclosure states, basic foreclosure law says that unless all parties holding legal interests in real property (including leasehold interests, liens, etc.) that are subordinate to a mortgage in foreclosure are served with notice of the lawsuit, those subordinate interests are not cut off and will survive the foreclosure action. For this clerk of the court to decide not to issue summonses to tenants in possession of property in foreclosure actions (and thereby abridging their due process rights) to save money seems pretty ridiculous. I also find it hard to believe that the clerk's attorney advised him to do this.

Class Action Certification Hearing Set In South Florida Chinese Drywall Case

In Miami, Florida, the South Florida Business Journal reports:

• Miami-Dade County Circuit Court Judge Gill S. Freeman has ordered a Sept. 14 hearing to determine if a class action can be certified for homeowners with Chinese drywall in the Keys Gate subdivision in Homestead. The plaintiffs’ homes were constructed with what they allege was defective Chinese drywall. [...] The judge also set a possible trial date for September 2010. Lawyers working on the case say it may be the first Chinese drywall case set for trial nationwide.

• High-sulfur Chinese drywall is believed responsible for strong odors, metal corrosion and health complaints in thousands of homes in Florida and the Southeast. Federal class action suits were combined recently in New Orleans.

For more, see Hearing set to certify Chinese drywall class.

Central Florida Tenants Get The Boot As Utilities Are Shut Off In Apartments In Foreclosure; Landlord Suspected Of Stealing Electric Service

In Clearwater, Florida, My Fox Tampa Bay reports:

• Pinellas County Code Enforcement officers closed a row of apartments Tuesday, finding the rental units lacked water and electricity -- even as tenants continued paying. "We got 15 days, they got it posted on the door," said resident Debra Turman. "This place isn't fit for humans, but I guess the roaches can stay!" Electric service to the converted homes on Westminister Avenue was shut off Thursday, when sheriff's deputies investigated claims that electric was being stolen. Residents said the water had been shut off far longer, and that the landlord had dug an illegal well. "That's part of the minimum housing code. You do need to have running water, sewer and electricity," said Todd Myers, the county's code enforcement director.

***

• Pinellas Property Appraiser's Office records indicate Safety Harbor resident Lawrence Ayers owns the rental homes, and another apartment building near Oldsmar that was also deemed uninhabitable earlier in June. Myers said the conditions were similar to those on Westminister Avenue and there were also claims electricity was being stolen.

For more, see Clearwater apartments condemned (County: homes are hazardous).

See also:

• Squalid apartment complex condemned (Residents had been without water and power since Thursday),
• Tenants stuck in squalor; landlord still out of contact. RentSigmaSkimming

Long Island Man Accused Of Hijacking Homes In Foreclosure, Renting Them Out, Filing Over A Dozen Phony Liens Faces Jury Trial

In Suffolk County, New York, the Long Island Press reports:

• Home may be a man’s castle, but in Paul Salamone’s case, the entire fiefdom was allegedly fraudulent. The Medford man is facing a Suffolk County jury [...] after being accused of breaking into seven homes in various states of foreclosure and illegally renting some of them out in a scheme to capitalize on the failing local housing market.

• In his defense, his attorney points out that 28-year-old Salamone, who prosecutors say had renovated some of the vacant houses before he advertised them as for rent on Craigslist, truly believes what he was doing was right. Despite Salamone’s supposed good intentions, at least two families that rented from him were caught in the crossfire and evicted after the alleged scam began to unravel.

***

• It took police several months to connect the dots. A grand jury had indicted Salamone on five counts of burglary, but two more counts were added when additional houses were discovered. He was also charged with grand larceny for the “rent” he received, and criminal possession of a forged instrument for filing more than a dozen fraudulent liens.

For more, see Local Man In the Doghouse In Housing Rental Scheme (Accused Fake Landlord goes to Trial in Suffolk).

Go here, go here, go here, and go here for posts on phony landlord rent scams. KappaPhonyLandlordScam

Oklahoma Man Accused Of Hijacking Homes In Foreclosure & Renting Them To Unwitting Tenants Cops Plea, Gets Deferred Sentence

In Tulsa, Oklahoma, the Tulsa World reports:

• A man received a three-year deferred sentence Tuesday on accusations that he rented foreclosed houses in Tulsa without the authority to do so. Michael Remington was charged in May with two felony counts of obtaining money by false pretense. He pleaded no contest Tuesday to one count, and the other was dismissed. Tulsa County Special Judge David Youll deferred the sentencing, and Remington can have the remaining count dismissed with no conviction if he completes a three-year probation. He must perform 80 hours of community service and pay about $1,100 in court-related costs, officials said.

