Facing federal fraud charges are Roberto Caro, 39, Sergio Caro, 37, Orlando Dominguez, 44, Hugo Oliva, 46, Ilan Reyes, 36, and Manuel Caro, 62.

Port St. Lucie police said in 2006 that Manuel Caro ran a pot-growing ring that owned dozens of grow houses in the city.

The federal charges focus not on the drug operation but on the lies the group allegedly told to secure loans on properties they bought from 2003 through 2006. Oliva owned a Miami mortgage firm and helped the group doctor their loan applications, the U.S. Attorney’s Office said.

Prosecutors didn’t explain how the group profited from their deals, but they paid eyebrow-raising prices. Manuel Caro, for instance, paid $370,000 for the home at 6117 N.W. Ginger Lane in Port St. Lucie, only three months after the house had traded for $232,200.

A home at 6320 Ginger Lane sold in 2008 for half the price the group paid in 2006, according to property records. In another deal, Sergio Caro bought 16185 80th St. N. in Loxahatchee in 2005 for $355,000, then resold it in 2006 to Dominguez for $420,000.

Other properties the group bought: 3553 Forest Hill Blvd. in Palm Springs; 150 S.E. Duval Ave., 244 S.E. Thornhill Drive, 231 N.W. Curtis St., 1913 S.W. Sylvester Lane, 2427 S.W. Page Circle and 352 S.W. Lakehurst Drive in Port St. Lucie; and 6507 Student Way in Fort Pierce. The alleged scammers also bought a home in Miami.

http://www.palmbeachpost.com/money/real-estate/6-charged-in-mortgage-fraud-scheme-linked-to-830805.html

Paul Wagner of Wagner Homes Inc. was indicted on Wednesday on charges of bank fraud, wire fraud and conspiracy, according to a report in the Las Vegas Review-Journal. The indictment was part of the Federal Bureau of Investigation’s wide ranging mortgage-fraud dragnet, dubbed “Operation Stolen Dreams.” Some 485 individuals had been arrested under Operation Stolen Dreams through mid-June covering more than $2.3 billion in losses.

The indictment alleges that Mr. Wagner boosted the price of the homes he was trying to sell in order to cut generous commissions for buyers and real-estate agents. The FBI said its investigation found that Mr. Wagner sold 100 homes from 2005 to 2009, and that almost every home was either in foreclosure or had been foreclosed upon by the lender.

The Journal’s 2008 story told of how the end of the housing bubble had led builders across the overheated Las Vegas market to boost incentives, offering cars, swimming pools, or cash to entice buyers to sign contracts:

Wagner Homes Inc., a local home builder, advertises in big capital letters at the top of a flyer “$130,000 commission any way you like it!” for homes in developments like “Dawn Day Fusion,” a northwest Las Vegas subdivision that offers homes with Asian-inspired architectural flourishes. New homes listed there in mid-July for $530,000 even though similar model homes in that development sold for $400,000 two years ago.

“A fee that high has got to raise a bunch of flags,” says Kenneth LoBene, HUD’s Las Vegas field director, because builders typically reduce the price of the home rather than offer such large incentives and because homes in that subdivision have sold for as little as $240,000 in foreclosure auctions. Representatives of Wagner Homes didn’t return calls seeking comment.

Steve Hawks, a Las Vegas real-estate agent, points to offers like this as one that a commercial lender wouldn’t back if properly disclosed. “You find me an institutional investor that’s going to buy this loan,” he says.

As recently as this week, Dawn Day has continued to circulate generous offers on certain properties to local real-estate agents by offering 10% commissions on home sales. A website for Mr. Wagner’s Nevada Homes Group offers a coupon for $16,000 in cash back on new homes priced in the $100,000s. The home-shopping website also helpfully includes a link to search for local Chinese food delivery.

Mr. Wagner’s attorney, John Momot Jr., said his client would enter a plea of “not guilty” at a court appearance on Aug. 13. “He wants to go forward and vindicate himself,” said Mr. Momot.

http://blogs.wsj.com/developments/2010/07/30/feds-not-impressed-by-vegas-builders-generous-incentives/

The Federal Trade Commission said Monday that it has ordered the firms and individuals to return $29.2 million in fees that they allegedly collected from clients. However, some of the individuals charged are unable to pay and the agency said it has agreed to suspend $11.5 million in judgments.

The settlements were the latest actions against marketers who authorities said exploited distressed homeowners to turn a profit.

Since the housing crisis began, the FTC has brought 29 cases against those who have falsely promised mortgage relief in exchange for hefty fees up front. The agency said it would continue to pursue relief scams.

Some of the companies used names that deceived borrowers into believing the firms were participating in the Obama administration’s $75 billion mortgage modification effort, known as “Making Home Affordable.”

