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mortgage fraud

Delaware Man Found Guilty in TARP Fraud Kickback Scam

Cherry Red Gavel/Credit: Comstock

Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Charles M. Oberly III, U.S. Attorney for the District of Delaware, has announced that Peter W. Hayes of Newark, Del., has pleaded guilty to one count of accepting a gift for procuring loans, in violation of Title 18, United States Code, Section 215. United States District Judge Richard G. Andrews scheduled a sentencing hearing for March 17, 2015.Click to continue

Nearly $20 Billion in U.S. Mortgage Apps Scarred by Fraud

Mortgage Applications

CoreLogic has released its latest Mortgage Fraud Report, which found that at the end of the second quarter of 2014, the report shows a 3.2 percent year-over-year increase in fraud risk, as measured by the Mortgage Application Fraud Risk Index, and estimates that applications representing approximately $3.3 billion in mortgage debt contained elements of fraud or serious misrepresentations in the second quarter of 2014.Click to continue

Colorado Man Sentenced to Six Years in Prison for Mortgage Fraud Scheme

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Chaval Williams of Centennial, Colo. Has been sentenced by U.S. District Court Judge William J. Martinez to serve 74 months in federal prison for wire fraud, identity theft and money laundering federal authorities have announced. Following his prison sentence, Williams was ordered to serve three years on supervised release. Williams was also ordered by Judge Martinez to pay $766,800.81 in restitution. He was ordered to report to a Bureau of Prisons facility once one is designated.Click to continue

New York State AG Sues Two Law Firms for Loan Mod Scam

Black Gavel Pic/Credit: Brand X Pictures

New York State Attorney General Eric T. Schneiderman has filed a lawsuit in New York County Supreme Court against two law firms and their lead attorney accusing them of participating in a fraudulent mortgage rescue scheme. The lawsuit targets Litvin Law Firm; Litvin, Torrens & Associates, PLLC; and the firms’ principal attorney Gennady Litvin.Click to continue

Ex-NFLer Sentenced to 46 Months for Downpayment Scam

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Former NFL football player Jimmy Hitchcock has been sentenced to 46 months in federal prison, followed by two years of supervised release, for his role in a multi-million mortgage fraud conspiracy, announced U.S. Attorney Anne M. Tompkins. Tompkins was joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) in making the announcment.Click to continue

Missouri Man Sentenced to Four Years for Fraudulent Mortgage Docs

Handcuffs Prison Pic

Tammy Dickinson, U.S. Attorney for the Western District of Missouri, has announced that a Nixa, Mo. man who was a co-owner of Greenleaf Companies has been sentenced in federal court for aiding and abetting a bank fraud conspiracy that was part of a multi-million-dollar mortgage investment scheme. Eric Gagnepain of Nixa, was sentenced by U.S. District Judge Greg Kays to four years in federal prison without parole. The court also ordered Gagnepain to pay $2,911,214 restitution.Click to continue

The Insured Closing Letter is Obsolete


A recent panel on fraud issues I attended included a healthy debate about the extent to which a lender can rely on the insured closing letter as a means to offset risk at the closing table.Click to continue

Two Missouri Agents Sentenced in $11 Million Mortgage Fraud Scheme

Courthouse/Credit: Photodisc

Tammy Dickinson, U.S. Attorney for the Western District of Missouri, has announced that two Blue Springs, Mo. real estate agents and several co-defendants have been sentenced in federal court for their roles in an $11 million mortgage fraud scheme.

Leann Raejeana Turner of Blue Springs, was sentenced to three years in federal prison without parole. The court also ordered Turner to pay $4,912,040 in restitution.Click to continue

Illinois Developer and Two Attorneys Among Six Defendants Indicted in $22.8 Million Mortgage Fraud Scheme

Cherry Red Gavel/Credit: Comstock

An Illinois south loop condominium developer and two attorneys are among six defendants facing federal charges for allegedly engaging in a $22.8 million mortgage loan fraud scheme, federal law enforcement officials announced. The defendants allegedly caused buyers to fraudulently obtain approximately 60 mortgages from various lenders to purchase condominiums at Vision on State, a 250-unit building.Click to continue

California AG Nabs Seven in Loan Mod Scheme

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California Attorney General Kamala D. Harris has announced the arrest of seven suspects who have been charged in a mortgage fraud scheme that defrauded more than 1,550 Inland Valley homeowners seeking loan modification services during California’s foreclosure crisis. The felony complaint alleges that Nehad “Nick” Ayyoub Ayyoub of San Bernardino and president of The Firm Loans, Insurance and Investments Inc.Click to continue