• He was accused in one case of obtaining $1,900 from a man who responded to an ad Remington had placed on craigslist.com — an online advertisement network — for a house that the defendant said he had for rent[...]. The owner of that house, which was in foreclosure, said she did not know Remington and did not give him permission to rent her house, a police affidavit states. In the dismissed count, Remington was accused of obtaining $5,200 from a man who rented a house in the 4200 block of East 78th Street. The owner of that foreclosed home also said she did not give the defendant permission to rent it, the affidavit states.

Source: Man receives deferred sentence in obtaining money by false pretense case.

Go here, go here, go here, and go here for posts on phony landlord rent scams. KappaPhonyLandlordScam

Judge's Wife Charged With Forging Court Order In Attempt To Stall Home Foreclosure

In Marion County, Indiana, The Indianapolis Star reports:

• Forging a judge's signature. Pretending to be the victim of a vicious assault. Impersonating a co-worker at the Indianapolis Metropolitan Police Department. Few would expect such actions from a police employee, much less the wife of a judge. But those are the desperate and criminal steps police say the wife of Marion Superior Court Judge William Nelson took in an effort to avoid foreclosure on the couple's Geist home.

• Kristina Nelson, 43, was arrested Friday on a preliminary charge that she forged the name of another judge -- her sister-in-law -- as part of a fraudulent scheme to stop the foreclosure, according to the police and court documents.

• A police report said Kristina Nelson admitted under questioning that she had signed Marion Superior Court Judge Sheila Carlisle's name on a counterfeit court order. The document, sent to EverHome Mortgage Co., claimed that she and her husband had been brutally attacked -- that he had been shot and she had to have her jaw wired shut -- and needed time to recover before they could make mortgage payments. Nelson told police that her husband knew nothing about the incident, and police who interviewed the judge Friday found him surprised by his wife's reported behavior.

For more, see IMPD: Ex-staffer is arrested in fraud (Police say forged signature was attempt to avoid foreclosure).

For follow-up stories, see:

• Marion Co. judge recuses in forgery case,
• Special judge is sought in forgery case (Jurist's wife accused of forging signature to halt foreclosure; lawyer says affidavit lists wrong house).

SW Florida Man Gets 22 Years In Mortgage Scam Involving $30M+ In Fraudulently Obtained Loans On 36 Properties

In Fort Myers, Florida, The News Press reports:

• A man federal authorities believe spearheaded a $30 million real estate scheme based in Cape Coral was sentenced to 22 years in prison Tuesday. Ronald Luczak, 38, who with his wife Lisa ran Cape Coral Equity and Development Group Inc., said nothing as he was sentenced by U.S. District Judge John Steele. He pleaded guilty in September to one count each of wire fraud, money laundering and conducting a prohibited money transaction.

• Luczak was the last of four defendants — one of whom was a Cape Coral police officer — to be sentenced in connection with the case, which started in 2005 and ended in 2006, when they were arrested. Together, the couple created a scheme where they obtained more than $30 million in mortgages on 36 properties.

For more, see Cape Coral man gets 22 years for fraud (Ran $30 million real estate scheme).

For the press release from the U.S Attorney (Tampa/Fort Myers), see Cape Coral Man Sentenced for Role in $30 Million Mortgage Fraud Case.

Ohio AG Bags 13 Suspects In Alleged Mortgage Fraud Scam Involving 30+ Properties

From the Office of the Ohio Attorney General:

• Ohio Attorney General Richard Cordray and the Ohio Organized Crime Investigations Commission announced [Wednesday] details of an investigation which has led to the indictments of 13 people(1) alleged to have perpetrated a $9 million mortgage fraud scheme involving more than 30 properties in central Ohio.

***

• Investigators report that more than 30 loan transactions are at issue in this case and some properties were recycled through multiple fraudulent loan transactions. It is alleged that loan applications and documents were falsified on behalf of borrowers, and that orchestrators made down payments allowing borrowers to secure loans in which tens of thousands of dollars were laundered through fictitious home contractor companies.

For the entire Ohio AG press release, see Investigation of Alleged Mortgage Fraud Scheme Leads to 83-Count Indictment.

Go here for the indictment.

(1) Benjamin Tubbs, 49, of Pickerington, Kevin Murphy, 50, of Blacklick, and Karl Mullins, 33, formerly of Columbus and now residing in Florida, are alleged to have acted as the mortgage brokers and orchestrators of a scheme to buy and sell houses at highly-inflated prices and to falsify loan documents in order to skim ten of thousands if not hundreds of thousands of dollars from each sale. Also indicted are: Cynthia Underdew, 53, of Columbus (loan officer and mortgage loan coordinator); Karen Axline, 48, of Granville (operated the now-defunct Granville Title Agency); Kevin Gray, 48, of Reynoldsburg; Nina Masseria and Tim Arrington of Carriage Trade Realty (real estate agents); appraisers Joseph Colegrove and Scott Walisa and assistant appraiser Terri White; Earron West, 38, of Columbus (loan officer); and Nina Dearing, 29, of Columbus.