In the settlements announced Monday:

_Steven Oscherowitz, affiliated with a firm called Federal Loan Modification Law Center, was ordered to pay $11.5 million. The FTC said Oscherowitz’s firm received that much from consumers in the alleged scam. His firm charged as much as $3,000 to each client, most of which was required in advance. The firm often failed to deliver loan modifications, the FTC said. In addition to being banned from selling mortgage relief services, Oscherowitz is not permitted to operate telemarketing businesses, the FTC said.

Oscherowitz couldn’t be reached for comment Monday. The agency said it continues to pursue cases against others linked to the firm.

_Loss Mitigation Services Inc. and Direct Lender were ordered to pay a total $6.2 million. Little money is likely to be collected from the two firms, however, which were shut down and taken over by a court-appointed receiver. The FTC has indicated that only small amounts sit in the firms’ frozen accounts.

Dean Shafer, Marion Anthony “Tony” Perry and Bernadette Perry were banned from selling the services, but the $6.2 million judgment against them was suspended because of their inability to pay. The FTC said they falsely promised loan modifications if homeowners paid as much as $5,500. They couldn’t be located for comment.

_Salvatore and Nicholas Puglia, of Hope Now Modifications and Hope Now Financial Services Corp. were ordered to pay $5.3 million. The FTC said that judgment will be suspended when they surrender all the funds in their bank accounts, which had been frozen by the court.

The agency said the Puglias and the firms falsely claimed they were linked with the federal government’s Hope Now program and that they could achieve modifications in nearly all cases _ or would refund customers’ money. They couldn’t be located for comment. The attorney representing them in the case, Richard Gallucci, didn’t immediately return a telephone call seeking comment.

http://www.lasvegassun.com/news/2010/jul/30/ftc-bans-8-marketers-from-selling-mortgage-relief/

The complaints accuse nine Michigan mortgage companies of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance. After paying the upfront fee, borrowers found that the companies made no real attempt to secure a modification and were subsequently unable to get their money back. Many victims lost their homes to foreclosure.

The charges include multiple counts of felony and misdemeanor false pretenses and violations of the Michigan Credit Services Protection Act. “False pretenses” is the crime of obtaining money or property through knowingly making false statements intended to deceive the victims into delivering title to property.

“These companies took advantage of struggling Michigan families trying to hold onto the American dream,” said Cox.

Wayne County complaints involve Livonia resident Guy Humeniuk, Livonia-based Modification Company (aka The Modification Center in Livonia) and Westland-based Federal Modification.

Oakland County complaints involve West Bloomfield residents Steven Barry Ruza (aka Steven Barry) and Kevin Nafso, Commerce Township-based Global Loan Modification, Southfield-based Flagstone Partners Inc. and Legal Researchers, Highland resident Chris Martin, and Highland-based Home Rescue Corporation.

In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints. His office has charged 46 people or companies with a mortgage fraud-related offense in the last 23 months.

The Federal Trade Commission said Monday that it has ordered the firms and individuals to return $29.2 million in fees that they allegedly collected from clients. However, some of the individuals charged are unable to pay and the agency said it has agreed to suspend $11.5 million in judgments.

The settlements were the latest actions against marketers who authorities said exploited distressed homeowners to turn a profit.

Since the housing crisis began, the FTC has brought 29 cases against those who have falsely promised mortgage relief in exchange for hefty fees up front. The agency said it would continue to pursue relief scams.

Some of the companies used names that deceived borrowers into believing the firms were participating in the Obama administration’s $75 billion mortgage modification effort, known as “Making Home Affordable.”

In the settlements announced Monday:

_Steven Oscherowitz, affiliated with a firm called Federal Loan Modification Law Center, was ordered to pay $11.5 million. The FTC said Oscherowitz’s firm received that much from consumers in the alleged scam. His firm charged as much as $3,000 to each client, most of which was required in advance. The firm often failed to deliver loan modifications, the FTC said. In addition to being banned from selling mortgage relief services, Oscherowitz is not permitted to operate telemarketing businesses, the FTC said.

Oscherowitz couldn’t be reached for comment Monday. The agency said it continues to pursue cases against others linked to the firm.

_Loss Mitigation Services Inc. and Direct Lender were ordered to pay a total $6.2 million. Little money is likely to be collected from the two firms, however, which were shut down and taken over by a court-appointed receiver. The FTC has indicated that only small amounts sit in the firms’ frozen accounts.

Dean Shafer, Marion Anthony “Tony” Perry and Bernadette Perry were banned from selling the services, but the $6.2 million judgment against them was suspended because of their inability to pay. The FTC said they falsely promised loan modifications if homeowners paid as much as $5,500. They couldn’t be located for comment.

