Mortgage fraud

November 4, 2009 -- TAMPA -- United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.

There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and “foreclosure rescue schemes” which prey on distressed homeowners.    » read more »

Defendants Charged With Fraudulently Obtaining More Than $64 Million in Residential Mortgages on More Than 100 Properties; Lawyers, Mortgage Brokers, and Loan Officers Among Those Arrested in "Operation Bad Deeds"

October 15, 2009 -- PREET BHARARA, the United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation ("FBI"), RICHARD H. NEIMAN, the Superintendent of Banks for New York State, RENE FEBLES, the Special Agent-in-Charge of the New York Field Office of the Department of Housing and Urban Development, Office of Inspector General ("HUD-OIG"), BRIAN G.    » read more »

HB 232 is part of broad statewide effort to combat foreclosure and foreclosure-related fraud

October 05, 2009 -- WILMINGTON – Delaware Governor Markell signed legislation into law today clarifying protections of homeowners in foreclosure. House Bill 232 clarifies that companies that offer to negotiate modifications of secured debt, such as a mortgage, on behalf of consumers are subject to the provisions of the Mortgage Rescue Fraud Protection Act, which prevents companies from charging homeowners who are in foreclosure thousands of dollars in up-front fees to negotiate with loan servicers or lenders.    » read more »

Amid Foreclosure Crisis, Local Prosecutors Lack the Resources, Manpower to Fight New Wave of Mortgage Scams

September 29, 2009 -- WASHINGTON, DC—U.S. Senators Charles E. Schumer (D-NY) and Jon Kyl (R-AZ) announced new legislation Tuesday to better protect homeowners from the recent wave of mortgage scams by providing up to $200 million over two years for State and local prosecutors offices to battle real estate fraud. The bill authorizes the Justice Department to award competitive grants to prosecutors’ offices that seek to hire specialized staff—including investigators, forensic accountants, and attorneys—to combat such scams.    » read more »

August 24, 2009 -- ANCHORAGE, AK—United States Attorney Karen L. Loeffler announced that on August 21, 2009, lead defendant Lance Lockard was sentenced to 70 months in prison for his leadership of a large-scale mortgage fraud scheme.    » read more »

Has Led To Indictment Of 8 Individuals And The Opening Of More Than 80 Cases - Unit Cracking Down On Flood Of Mortgage Fraud Cases Infecting Brooklyn

June 22, 2009 -- Today, U.S. Senator Charles E. Schumer and Kings County District Attorney Charles J. Hynes announced that the Kings County Mortgage Fraud and Real Estate Crimes Unit has led to the indictment of eight individuals and the opening of more than 80 cases. One such case involves Thomas Prusik-Parkin, the man accused of impersonating his deceased mother to collect Social Security benefits and rent subsidies.    » read more »

May 7, 2009 -- WASHINGTON, DC - U.S. Housing and Urban Development Secretary Shaun Donovan today unveiled the Department's fiscal year 2010 budget, which focuses on responsibility, effectiveness and transparency. The proposed 2010 budget exercises strong fiscal discipline, consolidating or eliminating 27 programs and activities, and investing in initiatives to increase transparency and accountability.    » read more »

May 7, 2009 -- Acting United States Attorney Michelle L. Jacobs announced today that a federal grand jury in the Eastern District of Wisconsin returned a twenty four count indictment charging five people with wire fraud and money laundering in connection with a mortgage fraud scheme. Charged were Paul J. Zaleski, 60, formerly of Richmond, Illinois; Michael Pembroke, 45, of Twin Lakes, Wisconsin; John F. Hochrek, Jr., 48, of Spring Grove, Illinois; Patricia Lynn Kay, 47, of Kenosha, Wisconsin; and Robert Farrell, 29, formerly of Richmond, Illinois.    » read more »

April 27, 2009 -- WASHINGTON - A federal grand jury has indicted four defendants, and an information has been filed against a fifth defendant, for their participation in a massive mortgage fraud scheme that allegedly promised to pay off homeowners’ mortgages on their "Dream Homes," but left them to fend for themselves, Assistant Attorney General of the Criminal Division Lanny A. Breuer and U.S. Attorney for the District of Maryland Rod J. Rosenstein announced today.

The indictment was returned on April 22, 2009, and unsealed today.    » read more »

Defendants Allegedly Violated Consumer Protection, Civil Racketeering Acts

June 17, 2008 -- TRENTON -- New Jersey Attorney General Anne Milgram filed mortgage fraud lawsuits against 36 defendants charging consumer fraud and civil racketeering by various mortgage brokers, real estate entities and others throughout New Jersey.    » read more »

May 8, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today announced that a Central Florida woman has been sentenced to 18 years in prison to be followed by 10 years of probation for participating in criminal mortgage fraud schemes.

Patricia C. Grant and her daughter, Geisha Morris, were previously found guilty by an Orange County jury for their role in a mortgage fraud ring that operated throughout Central and South Florida. The case was prosecuted by the Attorney General’s Office of Statewide Prosecution.    » read more »

April 15, 2008 -- WASHINGTON, DC-Today, U.S. Senators Bob Casey (D-PA) and Mel Martinez (R-FL) were joined by Congressman Paul Kanjorski (D-PA) and Congresswoman Judy Biggert (R-IL) to announce the introduction of the bipartisan Fair Value and Independent Appraisal Act in the Senate.

The bill, which is substantially similar to a proposal advanced in the House by Congressman Kanjorski and Congresswoman Biggert, aims to combat mortgage fraud and prevent “house flipping schemes” by requiring a second independent appraisal for high-risk, high interest mortgages.    » read more »

April 7, 2008 -- WASHINGTON, DC-Today, U.S. Senator Bob Casey (D-PA) introduced an amendment to the Truth in Lending Act to combat mortgage fraud and prevent “house flipping schemes.” The amendment, introduced with the support of Senator Mel Martinez (R-FL), would require a second independent appraisal for high-risk, high interest mortgages.

“A disturbing byproduct of the increased rates of foreclosures is unscrupulous individuals trying to profit from other people’s losses,” said Senator Casey. “Stopping these flipping schemes will help give confidence to those buying homes that appraisals on their new homes are accurate and won’t come back to haunt them later.”    » read more »

Deceptive Tactics Sent Five Homeowners into Foreclosure

April 8 , 2008 -- Chicago – Illinois Attorney General Lisa Madigan filed a lawsuit late yesterday against a Chicago-based mortgage rescue fraud firm for allegedly violating the Consumer Fraud and Deceptive Business Practices Act for activities that have caused at least five homeowners to lose their homes to foreclosure.    » read more »

April 3, 2008 -- LANSING - Michigan Governor Jennifer M. Granholm today signed a 13-bill package that will help protect Michigan consumers from mortgage fraud and unfair lending practices by requiring the state's estimated 20,000 mortgage loan officers to register with the state's Office of Financial Services (OFIS).

House for sale sign: Photo by mrbill (CC)    » read more »