Members of Michigan Mortgage Fraud Ring Sentenced – NMP Skip to main content

Members of Michigan Mortgage Fraud Ring Sentenced

NationalMortgageProfessional.com
Apr 01, 2013

Six of seven defendants indicted in connection with the CDC Investments mortgage fraud scheme were sentenced this week, announced U.S. Attorney Pat Miles today. U.S. District Judge Robert J. Jonker sentenced the defendants to prison, as indicated below: ►Eric Williams, a realtor, was sentenced to 12 months in prison. ►CDC co-founder Aaron Teachout was sentenced to 51 months in prison. ►Isaac Modert, another founding member CDC, was sentenced to 60 months in prison. ►Rick Artibee, a mortgage loan officer, was sentenced to 15 months in prison. ►Dennis Sare, a title and closing agent, was sentenced to 15 months in prison. ►Nichole Buda, a mortgage borrower, was sentenced to 18 months in prison. ►The seventh defendant, Mario Giannandrea, is scheduled to be sentenced on May 28, 2013. In most cases, the defendants received a reduced sentence from Judge Jonker because they had provided information to federal investigators about mortgage fraud in the Lansing, Mich. area. The fraud scheme alleged in the Aug. 2, 2012 indictment charged the defendants with engaging in an “equity stripping” scheme involving approximately 35 homes. In the scheme, banks would be asked to finance sham real estate purchases that were designed to extract funds from lenders, which would then be split up among the participants in the scheme to be used for their own benefit. The mortgages were not paid and went into foreclosure, resulting in losses of over $3 million since the lenders were only able to recover a fraction of the outstanding mortgage balances when they sold the properties after foreclosure. This prosecution was brought by the Mortgage Fraud Task Force, made up of investigators from the Federal Bureau of Investigation; the United States Secret Service; the United States Postal Inspection Service; the Department of Housing and Urban Development, Office of Inspector General; and the Lansing Police Department. Prosecution of the case is assigned to Timothy VerHey and Ronald Stella, Assistant United States Attorneys.
Published
Apr 01, 2013
Markets Anxious As Fed Opens 2-Day Meeting

Investors, mortgage brokers & bankers await latest policy statement on fighting inflation

Regulation and Compliance
Jan 25, 2022
Ginnie Mae Streamlines FHA Advanced Loan Modification program

Documentation changes eliminate requirements for recordation and title insurance.

Regulation and Compliance
Jan 24, 2022
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022