_Salvatore and Nicholas Puglia, of Hope Now Modifications and Hope Now Financial Services Corp. were ordered to pay $5.3 million. The FTC said that judgment will be suspended when they surrender all the funds in their bank accounts, which had been frozen by the court.

The agency said the Puglias and the firms falsely claimed they were linked with the federal government’s Hope Now program and that they could achieve modifications in nearly all cases — or would refund customers’ money. They couldn’t be located for comment. The attorney representing them in the case, Richard Gallucci, didn’t immediately return a telephone call seeking comment.

http://www.google.com/hostednews/ap/article/ALeqM5iEAobzTBu_Uib37eFC8CmKnl4JMwD9H70D6O0

Under the settlements, the marketers are now banned from peddling such programs in the future.

The FTC actions are part of a larger crackdown by federal authorities against deceptive mortgage modification promotions that prey on desperate homeowners facing foreclosure.

In the case of the Federal Loan Modification Center, Steven Oscherowitz was accused by the FTC of charging consumers up to $3,000, “much of which they required up-font, but…often failed to live to the promised results, the FTC said.

The order imposes an $11.5 million judgment against Oscherowitz, which represents the amount consumers paid to the defendants while he was involved in the alleged scheme

In the case of Loss Mitigation Services, defendants Dean Shafer, Marion Anthony “Tony” Perry, and Bernadette Perry, also known as Bernadette Carr and Bernadette Carr-Perry, settled allegations that they “falsely promised that a loan modification was assured or virtually assured if consumers paid an advance fee of up to $5,500, the FTC said.

Shafer and the Perrys, who were principals of Loss Mitigation Services, Inc. (LMS) and Synergy Financial Management Corporation – doing business as Direct Lender or DirectLender.com (Direct Lender) – also allegedly misrepresented that the companies were a department of, or affiliated with, the consumer’s lender or mortgage servicer, the FTC said.

In the case of Hope Now Modifications, brothers Salvatore and Nicholas Puglia, doing business as Hope Now Modifications LLC, and Hope Now Financial Services Corporation, settled FTC charges that they “falsely claimed that they could obtain mortgage loan modifications in all or virtually all cases and would refund consumers’ money if they failed,” the FTC said.

The federal agency also charged that Hope Now Modifications falsely claimed an affiliation with, or was part of, the HOPE NOW Alliance, a free federal homeowner assistance program.

http://ecreditdaily.com/2010/07/deceptive-marketers-banned-mortgage-fix-services-ftc/

The District’s risk of mortgage fraud is among the highest in the country, according to recent analysis from CoreLogic.

D.C. ranked sixth, Maryland was 15th and Virginia was 17th at the end of last year, according to Frank McKenna, vice president of fraud strategy at CoreLogic, a California business analytics company.

Still, the area’s rankings have improved from several years ago. D.C., Maryland and Virginia were ranked first, third and sixth in fraud risk, respectively, at the peak of the housing bubble in the second quarter of 2007, according to CoreLogic’s recently released “2010 Mortgage Fraud Trends Report.”

Although mortgage fraud is increasing nationally, fraud risk levels are falling, the report said. The discrepancy has occurred because it takes about three years for a mortgage fraud to be recognized, and therefore the industry is still feeling the effects of fraud that originated several years ago, it said.

Another reason is that the recognition of fraud as a problem is increasing, McKenna said.

“But with an estimated $14 billion in fraud losses experienced in 2009 alone, fraud is still a major issue for the mortgage industry,” said Tim Grace, senior vice president of Fraud Analytics at CoreLogic. “While the industry has done good work there is evidence that fraud patterns are changing and becoming increasingly better hidden.”

In 2009, Maryland established the Maryland Mortgage Fraud Task Force to address the issue.

“I believe that we are making an impact,” said Rod Rosenstein, U.S. attorney for the District of Maryland. “Obviously we know that there are cons still out there trying to take advantage of homeowners and mortgage lenders.”

Maryland was ranked sixth and Virginia 10th in mortgage fraud last year, according to a report released in April by the Mortgage Asset Research Institute.

“Borrowers are often at a disadvantage because they don’t understand all the details of their transactions,” Rosenstein said.

