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straw buyers

Minnesota man sentenced to 40 months for role in mortgage fraud scam

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The 31-year-old part owner of Legacy Lending, Thomas John Hunter, of Maple Grove, Minn., was sentenced in federal court in St. Paul for participating in a mortgage fraud scheme that involved 37 separate real estate transactions and $20 million in loan proceeds. United States District Court Judge Richard H. Kyle sentenced Hunter to 40 months in prison on one count of wire fraud and one count of money laundering in connection to the crime. He also was ordered to pay $228,711.43 in restitution. Hunter was charged on Jan. 26, 2010, and pleaded guilty on March 2, 2010.Click to continue

Michigan home builder pleads guilty in mortgage fraud scheme

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Giuseppe Cracchiolo of Romeo, Mich. has pleaded guilty before U.S. District Judge Paul D. Borman to a federal information that charges him with conspiracy to commit wire fraud. Also charged in the one count information was Atiim Collins and Ted Carter, both from Detroit, Michigan, both of whom have already pleaded guilty to the same information.Click to continue

Kansas man pleads guilty to defrauding mortgage lenders

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Jason L. Rabicoff of Overland Park, Kan. has pleaded guilty to taking part in a $3 million mortgage fraud scheme, said U.S. Attorney Barry Grissom. Rabicoff pleaded guilty to one count of wire fraud. In his plea, he admitted that in 2006 while he worked as a loan officer at Apex Financial in Olathe, Kan., he took part with his brother, Eric M. Rabicoff, and others in a scheme to defraud mortgage lenders. The conspirators arranged for straw buyers to purchase homes that were for sale by owners. They obtained financing for the deals by submitting false loan applications to lenders.Click to continue

California escrow officer admits role in mortgage fraud

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Donna Demello has pleaded guilty in federal court in Oakland to conspiracy to commit wire and mail fraud for her role in a mortgage fraud scheme, United States Attorney Melinda Haag announced. At the time of the offense, Demello worked as an escrow officer at Stewart Title in Milpitas, Calif. Demello, currently of San Jose, Calif., was indicted by a federal grand jury on May 13, 2010. She and five others, including James Delbert McConville, were charged with conspiracy to commit mail and wire fraud in violation of Title 18, United States Code, Section 1349.Click to continue

New York attorney and LO found guilty in massive mortgage fraud scheme

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Preet Bharara, the United States Attorney for the Southern District of New York, has announced that Ravi Persaud, a real estate attorney, and George Esso, a former loan officer, were found guilty of participating in a multi-million-dollar mortgage fraud scheme through GuyAmerican Funding Corporation, a mortgage brokerage located in Queens, N.Y. The scheme involved the use of numerous fraudulent loan applications designed to trick banks into lending money to unqualified borrowers for the purchase of residential properties in the New York City area.Click to continue

Ghanaian citizen arrested on fraud charges involving Massachusetts properties

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A citizen of Ghana has been charged in federal court with wire fraud involving millions of dollars for selling at least 16 condominium units to straw buyers who he recruited for the purpose of obtaining mortgage loans based on false loan applications. United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Boston Field Division; Robert Bethel, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Steven D. Ricciardi, Special Agent in Charge of the U.S.Click to continue

New York mortgage broker pleads guilty in $23 million fraud scheme

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Preet Bharara, the U.S. Attorney for the Southern District of New York, has announced that David Ramnauth, former president of GuyAmerican Funding Corporation, a mortgage brokerage firm in Queens, N.Y., has pled guilty to conspiracy to commit bank and wire fraud. Ramnauth was charged in a Superseding Indictment along with eight other defendants for their participation in a scheme that defrauded banks out of more than $23 million in home mortgage loans.Click to continue

Manhattan DA finds three guilty in $100 million mortgage fraud case

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Manhattan District Attorney Cyrus R. Vance Jr., has announced guilty verdicts for defendants Aaron Hand, Kenneth Law and Eric Shields after a jury trial, and for defendant Jerry Strklja after a bench trial. The defendants were found guilty of multiple felonies, including Enterprise Corruption, Scheme to Defraud, Conspiracy, and dozens of Grand Larcenies, all arising from a mortgage fraud scheme conducted through a corrupt loan origination company called AFG Financial Group Inc.Click to continue

Maryland mortgage fraud mastermind sentenced to four-plus years

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U.S. District Judge J. Frederick Motz has sentenced Timothy Reed of Beltsville, Md. to 51 months in prison followed by five years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia, and Virginia using false mortgage and settlement documents. Judge Motz also ordered that Reed pay $4,196,967 in restitution.Click to continue