Philadelphia Foreclosure Diversion Program Scoring High Marks

In Philadelphia, Pennsylvania, the Philadelphia Daily News reports:

• Jeff Jubelirer, a First Judicial District spokesman, said that more than 5,700 Philadelphia homeowners have participated in the [Residential Mortgage Foreclosure Diversion Pilot Program.]. Of those, the homes of about 1,400 have been saved from a sheriff's sale, and 700 other owners have been able to postpone sales, said Judge Annette Rizzo, who is in charge of the program. "Folks who haven't worked together before . . . are wading in together and getting things done," said Pamela Dembe, president of the Court of Common Pleas.

***

• D. Webster Keogh, a judge in Philadelphia's trial division, credited "relentless" outreach by public-interest groups. He cited a "change in the attitude and posture of opposing attorneys" that "allowed them to take their litigation gloves off."

For more, see Much-admired city initiative saves 1,400 homes from foreclosure.

See also, The Philadelphia Inquirer: A milestone for mortgage-foreclosure diversion program.

Nevada High Court Adopts Rules To Implement New State Foreclosure Mediation Program

The Nevada Supreme Court announced:

• The Nevada Supreme Court has adopted formal rules governing the Nevada Foreclosure Mediation Program that was established by the passage of Assembly Bill 149 by the 2009 Nevada Legislature. CLICK HERE to read the rules. [...] The Election/Waiver of Mediation Form to be served with the Notice of Default and Election to Sell is included along with instructions for the individuals recording the notices involved in the new foreclosure procedures (CLICK HERE).

• Assembly Bill 149, passed shortly before the end of the session, provides for mediations in foreclosures commenced on or after July 1, 2009, as a way to help home owners find alternatives to losing their houses. A homeowner who receives a foreclosure notice can request an opportunity to sit down with the lenders and a trained mediator and explore whether a mutually agreeable resolution can be reached. In the legislation, the Supreme Court was tasked with establishing the rules under which the Foreclosure Mediation Program will function.

For the entire announcement, Nevada Supreme Court Adopts Rules For Foreclosure Mediation Program.

Louisville-Area Court System To Begin Foreclosure Conciliation Project

In Louisville, Kentucky, WFPL Radio 89.3 FM reports:

• Some Jefferson County judges are teaming up with non-profits to help Louisvillians who are faced with foreclosure. Circuit Court Chief Judge Jim Shake says many times homeowners who are dealing with foreclosure are contacted with a lot of scam offers and are afraid to communicate with their lender.

• Shake says under the new Foreclosure Conciliation Project, circuit court judges will require lenders to have a meeting with homeowners before selling their house. He says many of those meetings result in another option being found, but it doesn’t work for everyone.

For the story, see Judges, Non-Profits Offer Foreclosure Help.

Facing Foreclosure? Need To Buy Some Time? Simply Go Into Court & Ask For It

In Sarasota, Florida, the Sarasota Herald Tribune recently ran a story on homeowners facing foreclosure being urged not to abandon their homes but, instead, to stay put and fight back. The following excerpt shows how easy it was for one homeowner in Florida (a state that requires lenders to file a court action in order to foreclose on a home) to buy at least six months time by simply filing one document with the court in a foreclosure action:

• [E]ven homeowners who cannot afford an attorney have been able to successfully buy more time. Many of the required documents can be found online. One Manatee County couple simply asked for a 45-day extension to file an official response to the foreclosure.(1) Six months later, the court finally heard arguments on why they might deserve the extra time.

For the story, see Attorneys advise clients to stay in their homes.

(1) A legal document known as a Motion to Enlarge Time is often used by homeowners and their attorneys to request additional time to file an official response to a foreclosure lawsuit filed against a homeowner. Go here for a sample of a Motion to Enlarge Time. This request for additional time should be filed within 20 days of being served with a foreclosure lawsuit.

Go here for other links to Sample Foreclosure Defense Legal Documents that some use when fighting foreclosures. EpsilonMissingDocsMtg

Use Of Short Sale Promissory Notes To Squeeze Underwater Home Sellers Gaining In Popularity With Lenders?

In Seattle, Washington, the Puget Sound Business Journal reports:

• When her Edmonds condo went on the market, Mindy Moore thought she had managed to avoid foreclosure. Moore listed the home in Edmonds for about $30,000 less than she owed on the mortgage. She thought the “short sale” agreement signed with the bank meant the bank would absorb the loss. Then she discovered that her lender, Bank of America, might still come after her for the difference. That means she may have to let the bank take back her property, or file for bankruptcy because she can’t afford to pay up.