“One thing to keep in mind is there’s a lag time between the fraud and [the] enforcement,” he added. “Our caseload is still growing”

Read more at the Washington Examiner: http://www.washingtonexaminer.com/local/D_C_-ranks-sixth-in-mortgage-fraud-risk-1003138-99142229.html#ixzz0vD7vsYut ]]> http://www.mortgagefraudresources.com/blog/?feed=rss2&p=1718 http://www.mortgagefraudresources.com/blog/?p=1716 http://www.mortgagefraudresources.com/blog/?p=1716#comments Fri, 30 Jul 2010 02:54:28 +0000 admin http://www.mortgagefraudresources.com/blog/?p=1716 The co-owner of Ridgewood, N.J. mortgage brokerage firm Diversified Financial Group, d/b/a Residential Mortgage Corporation, and a former Residential Mortgage employee have pleaded guilty to wire fraud conspiracy in connection with a mortgage fraud scheme, U.S. Attorney Paul J. Fishman announced. Edward Olimpio of Boonton, N.J., and Rachell Fischbein of Hillsdale, N.J., both entered guilty pleas before United States District Judge Susan D. Wigenton, admitting that they conspired with each other and others—including a co-conspirator who during the relevant time period served as the Chairman and a Commissioner of the Bergen County Improvement Authority (BCIA)—to commit wire fraud in connection with fraudulent mortgage and home equity loans brokered by Residential Mortgage between 2006 and 2009. The scheme allegedly involved the submission to mortgage lenders of fraudulent loan applications and supporting documents that falsely claimed borrowers were employed by and receiving income from BCIA

Olimpio and Fischbein admitted that they, along with other participants in the mortgage fraud scheme, would falsely represent, on mortgage loan applications and other documents, that certain borrowers were employed by and received salaries from the BCIA, when those individuals did not work there. In support of these false representations, the co-conspirators arranged for the BCIA staff to falsely respond to telephone calls from banks and other mortgage lenders seeking to verify borrowers’ employment. Olimpio and Fischbein also admitted that they and their co-conspirators created and arranged for the creation of phony BCIA pay stubs and IRS Forms W-2, which were also submitted to lenders.

Olimpio, Fishbein, and their co-conspirators also made false representations regarding borrowers’ employment at places other than the BCIA, and created similar false documentation in support of such claims. They also created false asset information for borrowers, including by falsifying certain co-conspirators’ own bank and brokerage account statements to make it appear that the statements belonged to the borrowers.

Both defendants pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

Fishman credited Special Agents of the Federal Bureau of Investigation (FBI), under the direction of Special Agent in Charge Michael B. Ward, and the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent in Charge William P. Offord, for their work in the investigation of this case. He added that the investigation is ongoing. The case is being prosecuted by Assistant U.S. Attorney Rachael A. Honig, Deputy Chief of the U.S. Attorney’s Office Criminal Division.

http://nationalmortgageprofessional.com/news19210/residential-mortgage-employees-and-public-official-busted-garden-state-fraud-ring

According to court documents and statements made in court, in 2006, Jackson conspired with a New Haven-based real estate attorney and an East Hartford-based mortgage broker to defraud Mortgage Lender Network USA, Inc., a Florida corporation with offices in Middletown, through the purchase of Meriden residential property.

Working with the attorney and mortgage broker, Jackson signed a loan application provided by the mortgage broker for a loan in the amount of $280,000. Both Jackson and the mortgage broker knew that application contained several material misrepresentations, including Jackson’s true financial condition.

The application also falsely represented the purchase price of the property, which was substantially less than reflected on the loan application; that the property was to be Jackson’s primary residence, when it was not; Jackson’s total liabilities, which were much higher than represented on the application, and that Jackson would provide approximately $60,000 in cash at the loan closing.

On approximately July 21, 2008, as part of the scheduled loan closing, Mortgage Lender wired approximately $283,000 into the attorney’s trust account. At the closing, JACKSON signed a HUD settlement statement, which was prepared by the attorney, that overstated the actual purchase price of the property by more than $150,000. That stated that Jackson had made an earnest payment toward the purchase. In fact, Jackson had not made a payment. Instead, the attorney had made a payout to Jackson.

Judge Droney has scheduled sentencing for Oct. 15, at which time Jackson faces a maximum term of imprisonment of five years and a fine of up to $250,000.

This case is being investigated by Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Senior Litigation Counsel Christopher W. Schmeisser.

http://www.middletownpress.com/articles/2010/07/29/news/doc4c51d02c19c41952396766.txt

As part of his services, Lewis is suspected of requiring his victims to pay upfront fees for his services, which is illegal under the Colorado Foreclosure Protection Act, and he has acquired an interest in his victims’ properties as part of his agreements. In some cases, Lewis has rented out properties he has acquired an interest in while he delays foreclosure through his frivolous lawsuits.

In one case, Lewis is suspected of advising a quadriplegic victim in Jefferson County, Colo. to file multiple lawsuits to challenge foreclosures on his home and two other properties. Lewis is suspected of charging the man more than $20,000 in exchange for the “legal work” he performed for the victim. In another case, Lewis is suspected of occupying an elderly Illinois woman’s home rent-free for more than a year. When the woman attempted to repossess her own home, Lewis filed a lawsuit against her claiming racial discrimination.

http://nationalmortgageprofessional.com/news19192/colorado-ag-files-suit-suspected-fraudulent-foreclosure-rescue-legal-services-operation