Christopher Jared Warren- Nevada County Jail & TBW Lack of Oversight
Warren was 19 when he was hired by Ameriquest Mortgage Co. He became a top-producer.
Selling around $5 million in high-interest loans and earning $30,000 per month. "My managers and handlers taught me the ins and outs of mortgage fraud, drugs, sex, and money, money and more money," he wrote. His manager, a friend, handed out the crystal methamphetamine to keep loan officers up and at work longer hours, he wrote. In between trips to the bathroom to do drugs, he and his colleagues pushed through millions of dollars in loans by falsifying people's incomes. "A typical welcome aboard gift was a pair of scissors tape and white out," he wrote.
He even hacked into the Ameriquest computer to approve his own loans. At 22, he left the company with its entire customer database and started his own mortgage company.
According to the Treasury Department, here is how it worked: Warren and other directors of a company called Loomis Wealth Solutions held seminars, luring investors with the promise that they could use their home equity to help them get out of debt.
He operated in six states, including Florida, and continued the fraud, faking credit scores and income on mortgage applications.
"As a 22, 23, and 24 year old with no credentials, I made over $2.25 (million)," he wrote, "all of which was spent on 24 cars … 5 houses, drugs, 1 engagement and split, 1- 300 person wedding and two kids."
When that company collapsed in 2007, he went to work for another company that federal investigators say was essentially a Ponzi scheme built upon real estate fraud. It stretched through five states, involved about 500 properties, and led to $100 million in losses.
Initially, investors bought a life insurance policy through Loomis. Then they were enticed to move into higher "tiers" of involvement. In the second tier, investors liquidated their home equity with the promise the money would be invested through Loomis without tax consequences.
The money went into a fund that allegedly would be loaned out to subprime borrowers, giving investors a 12 percent return.
Fund investors received periodic statements that showed their balances increasing by the promised 12 percent. When regulators seized Loomis' records last August, they discovered the fund, which had taken in millions of dollars, only had about $1,700 in its account.
At 26, he described how he had gotten rich off of lies, and how he and his colleagues had defrauded mortgage holders of millions.
Triduanum Financial Inc., entered Taylor Bean's universe last October — as the financial services, industry was in utter upheaval.
Triduanum applied with Taylor Bean to become a correspondent lender, meaning it could fund and close mortgage loans in its own name and then sell the loans to Taylor Bean within a few days or weeks.
In a two-month period — from Nov. 26 to Jan. 27 — Taylor Bean bought 30 loans from Triduanum that were never actually closed.
However, Taylor Bean did not catch those lies and oversights before it gave the company authority to start making loans. Warren and a partner redirected $7 million from those loans to gold bullion dealers, a Swedish bank account, a jewelry company, and rare coin dealers.
In a lawsuit against Triduanum, Taylor Bean said it was misled from the get-go.
Triduanum's application was rife with omissions and lies.
Taylor Bean's woes were much deeper: Federal agents said the company had "irregular transactions" that raised concern about fraud.
However, the relationship between Taylor Bean and Warren's company, Triduanum Financial Inc., sheds light on how the system worked, or did not work.
The combination of a shady mortgage lender and a lack of oversight from the company that bought its loans turned into a toxic mess.
"Built a fraudster by my trainers in corporate America."
"Mastered the fraud"
"Trained others in the fraud,"
He wrote, "and it utterly disgusts me."
Warren is now at the Nevada County Jail in Nevada City, Calif., awaiting trial on charges that include money laundering and identity theft.