• Experts say the wording,(1) which was recently and quietly added to Bank of America’s short-sale agreement, could have major ramifications for a large group of distressed homeowners in Washington and across the country.

***

• Bank of America said in a statement that it asks for a promissory note from sellers — the term used to describe the written promise to pay back the difference — to protect its “investors and shareholders from the losses in a short sale.” [...] While Bank of America’s short-sale agreement wording appears new, Kevin Kim, a short- sale consultant in Seattle, said other lenders have similar wording in their agreements that would require homeowners to pay the money left on their loan amount.

• Bank of America’s short-sale agreement illustrates the financial complexities facing hundreds of Washington homeowners struggling to deal with underwater mortgages (in which the owner owes more than the house sells for). It also shows the tug-of-war between banks and borrowers as banks try to recoup as much money as they can from their failed loans.

For the story, see BofA wording may cause more foreclosures.

(1) According to the story, at issue is a sentence in Bank of America’s agreement that says its mortgage servicing arm “and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due unless agreed otherwise or prohibited by law.” That means Bank of America could pursue a court order against a homeowner after the short sale is completed.

Deed Scams No Longer Flying Under The Radar In Brooklyn DA's Office

In Brooklyn, New York, a recent story in the Brooklyn Daily Eagle describing the newly formed Mortgage Fraud and Real Estate Crimes Unit of the Brooklyn District Attorney's Office referred to two recent cases in which criminal charges have been brought against alleged deed scammers:

• One man who was arrested earlier this year had forged a deed that said he was the owner of a 39-story co-operative housing unit, where he had lived and even been president of the co-op board — almost two decades prior. He tried to take out multi-million dollar mortgages on the building before being caught.

• Another man who was indicted recently met people in foreclosure, and told them he was an appraiser from their bank. He simply slipped documents in front of them and got the homeowners signatures down. “It was a classic rush job,” [unit chief Richard] Farrell said. “He said it was all a formality — but it’s the deed” that has been signed over.

• To stop these types of bare-bones deceptions, [Brooklyn District Attorney Charles J.] Hynes wants more community education on these issues. “P.T. Barnum famously said that there’s a sucker born every minute,” Hynes said.(1) “Most of the fraud is preventable.”

Source: Brooklyn Prosecutors Responding to Increased Gang and Real Estate Crime.

(1) Using the term "sucker" in a way that could reasonably be construed as an indirect reference to the victims of deed scams appears to be a rather poor choice words on the part of the Brooklyn DA. DeedContraTheft

NJ AG Announces Mortgage Fraud Indictments In Three Unrelated Cases; Among Charges Are Use Of Stolen IDs To Fradulently Obtain Loans

From the Office of the New Jersey Attorney General:

• Attorney General Anne Milgram announced [Tuesday] the indictment of six people charged in three separate, unrelated mortgage fraud cases, including two women charged with spearheading a conspiracy to use stolen identities to obtain more than $1 million in unauthorized mortgages, lines of credit and credit cards.

***

• Charged in a 17-count State grand jury indictment with conspiracy, eight counts of theft by deception, seven counts of identity theft and one count of money laundering are Yi Feng Reid, 48, of Closter, Bergen county, and Yu Jane Chen, 42, whose last known address was Philadelphia. Charged in the same indictment with one count each of conspiracy, theft by deception and identity theft are George Liu, 33, and Ji Gang Chen, 53. Both men once lived in New York, and now reside in China.

• According to Division of Criminal Justice Director Deborah Gramiccioni, defendants Reid and Yu Jane Chen both were involved in the mortgage and small business loan industry in the Bergen County area, and unlawfully used the identities of other people to obtain mortgages, other types of loans and unauthorized credit card accounts from 2004 through mid-2007.

***

• In an unrelated indictment, commercial loan broker Ramon Coscolluela, 30, of Union, was charged by a State grand jury with one count each of theft by deception (second degree) and attempted theft by deception (second degree). Coscolluela, owner of Templar Group LLC of Newark, allegedly falsified five loan applications submitted to Commerce Bank in 2007 and 2008 on behalf clients who paid him fees ranging from $1,000 to $6,000.

***

• In a third mortgage-fraud indictment, Terrance Givens, 32, of East Orange, was charged with one count of theft by deception (second degree). According to Criminal Justice Director Grammicioni, Givens lied about his employment history on a mortgage application in 2005. [...] In addition to misrepresenting his employment history to the New Century Mortgage Company, Givens allegedly submitted false W-2 forms for the years 2002, 2003 and 2004 showing annual wages of between $67,000 and $72,000.

For the entire New Jersey AG press release, see Attorney General Announces Mortgage Fraud Indictments.